Factors Affecting Success of Farm Loans a Study of Lending Experience in Seven

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Factors Affecting Success of Farm Loans a Study of Lending Experience in Seven
Joseph Ackerman
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In studies made in New York, 1 ' 2 and Missouri 3 higher education was associated with higher earnings among farmers. On the other hand, Hammer in his study of the Master Farmers of America found no significant differences in net incomes when the groups were selected on the basis of the amount of school training acquired. 4 Wilcox found no apparent relationship between earnings and education. 5 Age of Borrower Proved Relatively Unimportant The majority of the 827 loans were made to borrowers be...tween 40 and 60 years old (Table 30). Borrowers less than 30 years old obtained only 7 percent of the loans and those over 60 years only 16 percent. A larger percentage was made to borrowers under 40 years old on intermediate and inferior soils than on good soils. Only 14 percent of the loans made on good soils were made to borrowers less than 40 years old, and 21 percent to borrowers over 60 years old. The higher proportion of older men reflects the larger capital requirements on good land.
The age of the borrower at the time the loan was made was a relatively unimportant factor affecting lending experience.


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