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FINANCING BEGINNING FARMERS
Author(s) -
CALDWELL H. W.
Publication year - 1953
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.1953.tb01251.x
Subject(s) - capitalization , capital (architecture) , debt , bankruptcy , economics , financial distress , agriculture , business , finance , financial system , ecology , philosophy , linguistics , archaeology , biology , history
SUMMARY The problem of financing beginning fanners has become more complex with the disappearance of agricultural frontiers. At present due to high prices, and more machines and equipment being used to replace scarce labour, the amount of capital required to start farming has greatly increased. Refinancing the business every generation necessitates having a supply of capital available at all times but in larger amounts under present conditions. However, a word of caution might not be amiss. When money is borrowed, caution is always desirable but especially so when prices, incomes and debts are high. If credit is available in too large amounts and too easy to obtain, the beneficial results of such policy can be lost through capitalization into higher land values. Even if this capitalization does not take place, large debts may cause distress and discouragement in periods when price relationships are unfavourable. Governments have recognized the need for more adequate credit facilities for farmers and have attempted in many instances to provide the necessary capital for meeting the increased need.