AGRICULTURAL CREDIT 32795 COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES EIGHTY-THIRD CONGRESS FIRST SESSION ON THE GENERAL SUBJECT OF AGRICULTURAL CREDIT GOVERNMENT SOURCES APRIL 21, 22, 23, 24, AND 25, 1953 Printed for the use of the Committee on Agriculture Serial G UNITED STATES WASHINGTON: 1953 CONTENTS Godley, Lloyd, farmer, Osceola, Ark. Halvorson, Lloyd C., economist, the National Grange_ 64 153 Hawley, Warren, Jr., president, New York State Farm Bureau Fed- 126 Stevens, Boswell, president, Mississippi Farm Bureau Federation_ Wickens, David, representing farmers from South Dakota Miscellaneous data submitted for the information of the committee by: Solberg, Harvey, president, Rocky Mountain Farmers Union. Lasseter, Dillard B., Administrator, Farmers' Home Administration 24, 165 Lull, Floyd E., president, Smith County State Bank, representing the Kansas Bankers Association _ _ Nutter, F. J., commissioner of agriculture, Maine- Patton, James G., president, National Farmers Union.. 60 129 131 123 Chicago & North Western Railway Co., April 13, 1953–– Baur, R. Edward: Eastern Taos Soil Conservation District, Taos, N. Mex., letter Estimated total farm real-estate and non-real-estate debt, and amounts and average rates of interest paid on such debts by farmers, by years, 1921, 1923, and 1940-53-- Estimated total farm income and expenses and estimated value of physical farm assets for 1910 and by years, 1917-53.. Production credit associations, loan operations, March 1953- Selected activities covering the period from July 1, 1942, through 100 Table 2.-Average acres and investment per farm in 1940 and 1951, for selected groups of Corn Belt farmers__ Table 3.- Estimated total non-real-estate debt outs anding on January 1, and distribution between principal lenders, 1940, Miscellaneous data submitted-Continued Farrington, R. L.-Continued Table 5.-Indexes of prices received and paid by farmers, parity Page AGRICULTURAL CREDIT TUESDAY, APRIL 21, 1953 HOUSE OF REPRESENTATIVES, The committee met, pursuant to notice, at 10 a. m., in room 1310, House Office Building, Representative Clifford Hope (chairman), presiding. Present: Representatives Hope, Andresen, Hoeven, Simpson, Bramblett, Dague, Harvey, Lovre, Belcher, McIntire, Golden, Williams, Harrison, Wampler, Cooley, Poage, Grant, Gathings, Abernethy, Albert, Abbitt, Polk, Wheeler, Thompson, and Jones. The CHAIRMAN. The committee will come to order. I think most of those who are present know that this is the beginning of a hearing which we expect to carry through during the next 3 days on the general subject of agricultural credit. We do not have any idea at this particular period of discussing or considering specific legislation, although that may come later. What we have in mind now is to discuss the situation and to get the best advice we can on the subject of what may be needed in the way of additional agricultural credit, either through private or Government sources. We will begin our hearing today by hearing from Mr. R. L. Farrington, Acting Director, Agricultural Credit Service, and later from Mr. Lasseter, Administrator of the Farmers' Home Administration and Mr. Duggan, Governor of the Farm Credit Administration. Tomorrow we expect to hear witnesses from some of the agricultural areas of the country including lenders and farmers. That will be continued during the following day and then on Friday. I think I said 3 days a while ago. It should have been 4. On Friday we will hear from farm organizations. At this time we will be very glad to hear from you, Mr. Farrington. STATEMENT OF R. L. FARRINGTON, ACTING DIRECTOR OF AGRICULTURAL CREDIT SERVICES, UNITED STATES DEPARTMENT OF AGRICULTURE Mr. FARRINGTON. I appreciate the invitation to appear before you to discuss the overall debt situation of farmers and the probable ability of farmers to get adequate financing to carry on their operations. If an individual farmer came to any recognized lender-commercial, cooperative, or Government-to arrange a line of credit for his next year's operations, there are several things the lender would have a right to know in order to determine the amount of the credit line, |