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Show THE FARM BUDGET By DAN H. OTIS, Agricultural Director, American I Bankers Association ' Inventories aid In the formation of a farm budget. Some banks, as well as the Farm Credit Administration, tw A recommend outlining out-lining in advance the method of using production loans. Under this plan provision is made for monthly expenditures and .'unds are granted :o the borrower in accordance with the budget plan. The budget helps 'o show how loans :an be repaid. D. H. OTIS With the "accu- mulated data ,om previous inventories and budgets, ndget making becomes easier and lore accurate and valuable. As one l .ranch of the farming plant requires lore expenditure, ouch as for "new ma hlnery, fencing, livestock, etc., it may a necessary to limit other branches in rder to meet these pressing require-ents. require-ents. The budget helps to formulate a fi jncial program. It is Of special 1m ortance in arranging to meet special r large expenditures. If the income md expenditures are carefully budg-jted budg-jted it prevents the spending of money aeeded for interest and taxes before the time of their payment arrives. It helps to provide a ivserve. The Agricultural Commission of the mefican Bankers Association feels hat this type of work is so important hat special emphasis has been placed ipon the field of farm inventories. ;udgets and credit statements as on of its national projects for farm aid. |