AGRICULTURAL FINANCE 



15 



Table 16. — Frequency Distribution of Total Mortgage at Time Farms Were 

 Ptirchased, by Periods, 151 Massachusetts Farms. 



There were 88 percent of those with mortgages up to $3,000 that had a net worth 

 of 50 percent or more in land and buildings; but only 55 percent of those with 

 larger mortgages were in this category. 



The sources from which farmers borrowed for their mortgages when purchasing 

 the farm are shown in Table 17. Previous to 1911 individuals were the major 

 source of borrowing for mortgages. Since that time banks, primarily savings 

 banks, have supplied the largest proportion of farmers with funds to buy farms. 

 The Federal Land Bank and Land Bank Commissioner have been growing in 

 importance. 



Table 17. — Frequency Distribution of Mortgages, Showing Source of 



Borrowing atlpifferent Periods ivhen Farm was Purchased, 



151f Massachusetts Farms. 



Period When Purchased 



Period When Purchased 



Total ■ 



Total 



Source of 

 Borrowing 



1931- 1921- 1911- Before 

 1940 1930 1920 1911 



1931- 1921- 1911- Before 

 1940 1930 1920 1911 



Number of Farms 



Percent of Farms 



Banks 15 36 



Individuals '9 16 



Federal Land Bank and 



Land Bank Commissioner. 7 3 



Cooperative banks 2 4 



Others 1 1 



Totals 34 60 



18 



78 

 46 



10 

 11 

 6 



44 

 26 



21 

 6 

 3 



60 

 26 



5 



7 

 2 



55 

 24 



38 

 54 



52 

 30 



7 



7 



4 



24 151 100 100 100 100 100 



The mortgages outstanding b}' sources at the time the survey was taken are 

 shown in Table 18. The four principal sources of mortgages were banks 40 

 percent, Federal Land Bank 27 percent, individuals 17 percent, and Land Bank 

 Commissioner 9 percent. "Others" accounted for only 7 percent. This indicates 

 that a considerable shift has taken place in the source of mortgaging since the 

 time when the farms were first mortgaged. State reports indicate that the Fed- 

 eral Land Bank and Land Bank Commissioner have only 19 percent of the total 

 mortgages outstanding in the State; but even this would indicate a large amount 

 of shifting if the original loaning agencies shown by this study were used as an 

 indication. 



