Kankakee Valley Post, Volume 11, Number 3, DeMotte, Jasper County, 5 December 1940 — SIXTY-ONE CENT LOANS available for 1940 corn [ARTICLE]

SIXTY-ONE CENT LOANS available for 1940 corn

Farmers in the commercial corn area can get loans of 61 cents per bushel on eligible 1940 corn, according to Rollin J. Stewart, chairman of the Jasper County AAA Committee, who attended a district meeting of AAA Committeemen, last week at Rensselaer Other persons from the County Triple A office attending the meeting were Hazle Alson, Art T. Kanne, and Victor C. Babcock. Lee Patrich, commodity loan supervisor for the Indiana State AAA committee, was present at the meeting and outlined provisions of the 1940 loan program, designed to encourage longer term storage. Principal changes in this year’s corn loan program are: (1) the term of the loan htfs been extended from one year to three years; and (2) the period during which loans are available has been extended from four months to 10 months. Corn loans are made in connection with the AAA Farm Program to prices by enabling farmers Who coo-perate in the program to market their corn in an orderly manner, rather than releasing the corn on an over-supplied market at harvest time. They also make possible the establishment of a reserve supply of corn that protects both farmers and consumers against shortages. “Extension of the period for the execution of loans from four months to 10 months and extension of the term of the loan from one year to three years should strengthen the Ever-Normal Granary in many ways,” Mr. Patrich said at the meeting. “The longer period for obtaining loans will maintain the price-strengthening effect of the corn loan throughout the corn marketing year. The longer term loan will benefit farmers by ending them to plan for a longer period of storage for their corn at harvest time, thus avoiding the expense and inconvenience of resealing.”

The Agricultural Adjustment Act provides that loans shall be made at 75 per cent of parity when crop is less than a normal year's consumption and exports and the price on November 15 or anytime thereafter during the marketing year is less than 75 per cent of parity. The national average price of corn on November 15 was 56.9 cents per bu shel, or 70 per cent of parity. With the parity price of corn at 81.5 cents per bushel, the 1940 com loan rate is 61 cents per bushel which is 75 per cent of parity. Loans on 1940 corn will be availble from December 1 this year to September 30, 1941, and the loans will mature on August 1, 1943. Like all other commodity loans, they will be callable on demand. At any time during the loan period a farmer may redeem his corn upon payment of the loan plus three per cent interest from the date of the note to the date of repayment. Loans will be available throughout the loan period on ear com. From July 1, 1941 to September 30, 1941, loans will be made on shelled com which has been thoroughly dried in crib storage before shelling. Also beginning July 1, 1941, borrowers may obtain permission from their County AAA Committee, to shell and store as shelled corn, ear con that has been scaled and used as collateral for a loan. To be eligible for loan, corn must grade No. 3 or better, except for moisture content and test weight.