Excerpt from The Use, Value, and Cost of Credit in Agriculture Most farm loans are made for a term of from one to five years, with the result that farmers, unlike men in other old and well established businesses, are continually renewing their mortgage credit. Most business houses instead of renewing their mortgages 'every year or two, seek to Obtain loans with as long a term of repayment and as low a rate of interest as possible. If interest rates are high when capital must be borrowed, refinancing should be provided for at a time when credit is abundant, rates low, and long-term repayment possible. A business essential is a plan of amortization or a sinking fund for the repayment of the mortgage. These are fundamental considerations generally overlooked by farmers. If each farmer worked out the financing of his farm so as to get the longest term at the lowest rate possible, his problem would be solved for years. This might result in a saving of from one to two per cent on his annual interest rate for many years, besides the expense, trouble, and worry of continued renewals - a greater total saving than results from many an important agricultural improve ment. In obtaining short-term credit, farmers are often handicapped because of their failure to understand the banker's position and to realize that his requirements as to size of deposits, margin of security, promptness of payment, etc., must be met in order to secure the most favorable terms. Education will help the farmer to cooperate with the banker in these matters and reduce his interest costs. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.