Marginal Land Loans Procedure Explained

Press, Volume CIV, Issue 30739, 1 May 1965, Page 22

Marginal Land Loans Procedure Explained

Applications for loans from the Marginal Lands Board are dealt with on their merit, says the- Director-General of Lands (Mr R. J. MacLachlan), who is chairman of the board. “That half the loans made by the board have gone to Northland farmers simply reflects the fact that most applications come from this district, where there is both greater scope for this type of farm finance and a greater awareness of its value than appears in other districts,” says Mr MacLachlan. Mr MacLachlan’s statement is made in reply to a correspondent, “Rustic,” who says:—

"I read of the marginal land loans for the 1964-65 year. It is high time that the public was made aware of what interest these loans are made available at. What are the periods of the loans? The fact that Northland has had £532,555 out of a total of £1,123,547 calls for some ex-

planation. To whom do we apply in Christchurch for a loan from the Marginal Lands Board? It would seem that there is some connexion between marginal seats and marginal land.” Mr MacLachlan says that in making loans, the Marginal Lands Board also considers the recommendations of local marginal lands committees, made up of the Commissioner of Crown Lands, the Department of Agriculture’s farm advisory officer, and a private farmer.

“Interest rates are 5 per cent net for first mortgages and 51 per cent net on second or subsequent mortgages.” he says. “Loans for farm development are made initially on current account, and are converted to instalment mortgage for terms cf up to 30 years when the development work is sufficiently consolidated to enable principal to be repaid. The Marginal Lands Board is not in competition with other lending institutions, and lends where finance is not obtainable from normal lending sources of development, refinancing, or purchase of land to make farms economic.” Full details of assistance available under the Marginal Lands Act, 1950, were obtainable from the Department of Lands and Survey in a leaflet entitled “Marginal Lands Assistance.” Copies of this leaflet were obtainable from the Commissioner of Crown Lands. Department of Lands and Survey, Private Bag. Christchurch. to whom Canterbury farmers seeking marginal lands finance should apply, says Mr MacLachlan.