Lancaster Farming, Saturday, August 18. 1973
38
Farmers Use Credit System
In Record Numbers, Amount
More farmers used more
money from their Farm Credit
System last year than at any
other time m over a generation.
In the process, the farmer-owned
System set an all-time high in
amount of credit extended-$2O
billion-according to figures
released here by E. A. Jaenke,
Governor of the Farm Credit
Administration.
“This record use of the Farm
Credit System by farmers and
their co-ops results mainly from
impact of the System’s new
charter-the Farm Credit Act of
1971,” Jaenke explained. The
FCA Governor praised highly the
farmer-directors and employees
of the System for their speedy
implementation of the Act,
terming it “a monumental ser
vice to agriculture at a time when
food production is of such crucial
importance to the entire Nation.”
Nearly one million farmers and
4,000 farmer cooperatives own
and borrow from the System.
During the year ended June 30,
the $2O billion in loans made
represents a 30 percent increase
from a year earlier and double
the amount borrowed four years
ago. Loans outstanding through
the System at June 30 totaled
$20.6 billion, a 17.3 percent in
crease from a year earlier and 60
percent greater than four years
ago.
Governor Jaenke announced
the year-end figures in an ad
dress to the annual meeting of the
American Institute of
Cooperation. FCA is the super
visory Federal agency for the
System.
The largest lending increases
within the System were m long
term farm real estate loans
through Federal Land Banks and
in loans to fanner cooperatives
through the Banks for
Cooperatives. The amount of
loans made last year by Land
Banks increased 66.7 percent
over a year earlier, while Banks
for Cooperatives’ lending jumped
68 1 percent. The dollar amounts
were $3.0 billion and $4.9 billion
respectively.
Jaenke said a substantial
portion of the growth in Land
Bank lending resulted from
provisions in the Farm Credit Act
of 1971, which allow the Banks to
increase the proportion of a
farm’s value they can finance.
“This enabled many existing
borrowers to purchase additional
acreage, to refinance for more
working capital and for the entry
into the System of young farmers
as new borrowers,” Jaenke said.
Total number of farmers who
obtained loans through the Land
Banks last year was 59,000, a 32.1
percent increase from a year
earlier, pushing the number of
farmers having loans out
standing from the Banks to a new
post World War II high of 414,000.
Other factors cited by Jaenke
for the large increase in the
amount farmers borrowed
through Land Banks were the big
jump in the value of farmland,
the optimism throughout
agriculture over rising farm
prices and general inflationary
factors Total amount of Land
Bank loans outstanding at June
30 stood at $lO 1 billion, a 20 1
percent increase from a year
earlier
The 68.1 percent increase m
borrowings by farmer
cooperatives through the Banks
for Cooperatives is a direct result
of the significant increase in the
price of farm commodities,
Jaenke said. A second reason
cited by the FCA Governor was
the crisis in transporting com
modities to market, a situation
which caused grain cooperatives
to borrow more to hold grain
which couldn’t be moved Jaenke
commended the Banks for
Cooperatives for their efforts,
saying the crisis “demonstrated
the necessity for farmer
cooperatives to have a depen
dable source of credit -- a source
that they own/’
Banks for Cooperatives’ loans
outstanding at June 30 were $2.7
billion, a 32.9 percent increase
from a year earlier. The number
of farmer cooperatives
borrowing through the Banks last
year was 3,112, a 3.0 percent
increase, and an all-time high.
The third unit of the Farm
Credit System -- Production
Credit Associations - made $11.4
billion in loans, a 13.9 percent
increase from the year before.
The increase was in line with
those of recent years for PCAs
the short and intermediate term
lenders of the System. Loans
outstanding at June 30 through
PCAs were $7.5 billion, a 9.7
percent increase. The number of
farmer-members of PCAs ex
ceeds 500,000.
In addition to the direct loans
made by the System, the Federal
Intermediate Credit Banks -
main source of loan funds for
PCAs - also discounted $746.6
million in farmers’ notes for
other financing institutions and
had $297.4 million in such notes
outstanding at year end. Both
figures are little changed from a
year earlier.
The Farm Credit System
obtains nearly all the funds it
loans in rural America from the
sale of bonds to private investors.
During the past fiscal year the
Banks sold $15.3 billion of their
kidney's Complete
DISPERSAL
LOCATION—3 miles West of Gold, Pa. 12 miles East of
Coudersport, Pa., Potter County, on Southside of Route
49.
WEDNESDAY EVENING, AUGUST 22,1973
AT 7:30 P.M.
46 HEAD SIRE POWER
HOLSTEIN DAIRY CATTLE 46
“One of Potter County’s Choice Grade Herds”
25 young milking age cows 4 due Aug., 7 Sept., 2 Oct.,
balance early Winter; 7 Bred Heifers —4 due Sept., 3 Nov.; 13
Open Heifers, 7 of breeding age, others 8 to 12 months of age.
One 8-months old Bull.
INTERSTATE TESTED CHARTS SALE EVENING
PREGNANCY CHECKED
MACHINERY & EQUIPMENT SELLS
Two tractors—Ford 4000 Diesel, Massey Ferguson 65; Ford
3-bottom 3pthplows, Ford 3pth mowers, N.H. 67 baler, Int. 33-
tooth harrow, J.D. rake, Int. semi-mounted 13-hoe disc drill,
N H. 611 forage harvester with corn and direct cut heads, N.H.
blower, N H. 30-ft. Skeleton elevator, land roller, N.H. 130 bu.
spreader, 2 wagons, 1 Electric with flat bed, 1 Grove with
forage box; field sprayer, Int. hay conditioner, Ford 3 pth
cultivator, 2 farm trailers, 3 pth utility blade, 3 pth buzz saw, 1
steel wheeled wagon, tractor chains, milk cans, 40-ft. wood
extension ladder, barn fan, feed cart, air compressor, 2 tractor
pulleys, 1 Ford, 1 Massey Ferguson; many other items sell.
MILK EQUIPMENT
300 gallon Mueller s s. milk tank, 3 Surge milker units, double
ss. wash vats, Surge SP-11 milker pump, 30-gal. electric hot
water heater, s.s. pails and strainer, milk can rack.
PRODUCE & CROPS
2800 bales Early Cut Hay; 200 bales Oat Straw; 10 acres
Silage Cron
CASH OR GOOD CHECK SALE EVENING
LELAND & HELEN KIDNEY, Owners
REASON FOR SALE: FARM SOLD
Rockwell’s Livestock, Sale Mgrs.
D. O. Rockwell, Prop., Troy, Pa.
CARL DILLER & EVERETT KREIDER, Auctioneers
JEFF WARNER, Clerk
LUNCH AVAILABLE BY LITTLE LEAGUERS OF GOLD,
PA.
securities and had $lB.l billion in
securities outstanding at the end
of the year. These are increases
of 15.9 percent and 18.0 percent
respectively.
In addition to its traditional
loans to farmers and farmer
cooperatives, several new
categories of borrower-owners of
the System were added last year
as the result of provisions in the
Farm Credit Act. These new
borrowers include non-farm
rural home owners, open seas
fishermen, and rural electric and
telephone cooperatives.
Last year, 2,059 non-farm rural
residents received $4O million in
Land Bank loans for the purchase
or construction of rural homes.
PCAs made rural home loans of
$l5 million to 215 rural residents
and made an equal number of
loans to open seas fishermen for a
total of $8.3 million. Most of the
aquatic loans were for the pur
chase or refinancing of fishing
vessels. Three rural electric and
telephone cooperatives obtained
loans through the Banks for
Cooperatives for a total of $1.2
million.
All the Banks and local lending
Associations of the System are
entirely owned and capitalized by
their borrowers. They were
initially capitalized by the
Federal government but by 1968
these funds had been entirely
repaid with interest.
READ LANCASTER FARMING
FOR FULL MARKET REPORTS
DUROC SALE
FRIDAY EYEMNGADD. 24,1973
Show 4:30 P.M. Sale 7:30 P.M.
Location: Martin’s Sale Barn 2 miles East of In
tercourse, Pa. on Rte. 340
BOARS
OPEN GILTS BRED GILTS
SPONSORED BY
PENNA. DUROC BREEDERS ASSN.
Dr. Champion will be available for Out of State Sales.
For Catalog write:
. . „ , _ .. George Zimmerman, Sec.
Auct. Paul Z. Martin r.d. No. i
Grantville, Pa. 17028
MELVIN KOLB, INC.
at New Holland Sales Stables, Inc.
WEDNESDAY, AUGUST 22, 1973
Dairy Sale
63 Head Hotstems from Tioga County
A real good herd of cows. Presently milking over a ton
per day.
15 are just fresh, 25 due now until Fall, balance in all
stages of lactation.
These cows are sure to improve your herd.
MELVIN KOLB and
MARVIN A. ESHLEMAN
621 Willow Road
Lancaster, Pa. 17601
Phone 393-7459
HOLSTEIN DAIRY
SALE
MONDAY, AUGUST 27,1973
Located in Cumberland County, just south of
Newville, Pa., along Big Spring road. Use Newville Exit
off Int. 81. Turn north on 233 to Newville, then left
along Big Spring.
55 Registered & Grade HOLSTEINS
30 DAY HEALTH TESTS FOR INTERSTATE
Many fresh, some close, others in full production,
bred back. Mostly young cows with good udders,
showing a lot of dairy character. A good herd for late
summer and fall production.
SOME OPEN HEIFERS AND HEIFER CALVES
SPECIAL MENTION! An Ivanhoe Star, milking in the
90’s should be an easy V.G.
A couple True Type Models, with good udders
producing real well. A Seaman bred to Magnet due 2nd
calf from dam with 27,900 milk, 885 fat. A Citation M.
with 13,910 milk, 571 fat, 4.1 percent at 2 yrs., 11 mos.
A very nice Performer; others by Kingpin, Gent,
Kennedy, Wimpledale Marge Prince Rex, Design Lad,
Hayssen Master Rmgo, and others.
Service Sires - Glen-Lu-Knoll Astrogem, Havenlane
Cnss Tony and Romandale Shalimar Magnet
YOU’LL LIKE THESE COWS!
LUNCH + TENT + FOLDERS
WILLIAM AUKEMA Owner
GOSSERT O ae T r'k AUCI ' R D1 ' NEWVILLE. PA 17241
FRED NAUGLE, Announcements