The Bank Won't Bet on Orchards
Federal land bank president D. G. O'Shea declares fruit trees are too risky for long-term farm loans.
D. G. O’Shea, president of the Federal Land bank at Spokane, states that for loan purposes fruit trees have no value. He explains the federal bank’s viewpoint: 'The appraisal of orchard lands has given rise to some comment and difficulty. We are here primarily to serve the farming people of our district, but we are in duty bound to see that the security behind the bonds issued is sufficient. An orchard is a beautiful and valuable asset, but it is not insurable. Fruit trees are destructible; if care is not taken of them they may die or become diseased, and hence there is reason and justice in the policy of not considering the trees as having value for mortgage loans that will run up to 40 years. If orchard land should change ownership, what assurances would there be that future owners would have the knowledge or inclination to maintain orchards?'
“An orchard is a beautiful and a valuable asset; so is a beautiful home. If fruit trees were insurable they could be considered... but they can not possibly be fairly considered in the value of the land for the reason that they are destructible.”
This 1917 dispute over land value versus crop volatility remains a core tension in Washington's agricultural economy. The Federal Land Bank’s refusal to treat orchards as capital mirrors today's ongoing struggles to secure financing for volatile, climate-sensitive specialty crops.
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