DIY History | Transcribe | Nile Kinnick Collection | Nile Kinnick correspondence, December 1942-March 1943

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Nile Kinnick correspondence, December 1942-March 1943

1942-12-17: Page 05

(A
a unique talent for trading, and the help of a favorable price trend, meaning up-ward.
While admitting a fairly well developed knowledge of Iowa in general and a decent
appreciation of soil values, I have never been a talented trader in any sense of the
word. So what we might work out over the years is not very clear right now.
One piece of land that has been in my mind since you wrote, is the unimproved 80
lying just south of grandma's farm. That piece is owned by a man living in
California, and Cliff leases it from him.for & very reasonable cash rent. That soil
is good, and with a fertility improvement program I am sure it could be made a very
productive 80.  I have no ideawhat he paid for it nor if he will sell It. That piece
has these advantages: (1) ease of supervision; (2)simplicity of operation as part
of grandma's unit; (3) practicability of ultimate combination with unit; (4) not  
a high tax district; (5) naturally good soil types which are not subject to erosion
or flood hazard, and good location. Re-sale should be average or above. Disadvantages
are those which attend any small unimproved piece; namely, that operations will depend
on rental to neighbors, including the problem of caring for crops without buildings.
Such tracts usually rent on crop shares equal to those prevailing for improved lands,
and therefore may yield a higher return on  the investment than an improved 
farm, another disadvantage is the problem of soil fertility maintenance, as such
lands usually get little If any manure and must rely on crop rotations and green
manures. Your funds should constitute about one-fourth down payment on this 80, which
would require a financing program, unless the owner would sell on a contract v/ith
favorable terms permitting retirement over a period of years.
Should this suggestion yield no prospects, I think that I should make inquiry of
the insurance companies which have farms for sale. Their terms are quite reasonable
and altho there has been some strengthening of prices in the past year or two, about
15%, there may be something within our reach.  It is quite likely that there will be
further advances in the land market. Many economists believe that we are in for a
rather strong inflation period before this thing is over.  It will pay to keep any
investment on the basis of a rather safe margin, as far as the future can be foreseen.
If it should get down to actual cases, I would hesitate to make a deal for land that
cannot be thoroughly inspected. Winter time doesn't permit using a soil auger to
pry into the sub-stratas. But with access to appraisers who are familiar with
all areas, I would not expect to be fooled too much. We shall look into the possibilities.
Just now I turned over your letter of the 7th and noted the remarks about Christmas.
I do not know that mother saw that part. She has been so pleased with the presents
that you have given her, that I am sure your baubles will ring the bell. Grandma
wrote of having such a grand letter from you, and I assume that she has sent you a
five spot, as she told us she had done for each and every scion, counting spouses
as a part of the scion where such occur. Don't bother about the old man as he lacks
nothing material and other rewards have been more than he deserves anyway. And we
don't talk about the girl friends except that I shall comment later in this letter.
It had been on my mind for several weeks that I wanted to make some remarks to you
exactly on this very subject, but they wouldn't mean so much in the circumstances
revealed by your enclosure.
Ben had not written about any down checks, tho he had indicated the possibility.  It
seems quite odd that he should be having any trouble, and I cannot believe that it
is anything very seroius. His letter of the 10th (December) states, "Have been very
busy lately.  Got my first down on a D check - flew two consecutive ups -
4 hrs of night flying - 9 hrs of formation - formation check flight tomorrow morning.
This means I may leave for Corpus Christi this coming Monday.  If I don't leave
Monday there is a possibility I might be home around the 23rd." It would be a real
Christmas present for him to be at home for a brief spell, and greater still to see
both of you. This evening I phoned Mrs. Hobbs, and they are expecting Bob about
that time, on his way to the west coast.  (Will stop here for tonight. See you tomorrow)

Saving...

(A a unique talent for trading, and the help of a favorable price trend, meaning up-ward. While admitting a fairly well developed knowledge of Iowa in general and a decent appreciation of soil values, I have never been a talented trader in any sense of the word. So what we might work out over the years is not very clear right now. One piece of land that has been in my mind since you wrote, is the unimproved 80 lying just south of grandma's farm. That piece is owned by a man living in California, and Cliff leases it from him.for & very reasonable cash rent. That soil is good, and with a fertility improvement program I am sure it could be made a very productive 80. I have no ideawhat he paid for it nor if he will sell It. That piece has these advantages: (1) ease of supervision; (2)simplicity of operation as part of grandma's unit; (3) practicability of ultimate combination with unit; (4) not a high tax district; (5) naturally good soil types which are not subject to erosion or flood hazard, and good location. Re-sale should be average or above. Disadvantages are those which attend any small unimproved piece; namely, that operations will depend on rental to neighbors, including the problem of caring for crops without buildings. Such tracts usually rent on crop shares equal to those prevailing for improved lands, and therefore may yield a higher return on the investment than an improved farm, another disadvantage is the problem of soil fertility maintenance, as such lands usually get little If any manure and must rely on crop rotations and green manures. Your funds should constitute about one-fourth down payment on this 80, which would require a financing program, unless the owner would sell on a contract v/ith favorable terms permitting retirement over a period of years. Should this suggestion yield no prospects, I think that I should make inquiry of the insurance companies which have farms for sale. Their terms are quite reasonable and altho there has been some strengthening of prices in the past year or two, about 15%, there may be something within our reach. It is quite likely that there will be further advances in the land market. Many economists believe that we are in for a rather strong inflation period before this thing is over. It will pay to keep any investment on the basis of a rather safe margin, as far as the future can be foreseen. If it should get down to actual cases, I would hesitate to make a deal for land that cannot be thoroughly inspected. Winter time doesn't permit using a soil auger to pry into the sub-stratas. But with access to appraisers who are familiar with all areas, I would not expect to be fooled too much. We shall look into the possibilities. Just now I turned over your letter of the 7th and noted the remarks about Christmas. I do not know that mother saw that part. She has been so pleased with the presents that you have given her, that I am sure your baubles will ring the bell. Grandma wrote of having such a grand letter from you, and I assume that she has sent you a five spot, as she told us she had done for each and every scion, counting spouses as a part of the scion where such occur. Don't bother about the old man as he lacks nothing material and other rewards have been more than he deserves anyway. And we don't talk about the girl friends except that I shall comment later in this letter. It had been on my mind for several weeks that I wanted to make some remarks to you exactly on this very subject, but they wouldn't mean so much in the circumstances revealed by your enclosure. Ben had not written about any down checks, tho he had indicated the possibility. It seems quite odd that he should be having any trouble, and I cannot believe that it is anything very seroius. His letter of the 10th (December) states, "Have been very busy lately. Got my first down on a D check - flew two consecutive ups - 4 hrs of night flying - 9 hrs of formation - formation check flight tomorrow morning. This means I may leave for Corpus Christi this coming Monday. If I don't leave Monday there is a possibility I might be home around the 23rd." It would be a real Christmas present for him to be at home for a brief spell, and greater still to see both of you. This evening I phoned Mrs. Hobbs, and they are expecting Bob about that time, on his way to the west coast. (Will stop here for tonight. See you tomorrow)