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 their 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 
TOO 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 fairly 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 necessar}^ 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 size 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. 
558 
610 
44.2 
41.5 
$8, 072 
9,652 
$3,566 
4,007 
Owner-buyers, including tenant owners 
Total 
1,168 
Non-owning tenants 
406 
133 
44.1 
42.4 
8,224 
9,620 
3 632 
Owning tenants 
4' 077 
