BULLETIX 968, U. S. DEPARTMENT OE AGRICULTURE. 
work is likely to result in a rapid increase of tenancy unless it is 
readily possible for landless farmers to buy the lands previously 
operated by these retiring owners. It is true this transition to owner- 
ship is partly effected through inheritance, marriage, or gift, but 
this is the case only to a limited extent. To a great extent farm 
ownership among the new generation of farmers must result from 
purchase. 
When the Federal farm loan system was under consideration it 
was widely belieyed that it would be an important instrument in re- 
ducing the percentage of tenant farmers. Those best acquainted with 
its proyisions realized, however, that, while the act would prove 
serviceable in this regard, the credit permissible under its somewhat 
PERCENTAGE OF ALL FARYS 
ON v.- CH 
iDERAL LAND BANK: LOANS HAVE 3EZN MADE 
I lumen rencon I'-->,ji z to 3pescem 
K-'.-'.U TO JPtSCENT ^///A ^ TO 6P3)C£NT 
Fig. 1. 
conservative provisions was made too small to effect a marked reduc- 
tion in tenancy. 
Since the Federal farm loan system has been in operation for about 
four years, it is important to determine the extent to which it facili- 
tates the acquisition of farms by landless farmers, especially by those 
having little capital. 
From this point of view the present study was undertaken to de- 
termine (1) what proportion of those borrowing under the Federal 
farm loan system for the purpose of buying land belong to the 
class just mentioned — that is, landless farmers with limited capital: 
(2) what methods such persons have employed to supplement the 
funds obtained from the Federal land banks: and (3) what have been 
the costs of Federal farm loans to the borrowers. 
The point should be emphasized that the present study is not under- 
taken with the view of criticizing the farm loan system, its officials, 
