Kankakee Valley Post, Volume 11, Number 7, DeMotte, Jasper County, 2 January 1941 — CORN LOAN PROGRAM CHANGED IN NEW YEAR [ARTICLE]

CORN LOAN PROGRAM CHANGED IN NEW YEAR

We feel a few statements relative to the 1940-41 corn loan program is in order at this time. Unquestionably, the corn and wheat loan programs have stabilized price s * n th e United States as evidenced by world supply and prices outside our own country. We also*. feel that while the corn loan program is changed from former years, it will-still be a potent factor in that all important matter of the farmers selling price. Government loans on corn are a part of the Agricultural Adjustment *. Act of 1938 and make possible an Ever Normal Grainary of corn assuring the nation of an amgle supply of , corn at all times. i j In the past loans were made Lor one year and many of the loans were resealed in the second and third year. County Agricultural Conservation Committees incurred considerable expense in remeasuring the cribs, executing new loan forms releasing the old mortgages and recording new ones eaeh time the corn was resealed. The notes and mortgages executed in connection with the 1940 corn loan are written for three years. This method will materially reduce the County Agricultural Conservation Association’s expense for sponsoring the loan work.

The loan rate on white or yellow corn in the commercial corn area is 61c per bushel. The notes bear 3' > interest from the date of the note to the date of repayment. If the note is not repaid in cash the borrower may deliver the corn collateral and the Commodity Credit Corporation will return the loan papers marked “Paid in full”, provided there is no shortage in bushels or a deficiency in grade. All borrowers must liquidate their loans not later than October 31, 1943 by cash settlement or delivery of the corn, and may liquidate all or any part at any time prior to October 31 ,1943 by cash settlement. Any borrower may liquidate loan by delivery of the com collateral during August, September, or October of 1942 provided he gives the county committee 30 days prior written notice. Loans executed prior to April 1, 1941, may be liquidated by delivery of the corn collateral during August, September or October, 1941, if the borrower owns the farm on which the corn is stored and sells the farm or if the borrower is a tenant and receive* written notice from the landlord to move the corn. The provision allowing the tjcnant to deliver the com collateral when he has received written notice from the landlord will apply although the d tenant may continue to operate the farm on which the corn is stored.; If a loan is executed prior to April 1, 1941, and the farm on which the corn is stored is sold during November 1941, or later, the corn may he delivered to the Commodity Credit Corporation if failure to move the com would prevent the sale of the farm.