REPORT RESUMESED 020 011FACTS FOR PROSPECTIVE FARMERS.BY- MYERS, KENNETH H.DEPARTMENT OF AGRICULTURE, WASHINGTON, D.C.REPORT NUMBER F-BULL-2221 PUB DATE,ERRS PRICE MF-$0.25 HC-$1.04 24P.

RC 002 081

JUL 66

DESCRIPTORS- AGRICULTURE, *AGRICULTURAL SKILLS, AGRICULTURALPRODUCTION, *FARM MANAGEMENT, *FARMERS, FARM OCCUPATIONS,OCCUPATIONAL CHOICE, FART TIME FARMERS, *RURAL ENVIRONMENT,RURAL AREAS, *VOCATIONAL INTERESTS,

WRITTEN PRIMARILY FOR THE PERSON WITH LITTLE OR NOFARMING KNOWLEDGE OR EXPERIENCE WHO EXPECTS FARMING TOPROVIDE THE MAJOR PART OF HIS AND HIS FAMILY'S INCOME, THISPUBLICATION BRIEFLY EXPLORES NUMEROUS ASPECTS OF OPERATING AFAMILY-MANAGED COMMERCIAL FARM. IN DESCRIBING WHAT-FARMING ISLIKE TODAY, THE FOLLOWING POINTS ARE COVERED--IMPORTANTFARMING TRENDS, AVAILABILITY OF FARMS, RESOURCES NEEDED,LEVELS OF INCOME, AND HOW BEGINNERS GET STARTED. MAJOR TYFESOF FARMS PRESENTED INCLUDE DAIRY, FEED GRAINS AND LIVESTOCK,COTTON, WHEAT, RANGE LIVESTOCK, POULTRY, FRU:TS ANDVEGETABLES, SPECIALITY CROPS, AND GENERAL FARMING. THEQUESTION. OF RENTING OR BUYING LAND AND METHODS OF FINANCINGARE OUTLINED, AS WELL AS SUGGESTIONS ON HOW TO GET STARTED.THIS BULLETIN IS ALSO AVAILABLE FOR $0.15 FROM THESUPERINTENDENT OF DOCUMENTS, U.S. GOVERNMENT PRINTING OFFICE,WASHINGTON, D.C. 20402. (SF)

FOR PROSPECTIVE FAR ERS(Xi-

U.S. DEPARTMENT OF HEALTH, EDUCATION & WELFARE

OFFICE OF EDUCATION

L1THIS DOCUMENT HAS BEEN REPRODUCED EXACTLY AS RECEIVED FROM THE

PERSON OR ORGANIZATION ORIGINATING IT. POINTS OF VIEW OR OPINIONS

STATED DO NOT NECESSARILY REPRESENT OFFICIAL OFFICE OF EDUCATION

POSITION OR POLICY.

UNITED STATES DEPARTMENT OF AGRICULTURE FARMERS' BULLETIN WO. 2221

CONTENTSPage

What farming is like today 2Important farming trends 2Availability of farms 3

Government land 3Privately owned farms 3

Resources needed 5Levels of income 5How beginners get started_

Major types of farms 9Dairy 9Feed grains and livestock 10Cotton 10Wheat 10Range livestock 11Poultry 11Fruits and vegetables 12Specialty crops 12General farming- 13Other farm enterprises 13

Obtaining a farm 13Renting 13Buying 15

Financing the farm 15Loans 16

Kinds 16Sources 16

Farm insurance 18Getting started 19Other sources of information- 20Selected reference list_ 21

By Kenneth H. Myers (Retired)Farm Production Economics Division

Economic Research Service

This publication supersedes Farmers' Bulletin No. 1961, "Getting Started inFarming."

Washington, D.C. Issued July 1966

For sale by the Superintendent of Documents, U.S. Government Printing OfficeWashington, D.C., 20402 Price 15 cents

Facts for Prospective Farmers

Every year many people in theUnited States seek to go into farm-ingeither full or part time.

These prospective farmers have awide variety of backgrounds. Someare just starting on a career; othershave been working in nonfarm occu-pations. Some have grown up on afarm or have worked on one; othershave had no farming experience.

Most prospective full-time farmersexpect a farm to provide an incomeon which they can live comfortably,raise and educate a family, and per-haps build up an estate.

Of the prospective part-time farm-ers, some hope eventually to farmfull time. They plan to continuetheir nonfarm work until they accu-mulate enough capital for a full-timefarm business, gaining valuable farm-ing experience in the meantime ontheir part-time farm.

Other prospective part-time farm-ers expect a farm only to supplementtheir wages, pensions, or other non-farm income and provide a home.

This publication is primarily forthe person with little or no farmingknowledge or experience who expectsfarming to provide the major part ofhis and his family's income. It maybe useful to others, however, includ-ing young farm families who havejust begun to farm on their own,farm families who lack adequate re-sources for their present operations,and farmers who are considering amove to another region with whichthey are not familiar.

Although the information includedhere deals chiefly with the family-managed commercial farm that islarge enough for efficient operation,it is recognized that many may want

to begin farming on a smaller scale.Lack of experience, personal capabil-ities, or capital limitations may dic-tate a smaller operation. Suchsmaller operations can be satisfying,too, but will usually yield less income.

Much of the information is appli-cable also to part-time farming. Amore detailed discussion of this kindof operation may be found in Part-Time Farming, U.S. Department ofAgriculture Farmers' Bulletin No.2178.

Buying, or simply renting, a full-time commercial farm and acquiringthe facilities and livestock necessaryfor efficient operation require a bigcapital investment.

Making this investment wisely re-quires technical knowledge, man-agerial skill, and careful considera-tion of many important matters.Among these are kind and size offarm needed for the planned type offarming, location of farm in respectto market facilities, amount of landand capital required to provide anadequate Income, and kind of equip-ment needed for efficient operation.

This publication is intended toserve as a general guide only. It isnot possible in a single report to in-clude all the important specific infor-mation for all types of farming in allparts of a country as large and variedas the United States. Sources of thismore specific information are listedthroughout the publication. Costlymistakes and disappointments may beavoided by taking the time to studycarefully the available published in-formation, by subsequent personalinspection of farming areas of in-terest, and by discussions with localpeople in such areas.

1

What Farming is Like Today

The commercial family farm todayis a business venture comparablewith many substantial business estab-lishments in the cityin size ofoperation, financial risks involved,and requirements of capital, technicalskill, and management ability.

Most of the production and livingitems the family needs are boughtfrom others. And getting the landto farm on is one of the biggest prob-lems of the beginning farmer.

Important Farming TrendsFarming in the United States has

undergone many marked changes inrecent years and is still changingrapidly. However, the family farmone on which the operator and hisfamily do the managing, take thefinancial risks, and do most of theworkis still the dominant unit ofagriculture. In 1964, family-sizefarms made up 96 percent of allfarms and accounted for 73 percentof all farm production.

Farms are getting larger. In 1965,the average size of farm was 341acres. In 1940, it was 174 acres.

The number of farms is decreasing.In 1965 there were about 3,383,000farms. The number has decreasedsteadily since the peak number ofnearly 6,500,000 in 1920. Smallfarms have decreased most.

Capital requirements per farm aregrowing. The average total invest-ment in land, buildings, livestock,machinery, and working capital was$59,500 in 1965, compared with$17,400 in 1950 and $6,200 in 1940.

Efficient farmers are becomingmore specialized, and they dependever more heavily on purchased "in-puts"feed, seed, fertilizer, equip-ment, and so onand on cash marketsfor their products. Thus their netincome has become increasingly vul-nerable to changes in prices of bothinputs and farm products.

Both technology and economicsare responsible for the increases in

2

farm size and capital investment.Technology makes it possible for thefarmer to enlarge his operation.Economics makes it necessary.

Farm technologythe applicationof science findings to farmingis en-abling the farmer to handle morecrops and livestock and to producemore per acre or per livestock unit.New and improved labor-saving ma-chinery, better seed, greater use ofcommercial fertilizer, better land useand treatment, insect and disease con-trol, selective breeding, more efficientfeeding and management practicesall are a part of this technology.

It takes larger farms to use modernmachinery efficiently. It takes agreater output to pay for higher over-head and operating costs and tomaintain or improve net income inthe face of lower profits per unit ofoutput.

Lower unit profits result fromgreater use of purchased productionitems, rising costs of these items, andsluggish prices for products thefarmer sells.

These changes in farming havechanged the emphasis on qualifica-tions the farmer should have. Suc-cessful use of modern methods callsfor a high degree of technical knowl-edge and skill. Successful handlingof large investments in the face ofhigh and rising costs, uncertain prod-uct prices, and bad weather andother risks requires expert businessand financial management. Alsofarmers need to know about Govern-ment farm programs, including allot-ments and marketing quotas forspecified farm commodities.

Life on the farm has changed, too.Modern power and equipment haveeliminated much of the drudgery andstrenuous work formerly needed togrow and harvest crops and care forlivestock. Electricity has made itpossible for farm homes to have thesame conveniences and labor-savingequipment as urban homes.

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The family farm is still the dominant unit of agriculture. Today it is a busi-ness venture comparable with many substantial business establishments inthe city.

The family of the beginningfarmer, however, may have to forgoconveniences in order to put morecapital into the farm business.Availability of Farms

It cannot be emphasized toostrongly that "free Government land"for farming is virtually a thing of thepast. Practically all available landsuitable for farming is privatelyowned.Government land

Although the Federal homesteadlaws are still on the books, very fewtracts of land suitable for farmingbecome available any more. Thosethat do become available are "in therough." Before one can make aliving from them he must put in a

lot of hard work and spend muchtime and money.

Some land in Alaska may be home-steaded, some leased, and somebought. But before settling there,the prospective farmer should getinformation from reliable sourcesab ,at climate, farming conditions,and markets in the area in which heis interested. Land may have to becleared. Chances of success are lim-ited by lack of markets and transpor-tation facilities. For sources of in-formation on Alaska, see page 21.Privately owned farms

Only about 170,000 farms arevacated each year by operators whodie, retire, or leave the farm forother reasons. Probably less thanone-fifth of these farms are acquired

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by new farmers, many of them youngmen who take over the home farmfrom their parents.

Most of the remaining farms arebought or rented by establishedfarmers. Half of the farm tractssold each year are bought by estab-lished farmers to enlarge their farms.

Some land goes out of farmingeach yearinto urban, industrial,highway, or other nonfarm use. Asmaller acreage of land is broughtinto cultivation each year by irriga-tion and drainage. The net result:total land in farms is decreasing.

In 1965 there were 1,155 millionacres of land in farms. It is esti-mated that this figure will shrink byabout 15 million acres in the next 10to 15 years.

Resources NeededHow much land, labor, and capital

does it take to farm?The requirements for these re-

sources vary widely among differenttypes of farms. Not only do thetotal inputs of each resource varywith type, but there is a great differ-ence in the relative importance ofeach.

For example, compare two ex-tremely different farmsa typicalNew Jersey farm producing marketeggs and a sheep ranch in the South-west. The poultry farm has only 10acres of land, the sheep ranch 13,520.The poultry farm requires 5,030hours of labor per year to care for4,625 hens; the sheep ranch requires5,390 hours per year to care for 1,350head of sheep. Total capital in-vested is $44,740 in the poultry farm,$217,220 in the sheep ranch.

Table 1 shows land, labor, andcapital requirements for 13 represen-tative, operating commercial farms indifferent parts of the country. Eachfigure given is a yearly average forthe 3 years 1962-64. Similar in-formation for 29 other types of com-mercial farms is published annuallyby the Department.

As the table shows, fewer acres ofcropland are used in livestock sys-

tems of farming, such as dairying,than in cash-grain farming. Moreland is needed in areas of low pro-duction per acresuch as the wheatand ranching areasthan in highproduction areas, such as the CornBelt. Capital investment in land ishigher in the Corn Belt, however,because of the higher cost per acre.

The resources used on these typi-cal farms indicate what experienced,working farmers are using today.They do not, however, necessarilyrepresent the most efficient combina-tions of land, labor, and capital.

Beginners who have neither thecapital nor the managerial ability tostart with a highly specialized farmsuch as those in table 1frequentlystart with a more general type offarming.

Such a general farm might, for ex-ample, combine a small dairy enter-prise, hogs, or poultry, and perhaps acash crop. This kind of farmingmay not use resources most effi-ciently, but it takes less capital andmakes it possible for the farmer tomake full use of his time; his earn-ings per hour, of course, are less thanthey would be on a more specializedfarm.

Levels of IncomeHow well does farming pay?Type of farming, size of farm,

quality of resources used, cost ofproduction items, prices of farmproductsthese are some of the ele-ments that determine net incomefrom the farm. Another big item isthe farmer himselfhis technicalknowledge and skill, his businessefficiency, and his management ofthe resources at his disposal.

Table 2 indicates the levels ofincome that experienced, full-time,commercial farmers are getting. Itshows average annual incomes ob-tained during the three years 1962-64 on the same typical commercialfarms as listed in Table 1. Simi liarinformation for 29 other types offarming is published annually by theDepartment. Incomes, of course,fluctuate from year to year.

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The cost figures for operating ex-penses in the table include depreci-ation on buildings, machinery, andequipment. Replacements for thesefacilities can b deferred, and the in-come earmarked for depreciation canbe used for other purposes. Thiscan be done only temporarily, how-ever; the depreciation allowance musteventually be spent on replacements.

The interest charge on total capi-tal represents what the same amountwould earn in other investments. Ifassets are debt free, the income al-lotted for interest can be used forpurposes other -han debt repayment.

Many prospective farmers have inmind a certain level of income theywould want farming to provide.They want to know how much land,labor, and capital would be neededto attain that income.

The Department of Agriculturehas estimated the minimum "com-plements of resources" needed to en-able farmers to realize $2,500, $3,500,$4,500, and $5,500 a year for theirlabor and management on majortypes of farms in 30 selected farmingareas of the United States. Theseestimates are available on request.The four income levels to which theestimates are keyed are about themedian annual earnings of skilled orsemiskilled workers in nonfarm em-ployment in different regions of thecountry.

How Beginners Gee: StartedYoung men reared on a farm often

start on the home farm or on a farmnearby. Often they get help fromtheir families at firstin such formsas financial assistance, favorablerental arrangements, or free use offarm machinery.

Some nonfarm beginners' may alsoget financial assistance from relativesor others, or from earnings in off-farm work. Financial help fromother than commercial sources cando much to get the beginning farmeroff to a good start.

A beginning farmer with little orno experience may start by working

for a while as a farmhand. In thisjob he can learn by doing and by ob-serving. He is not required to makeany managerial decisions or to put upany capital. Although he usuallycan support a family on his wages,he probably cannot accumulate muchcapital. However, the experience hegains will be an asset when he goesout to rent a farm or apply for afarm loan.

Beginners often rent rather thanbuy their first farm. Renting re-quires less capital and less risk forthe operator. As a tenant, the oper-ator makes day-to-day decisions onhis own. Overall decisions, such asthe kinds and amounts of crops andlivestock to be produced, and the useand care of land and improvementson it, usually must have the approvalof the landowner. Many importantmanagerial decisions are made bytenant and landowner together.Sometimes livestock may be ownedjointly.

Other ways a beginner can keepthe amount of capital required to aminimum without greatly reducinghis income include: Buying usedmachines at farm sales or from deal-ers; hiring custom machines to pickcorn, harvest small grains, and fillsilos; exchanging work with neigh-bors for seasonal work requiringadditional help.

Beginners may also buy some ofthe land they farm and rent the rest.In recent years, this part ownershiparrangement has become commoneven among established farmers.

Under this arrangement the oper-ator owns part of the land, usuallywith the necessary buildings on it,and rents additional land. Partownership has developed as a wayfor the operator to meet today'sneed for larger farm operating unitswith a limited capital investment.

Some start farming part time on asmall farm. They continue in non-farm work as a primary source of in-come long enough to gain experienceand accumulate capital for a full-timefarming business.

7

IIi

o

Major Types of FarmsEconomic conditions also change

constantly. Among those that helpdetermine the type of farming that isstressed in an area are: Distance tomarket for some products; improve-ments in transportation facilities andin methods of food preservation; de-velopment of labor-saving machinerythat can be used more efficiently inone area than in another; shifts inpopulation; and changes in consumerdemand.

Although resources in an area tendto be used to produce the most prof-itable crop, this does not necessarilymean that only this one crop is pro-duced. Other crops usually aregrown to make more efficient use ofavailable labor, power, and machin-ery and to meet soil and water con-servation requirements.

The major, broad agriculturalregions in the United States areshown at left. In each region,there is a major crop or class oflivestock produced. Each regioncan be further subdivided into type-of-farming areas, according to thecrops grown in combination with themajor crop or the kind of livestockthrough which the crop is marketed.

More than 500 type-of-farmingareas can be identified within themajor agricultural regions in thiscountry. This, of course, does notmean that every farm in an area iscut on the same pattern. Becauseresources differ from farm to farm,production differs also. In everyregion, some farms stress productionof whole milk or fresh vegetables be-cause special markets for these prod-ucts exist in all regions.

DairyDairy farming is concentrated in

the Northeast, the Lake States, andalong the North Pacific Coast. Soilsand topography in these areas are notas favorable to production of graincrops on a large scale as in the CornBelt, for example. But the cool cli-mate and ample, well-distributedrainfall are favorable to production

Farms are classified into types ac-cording to the product or productsthat provide the major part of theincome. Cash grain farms are thoseon which corn, soybean, or wheatsales supply the greater share of theincome. Similarly, there are dairyfarms, cotton farms, fruit and vege-table farms, beef cattle farms, hogfarms, hog-beef fattening farms, poul-try farms, and so on.

Farms of most major types arelocated irk rather well-defined areasof the country. That is, certaintypes of farms predominate in certainareas. This emphasis has comeabout because a certain type or typesof farming make the most profitableuse of available resources under thephysical, biological, and economicconditions in an area.

Physical and biological conditionsdetermine the kinds of crops that canbe produced. They affect yields andcosts of production. Economic con-ditions determine which crops orlivestock can be produced most prof-itably and the forms in which theyare sold from the farm. .

Physical conditions change com-paratively little over the years. Themost important ones are kinds of soil,topography, and climate. Soils onthe same farm may vary greatly.Some crops, such as corn and hay,can be grown under a wide variety ofphysical conditions. Others, such ascotton and tobacco, are strictly lim-ited by climate or soil.

Some areas, such as the Corn Belt,have the physical conditions forgrowing many crops successfully. Insome, such as the Great Plains wheatregion, physical conditions are suit-able for only a few crops.

Biological conditions that limitproduction include the prevalence ofnoxious weeds, insects, and diseases.Modern control methods have re-duced the importance of these bio-logical conditions, but control "knowhow" and costs remain an importantconsideration. Biological conditionsare constantly changing.

9

of hay and pasture crops. Thesecrops, supplemented by grains shippedin from surplus-grain-producing areas,can be efficiently used by dairy cattle.

Most parts of the dairy regions areclose to population centers. In theseparts dairy farms are highly special-ized, and milk is sold for fluidconsumption.

In parts of the dairy regionsfarther from consuming centers, milkis sold for use in dairy products, suchas butter, cheese, and ice cream.The dairy enterprise is usually lessintensive than in the fluid milk areas.In the farm organization, dairy cattleare combined with other farming en-terprises, such as poultry, livestock,and (where growing conditions arefavorable) specialty crops such aspotatoes and vegetables for canning.

Feed Grains and LivestockFeed grains and livestock predomi-

nate in the Corn Belta broad regionextending from central Ohio west tocentral Nebraska and eastern SouthDakota.

Conditions in this region are welladapted to the production of grains.Land is mostly level to gently rolling.The principal soils are deep, fertile,and rich in organic matter and nitro-gen. The growing season is warmand moist, and it is long enough formany crops.

Corn is the leading crop, soybeanssecond. Both are grown in combi-nation with small grains (such as oats,wheat, or barley) and hay crops tomake the most efficient use of laborand equipment and to protect theland from erosion and loss of fertil-ity. Grain sorghum as a feed cropis gaining in the western part of theregion.

Cash grain farming predominatesin east central Illinois and centralIowa. In these areas level prairieland is adapted to large-scale ma-chinery. Corn and soybeans plus aminimum of small grains and grassesmake up the cropping system.

In the rest of the Corn Belt, beefcow and calf enterprises, beef feed-

10

ing, and hog raising are combined inmany ways to use efficiently the re-sources available. Beef cew and calfenterprises are important on farmswhere much land is best adapted topermanent pasture, as it is, for ex-ample, along the Mississippi andMissouri Rivers and along manysmaller waterways. Beef cattle feed-ing and hogs are major enterpriseswhere less forage is produced. Insome areas large-scale beef-feedingenterprises predominate.

CottonCotton is a major crop in all or

large parts of nine southern Statescalled the Cotton Beltand in irri-gated areas of California, Arizona,and New Mexico.

These areas have the long, hotgrowing season and include the well-drained soils that cotton requires.

Until recently, cotton has been aheavy user of labor. Developmentof machinery to replace hand laborhas led to increased cotton acreagein the areas best adapted to mechan-ical harvesting. Notable among theseare the irrigated areas in the threewestern States, the lower Rio GrandeValley, and the Texas High Plains.Acreage has declined in most of theCotton Belt east of the MississippiRiver. Production has not declinedas much as acreage because of in-creases in yield per acre.

The relative importance of cottonin the farm organization varies wide-ly in different parts of the CottonBelt. Feed grains and grasses forforage have replaced much cotton inthe eastern part of this region. Live-stock has become more important onmany farms. And broiler produc-tion has become a major enterprisein some areas where labor is plenti-ful.

WheatWheat is the major source of farm

income in the southern and north-ern Great Plains and in the ColumbiaRiver Basin of the Northwest.

Although yields of wheat are lowerin these areas than in some others,

wheat growing is profitable becausethe topography of many of the soilsis well suited to large-scale mecha-nized operations. Also, there arefew alternatives to wheat in theseareas of scant rainfall.

Winter wheat is grown in south-western Nebraska and in Kansas,Colorado, Oklahoma, and Texas. Inthe eastern part of this sectionwhere rainfall is greatestcorn, bar-ley, and oats are also grown. In thewestern part where rainfall is 20inches or less a year, wheat is grownin combination with grain sorghumsand summer fallow. On some farms,as much as one-half the cropland isin fallow. A practice that contrib-utes substantially to farm incomeduring favorable years is grazing ofwheat during fall and early winter.Cattle and sheep are brought in oncontract to graze.

Spring wheat is grown in theNorthern Great PlainsMontana,North Dakota, and South Dakotawhere winters are severe and thegrowing season short. In the easternpart of this area, wheat is grown incombination with barley, rye, andflax.

Potatoes and sugar beets as well aswheat are grown in the Red RiverValley of Minnesota and NorthDakota. In western North Dakotaand in Montanawhere much of theland is rough and suitable only tograzingthere are extensive wheat-livestock ranches.

Both spring and winter wheats aregrown in the Columbia River Basinin Washington, Oregon, and Idaho.Winter wheat ispreferred because ofits greater yield; if the winter cropfails, fields are often reseeded tospring wheat.

In the western drier area, wheatis alternated with summer fallow.In the eastern part, dry, edible peasare alternated with wheat. Also, inthe eastern part livestock is a definitepart of the farm economyusuallysmall dairy, beef cattle, hog, orpoultry enterprises. Barley, oats, andhay are grown to provide necessaryfeed.

Range LivestockCattle or sheep ranching is car-

ried on in the 11 -Western States. Inmost of this region, soils, elevation,topography, and climate are suchthat there are few alternatives toranching. Rainfall is low and un-certain, making crop production im-possible or hazardous except underirrigation.

Overall, about half the range areais Federal or State land but the pro-portion varies from State to State.This land is made available throughpermit or lease to nearby ranch op-erators, usually for a fixed annualfee per head of livestock.

Livestock ranches vary in size froma few thousand acres to many thou-sands if both owned and leased landsare included. Because of the lowproductivity of the land it takesmany acres to graze each animal andmany animals per ranch to yield anadequate income. Cattle and sheepare produced in different areas whereconditions are best suited to each.

The system of grazing varies con-siderably. Usually grazing is yearround in the southwest, where win-ters are mild, and seasonal in thenorthern areas. Wherever livestockare grazed in the winter, cottonseedcake is fed as a supplement. Innorthern areas, harvested nativegrasses are used for winter feed.Many young cattle and lambs areshipped from ranches to local irri-gated areas or to the Corn Belt forfattening, or "finishing." Usuallythese feeder animals are shipped inthe fall when pastures give out.

PoultryPoultry farming has changed radi-

cally in recent years. It is no longerjust a sideline business on nearlyevery farm. Instead, it is a majorenterprise on farms that specializein either broiler or egg production.

Expansion of broiler productionand the increase in size of layingflocks have been stimulated by labor-saving equipment and practices, byimproved feeding and management,

tf

11

fl

and by contract production arrange-ments. In contract production, thefeed dealer, the supplier of chicks,or the final processor supplies muchof the credit and assumes most ofthe price risk.

Today about two-thirds of thebroilers marketed are produced inthe South. Egg production is stillwidely distributed throughout thecountry.

Fruits and VegetablesFruits and vegetables are produced

in many widely separated areas.Usually an entire area is given overto this kind of production. But insome places where there is a readymarket, specialized fruit or vegetablefarms are interspersed among farmsof other types.

For many fruits and vegetablesclimate determines the productionareas. For example, citrus fruitsand winter vegetables can be growncommercially only in the most south-ern parts of the country. Deciduousfruits are best adapted to areas whereearly fall or late spring frosts areleast likely to occur; they can begrown in some northern areas, how-ever, if a nearby large body of wateror especially good air drainage re-duces the risk of damage from frost.

A ready market and good man-agement are first requirements forthe successful production of fruitsor vegetables for fresh market. Suchproduction is an intensive operation.Land values are high, and inputs peracre are heavy for seed, fertilizer,insect and disease control materials,and labor. Timing of vegetable plant-ing to obtain the best price for prod-ucts and operational planning forefficient production are highly im-portant.

The major producing States forthe most important fruits and veg-etables are:

Citrus fruits . . . Florida, Cali-fornia, Arizona, Texas.

Apples . . . Washington, NewYork, Michigan, Virginia, andCalifornia.

12

Peaches . . . California, SouthCarolina, Georgia, New Jer-sey, and Pennsylvania.

Pears . . . California, Washing-ton, Oregon, Michigan, andNew York.

Grapes . . . California, NewYork, Michigan, Pennsylvania,and Washington.

Cranberries . . . Massachusetts,New Jersey, Wisconsin, andWashington.

Cherries . . . Michigan, NewYork, Oregon, California, andWashington.

Strawberries . . . California,Oregon, Michigan, Washing-ton, Louisiana, and New Jer-sey.

Vegetables for fresh market . . .

California, Florida, Arizona,Texas, and New York.

Vegetables for processing . . .

California, Wisconsin, Ore-gon, Washington, and NewJersey.

Specialty CropsThe main specialty crops are po-

tatoes, sugar beets, sugarcane, pea-nuts; rice, tobacco, and dry beans.

Generally these crops are growncommercially in small, definitely out-lined areas where soil and climateare especially favorable. Sometimesthey are the main crop the farmergrows, sometimes a supplementarycash crop. Some, such as sugarcane,can be grown only in limited areasin the United States.

Major producing States for themain specialty crops are:

Potatoes . . . Idaho, Maine, Cali-fornia, New York, Wisconsin,and Minnesota.

Sugar beets . . . California,Idaho, Colorado, Nebraska,Minnesota, and Washington.

Sugarcane . . . Louisiana andFlorida.

Peanuts . . . Georgia, Texas,Alabama, North Carolina,Oklahoma, and Virginia.

Rice . . . Texas, Arkansas, Lou-isiana, California, and Missis-sippi.

Tobacco . . . North Carolina,Kentucky, South Carolina,Tennessee, Georgia, and Vir-ginia.

Dry Beans . . . Michigan, Cali-fornia, Colorado, Idaho, Ne-braska, and New York.

General FarmingFarms on which several crops or

several classes of livestock, or bothare produced are found in nearly allparts of the country. They are mostnumerous in the areas where theCorn Belt and the northeast dairyregion merge and where the Cornand the Cotton Belts merge.

On most general farms the acreageof land suited to cultivation is limitedand usually cannot be cropped in-tensively. Usually livestock is im-portant as a means of using pastureand other forage.

Incomes from farms of this typeusually are lower than from morespecialized farms. Income may bemore stable, however, because it is

derived from several sources. Home-grown produce consumed in thehome is often an important part ofincome on general farms.

Other Farm EnterprisesOther enterprises associated with

the land and rural living includeraising of fur animals, productionof honey, production of goat's milk,and recreation farming.

The possibilities of recreationfarming are becoming greater asurban people have more leisure timeand are able to get out of the cityfor relaxation. A recreation farmmay be a place to hunt or fish, tocamp, or to just rest and enjoy therural atmosphere.

This kind of farming is oftensuitable for acreages least adaptedto production of crops or livestock.Development of an area or ofunused land on a farm for recreationaluse as a source of income may be anefficient use of resources.

A location conveniently accessibleto an urban center is an advantagefor most types of recreation farmingand a requirement for some.

Obtaining A FarmWhether he wants to rent or buy,

getting a suitable farm is a big prob-lem for the beginner.

He must compete for availablefarms with established farmers aswell as with other beginners. Manyestablished farmers need more landto enlarge their operations. Othersmove during the year, getting a bet-ter or more suitable farm. Somesimply move to a new locality forpersonal reasons.

RentingThe main advantage in renting

over buying is that less capital isrequired and less financial risk isinvolved.

The main disadvantage is insecur-ity of tenure. Another is that the

farming enterprise may be limitedin size or kind because the land-owner is reluctant to make neededadditional investments in buildingsand facilities.

These disadvantages can be less-ened, sometimes eliminated, by a suit-able leasean agreement betweenlandlord and tenant under which afarm is rented and operated. Writ-ten leases are advisable.

Types of leases. Three types ofleases in common use are: Cash lease;crop-share lease; and livestock-sharelease. Another type sometimes usedis the labor-share lease, also calledthe manager-tenant lease.

The tenant who has a cash leaseagrees to pay a specific amount ofmoney annually for use of the farm.He assumes all the risk of crop fail-

13

ure and price drops and receives allthe benefits of good crops and highprices for them. He usually hasmore independence in the operationof the farm than he has with othertypes of leases. This is the leastcommon type of lease, especially forbeginning farmers.

The tenant with a crop-share leasegives the landowner as rent a certainshare of crops produced. Often thecosts of such items as fertilizer andharvesting are also shared by theowner. Usually the lease specifiesthe minimum acreage of crops to beshared. The size of the share paidto the landowner varies with theproductivity of the land, the hazardsin production of the crop, and thecontribution to production made byeach party.

With this type of lease the tenantneeds less capital and operating re-serve and assumes less risk than hedoes with a cash lease. He also hasless freedom in selection of cropsand production practices.

A variation of the crop-share leaseis the crop-share-cash lease, whichincludes a specified cash rental forpasture and meadowland.

The livestock-share lease is similarto the crop-share lease except thatthe landowner owns a share of thelivestock, and a share of the incomefrom the livestock is paid as rent.Rent also includes a share of all cropsnot marketed through the livestock.The tenant assumes less risk than hedoes under the crop-share lease, andhe usually has less freedom in mak-ing decisions.

Under this type of lease, theamount of rent is based more nearlyon the net income from the farmthan under other types. It permitsthe landowner to maintain a moreactive interest in the farm and en-ables the tenant to gain experiencein livestock management with lessrisk.

Under the labor-share or manager-tenant lease the landowner pays thetenant a fixed amount for his laborand management, plus a share of thenet income above a certain amount.

14

The owner turns over to the tenantthe operation of a farm fullyequipped with machinery andstocked with livestock but maintainsan active interest in the operation ofthe farm.

Beginners with no experience canseldom get this type of lease; farm -owners usually want an experiencedmanager. Frequently they requiresome surety that the tenant's obliga-tions will be fulfilled.

Contents of the lease. Provisionsin the lease should establish specifi-cally and in detail the rights, duties,and responsibilities of both tenantand landowner. These provisionscan do much to establish and main-tain good working relations betweenthe two.

Among general provisions that areincluded in most leases is 01 e thatestablishes the duration of the lease.A short-term lease that is automati-cally renewed from year to year un-less notice of termination is made byeither party provides for some tenuresecurity and stability of operation.

Usually under other lease pro-visions the tenant agrees to farm theland in "a good and proper" or a"husbandlike" manner and to keepbuildings and fences in good repair.Usually the landowner agrees to fur-nish repair materials.

Most leases provide that the land-owner may take possession of thefarm if the tenant fails to pay therent stipulated or to comply withother lease provisions.

Special lease provisions shouTdcover the division of such costs asthose for seed, fertilizer, and har-vesting. The lease should providefor reimbursing the tenant for un-exhausted improvements that remainwhen he leaves the farm; these im-provements include sowing of le-gumes and application of lime andfertilizer from which the benefitshave not been received.

A cash or crop-share lease usuallyspecifies the maximum amount ofland to be used for hay or meadow.

If the landowner has an interestin the livestock, the lease should

also state the division of such costsas those for purchased feed, veteri-nary fees and medicine, and registra-tion of animals. It should also spec-ify how livestock ownership will bedealt with on termination of thelease.

A careful determination of leaseprovisions and putting them in writ-ing will result in a lease more equi-table to both tenant and landowner,and will avert later misunderstandingand friction between the two parties.

Tenancy laws differ in particularsfrom State to State. Both parties tothe lease should familiarize them-selves with the applicable State law.

For other publications of the De-partment of Agriculture containinginformation on leases and renting,see page 21.

BuyingThe advantages of ownership are

security of tenure and freedom tomake management decisions. Earn-ings from the operator's equity capi-tal may be added to labor and man-agement earnings for living expenses,reinvestment in the business, or otheruses. Also, the value of the landmay rise over time.

On the other hand, ownershipmay involve substantial indebtedness.

FinancingBefore he decides definitely

whether he will buy or rent and theenterprises he will go into, the begin-ner should work out a capital budget.The purpose of planning such a bud-get is to show how the available cap-ital can best be used. He shouldnot overlook the fact that some ofhis capital will be needed for day-to-day operating and family-living ex-penses until income is produced.

Part of the original capital usuallywill be borrowed money. Farmers,even beginners, need and use fairlylarge amounts of credit. This credit,wisely used and managed, can makeit possible for the farmer to obtain

Risks of financial loss are greaterthan in renting.

Ownership, of course, brings withit financial responsibility that is bothgreater and longer lasting than thefinancial responsibility renting en-tails. Few persons buy more thanone farm in a lifetime; moves aretime consuming and expensive.. Thesection on Financing the Farm belowcovers many points to be consideredby the prospective farmer who isthinking of buying.

Some part-time farmers working atnonfarm jobs use their off-farm in-come to move gradually into full-timefarming. They use their initial sav-ings to make a downpayment on as mall farm and to buy enough live-stock and equipment to permitlimited farming operations for thefirst few years.

The off-farm income makes thembetter credit risks for lenders thanif they were wholly dependent onfarm earnings. They can continueto borrow to build up their farmbusiness to a point where it will sup-port their family and pay off previousloans.

Such a gradual shift into full-timefarming can usually be made withless sacrifice in family living standardsand better chance of eventual successthan an abrupt change to full-timefarming.

the Farmthe basic resources needed for anefficient and profitable operation.

A key problem the beginner mayneed to solve in making out his cap-ital budget is how much he can bor-row and repay from farm earnings.The amount that can be borroweddepends on the amount of moneythe beginner can put into the busi-ness, his character and credit rating,and his farming experience.

Most commercial lenders haveguides and standards that set upperlimits on the amount they will lend.Usually, for example, to get crediton a mortgage for buying a farm theborrower is expected to make a

15

downpayment of 40 to 50 percent ofthe purchase price. Lenders usuallywill make loans on livestock and onnew machinery for up to 80 percentof the purchase price.

A beginner may find in makingup a capital budget that if he makesa downpayment on a farm he doesnot have enough left to buy livestockand machinery. If so, it would prob-ably be better for him to start as atenant with a full line of modernmachinery and adequate numbers oflivestock than to stretch the funds toacquire an uneconomical combina-tion of real estate, equipment, andlivestock.

LoansGetting the needed credit through

the right kinds of loans from the bestavailable sources is an important partof sound financial farm management.

KindsFarm loans may be generally clas-

sified as long term, intermediateterm, and short term. A specialkind of loan is the installment pur-chase contract.

Long-term loans secured by a mort-gage on the real estate are used tobuy land or make major improve-ments to farmland and buildings orto finance construction of new build-ings. They may be for as long as40 years. Usually they are paid offin regular annual or semiannual pay-ments.

Intermediate-term loans are usedto buy equipment and breeding stock,for making land improvements, fornew buildings, and for remodelingexisting buildings. They are paidback in from 3 to 7 years. Gener-ally they are secured by a chattelmortgage on livestock and machinery.

Short-term loans are made for alltypes of seasonal operating and fam-ily living expenses including pur-chase of materials such as seed, fer-tilizer, and tractor fuel. They usuallyrun for a year or less. Security suchas a chattel mortgage on a crop maybe required by the lender.

16

An installment land purchase con-tract is a method of buying a farmthat is similar in some ways to buy-ing a car on installments. The buyermakes a small downpayment on thefarm and uses the farm as if he ownedit outright, but the legal title remainswith the seller until all of the purchaseprice has been paid or an agreed-onpart of it.

The downpayment required maybe only 10 to 20 percent of the totalselling price instead of the 40 to 50percent usually required for a mort-gage. The balance of indebtednessis spread out over whatever lengthof time the seller and buyer agree to.Interest is charged on the unpaidbalance as with a mortgage.

Anyone entering into an install-ment land contract should get goodlegal advice first. Special provisionscan be written into the contract toprotect both buyer's and seller's in-t e-t--c-st440

The buyer assumes more risk whenhe enters into a land contract thanhe does when he obtains a mortgage.He can lose possession of the farm ifhe fails to make payments on sched-ule; in some States he may also loseall the money he has put in. If theterm of the contract is too short, thepayments can be excessive in rela-tion to the earning capacity of thefarm.

It is often safer to use a land con-tract for several years to build up theowner's equity to the point where amortgage loan can be obtained thanto use it as the only means of financ-ing purchase of a farm.Sources

Table 3 shows the main sources ofthe three main kinds of loans. Inseeking a loan it usually pays to"shop around" in advance of actualneed to see which source is bestunder the circumstances. Comparecost of credit, length of loan, loanfees, repayment privileges, and se-curity required. Also, for long-termloans check the reputation of thelenders for "staying with" worthyborrowers in hard times.

TABLE 3. Principal sources of 3 main kinds of farm loans

CREDIT SOURCE

KIND OF LOAN

LONG TERMINTERMEDIATE

TERMSHORT TERM

COMMERCIAL BANKS x x x

DEALERS AND MERCHANTS

FARM MORTGAGE COMPANIES x

x x

FARMERS HOME ADMINISTRATION x x x

FEDERAL LAND BANK ASSOCIATIONS x x

INDIVIDUAL LENDERS

INSURANCE COMPANIES

x

x

x x

PRODUCTION CREDIT ASSOCIATIONS x x

In comparing costs of credit, lookat total dollar amounts, not just in-terest rates. Lenders figure chargesin different ways. For example, ifyou buy fertilizer or farm machineryon the time-purchase plan, you mayfind that you'll pay more in interestthan you would if you borrowed themoney to pay for the purchase out-right.

To obtain loans or informationabout loans from commercial banks,dealers and merchants, farm mort-gage companies, individuals, and in-surance companies, apply directly tothese sources or to their local repre-sentatives. Local banks and farmreal estate dealers often serve as loancorrespondents for life insurance orfarm mortgage companies; they cantell you about loan requirements,terms, conditions, and interest ratesand arrange for loans.

The Farmers Home Administra-tion makes loans only to farmers un-able to obtain adequate credit fromother sources at reasonable rates andterms. Applicants who are veteransand have farm experience receivepreference. FHA helps applicants

determine their credit needs, workout debt repayment schedules, andsolve other financial problems eventhough they may not be eligible fora loan.

Farmers Home Administrationloans are made to farmers who carryon farming operations on a scalelarge enough to support their fam-ilies and to farmers on small farmswho obtain income from off -farmemployment. Each farm-ownershiploan is based on a plan that whenfollowed will provide enough incomefrom the farm and other sources toenable the family to have a reason-able standard of living and makepayments on its debts when due.

The county supervisors of FarmersHome Administration help borrow-ers prepare the plan and provide on-the-farm assistance with managementproblems. Farm ownership loans arescheduled for repayment accordingto the borrower's ability to repay,over a period not exceeding 40 years.Interest rate is 5 percent.

In addition to farm-ownershiploans, Farmers Home Administrationmakes operating loans, rural housing

17

loans, loans for the development ofsuch rural community facilities aswater and waste disposal systems,recreation areas, and emergency dis-aster loans to eligible farmers.

To obtain loans or detailed infor-mation about loans, apply to thenearest of the 1,600 county offices ofthe Farmers Home Administration.The address of this office can be ob-tained from the county agriculturalagent or the Farmers Home Admin-istration, Washington, D.C., 20250.

Federal land bank associationswhich number more than 750lendmoney for such purposes as: buyingfarmland; improving farmland andbuildings; constructing farm build-ings; refinancing debts; and provid-ing a home for the owner or his fam-ily on or off the farm. Such loansmay also include funds for buyinglivestock, equipment, and suppliesand for paying farm-operating andfamily-living expenses. Loans arealso made to part-time farmers.

Generally, the amount of a landbank loan may not exceed 65 percentof the appraised normal value of thefarm. The appraisal is based prin-cipally on earning power rather thancurrent sale price. Such loans maybe made for periods up to 40 yearsalthough they are usually made for20 to 34 years. Land bank loans canbe paid ahead of schedule withoutpenalty. Borrowers receive in theform of dividends any savings the as-sociations make.

The Federal land bank associa-tions are local cooperative lendingorganizations that operate under thesupervision of 12 Federal land banksand the Farm Credit Administration.

Loans and information about loansmay be obtained from the manager ofthe local Federal land bank associa-tion nearest you or from a local as-sociation representative. The ad-dress of the latter may be obtainedfrom your county agricultural agentor from the Farm Credit Administra-tion, Washington, D.C., 20578.

Production credit associationswhich number nearly 500are local

18

cooperative lending organizationsthat operate under the supervision of12 Federal intermediate credit banksand the Farm Credit Administration.

These associations make loans tofarmers to finance livestock, ma-chinery, farm improvements, and alltypes of operating and family livingexpenses. Interest is charged oneach dollar only for the number ofdays it is outstanding. Operatingloans are scheduled for repaymentas income will be available duringthe season. Intermediate-term loansfor capital improvements are madefor periods up to 7 years.

Loans and information about loansmay be obtained from the managerof the local association or from alocal association representative. Theaddress of the latter can be obtainedfrom the county agricultural agentor the Farm Credit Administration,Washington, D.C., 20578.

Farm InsuranceA beginning farmer, even if

pinched for capital, cannot neglectcarrying adequate insurance. Hesimply cannot afford to take all therisks himself. Lenders may not per-mit him to do so.

The most important kinds of in-surance for him to have are thosethat protect him from serious lossescaused by fire and windstorm dam-age to his property (other than crops)and from liability for injury to theperson or property of another.These losses are the ones most likelyto be catastrophic. Few establishedfarmers can afford to be without pro-tection from them. They could wipeout a beginning farmer.

Some farmers need to take out in-surance on crops also. Insuranceagainst crop damage by hail or wind-storm can be purchased in mostareas. Federal

purchasedrisk" crop insur-

ance is available on certain crops indesignated counties. This Federalinsurance insures against loss of pro-duction expensesnot profit fromthe crop.

Health insurance is usually neededby farm families. Sickness is moreand more expensive and can causereal financial trouble. Hospital,surgical, and medical insurance arethe main types. Insurance on thehead of the family is especially de-sirable, for his sickness may meanloss of income as well as added ex-pense. "Medicare" health insuranceunder the social security legislationof 1965 is limited to people 65 yearsold and over.

Many kinds of farm insurance areavailable on a minimum-loss basis;that is, no claim is paid unless theloss is over a specified amou.A.Other insurance policies carry a "de-ductible" clause; a certain sum is de-ducted from all claims.

Minimum-loss or deductible poli-cies protect against the big losses thatwould endanger the operator's finan-cial position. They cost considerablyless than insurance against the fullamount of loss.

Many established farmers take outminimum-loss or deductible policies,then rely on savings to insure againstminor losses. Beginning, farmers,who are not likely to have much insavings, need to consider insuranceagainst even minor losses.

Some lenders require the borrowerto carry life insurance payable to thelender if the borrower dies. Someoperators, on their own, take out lifeinsurance equal in amount to theirindebtedness; in the event of theirdeath, all loans could be paid off andthe farm, machinery, and livestockleft free of debt. Low-cost creditlife insurance is available from mostproduction credit associations andFederal land bank associations andfrom some commercial banks.

There are many kinds of life in-suranceeach designed to fill a par-ticular need and purpose. Leastexpensive is term insurance. Thisprovides protection for a fixed num-ber of years, usually 5, 10, 15, or 20.

Most farm families are now cov-ered by old age and survivors insur-ance under the social security sys-tem. Payments are made to farmerswhen they retire or become disabled,and to their dependents when theydie.

The kinds and amounts of insur-ance that are adequate for a begin-ning farmer vary with circumstances.A more detailed discussion of thevarious kinds of insurance availableappears in Insurance for Farmers,USDA Farmers' Bulletin No. 2137.

Getting StartedIf you have little or no farming

experience, and are seriously consid-ering entering full-time commercialfarming, you will, of course, needinformation more detailed than thegeneral guides presented in thispublication.

Some of this information can befurnished by the U.S. Department ofAgriculture in answers to your par-ticular questions. The more specificthe questions, the more useful thereplies can be.

If you are interested in farming ina particular State, it is suggested thatyou write the State Director of theExtension Service for helpful infor-mation. He can supply up-to-date

references on the State's agriculture,aLlresses of agencies that can help

'linners get started, and names andaddresses of the State's county agri-cultural agents. Addresses of StateExtension Service Directors are listedon page 22.

If you are interested in farming ina particular county, it is suggestedthat you write that county's agricul-tural agent. He or a committee offarmers working with him can fur-nish information about farms for saleor rent in the county, soils and to-pographywhich often vary widelywithin short distancescrops suit-able to the county, local farmingpractices, how much debt is safe,

19

how to rent a place, and the size offarm necessary to support a family.

Real estate dealers in farm prop-erties have lists of farms for sale orrent. The U.S. Department of Agri-culture does not maintain lists ofeither real estate agencies or privateloan sources and is not in position tomake recommendations as to theirreliability.

It is strongly recommended thatyou visit a farm before you rent orbuy it. You can then check notonly on the farm from the soils, pro-duction, and financial standpointsbut also on conditions on the farmand in the locality that may affectyour family's health and happiness.Farming is a way of life as well as anoccupation. Moves are time-con-suming and expensive.

Points to check:Present and planned local pub-

lic services.Current and prospective tax

levels.Business, commercial, and

banking facilities that servefarmers' needs.

General character of the com-munity.

Location of schools, churches,and social centers.

Availability of medical facili-ties.

Opportunities for supplemen-tary off-farm work.Since lending agencies usually

operate through local offices, this isalso a good time to confer with localofficials or representatives of com-mercial banks, insurance companies,mortgage companies, Federal landbank associations, production creditassociations, Farmers Home Admin-istration, individual lenders, farmmachinery and equipment dealers,or other credit sources. Check onkinds and amounts of credit youcould expect to get and t creditterms and conditions.

County Agricultural Stabilizationand Conservation Service (ASCS)offices advise on and administer com-modity progra ms, including allot-ments and marketing quotas for thebasic commodities. These officescan also supply information aboutthe soil, water, timber, and wildlifeconservation practices that the Agri-cultural Conservation Program helpscarry out on individual farms.

ASCS offices also are charged withthe local administration of price-suppert commodity loans made avail-able through the Commodity CreditCorporation, certain emergency pro-grams in designated areas affected bydrought or floods, the feed grain pro-gram, and other farm programs.

The Soil Conservation Service(SCS) has offices in nearly everycounty that provide technical assist-ance and information on soil andwater conservation, land-use alterna-tives, soil surveys, and resource use.

Other Sources of InformatiohListed below are the sources for certain other kinds of information of in-

terest to some prospective farmers.

KIND OF INFORMATION:Farming opportunities on land irrigated

by the Federal Government.

Homesteads on public lands in the 48conterminous States.

Game and fur animals, commercial andsport fishing, and fisheries.

20

SOURCEBureau of Reclamation, United States

Department of the Interior, Wash-ington, D.C., 20240.

Bureau of Land Management, U.S. De-partment of the Interior, Washing-ton, D.C., 20240.

Fish and Wildlife Service, Departmentof the Interior, Washington, D.C.,20240.

Public lands in Alaska available forhomesteading.

Climate, farming conditions, andmarkets in Alaska.

Manager, Land Office, Anchorage,Alaska, 99501 or Fairbanks, Alaska,

99701.Director, Alaska Agricultural Experi-

ment Station, Palmer, Alaska, 99645.

Selected Reference ListOther publications of the U.S. Department of Agriculture and of the Farm

Credit Administration that may be helpful to prospective farmers are listed

below.For single free copies of all USDA publications listed except Soil Survey

Reports, see your county agricultural agent or write to the Division of Infor-

mation, OMS, U.S. Department of Agriculture, 20250. For free copies ofFCA publications, write Farm Credit Administration, Washington, D.C., 20578.

U.S. Department of Agriculture

Part-Time Farming, Farmers' Bulletin 2178Where and How To Get A Farm, Leaflet 432

Know Your Soil, Agriculture Information Bulletin 267Planning The Farm For Profit and Stability, Farmers' Bulletin 1965What Young Farm Families Should Know About Credit, Farmers' Bulletin 2135Farmers Home Administration, Program Aid 705Farm Ownership Loans, Program Aid 62Insurance Facts For Farmers, Farmers' Bulletin 2137Operating Loans For Better Farming, Better Living, Program Aid 182Family-Farm Records, Farmers' Bulletin 2167Planning Farm Machinery Replacements, Leaflet 427

Farm Lease Publications:Your Farm Renting Problem, Farmers' Bulletin 2161

Your Farm Lease Contract, Farmers' Bullecin 2164Your Farm Rent Determination Problem, Farmers' Bulletin 2162Your Crop-Share-Cash Farm Lease, Miscellaneous Publication 838Your Cash Farm Lease, Miscellaneous Publication 836Your Livestock-Share Farm Lease, Miscellaneous Publication 837Your Farm Lease Checklist, Farmers' Bulletin 2163

Rural Recreation Enterprise For Profit, Agriculture Information Bulletin 277Liability and Insurance Protection For Farmers Who Have Income-Producing Recreational

Facilities, ERS-120

Soil Survey Reports:For most parts of the country, the Soil Conservation Service has published soil survey

reports. Each report includes a soil map of a county or an area, and soil descriptions, land-

capability groupings, productivity estimates, management suggestions, and other helpful

information about the area. To obtain a list of soil survey reports available in your State,

write the Soil Conservation Service, U.S. Department of Agriculture, Washington, D.C.,

20250.

Farm Credit AdministrationGetting and Using Farm Credit, Circular E-41

Federal Land Bank SystemHow It Operates, Circular 35

The Cooperative Farm Credit System, Circular 36

21

Addresses of State Extension Service Directors

ALABAMA: Auburn University, Auburn36830

ALASKA: University of Alaska, College99735

ARIZONA: University of Arizona, Tucson85721

ARKANSAS: P. 0. Box 391, Little Rock72203

CALIFORNIA: 2200 University Avenue,Berkeley 94720

COLORADO: Colorado State University,Fort Collins 80521

CONNECTICUT: University of Connecticut,Storrs 06268

DELAWARE: University of Delaware, New-ark 19711

FLORIDA: University of Florida, Gainesville32603

GEORGIA: University of Georgia, Athens30601

HAWAII: University of Hawaii, Honolulu96822

IDAHO: University of Idaho, Moscow83843

ILLINOIS: University of Illinois, Urbana61803

INDIANA: Purdue University, Lafayette47907

IOWA: Iowa State University, Ames 50010KANSAS: Kansas State University, Man-

hattan 66504KENTUCKY: University of Kentucky, Lex-

ington 40506LOUISIANA: Louisiana State University,

Baton Rouge 70803MAINE: University of Maine, Orono 04473MARYLAND: University of Maryland, Col-

lege Park 20742MASSACHUSETTS: University of Massa-

chusetts, Amherst 01003MICHIGAN: Michigan State University, East

Lansing 48823MINNESOTA: University of Minnesota, St.

Paul 55101MISSISSIPPI: Mississippi State University,

State College 39762MISSOURI: University of Missouri, Colum-

bia 65202MONTANA: Montana State University,

Bozeman 59715NEBRASKA: University of Nebraska,

Lincoln 68503

NEVADA: University of Nevada, Reno

89507NEW HAMPSHIRE: University of New

Hampshire, Durham 03824NEW JERSEY: RutgersThe State Uni-

versity, New Brunswick 08903NEW MEXICO: New Mexico State Uni-

versity, University Park 88070NEW YORK: New York State College of

Agriculture, Ithaca 14850NORTH CAROLINA: North Carolina State

University, Raleigh 27607NORTH DAKOTA: North Dakota State

University, Fargo 58103OHIO: Ohio State University, 2120 Fyffe

Road, Columbus 43210OKLAHOMA: Oklahoma State University,

Stillwater 74075OREGON: Oregon State University, Cor-

vallis 97331PENNSYLVANIA: The Pennsylvania State

University, University Park 16802

PUERTO RICO: University of Puerto Rico,Rio Piedras 00927

RHODE ISLAND: University of RhodeIsland, Kingston 02881

SOUTH CAROLINA: Clemson University,Clemson 29631

SOUTH DAKOTA: South Dakota StateUniversity, Brookings 57007

TENNESSEE: University of Tennessee, P.O.Box 1071, KnoXville 37901

TEXAS: Texas A&M University, CollegeStation 77841

UTAH: Utah State University, Logan84321

VERMONT: University of Vermont, Bur-lington 05401

VIRGINIA: Virginia Polytechnic Institute,Blacksburg 24061

WASHINGTON: Washington State Uni-versity, Pullman 99163

WEST VIRGINIA: Mineral IndustriesBuilding, West Virginia University, Mor-gantown 26506

WISCONSIN: University of Wisconsin,Madison 53706

WYOMING: University of Wyoming, Box3354, University Station, Laramie 82071

* U.S. GOVERNMENT PRINTING OFFICE : IRS§ OF-216-787