In March, 1931, both feed and seed loans became available to help needy farmers in Clinton, Caldwell and Daviess Counties. Some of the regulations for the Federal Seed Loans were:
- Loans are made for seed, fertilizer, and feed for work stock, or fuel and oil for tractors.
- Loans are intended for farmers who cannot get commercial credit and not for the man who can get credit at his local bank.
- Applications must be made in person at the office of the county extension agent in the courthouse at Plattsburg.
- Loans to any one individual may not exceed $600, and are due and payable Nov. 30, 1931, or sooner if the crops covered are sold before that time.
- The note bears an interest rate of 5% per annum.
- The loan must be secured by an absolute first mortgage on all crops grown by the applicant in 1931. In order for a tenant to obtain a loan from this fund, his landlord must sign the waver which is part of the mortgage form.
- A complete legal description of all land owned or rented by the applicant is required. The tax receipt usually contains this description.
In 1932, and due to the farmer’s money situation, many farmers didn’t have money to plant crops and repair machinery. Once again, the government provided aid for many farmers who had farmed in 1931. There were many government restrictions in regard to obtaining a loan, and in many cases those farmers who needed the money were unable to borrow it.
Under the new program, applicants were still required to give a first lien on crops, which required the tenant to secure a waiver from the party from whom he was renting.
Not more than an average of $1 per acre of the loan could be used for repairs and miscellaneous expenses of crop production other than seed, fertilizer, feed for work stock, and fuel and oil for tractors. The farmers had to agree to use the seed and methods approved by the Department of Agriculture. They had to plant a garden for home use and a sufficient acreage of feed crops to supply feed for their livestock.
Loans could not be made:
- to an applicant who had any other means of income other than farming
- to applicants who didn’t operate a farm in 1931
- to purchase machinery or livestock
- to pay taxes, debt, or interest
- for feeding of livestock other than work stock used in the production of the crop for a total acreage of crops in excess of the average planted by the borrower in 1930 and 1931
— researched by Wilbur Bush, Gallatin, MO