Federal Land Bank Farm-Mortgage Loans: A Statistical Study of Loans Outstanding, September 30, 1966

Characteristics of Federal land bank loans made during the 10-year period 1957 to 1966 changed considerably. The average term increased from 26.6 years for loans made in 1957 to 28.4 years for those made in 1966. The average interest rate charged increased from 4.75 percent to 5.62 percent and the average loan size increased from $10,308 to $23,167. More significant was the increase in the average loan per acre from $30 for 1957 to $70 for loans made in 1966--an increase of 133 percent. Loan characteristics varied significantly by farm production region. The loan to appraised value ratio for all loans outstanding on the date of the survey was 60.7 percent for the Northeast region compared to 49.7 percent for the Southern Plains region. The characteristics hypothesized to have the greatest impact on determining the amount of the loan were (1) the appreciation of the security offered, and (2) the loan to appraised value ratio.