8 BULLETIN 1401, U. S. DEPARTMENT OF AGRICULTURE 
made whereby the tenant furnishes stock, labor, and two-thirds of 
the fertilizer and seed, and the landlord receives one-third of the 
crop. 
Credit for financing production is extended chiefly by local supply 
merchants and banks, although in some towns commission dealers 
advance considerable credit. 
The local supply merchant usually tells the grower in the spring to 
what extent he may expect credit on either an open account or by a 
note arrangement. If on a note, this note usually matures in Novem- 
ber or December and frequently bears no interest until after maturity. 
A crop lien is frequently taken by the local merchant to secure 
advances made on the poorer credit risks. Supplies covering most 
of the grower's needs are sold to him each month until the credit 
allowance is exhausted. The merchant in many cases attempts to 
regulate each month's advances in accordance with the total credit 
granted. In the fall the merchant usually buys the peanuts at the 
prevailing market price, and the accounts are settled. 
Loans by the banks are made chiefly to growers having a good 
credit rating, or to the supply merchants. Bank loans are usually 
for six months at 6 per cent interest collected in advance, on notes 
secured by one or two indorsements. The personal notes of tenants 
are often indorsed by their landlords. 
When a commission dealer finances production, he usually takes a 
crop lien and a note maturing about December 15. As a rule no 
interest is charged where supplies alone are furnished. When cash 
advances are made, as sometimes happens, 8 per cent interest is 
charged on the money. The dealer's funds are obtained from his 
own capital or from bank loans, which may be secured by indorse- 
ments or by growers' notes deposited as collateral for the dealer's 
note. In consideration for the advances, the grower normally 
agrees to sell his harvested peanuts through the commission dealer. 
It is not usual for the cleaners and shellers to do any direct financing 
for production purposes. 
GEORGIA AND ALABAMA 
In marked contrast to the small-farm system in Virginia and North 
Carolina, peanut production in Georgia and Alabama is carried on 
principally on large farms operated under the plantation system and 
in conjunction with cotton growing. Less than 25 per cent of the 
crop is grown by small farmers on their own land. Individual land- 
lords operate farms ranging in size from 100 to 3,000 acres and there 
are a few farming concerns which operate as much as 6,000 to 8,000 
acres. 
The plantations are divided into "plow" units of about 30 acres, 
an area which can be conveniently farmed by one man with a mule 
and plow. Under the usual arrangement tenants known as croppers 
farm on a share basis, by which the landlord furnishes the stock, tools, 
dwelling, and half the fertilizer and seed used, and also makes 
advances in the form of money, provisions, and clothing to a limit of 
$6 to $10 per month from January to July, inclusive, receiving half 
the crop as his share. The farms are operated under the supervision 
of a farm manager and practically all of the croppers are negroes. 
From his half the tenant must repay the landlord for his advances. 
Usually the landlord takes payment in the form of crops at the 
