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The Credit Rod

Suggestions for the Leader I SE

N USING this material in local groups, it is suggested that the discussion method be

followed. In practically every rural group there are several people who have had experience with farm-mortgage problems who will be glad to contribute to such a discussion. Their contribution will probably be more valuable if they are told several days in advance of the meeting that they will be expected to participate.

If two or three meetings are to be devoted to a discussion of the credit road to farm ownership, it may be desirable to invite the secretarytreasurer of the local national farm loan association or other lender to lead the discussion at one of the meetings.

Any one of these questions may serve as a stimulus to discussion.

1. How many farms in this community are owner-operated? What percentage of these farms are mortgaged?

2. What opportunities are there for a young man to acquire a farm? What suggestions and advice would you give him regarding the purchase of a farm?

3. What is considered to be a family-size general farm in this community? What stock and tools are necessary for its efficient operation? What is the normal value of such a farm? Of the operating capital?


B 2 6 1938


4. What is the value of a family council before assuming a mortgage? What is the wife's special responsibility in planning for it? What is the husband's? At what age should children be brought into this council?

5. What percentage of the total price should the down payment on a farm be? What situations affect this percentage?

6. Under what conditions would it be good business to use long-term credit for building construction? For land improvement? For fencing? For the purchase of machinery? Livestock? Seed and fertilizer? For the payment of old debts?

7. What determines when it is wise for a family to assume a mortgage in buying a farm? The family's experience and savings? The coming on the market of a good farm? The present and prospective prices of farms?

8. What lenders are making farm mortgage loans in this community? What terms do they offer? Upon what do these lenders base their appraisals?

9. What are the long-term advantages of cooperative farm mortgage credit?

10. When is a creditor who loans someone else's money justified in making a debt-adjustment agreement with a debtor? What may be the effect of the debt adjustment on the borrower's credit rating? What may be the effect of a widespread program in debt adjustment in the neighborhood on the future supply of credit in the community?

It is suggested that the leader prepare an exhibit of printed material on farm mortgage loans.

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