AlaladjustmenU in Land Vse 



35 



The maximum niimbpr of loans was made in W.>i?> 

 when the total of fi33,/)Sri rpjirospnteil aliouf ono loan 

 for every 10 farms in the rountrv. In individual 

 States this ratio ran as hi<2;li as 22 percent for North 

 Dakota and for individual counties the ratio was sub- 

 stantially higher. The ratio of total number of crop 

 production loans to total number of farms in each 

 county in 1933 is shown in iisrure 5; and tbe ratio of 

 feed loans to total nundier of farmers on August 31, 

 1934, is show II in figure fi. The higli-ratio counties 

 are chiefly concentrated in the spring-wheat pioducing 

 States of the (ireat Plains and in the Southeastern 

 cotton States. While unusual climatic conditions have 

 been largely responsible for much of the financial dis- 

 tress, the continued reliance on Federal emergency 

 financing seems to indicate that reorganization of 

 farming jirograms and possibly withdrawal of marginal 

 lands will be recpiired to attain a sounder economic 

 organization in fliese areas. 



The basis ui)on which these loans liave been made, 

 liiuited as the l<ians are j)rimarily to financing the pur- 

 chase of seed and feed, has prevented many farmers 

 from making necessary changes in their farming pro- 

 gram. In many cases, it is probable tliat if loans were 



designed to enable the farmer to reorganize his farming 

 operations tliey niiglit lead to a better utilization of his 

 land and a higher standard of living, as well as to 

 greater economic security. 



This examination of the seed-loan situation suggests 

 that the Federal (iovernment lias been called upon to 

 supply extensive eiuergency financing in many of tbe 

 areas which should j)robably be classified as unsuitable 

 for farming purposes. 



(ieneral Social ('(iii</ifi(ins. The western fireat Plains 

 is a region of large farms and hence of sj)arse settle- 

 ment. The average density of poi)ulation in western 

 South Dakota, for example, is between one and three 

 ])er square mile; in North Dakota it is perhaps twice 

 tliat number. In Montana, Colorado, and Wyoming 

 the population is nearly everywhere less than two per 

 s(|uare mile. This sparseness of settlement has en- 

 forced a high degree of isolation and has reduced the 

 opportunity for (be development of community life. 

 Moreover, it has meant that large numbers of people 

 are denied access to physicians, hospitals, or even 

 churches. 



It is a geogra])hical truism that wherever population 

 is small in relation to area the institutional pattern is 



U S DEPARTMENT OF AGBICULTURE 



BUREAU OF AGRICULTURAL ECONOMICS 



KiGi'iiE 5. In 19:):) the larBOst nunihcr of einerBi'iny c:rii|i liiiin.^ were niiule in Uic .Southca-sli'm Sliile-s mid in Nnrlh Dakota ami .Montana, .\dverse oconoinic condition.s, 

 together with drought conditions in some areas, accounted (or the larpe demand for this type of credit. 



