Economic and financial section > Agricultural crisis > Volume 1

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country or from banks, on which they pay interest at higher rates than those indicated
above.
In comparison with some other countries, the indebtedness of agriculture in Finland
has until recently been relatively low. In respect of farms keeping accounts, the indebted¬
ness in 1912-13 represented 16 per cent of their total value. It decreased as a result
of the inflation, and in 1921 amounted to only 6.6 per cent. After the war, for various
reasons, the farmers were again obliged to borrow.
An important agrarian reform had been carried through in Finland. In 1910, there
were 125,172 independent farms with more than half a hectare of agricultural land and
96,167 similar farms held on lease. In 1912, the total number of leased farms, including
buildings, was 151,926. By the end of 1928, 101,949 leased farms had been converted
into independent farms. The farmers who thus became owners took energetic steps to
improve their property; they extended cultivation, repaired the old dwellings, stables
and barns, and in many cases constructed new buildings; they improved their live-stock,
etc. In view of the more intensive economic development after the war, the independent
farmers (even those who were independent before the reform) invested capital in productive
work to a greater extent than formerly. As a result of this activity, the area under
cultivation increased from 1920 to 1928 by 162,000 hectares and the live-stock by 6 per
cent. At the same time, the use of artificial fertilisers was increased and many technical
improvements were introduced; from 1920 to 1928, the number of fodder units per hectare
increased from 858 to 1,282.
Professor Gebhard has estimated that between 1918 and 1928 Finnish farmers spent
about 4,000,000,000 Finnish marks in buildings, bringing land under cultivation, increasing
the number of milch cows, agricultural machinery, etc. During the same period, 260
new co-operative dairies, 115 new co-operative consumers’ societies, a large number of
sawmills for domestic requirements, flour-mills, water-supply systems, etc., were installed
in the rural communes. The communes also built a number of elementary schools,
communal homes, hospitals and electric stations. Professor Gebhard estimates that from
1918 to 1928 about 2,700,000,000 marks were devoted to these objects.
At the beginning of 1930, the Government ordered an investigation into the
indebtedness of the farmers.
Indebtedness was, on an average, 12.8 per cent of the capital value of the property.
Consequently the average indebtedness of Finnish farmers is not very high. It should,
however, be remembered that, according to the above enquiries, the ratio varies greatly
from farm to farm.
According to categories the indebtedness was as follows:
Per cent
1. Farmers with no debts jg y
2. Indebtedness less than 1,000 marks per hectare of farm land . . 16.2
3. Indebtedness 1,000-3,000 marks per hectare of farm land. . . . 29.7
4. Indebtedness 3,000-6,000 marks per hectare of farm land. . . . 20.6
5. Indebtedness 6,000-10,000 marks per hectare of farm land . . . 9.7
6. Indebtedness exceeding 10,000 marks per hectare of farm land . 4.1
100
According to the above figures the total indebtedness of Finnish agriculture may be
estimated at 6,500 millions of marks on 250,000 estates. Of these estates 34 per cent are
indebted to the extent of 3>ooo marks, or more, per hectare of farm land. More than
one-third of the total estates therefore are encumbered with what may be regarded as a
very heavy indebtedness.