APPENDIX B

SUPPLEMENTARY STATISTICS ON OPERATIONS OF THI FARMERS HOME ADMINISTRATION

TABLE 1.-Percentage distribution by total acres in farm of the active operatin loan families, Farmers Home Administration, 1948

Source: Characteristics of the Active Adjustment Operating Loan Family in 1948, Release No. 2, 194 Operationing Loan Family Status Report, Budget Division, Farmers Home Administration, Sept. 23

1949.

TABLE 2.-Percentage distribution by total acres in crops of the active operating loan families, Farmers Home Administration, 1948

Source: Characteristics of the Active Adjustment Operating Loan Family In 1948, Release No. 2, 194 Operational Loan Family Status Report, Budget Division, Farmers' Home Administration, Sept. 23, 1949

TABLE 3.-Percentage distribution by value of working capital before acceptance,1 new operating loan borrowers, Farmers Home Administration, 1947 and 1948

Working capital includes feed, seed and supplies, livestock, machinery, and financial assets. It is the value of all property owned minus land and buildings and household goods.

Source: Release No. 4, 1948 Operational Loan Family Status Report, Budget Division, Farmers Home Administration, November 2, 1949.

TABLE 4.-Percentage distribution according to net worth before acceptance, new operating loan borrowers, Farmers Home Administration, 1947 and 1948

Source: Before Acceptance Status and Percent Distribution of 1947 and 1918 Operating Loan Borrowers Compared With the Status and Distribution of Borrowers Paying Up in 1948, release No. 4, Budget Divison, Farmers Home Administration, November 2, 1949.

APPENDIX C

INCREASED PRODUCTIVITY OF FARMERS HOME
ADMINISTRATION BORROWERS

The increased productivity of operating loan borrowers of the Farmers Home Administration is a direct result of the effective application of the basic principles of supervised credit. This increased productivity cannot be attributed to supervision alone or to credit alone but to a combination of the two in appropriate amounts and at appropriate times. Through supervision, families have been guided in the development and implementation of balanced farm programs which have provided efficient and effective utilization of labor and land resources. Through the extension of credit they have been enabled to obtain the necessary materials, livestock, and services to put into effect those things which were necessary to the efficient use of both labor and land. While supervision or technical guidance would undoubtedly produce some increase in productivity it would Lot produce an increase comparable to that achieved by operating loan borrowers unless it were supplemented and complemented by the extension of adequate credit. Similarly, credit alone would result in some increase in productivity, but the extension of credit without the technical guidance which has been found essential for the effective use of credit would not result in the increase in productivity which has been obtained through the supervised credit program which coerdinates both supervision and credit with the needs and abilities of individual families.

While specific information as to increased productivity resulting from the Farmers Home Administration supervised credit program has Lot been obtained, some indication is provided by a comparison of the value of farm products sold by about 50,000 borrowers paying their ans in full in 1948 with that of those receiving their first loans during the same year. The paid-up group which had been on the program approximately 5 years had a 1948 value of farm products sold of 46. Those borrowers receiving their first loans in 1948 had value of farm products sold averaging $955 for the year before coming on be program, or $1,491 less than the paid-up borrowers who had been o the program approximately 5 years. Assuming that the paid-up ap increased their cash family income evenly over the period of 5 ars they were on the program, then their total cash farm income for 5-year period would be $9,248 compared to a total 5-year cash m income of $4,775 based on the average cash farm income of $955 the year before receiving the loan. To apply this 5-year increase gating $4,473 to the 50,000 borrowers paying in full in 1948, the al increase in income from products sold would be $223,650,000. advances to the group total roughly $100,000,000, all of which Las been repaid with interest at 5 percent.

Assuming an even increase of income over the 5 years the borrow are on the program, the before-acceptance paid-up study wo indicate an annual increase per family of $298. It is estimated th an average farm-management supervisor can adequately serve 1 operating loan borrowers including the making of 36 new loans ea year provided he has no other program activities. Considering th the combination of credit and supervisory assistance is effective 85 percent or 153 of these 180 operating loan borrowers, the avera farm-management supervisor, through advice and guidance to famil who within the limits of the Farmers Home Administration Act ha received adequate credit assistance, can expect an annual incor increase of $45,600 from the 180 operating loan borrowers with who he is working, or an increase for 5 years from an annual value products produced of $171,900 to $400,023.

Actually, the average supervisor in recent years has been requir to handle caseload considerably in excess of that equivalent to 1 operating loan borrowers. The $298 yearly annual increase p family may be considerably less than would be accomplished if t workload per supervisor were reduced to the equivalent of 180 opera ing loan borrowers.

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