By 1934, many Daviess County farmers were in debt “over their heads.” Thus, legislation needed to be passed. After a 17-month period, there were over $318,000 Land Bank Loans in Daviess County, MO.
The Emergency Farm Mortgage Act was passed in an attempt to refinance the Daviess County farmers on a basis that would permit the good farmers to “pay out.” Loans were made on the basis of the production of the land at that time and the prices farmers received for their products during normal periods. Farmers were given an opportunity of paying off their debt for over a period of years ranging from 13 to 33 years.
The loans were of two types:
- Land Bank loans – 4% interest. They were made on the security of first mortgages to an amount to exceed 50% of the normal value to the land and 20% on the value of the buildings.
- Commissioner’s loans – 5% interest. These were made to refinance the farmers who couldn’t fulfill the obligation due to their first mortgage loans due mainly to the depression. They were made on first and second mortgages.
Gallatin North Missourian 11/15/34 Land Banks Loan $318,300 in Daviess Co.
— presented by Wilbur Bush, Gallatin, MO