CHAPTER VI 

 DEFICIENCIES IN FARM FINANCE 



The high cost of money for agriculture has 

 been the cause of increasing difficulty for farm- 

 ers for a number of years. Denial of credit 

 brought bankruptcy to many and serious 

 troubles throughout the live stock regions. 

 Deflation as it was brought about following the 

 war reacted most disastrously upon the food 

 producer, who is in the least advantageous 

 position to help himself. 



The deficiencies in our farm financial system 

 were first recognized some fifteen years ago 

 when the agitation for a better credit system, 

 including land banks, personal associations and 

 credit unions, began. As a result of several 

 years discussion the Commission on Rural 

 Credits and Cooperation was sent to Europe 

 and after considerable study came back and 

 made an extensive report. From this beginning 

 there resulted the legislation which took the 

 form of the Federal Farm Loan Act providing 

 for the twelve Federal Land Banks, 



57 



