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:
1. to an applicant who had any other means of income other than farming
2. to applicants who didn’t operate a farm in 1931
3. to purchase machinery or livestock
4. to pay taxes, debt, or interest
5. for feeding of livestock other than work stock used in the production of the crop
6. for a total acreage of crops in excess of the average planted by the borrower in 1930 and 1931.
Researched by Wilbur Bush