May 1, 1947: Farmers substantially reduce debt

One in five Prairie farmers paid off their mortgages in 1946, bringing to 73 per cent the amount of farm mortgages paid off in the West since 1937.

Alberta farmers were above average, with 75 per cent of them being mortgage-free the previous 10 years, a Journal story said.

The figures were announced by the Dominion Mortgage and Investments Association, and were based on reports from 30 insurance, trust and loan companies operating in Alberta, Saskatchewan and Manitoba.

In 1937, the 30 companies held 13,177 Alberta farm mortgages for a total value of $39.7 million. By the end of 1945, those numbers had been reduced to 5,680 mortgages valued at $13.7 million. In 1946, Alberta farmers had reduced their mortgages to 4,616, valued at $10.7 million.

People behind the 1946 survey said the figures included agreements for sales entered during the year, thus farmers actually reduced their indebtedness by a larger amount than the 21 per cent shown. Prairie farmers also liquidated $14 million in mortgage debt.

The survey disclosed that debt reduction was largely made up by farmers in the thousands paying off their entire mortgages in 1946.

The mortgage holders termed the debt reduction since 1937 “remarkable.” adding “it is doubtful if any other group in Canada has been as successful in reducing liabilities in the past nine years.” czdeb@edmontonjournal.com