pe BULLETIN 1295, U. S. DEPT. OF AGRICULTURE 
even these, a selling scheme needs to be devised with such features 
as easy terms of payment and advances of buildings and livestock. 
Lastly, once such settlers have been secured, some plan must be 
devised for taking care of them until they can support themselves 
from their holdings. 
The rate at which the land must be sold also affects the selection 
of settlers. A score of prospects of small means can be interested 
in a scheme which provides for credit advances and the like, to one 
prospect of the farm-minded type with several thousand dollars to 
invest. 
TERMS OF SALE 
Land is usually sold in the undeveloped parts of the Lakes States 
under one of the following arrangements, approximately in the 
order of their prevalence: 3 
(1) Small payment down, ordinarily $1.50 to $8 per acre, on land contract 
until all payments are made. Usually equal annual payments are required. 
(2) Same as above, except that a mortgage will be substituted for a con- 
tract when, or if, one-third or one-half of the purchase price is paid. 
(3) Payment of $250 to $600 down for 40 acres (somewhat more for 80 
acres) with buildings included; a land contract for a nominal period, re- 
placeable by a mortgage as soon as land clearing and other improvements 
made by the settler increase the value of his equity enough to support the 
mortgage. 
(4) Any of the above arrangements, with one, two, three, or five years’ ex- 
emption from payments on the contract. 
(5) Any of the above arrangements, with an option for a short period, some- 
times as long as two years, this option usually calling for quarterly or 
monthly payments; at the end of the period called for in the option a contract 
is given. 
(6) An option for a longer period, usually four or five years instead of a 
regular land contract. 
Table 15 shows that most of the farms purchased by settlers are 
bought, in the first instance, under contract. The periods of con- 
tracts range from 3 to 20 years, 5-year contracts being most common, 
8-year next, and 3-year next. Over a third of them are for 5 years, 
a fourth for 8 years, and a sixth for 10 years. The tendency is to- 
ward the longer periods. 
Table 16 shows that four companies are using options freely and 
that several sold considerable land under mortgages. 
TABLE 15.—Numober of settlers purchasing under different types of con- 
veyances 
Per- 
centage 
Number |} Average | initial 
Type of contract ofsettlers} initial | payment 
payment | is of pur- 
chase 
price 
Option:opmlease 23-2 ot Mie Re ee ee ee ee | 64 $81 5.7 
Contract £22329. ALESSI 2 Bee SEAR sa ee eee eee 382 449 23.3 
Deed subject: to,morteage:=-- 5-3. 24. Se ee oe ee ee 33 1, 671 52.3 
Cash ann tall. ee eS ee nee eee, ee een 25 1, 354 100. 0 
