UNITED STATES DEPARTMENT OF AGRICULTURE 



BULLETIN No. 384 



Sfir' Contribution from the Office of Markets and Rural yj 



■« ™sj# » ^- t s^" Organization, ^ ^ ,., ,,_ 



J^^f^'^Qi, CHARLES J. BRAND, Chief AVir^*^?£fl» 



Washington, D. C. 



July 31, 1916 



COSTS AND SOURCES OF FARM-MORTGAGE LOANS 

 IN THE UNITED STATES. 



By C. W. Thompson, 

 Specialist in Rural Organization. 



CONTENTS. 



Costs for Interest and commission 



Sources of capital for farm-mortgage loans 



Factors which influence the terms on farm- 

 mortgage loans 



The need for improved facilities 14 



Desirability of State and Federal legislation. . 15 

 Conclusion 16 



COSTS FOR INTEREST AND COMMISSION. 



The average costs for interest and commission on farm-mortgage 

 loans are given in Table 1. The same information is shown graphic- 

 ally in Diagram A. The commission figiures which have been used 

 in maldng up this table represent the average annual commission, 

 or where a single advance commission is paid on a long-term loan, 

 the equivalent annual commission. It will be seen that, in general, 

 the average costs for interest and commission together are highest 

 in the Southern and Rocky Mountain States, and that the lowest 

 figures appear in the New England and Middle Atlantic States and 

 the more highly developed agricultural sections of the corn belt. 

 The average commissions are shown to be especially high in certain 

 States, notably North Dakota, North CaroUna, Oklahoma, and Mon- 

 tana. 



Note. — The aim of this bulletin is to indicate briefly some of the results obtained from a study bearing 

 on interest rates and commissions on farm.-mortgage loans and the sources of such loans in the United 

 States. 



45830°— BuU. 384—16 



