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Show 79 By 1930 the state farm loan program was in deep trouble. As foreclosures on farms increased, it became apparent that money had been lent with insufficient collateral. 25 Although the state repossessed most of the farms involved in the program, during the depression years, it was forced to minimize losses through resale at greatly reduced prices. 26 In spite of its best efforts to move repossessed farms and otherwise maintain its cash flow, the board became the largest landowner in some agricultural areas. Finally, in 1933, the farm loan program was discontinued altogether. It was not until 1941 that a recommendation was made to resume the program. 27 In addition to the above problems, structural limitations of the program caused difficulties. The farm loan program was designed to aid the individual farmer and, in cases of cooperation, small groups of individuals. The program worked well only when easily accessible and unappropriated water resources were available. As the water resources of the state became more fully appropriated, the irrigation and reclamation projects required for successful agriculture became technically more difficult, more expensive, and larger in scope. Water development projects had to either collect excess water from large areas or use long- term storage. Individuals could no longer build projects capable of capturing the widely dispersed unappropriated water resources. Because individual improvements could only utilize existing supplies more efficiently, the farm loan program, as a water development institution, was no longer adequate. As a result, the program was discontinued. Financial losses figured prominently in the program's demise, but the state's water management officials also realized that different water development institutions were needed. Table 4 records the program's success during the early years of the period under study and its later problems. State of Utah, " Annual Report of the Land Commissioners for the Year 1933," Public Documents reports on the loan activity of the year. ^ State of Utah, " Annual Report of the Land Commissioners for the Year 1933," Public Documents reports on the process used to foreclose on and resell the bad loan properties, it also estimates the losses incurred. la State of Utah, " Annual Report of the Land Commissioners for the Year 1933," Public Documents stated that losses and difficulties were so great that the collateral for 912 loans were repossessed and the program was discontinued. State of Utah, " Biennial Report of the Land Commissioners for the Years 1941 and 1942," Public Documents suggested restarting the loan program, the legislature declined to do so. |