84 DEPARTMENT OF AGRICULTURE




 Intermedite Credit For The Farmer
A Pamphlet Containing Questions and Answers on Intermediate
 Credit as Provided for in the Agricultural Credits Act of 1923
 and Essential Facts Showing the Need for It.


 Prepared by the
 U. S. DEPARTMENT OF AGRICULTURE


What is the Agricultural Credits Acts of 1923?
 It is an act to provide intermediate credit for the farmer.
It enables the farmer to borrow for production and market-
ing purposes, for periods running from six months to three
years, depending upon the purpose for which the credit is
used It establishes 12 intermediate credit banks.

What is meant by intermediate credit?
 Intermediate credit, as the phrase is commonly used,
means credit granted to farmers for terms longer than those
covered by ordinary bank loans, but shorter than those
for which farm mortgage loans are usually made. It is
based on personal and collateral security; that is to say, on
the character and standing of the borrower, and on com-
modities or other personal property pledged to guarantee
repayment of the money loaned Farm credit other than
mortgage credit, and running for terms of from six months
to two or three years, is properly spoken of as intermediate
credit.

What has been the source of intermediate credit in the past?
 There has been no regular source of intermediate credit
in the past. Our banking system has grown up primarily to
serve industry and trade and has not been well adapted to
the needs of Agriculture. Farmers have consequently been