Date of Award
Master of Science
Farming as a competitive business has become acre and more dependent u^on capital to make full use of other factors of production--land, labor, and management. The wise use of capital may result in a net return that will provide progressive improvement in the farmer*s business operations and standard of living.
Borrowing capital for productive purposes is a normal practice and is followed in all business enterprises, The farmer, who has the ability to use productively more capital than he owns, should borrow; and certain institutions have been developed to meet his needs. The ultimate source of funds loaned is the surplus scattered here and there over the country— a surplus which, instead of being needed and applied by the owner, is loaned at interest.
The local bank, various branches of the Farm Credit administration, individual merchants, dealers, and farmer® are all managers and/or supervisors of surplus funds, which are passed on to those who are in position to use them in production.
It is very important to all concerned, the owner of the surplus funds, the farmer in need of capital, and the business agency which negotiates and supervises the transfer— that the business of placing capital where it is needed, be done with maximum efficiency, and that methods be used which are most satisfactory to investors and borrowers. Financing institutions are designed to serve the needs of Agriculture and attempt to meet the requirements of the farmer1 s business. If the productivity of farmers is of such that they can pay off their mortgage within three or five years, logins should be made available for the specified time. If the farmers' business is better adapted to less than annual payments of the loan, it is mo3t economical for the loan to be made in this manner. Careful consideration of the economical combination of factors of production that will render the farmers ability to repay a loan should be of primary concern of the lending agency as well as the farmer. If the purpose for which the farmer wants money is not productive and there is no substantial prospect of the ability of the borrower to make it remunerative, the loan should not be made.
J. M. Drew
Prairie View Agricultural and Mechanical College
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Date of Digitization
John B Coleman Library
City of Publication
Curry Jr., B. B. (1956). "The Use of Agricultural Credit Facilities by Fifty Negro Farmers Of Hopkins County, Texas". Retrieved from https://digitalcommons.pvamu.edu/pvamu-theses/895