Show why farmers should buy war bonds rz i by richard L adams aw I 1 professor of farm Alana management geme nt y 8 sfa j university of california L I 1 WITH ITH net farm income now about three times that of 1938 1940 farmers and ranchers are in an outstandingly fine financial position to buy war bonds to an extent far beyond the total good as it is already reached in jn the first place its the patri otic thing to do theres no real sacrifice in using money to back the attack what is a loan of ones cash compared to the sacrifices of the boys who are taking on more than a man sized job secondly its the wise thing to do if history repeats itself and 1 I for one firmly believe it will these present day high net incomes can after the war is over go into a tailspin tail spin to levels far below what is deemed normal over the past one hundred years agricultural earnings have been at s so 0 called normal levels for three to four years for each year of high returns and note that these returns are net that sum remaining after farming expenses have been paid thus allowance is made for higher aicher costs of labor of supplies of equipment of taxes without doubt present earnings of most farmers are the highest in the history of united states agriculture high returns to agriculture make good good reading but with the increased earnings there is bound to be a marked rise in prices for farm properties in in speculative buying of farms and again if history repeats itself in a marked increase in the real estate mortgage debt followed by mounting foreclosures fore closures if and when payments of interest and installments on principal cannot be met f contrary to the views held by some farmers it is extremely doubtful that we are on a new and permanently higher hi her economic level world war I 1 1 was proof of this so the wise farmer looking ahead and planning for his future will reduce his debts to manageable proportions if and when lessened incomes must again be faced resist the temptation to speculate in farm lands and create reserves the reference to resist speculating mean no buying there may be need to enlarge a farm or to acquire additional lands land for business reasons but caution suggests that one not be caught in the excitement of a rising tide of buying merely for speculations ions sake that reserve fund can be created by purchase of bonds money thus salted away can create a cash reserve for use when times may not be so good it will serve as an anchor to windward for times when cash is an asset and when it bonds can eventually be used for needed repairs or improvements bonds can supply the stake to set sons up in business once they are mustered out of sor service vice agriculture is for the time me being in a strong financial position farmers these days are in m a position to accumulate substantial S stock piles of crops livestock and livestock commodities but as well of good united states bonds think it over then invest to your limit in order to insure a real future tor for your country yourself and your children U S treasury department |