Farm land prices continue to rise in all states. By March 1, 1945, increases during this war ranged from 17% in North Dakota to 96% in South Carolina, according to figures released by the agricultural commission of the American Bankers Association.
The percentage change in the average value per acre of farm real estate from the 1935-1939 average to March, 1945, according to a chart prepared by the U.S. Bureau of Agricultural Economics, shows that farm land values in the 11 western states have increased 61.2% as compared to a national average increase of 52%.
Other factors cited by the Bankers’ Association are as follows:
“1. Farm real estate sales continued in large volume in 1944, activity in the first quarter being the highest on record. Now, fewer farms are reported as being offered for sale, but the demand is increasing.
“2. Farms held by insurance companies, banks, and estates have been sold in most areas and will no longer be a dampening influence on the market.
“3. The number of farms, particularly adjacent to cities, that are resold at a profit after a short period, indicates that speculation is active. Many city people are bidding up prices beyond what bona fide farmers can pay.
“4. The proportion of sales made for cash is high—55% of all sales in 1944. However, two-fifths of the remaining transactions involving mortgages of 75% or more of the sales price. This large proportion of debt may prove troublesome when the postwar adjustment of prices occurs.”
What to do about the problem of inflation? For the farmer it is suggested that surplus money be used to buy war bonds instead of additional farm land at high prices. For the banker, conservative policies in financing are recommended along with strong opposition to speculative debts.
Additional points in the offense against inflation include education of the public, and clear, practical advice to veterans or ex-war workers who believe they want to farm.
