Agricultural Research in New Hampshire 15 



year round to 14 miles, and since the state is now responsible for about 

 half of this, the cost to the town would not be large. 



The most important effect of declining timber resources is the loss 

 of future employment possibilities. It is estimated that the 76 million 

 board feet of lumber reported in the 1934 inventory represented work 

 for 38 men on the basis of 200 days annually for ten years. Logging 

 operations limited even to the annual growth would have provided con- 

 tinuous employment for 15 men. 



In the six-year period under observation the population actually in- 

 creased from 98 in 1934 to 147 in the summer of 1940. The employment 

 associated with the salvaging of the hurricane blow down and the strip- 

 ping of other lands brought in a few families and probably held others. 



With limited employment and income possibilities in the years 

 ahead, the families and the town face a difficult situation. (Harry C. 

 Wood worth and John C. Holmes) 



Credit Problems in Wholesale Milk Areas 



A study of the credit situation on 100 wholesale milk farms was 

 completed and is ready for publication. The total indebtedness on the 

 100 farms was $178,743, or approximately 21 per cent of their estimated 

 assets. Twenty-two reported no indebtedness and only ten indicated 

 indebtedness in excess of 50 per cent of their assets. 



Fifty-one of the dairymen carried long-term mortgage loans, totaling 

 $146,680 or an average of $2,876 per farm. Many of the loans were con- 

 tracted in the 1920-1930 period, when the average price of milk was 

 $3.06 per hundred pounds as compared to $2.29 in the period 1931-1940. 

 The farmers no doubt contracted their long-term obligations on the ex- 

 pectation of repaying them from the sale of milk at prices then prevailing. 

 They have found it difficult to repay the loans during the years when 

 milk prices were substantially lower. 



About half of the long-term loans carried a rate of 5 per cent, and 

 most of the rest bore a rate of from 3 to 4 l /> per cent. 



Operators commonly reported that in their opinion certain additions 

 to the farm plant would provide a more balanced farm organization. 

 Twelve indicated a need for more crop land or pasture, 25 for additional 

 cattle, 28 for more efficient equipment, and 31 for repairs of buildings. 

 (Byron Peterson) 



Financial Burden upon Rural Towns in 

 Constructing and Maintaining Roads 



In cooperation with the Bureau of Agricultural Fxonomics at the 

 request of the state subcommittee on rural highways, a study concerning 

 rural highways was undertaken and completed in the fiscal year. It was 

 found that the burden of costs of rural highways is not equitably dis- 

 tributed. To facilitate a more equitable distribution, the following five- 

 point program is suggested: 



( 1 ) Revision of the Duncan Aid formula. 



(2) State supervision of Duncan Aid expenditures. 



(3) Reclassification of town roads so that class V roads of doubtful 

 present and future use would be placed in class VI. 



