BUYING FARMS WITH LAND-BANK LOANS. 7 



ants 37.9 per cent own other farm land, and 62.1 per cent are land- 

 less, while in the case of nontenants the per cent owning other farm 

 land is much higher, amounting to 83.5 per cent. Of the total num- 

 ber of borrowers giving the facts regarding ^heir previous tenure 

 and the amount of land which they owned, 23 per cent consisted of 

 landless tenants. 



•USE OF LAND ALREADY OWNED TO FACILITATE ACQUISITION OF 



NEW LAND. 



While it was not always possible from the information obtained 

 to determine the extent to which land already owned was used in 

 buying other land, it seems clear that, in large part, the land already 

 owned was employed in one way or another for this purpose. Out of 

 700 cases of borrowings made by farmers already owning land, 500, 

 or over 70 per cent, seem to have borrowed on the security of land 

 already owned as well as the land being purchased, for in this pro- 

 portion of cases the amount of the mortgage was 50 per cent or more 

 of the value of the farm purchased. In addition to the cases in 

 which the inference is fairh' certain, it is probable that of those who 

 borrowed less than 50 per cent of the value of the new farm in order 

 to make the purchase a considerable number had used the land 

 already owned, either by selling it or by mortgaging it. 



RATIO OF THE FEDERAL FARM LOAN TO THE VALUE OF THE FARM 



PURCHASED. 



Table II gives, in the case of 1,168 loans, the average percentage of 

 the value of the land bought which the first mortgage represented. 

 It was necessary to omit from the table some of those owning other 

 land, because of the possibility that the mortgage indebtedness might 

 rest not only on the farm newly purchased but also on the addi- 

 tional land owned. That this was frequently true is indicated by 

 the considerable number of cases in which the mortgage was more 

 than 50 per cent of the value of the new land purchased. 



Table II. — Relative si^e of Federal farm loan obtained for different tenure 



groups. 



Tenure group. 



Number 

 of farms. 



Average 

 per cent 

 Federal 

 farm loan 

 is of the 

 cost of the 

 farm pur- 

 chased. 



Average 

 cost of 



farm pur- 

 chased. 



Average 



size of the 



Federal 



land 



bank 



mortgage. 



Non-owning buvers 



55S 

 610 



44.2 

 41.5 



1 

 8S,072 $3,566 

 9,652 4,1)07 



Owner-buvers, including tenant owners 





Tot al 



1,168 





, 









Non-owning tenants 



406 

 133 



44.1 

 4Z4 



S 224 1 ■? (OS 



Owning tenants 



9 620 ■* "" 









' 



