UNITED STATES DEPARTMENT OF AGRICULTURE 
BULLETIN No. 1048 
Contribution from the Office of Farm Management 
and Farm Economics 
G. W. FORSTER, Acting Chief 
Washington, D. C. 
February 7, 1922 
BANK LOANS TO FARMERS ON PERSONAL AND 
COLLATERAL SECURITY. 
By V. N. Valgren, Associate Agricultural Economist, and Elmer E. Engelbert, 
Junior Economist in Farm Finance. 
CONTENTS. 
Page. 
Amount of personal and collateral bank 
loans to farmers 
The estimated amount of personal and col- 
lateral loans to farmers 
Seasonal fluctuation in personal and collateral 
loans to farmers 
Rates of interest 
Page. 
Minimum balance requirements against bank 
loans to farmers on personal and collateral 
security 17 
Interest collections in advance 20 
Nature of security for farmers' personal and 
collateral loans 20 
Term of loan . 22 
Conclusion 25 
A very large part of the world's business is conducted on a credit 
basis. In proportion to the magnitude of the industry, it is perhaps 
safe to say that a smaller amount of credit is used by farmers than 
by any other important class. The outstanding loans to farmers in 
the United States, nevertheless, amount to a significant part of the 
credit of the country. The present farm mortgage credit from such 
data as are available has been estimated at a sum exceeding 8 billions 
of dollars. The information available on personal and collateral 
credit to farmers is even less satisfactory than that concerning farm 
mortgage credit. No attempt will be made at this time to present 
an estimate of the total amount of such credit. 
By far the most important single source of personal and collateral 
credit to farmers, as well as to most other industries, is found in the 
commercial banks of the country. With a view to obtaining more 
comprehensive information concerning this source of rural credit, 
the Department of Agriculture recently sent to all banks in the 
United. States a questionnaire on loans to farmers. The results of 
this inquiry, so far as it relates to short-time or personal and col- 
lateral credit, is summarized on the succeeding pages. 
79293°— 22— Bull. 1048 1 
