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BOARD OF GOVERNORS
FEDERAL RESERVE SYSTEM

Office Correspondence
Xo

Chairman Eccles

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D a t

e

A

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20,1945

Subject; Farm Real Estate Values

Governor Evans

A recent publication by the Bureau of Agricultural
Economics on the current development in the farm real estate
market contains the following information:
Roughly, 300,000 farms were sold in 1944 and about
50 per cent were sold for cash. Of the remaining 50 per cent,
about 60,000 farms had a mortgage for 75 per cent or more of
the sale price. Over 100,000 farms had a mortgage of more
than 50 per cent of the purchase price.
These data indicate that a substantial proportion
of the current credit financed purchases carry a debt greater
than the full market value of the property four years ago.
The number of farms purchased with a very small payment and
a very large mortgage is substantial.