AGRICULTURAL FINANCE 13 



The proportion of mortgaged farms in the study differs from the proportion 

 reported by the census and others (Table 13), but the reason or reasons for this 

 difference could not be determined from available data. Investigation into some 

 of the possible reasons showed the following: 



1. Since the census includes part-time farms, the possibility that the condi- 

 tions on these farms might influence the results was considered. However, a 

 study of 180 owner-operated part-time farms in the Lowell and Taunton areas in 

 1929, by Dr. David Rozman, showed 68 percent of them mortgaged. 



2. Since the census shows by its distribution of gross income on farms that it 

 includes many small farms, the proportion of small farms mortgaged might ex- 

 plain some variation. Sorted for size on total productive man-work units, this 

 study shows that 73 percent of the farms up to 300 productive man-work units 

 in size were mortgaged; while of the farms of over 700 productive man-work 

 units, 63 percent were mortgaged. 



3. High value of farm land per acre might explain some of the difference. Dr. 

 Rozman, in his bulletin "Interrelationships of Land Uses in Rural Massachusetts," 

 classified towns of less than 10,000 population in three groups on the basis of as- 

 sessed value per acre of farm land. Using this classification, the proportion of 

 mortgaging shown by this study was 62 percent in low-value towns, 60 percent 

 in medium-value towns, and 73 percent in high-value towns. 



4. On the basis of type of farming, this study shows that 6G percent of dairy, 

 70 percent of poultry, 80 percent of vegetable, 73 percent of fruit, 100 percent of 

 onion, and 81 percent of tobacco farms were mortgaged. 



5. A factor which might explain the variation is method of farm acquisition. 

 This study shows 41 percent of inherited farms mortgaged, compared to 81 per- 

 cent of purchased farms. A study made by Dr. A. H. Lindsey shows 42 percent 

 of inherited and 59 percent of purchased farms mortgaged. In this study 28 

 percent of the farms were inherited; in Dr. Lindsey 's study, 30 percent. 



6. Rich men's farms might also influence census data. 



The following conclusions appear to be justified: (1) More than half of the 

 farms in the State are mortgaged ; but for commercial farmers depending on farm- 

 ing for a living, the proportion mortgaged is probably nearer 65 percent than 50. 

 (2) The proportion of farms mortgaged is higher in the Connecticut Valley than 

 in the rest of the State. 



The amount of mortgages per farm varies from $100 to $44,001. About a 

 third of the mortgages outstanding were from $1,501, to $3,000 (Table 14). 

 Although only 41 percent "of the farms were mortgaged for more than $3,000, 

 these 41 percent were carrying 69 percent of the mortgage debt. The 9 percent 

 of the farms with the largest mortgages owed 32 percent of all the mortgage debt. 



Table 14. — Frequency Distribution of Amount of Mortgage Outstanding on Farms 

 and Proportion of Total Mortgage in Each Size Group, 177 Massachusetts 



Farms. 



Farms Mortgages Outstanding 



Total Mortgage 

 per Farm 

 (Dollars) 



1.500 and under. . . . 



1.501 -3,000 



3,001- 4,500 



4,501- 6,000 



6,001 - 44,000 



Total 



Average per farm 



