28 ANIfUAL REPORTS OF DEPARTMENT OF AGRICULTURE. 



A comprehensive study of farm organization and land utilization 

 in the region has been begun by the department in order to deter- 

 mine in just what parts of the region a permanently profitable agri- 

 culture can be established and just what types of farming are best 

 suited to the different parts of the region. 



AGRICULTURAX CREDIT. 



The agricultural credits act of 1923 established 12 intermediate 

 credit banks, one to serve each of the Federal land-bank districts. 

 It increases from six months to nine months the term of discount on 

 agricultural and livestock paper by the Federal reserve banks. It 

 broadens the definition of agricultural paper so as to include credit 

 used in the preparation for market and the marketing of agricultural 

 products by farmers' cooperative associations. It increases from 

 $10,000 to $25,000 the maximum mortgage loan to individual farmers 

 by the Federal land banks. It gives the borrowers from the land 

 banks a measure of control of these institutions. It authorizes the 

 organization of national agricultural credit corporations which will 

 prove of special benefit to the parts of the country where the live- 

 stock industry is most prominent. 



Wliile the law does not authorize direct loans to individual farmers, 

 local agricultural credit corporations may be organized by such farm- 

 ers in order to obtain discount privileges. In some States evidently 

 the State laws must be amended before farmers can get the full bene- 

 fit of the Federal law in this way. Bankers and business men in com- 

 munities where present facilities are inadequate may also organize 

 such corporations. Only in localities where present credit facilities 

 are inadequate or where local banks, by reason of the limitation upon 

 interest rates provided in the law, or for other reasons, refuse to 

 avail themselves of the facilities for intermediate credit afforded 

 them by the new banks, is it believed necessary or desirable that agri- 

 cultural credit corporations should be established. 



This agricultural credits act if vigorously administered should be 

 most helpful in furnishing the sort of credit needed to meet the 

 peculiar needs of the farmer. 



INCREASEaj ACTIVITY UNDER THE WAREHOUSE ACT. 



Changes have been taking place in methods of marketing and 

 financing farm products due to the increased credit facilities which 



