Orchard Owners Stunned by Federal Loan Ruling

Announcement made in North Yakima yesterday by C. B. Kegley, appraiser for the Spokane Farm Loan Bank, that fruit trees add nothing to the value of the land for farm purposes, but the base must be agricultural value, has brought dismay to the members of the several farm loan associations which have been organized here. Mr. Kegley, who arrived from Spokane yesterday and began the appraisal of lands in the Moxee valley, said values placed on orchard lands near Spokane did not in any instance exceed $200.00 an acre. This he thought would be the limit for Yakima Valley orchard lands. The ruling as to orchards was made by the national farm loan board on the ground that orchards are not insurable and the only basis to consider was the agricultural value of the land plus one-fifth for insurable improvements. 'This ruling will undoubtedly put our association out of existence,' said E. O. Keene, president of the Highland association. 'The lands of our members have been appraised at from $500 to $650 an acre and if we are to be cut down to a maximum of $200 many and possibly all of the applications will be withdrawn as the loans upon this basis will not be sufficient to meet the needs of the borrowers. I think the same will be true of all the other associations in the orchard districts of this county. This ruling will mean that the benefits of the farm loan act will come only to the dry land farmers and the owners of the raw land in the irrigated sections.'