Show I Fewer Utah Farmers Need To Borrow But ButI I Volume y of Bank Loans is Higher Survey Shows I I I Reflecting the increased costs of pro pro- producing producing producing crops and the and the availability of more farm equipment the volume of bank credit used by Utah farmers and stock stock- stockmen stockmen stockmen men is currently higher than it was a year ago according to Thomas L. L Lefler Kamas State Bank who represents the Utah Bankers Association as Summit I I County Key Banker However Utah farm families are I probably in the strongest financial I position that they have ever been Mr Lefler said Less farmers need to use the bank credit available to them be because be- be because cause continuing high farm Incomes make It possible to finance operations operation out of Income and when credit used it itis itis itis 11 is retired when crops are sold Reporting on the results of a third national survey of bank lending made by the Commission of the American Bankers Association Mr Lefler Lef said that Utah farmers and ranchers used only a fraction of the bank credit available to them during 1946 However the 54 banks which serve agriculture in inthis inthis Inthis this state made loans to farmers and stockmen These loans ag aggregated lg- lg aggregated of which remained outstanding on January 1 I 1 1947 1941 Banks had at least or about twice the amount used available for additional loans to farmers If the I demand existed I I During 1946 loans on farm real estate in Utah Increased slightly There were 1925 farm mortgages made for a total amount of and of this volume remained outstanding on January 1 1 1947 The farm mortgage debt Is higher than it was a year ago al although al- al although although though It still remains only about one- one half of the volume that existed in the comparable period following World War i. i Farm production loans classed as other loans to farmers were made to farmers and ranchers by Utah banks during 1946 in an aggregate amount of Of this amount only was outstanding on Jan Jan- January JanI January January I uary 1 of this year The production loans I averaged only 2334 each Commodity Credit Corporation loans were made to farmers for of which 2 2 was outstanding Apparently the 1 I farmers' farmers short hort term debt position is trw trw- favorable favI I and although they borrowed more money last year their 1 as the year end were less Another favorable favorable factor In the present pres nt situation Is IsI I that the farmers own substantial savings In cash bank deposits and United States bonds i A possible source of danger lies in the trend towards the higher cost of equip equip- equipment equipment equipment ment and Improvements which may I reach a Do point w where iere these purchases j cannot be financed out of current in- in inI I come comb I Another factor in irs the Utah agricultural agricultural agricultural tural picture which bankers are watch- watch watching 1 ing carefully is the price of farm lands Based on 1912 14 averages at the average farm land prices of the state on March 1 I 1947 reached compared with with at the peak of the land boom In 1920 During the past pa t year the In- In Increase increase increase crease has been 7 per cent I The Utah Bankers Association and 1 I Mie Agricultural Commission of the I American Bankers Association are work work- working I ing pg together to help keep farmers of our ur state in a sound financial position I We Wo are urging our customers V to limit their farm indebtedness to an amount which can be paid from normal farm I figured from the long term Average prices of farm products We recognize the unusual character of farm Income and the farm land price situa situa- situation situation situation tion at the present time and as bankers we are pledged to discourage borrowing to speculate on farm land or 01 borrowing to buy land at high prices which are Justified by long term Income pros pros- prospects prospects prospects Mr Lefler said We STe are encouraging encouraging encouraging aging Utah farmers to round out and diversity their production and to con con- conserve conserve conserve serve and build up the productivity of their soil solI Another Important part of this program Is concerned with the edu edu- education education education cation of farm youth through activities such as the 4 H clubs and Future Farm- Farm Farmen en err |