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BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM Office Correspondence Xo Chairman Eccles -prom D a t e A P m 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.