, 



. 



VISIONS of the "boom and bust" 

 days that followed World War I 

 were brought into sharp focus at a 

 series of farm appraisal clinics held re- 

 cently throughout the state. 



Warned by farm leaders and farmers 

 who remember the days when corn 

 slumped from near |2 a bushel in 1920 

 to 35 cents in 1921, prospective land 

 buyers were repeatedly reminded to be 

 cautious. 



The farm appraisal clinics, conducted 

 by agricultural economists and agron- 

 omists from the University of Illinois, 

 and farm appraisers from the Federal 

 Land Bank of St. Louis, shook a warn- 

 ing finger at the folly of trying to pay 

 off the cost of an over-evaluated farm 

 out of future income. 



Meeting on the 240-acre farm of 

 Frank Brett in Macon county late in 

 June, a group of 90 persons studied the 

 farm's 15-year-old production records, 

 and examined the soil and buildings 

 before estimating its per acre value. 



With J. B. Cunningham, farm man- 

 agement specialist, C. L. Stewart, chief 

 in land economics, and H. L. Wascher, 

 assistant chief in soil surveys, all of 

 the University of Illinois, explaining 

 the make-up of the farm in some de- 

 tail, the appraisers set an average valu- 

 ation of $179 per acre on the farm. 



Estimated at $175 an Acre 



Wascher took the group over the 

 fields, explaining the type, makeup, 

 and productivity of the land, now and 

 then pausing to drill into the soil for 

 a sample which he placed in the hands 

 of the men planning to estimate the 

 value of the farm. , 



The average estimate by the group 

 was $4 more than the $175 per acre 

 value set on the property by Clair 

 Hay, land bank appraiser. 



Appraisals were based on normal 

 values, past income, and typical man- 

 agement in tM community. Hay con- 

 sidered the Brett place an exceptionally 

 good farm. When Brett was asked if 

 he would take $175-$180 an acre for 

 the farm, he laughingly answered that 

 farms in his community were selling 

 for "well over $200 an acre." 



Sales in Macon county indicate that 

 farms comparable to the Brett place 

 are selling from 60 per cent to 80 

 per cent higher than the group who 

 attended the meeting think they are 

 worth if they must be paid out of ex- 

 pected future earnings. 



The 240-acre Brett farm, appraised 

 at $173 an acre, and exceptionally good 

 in the words of the land bank appraiser 

 might well be held up in comparison 

 with the 240-acre Schertz estate near 



From the edge of on oat field on the form of Frank Brett in Macon county, H. L Wascher, 



assistant chief in soil surveys at the University of Illinois, describes the soil to men who 



ventured on estimate of the farm's per acre value dwrins appraisal dlnlc. 



FARM CLINICS WARN OF 



\\ 



BOOM and BUST " 



Minonk in Woodford county which 

 recently was sold for $416.67 an acre. 



Figuring a return of four per cent 

 on the money invested in the Schertz 

 farm, the land will have to bring in 

 $16.67 an acre net before the man who 

 runs it makes a penny for his labor. 



Add $2 an acre taxes and you have 

 a fixed charge of $18.67. Average net 

 income per acre on record-keeping 

 farms in central Illinois during the 

 depression was $2.58. During the pe- 

 riod 1938-41 it was $7.33, and during 

 1942-44 it rose to $18.75. 



Prof. Cunningham said that there 

 was no reason to doubt that history 

 would repeat itself and that there will 

 be sharp reductions in prices sometime 

 in the next few years. 



"Peak prices have been associated 

 with wars," Cunningham said, "and 

 net earnings have decreased drastically 

 during postwar periods." 



J. R. Gilkey, Macon county farm 

 adviser, cautioned farm buyers to con- 

 sider all factors affecting value, and 

 because most purchasers are inexperi- 

 enced in estimating farm values, he 

 recommended that the buyer employ a 

 competent appraiser to protect his in- 

 terest. "This may save many financial 

 headaches later on," Gilkey said. 



C. L Stewart (right), chief in land eco- 

 nomics at the University of Illinois, offers 

 soil sample for examination at Macon 

 county appraisal clinic 



FARM BUREAU DAY AT 

 STATE FAIR IS AUG. 16 



When you're at the Illinois State 

 Fair, Aug. 9-18, plan to stop at the 

 tent provided for your use by the Il- 

 linois Agricultural Association and 

 your county Farm Bureau. 



Plans now provide for the tent to be 



located in its old location just north 

 of the administration and service build- 

 ing in the center of the fairgrounds. 



The tent offers free checking service, 

 ice water, tables, chairs and a meeting 

 place for Farm Bureau members, their 

 friends and relatives. 



Farm Bureau Day has been desig- 

 nated as Friday, Aug. 16, and many 

 of the officials and staff members of 

 the lAA and associated companies will 

 be present at the tent to greet you. 



Homemaker's institute this year will 

 be dedicated to young war brides who 

 will be given a course in home mak- 

 ing, cooking and sewing for 10 days. 



Fair officials have designated in ad- 

 dition to Farm Bureau Day, other days 

 as follows: Aug. 9, Children's Day; 

 10, Youth Day; 11, Veterans Day; 

 12, Army; 13, Navy; 14, Democratic; 

 15, Governor's Day; 17, Auto Race 

 Day, and 18, Motorcycle Race Day. 



lULY-AUGUST, 1946 



