142 STATE HORTICULTURAL SOCIETY. 



boys in the family did work, which, if paid for at usual rates, Avonld have 

 cost $90.00. Eepairs on buildings, machinery and fences cost |38.00; in 

 addition to these repairs, the buildings and machinery depreciated dur- 

 ing the year an estimated amount of |134.00. Buildings and machinery 

 usually depreciate 2% to 15% a year, depending upon construction, care 

 and treatment given them. These figures show that this farmer had 

 less hay and grain on hand at the end of the year than at the beginning. 

 This loss is included as current expenses. If he had had more feed, it 

 would have been entered in the receipts column. The receipts are figured 

 for each class of stock separately. The amount paid for all stock bought 

 during the year is subtracted from the total sales for the year and al- 

 lowance made for increase or decrease in value of stock on hand at the 

 end of the farm year as compared to the beginning of the year. 



LABOR INCOINIE. 



Subtract ing |681.00, the total expense, from |1,796.00, the total re- 

 ceipts, Ave have 11,115.00. This amount is the Farm Income, or the net 

 return for the farm investment and the farmer's labor. Subtracting 

 1570.00 Avhich is 5% interest on the total value of all the farm ijroperty, 

 we have |545.00. This is what this farmer received for his year's work 

 and is known as his Labor Income. In addition to this, he received such 

 portion of his living as the farm furnished for himself and family. 



This farm is a fairly successful farm and has three characteristics 

 which make it successful. These are Good Size, Good Quality and 

 Good Diversity. In making a summary of this kind of the farms around 

 Fremont in the area selected by County Agent Blaudford for the demon- 

 stration work, we found that one farmer out of every six did as well 

 or better than this farmer. One-half of all the farmers made less than 

 1200.00 for their year's w^ork after paying interest on total valuation 

 and current farm expenses. One-half of these did not make interest 

 after paying farm expenses. Tliis is not an unusual condition. Similar 

 conditions are found everywhere and usually these uui)rolitable farms 

 are so because thej^ fall down in one or more of the three factors men- 

 tioned above. In our farm management demonstration work, it is our 

 special duty to analyze the business of these farms with reference 

 to these factors in such a way that the farmer will see for himself Avhat 

 his labor income is, why it is so small ; and to discuss with him what 

 changes are possible that he may increase his income. The charts 

 which I have here liave been made that we may show the Newaygo 

 County farmers how these factors which are known to apply to farm 

 business apply in his community and on his farm. Chart A shows how 

 to figure the farmer's labor income; charts B, C and D and their sub- 

 divisions, «liow how these factors affect the labor income in the com- 

 munity. Chart E shows hoAv these factors apply to the individual 

 farm. If we can in this wa}' bring to the attention of the farmer with 

 a small income the knowledge that his farm business is poorly organiz- 

 ed and suggest changes to him which, when given satisfactory trial, 

 results in an increased income, we feel that we have permanently bene- 

 fited him and his family. 



