The Farmers Mart Dec-Jan 2019 - Issue 60

FARM NEWS 17 • DEC/JAN 2019 AGRICULTURAL MORTGAGE CORPORATION 90TH ANNIVERSARY Original letter from AMC To Major John Francis of Carmarthen Jan 1929 inviting him to join the Panel of A M C Valuers. As the Agricultural Mortgage Corporation celebrates 90 years of activity, it is an opportunity to see what has been achieved in that time. Report on 182 acre Pembrokeshire Farm BORN into life by the Agricultural Credits Act of 1928 AMC was set up with a funding deposit of £500,000 to lend money on a long-term basis to the farming industry. Naturally prices and values were very different from to-days levels, but some basic procedures have remained the same. AMC borrows wholesale money from the money market and lends it out on a long- term basis, against a valuation provided by one of its panel valuers, to the borrower for his agricultural business. Originally loans could be made up to 66% of value, against a maximum of 60% today. Interest rates have changed over the years, but the first loans were given out at 3½% for periods up to 60 years. The improvement in agriculture from the 1930’s onwards was caused by various fac- tors, but one factor of substantial assistance were the AMC long term loans at a fixed rate of interest, a facility which the commercial banks did not provide at that time. Some details of the original arrangements and early valuations are still available and are shown in the details set out in the display. A national panel of valuers was estab- lished all RICS Fellows. In South Wales, Major John Francis DSO FRICS FAI was appointed. He and his brother David were principals of the firm John Francis and Son operating across south Wales in the agricul- tural and rural sector. In 1924 Arthur Perkins left his north Pembrokeshire home to join John Francis Report on 182 acre Pembrokeshire farm at Carmarthen, where he remained until 1977. Major Francis carried on AMC work into the 1950’s and died in 1960, assisted by Arthur Perkins who became valuer until his retirement in 1977. Edward Perkins joined John Francis in 1961 and continues to serve as an AMC valuer in conjunction with his daughter Kathryn and Rodney Powell the other partners in the Edward H Perkins firm. Over the years procedures have changed, the agricultural fortunes have dipped and risen, but the basic job remains the same, know your locality, know the farming business and provide sound and correct valuation and guid- ance to AMC and the farming industry. A look at some of the early AMC activity in South Wales clearly shows the condi- tions at the time. In January 1929 S C Bonner, Manager of AMC, wrote to Major Francis and other valuers asking them to serve on AMC’s panel of valuers. A copy of the invitation A schedule of the first 5 valuations carried out is set out below. Valuation 1 2 3 4 5 6 Mortgage Monmouthshire 47 acres £850 £560 Carmarthen 58 acres £1,450 £950 Glamorgan 70 acres £3,000 £2,000 Breconshire 49 acres £770 £500 Breconshire 54 acres £900 £600 Degar Llanharri and Bryn Cwtyn Coychurch 113 acres and 143 acres £7,500 £4,000 (Quoted with permission of Mr and Mrs David Morgan, family successors at Degar farm). Original letter from AMC to Major John Francis of Carmarthen Jan 1929 inviting him to join the Panel of AMC Valuers. Report and Valuation made on the Farm near Abersychan Report and Valuation made on the farm near Abersychan letter is exhibited. This envisaged a small panel with a trial period of one year. Fees were to be discounted of 2/3rds of RICS valuation scale and expenses kept down to the maximum possible. The first valuation in South Wales was a farm, in the parish of Trevethen near Abersychan, Monmouthshire. This was a 47-acre holding bought in 1919 for £947. In 1929 money was owing to Barclays Bank, Pontypool. In March 1929 Major Francis having inspected, returned a valuation of £850 and advised a mort- gage of £560. In the case of the 54 acres (No: 5 above), within one year both the bor- rower and his tenant were bankrupt, and AMC became mortgagees in possession, receiving the rent which paid the mort- gage interest. Thus, situation remained until at least 1949 with AMC collecting the rent, and all attempts to sell the farm being unsuccessful. Over the period to 1940 the rent dropped from £60 to £35. In 1949 the property was offered for sale at £950. There were 29 enquiries and a highest offer of £600. During the 1930’s AMC found itself on a number of occasions a mortgagee in possession, employing local valuers to supervise management and farming activity to provide an income to pay mortgage instalments. One such example was New House farm, Whitson, south east of Newport, Gwent. This 337 acre farm was offered for sale by auction in 1935 with a reserve of £8,000, and no bids were received. John Rennie of Newport was appointed man- ager for AMC, a job that lasted for 6 years until by 1941 it was let on annual tenancy. Possession was taken in June 1935 and John Rennie’s first task was to buy 120 cattle to graze the grass available. In other cases AMC on the valuer’s ad- vice, bought the flocks of hill sheep and cattle and for a period of years were re- sponsible for running these farms through the local agents. In many cases, but not all, financial returns improved, the arrears were paid off and the livestock owner- ship and management returned to the borrower. This action by AMC ensured the survival of the family businesses, some of which exist today. The display shows some of the early details.

The Farmers Mart Dec-Jan 2019 - Issue 60 | Page 17