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Show farmers of Western States Benefit By Quarter Billion Dollar Loan W. I. Myers, governor of the Farm Credit administration, speaking before be-fore the western regional conference of the American Farm Bureau federation, federa-tion, said that under the Farm Credit administration approximately a quarter quar-ter of a billion dollars has been advanced ad-vanced to farmers and stockmen in the nine western and Pacific states represented at the conference. These states include Utah, Washington, Wyoming, Wy-oming, California, Nevada, Montana, Colorado, Arizona and Xew Mexico. According to Governor Myers, the total amount loaned by the Federal land banks and the Land Bank commissioner com-missioner on the security of farm property in the nine states during the past year was $110,000,000. He 1 also pointed out that the land banks 1 and coinmissiorer now hold from 20 I to 36 per cent of the total farm mort-: mort-: ''age indebtedness in the various western and Pacific states. The 12 Federal land banks, which ittmprise the farm mortgage system, now have loans outstanding throughout through-out the United States of more than I $2,000,000,000, including the loans 1 made for the Land Bank commission er. Half of this amount has been advanced ad-vanced in the year since the Farm Credit administration was organized. In addition, the land banks and the commissioner have made commitments commit-ments to lend about two-thirds of a billion dollars more. This will bring their holdings to about a third of the total farm mortgage indebtedness in I the United States. "Borrowers from this system not only have been refinanced," Governor Myers stated, "and relieved of the uncertainty of securing new loans when their short-term obligations fall due, but they have been refinanced for a long period, eliminating periodic per-iodic commissions. Moreover, the interest in-terest rates on these loans are much lower than those previously pain by borrowers in this section and this will mean a saving to farmers amounting to many millions of dollars each year." According to Mr. Myers' statement to the Farm Bureau representatives, the production credit assoeintions are j becoming an increasingly important part of the complete system of farm (Continued on page 5) Western Farmers Benefited by Loan (Continued from page 1) finance established under the Farm Credit administration during the past year. This system, the governor stated, stat-ed, has eliminated the duplication of lending machinery and at the same time greatly increased the credit facilities fa-cilities available to all types of agricultural ag-ricultural producers. He said that although the regional agricultural credit corporations,1 which were opened two years ago to assist livestock men and producers whose usual sources of credit had been cut off, have discontinued making mak-ing new loans, adequate credit facilities facili-ties throughout the western and Pacific Pa-cific states are now available through the production credit associations which have been established as permanent per-manent short-term financing units and which are daily increasing the volume of their loans. The governor said the outstanding loans of the regional agricultural credit corporal ions in the nine states represented at the conference now amounting to about $49,000,000, are gradually being shifted to the production pro-duction credit associations or are being be-ing paid off by borrowers. "It is the policy of the Farm Credit administration not to cause undue hardship to borrowers in the process of liquidating the regional agricultural agricul-tural credit corporations," the governor gover-nor declared. "The corporations were set up merely as emergency units and as such they have undoubtedly rendered a very valuable service. We now have 64 production credit associations asso-ciations in the nine states represented represent-ed here today. Eight of these associations asso-ciations are state-wide or section-wide section-wide organizations chartered for the specific purpose of extending credit to livestock operators. The smaller type of livestock loans are handled by the local associations, which also extend credit to farmers and stockmen stock-men for the other agricultural production pro-duction purposes. The associations are designed as a permanent means of supplementing agricultural and livestock credit. In the nine western and Pacific states they have made or approved loans of more than $16,-000,000 $16,-000,000 during the past four months, and the volume of their financing is increasing steadily." Governor Myers stressed the fact that the money loaned by the Farm Credit administration is obtained from the sale of securities to investors invest-ors and not from appropriated funds. He complimented farmers as a group for their integrity and their desire to repay loans and meet their bills promptly, and said that continued use of good credit practices on the part of farmers and stockmen would assure as-sure an adequate flow of investment funds into agricultural credit channels. |
