Banks Approve Increased

Banks Approve Increased

Farm Production

One of the most effective ways to fight inflation is to increase production of basic commodities such as food, feed, and fiber, according to J. Rodes Brown, Jr., cashier of Rappahannock National Bank, iwho represents the Virginia Bankers Association as Rappahannock county Agricultural Key Banker.

An accurate gauge of production levels is a comparison of farm marketing income. During the five years ending December 31, 1950, Mr. Brown noted, cash income of Virginia farms advanced 29 per cent from $351,724,000 to $468,010,000.

“This substantial increase in agricultural income is indicative of th greater farm production vital }o the nation’s defense effort,” he said. “The increase was made, however, within the framework of sound agricultural practice—better farming methods, diversified, production of crops and livestock, and a high degree of mechanization. The rural banks of our state have worked closely with their farm customers and have given wholehearted support to programs of soiT conservation, -pasture improvement, and other programs benefitting our rural communities. Bank loans which increase production and farm efficiency are one of our greatest weapons against runaway "inflation.

"In carrying out their individual projects of mechanization and better land use, our farmers have found bank credit an increasingly useful tool.”

Quoting from the tenth national survey of farm lending by the Agricultural Commission .of the American Bankers Association, Mr. Brown noted that “in 1350, the last full year of operation, the 'Virginia banks serving agricultural communities loaned $56,680.000 to 32,020 fanners to meet all types of financial needs. Of the total amount loaned, $45,-, 654.000 was borrowed by 28,656 farmers to finance production and operational requirements. This compares with 34,099 production loans, totaling $37,221,000 during 1949. The rapid repayment olj production loans is shown by the fact that on January 1, 1951, only $29,336,000 remained outstanding.

“On January 1, 1050, farmers had a total of bank-held mortgage debt of $28,177,000. During the year, banks made 3,364 additional agricultural real estate loans in an aggregate amount of $11,026,000. Yet, at the end of the year, only $29,351,000 of this long term debt was outstanding, indicating that this type of debt is being held to a minimum.

“The increased cost of production to the individual farmer ia shown by the rise in the average production loan from $1,092 in 1949 to $1,590 in 1350. The average agricultural real estate loan in 1950 was $3,278.

“The total of bank-held agricultural debt outstanding in Virginia on January 1 of this year was $58,687,000, excluding C.C.C. loans,” Mr. Brown said.

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