FORTY-FIFTH ANNUAL REPORT. 143 



SIZE OF BUSINESS. 



The figures on 96 farms in Newaygo county sliow that the larger 

 farms enable the farmer to get better pay for his Avork than do the 

 smaller. There are several ways to measure the size of farm business,; 

 one Avay is by the number of acres in crops. The following chart shows 

 how the number of crop acres affects the Newaygo county farmer's in- 

 come : 



Chart Bl. 



Less than 35 acres, 32 farms, average |98 labor income. 



35-49 acres, 27 farms, average 222 labor income. 



50-65 acres, 23 farms, average 309 labor income. 



More than 65 acres, 14 farms, average 234 labor income. 



This chart suggests that farms having over 65 acres of crops are 

 too large to be profital)le, but such is not the case. Twelve of these 

 fourteen farms had good-sized i)each orchards and no peaches this year 

 on account of weather conditions. With an average peach crop, these 

 farms would probably have averaged the highest labor income in the 

 group. 



The larger farms enable the farmer to use more machinery and put in 

 his own time at a better advantage than do small farms. A large in- 

 vestment in other farm property usually goes with a large number of 

 acres. The following table shows how a large investment in equipment 

 or farm property other than real estate helps 'the Newaygo count}'^ 

 farmer to get good returns for his own time. 



Chart B2. 



34 farms having under .f 1,200 equipment average. . . |92 labor income. 



21 farms having .fl,200-.f 1,600 equipment average... 238 labor income. 



20 farms having |l,600-.f 2,000 equipment average. . . 260 labor income. 



21 farms having over .f 2,000 equipment average. . . . 296 labor income. 



This chart shows that the farmer wiio has not proper equipment is 

 greatly handicapped and' had better not start in farming until he can 

 own, borrow or hire a reasonable amount of equipment. A young man 

 just starting in without capital who wishes to own a good farm some 

 day will reach that desirable goal more quickly by working for wages 

 and saving his money until he has money and credit enough to rent and 

 properly equip a reasonably large farm, renting that farm until he 

 is able to buy a good sized farm, than he will by any other method. 

 The young man with farm experience seldom makes a serious mistake 

 along this line but the would-be farmer, the city man without farm, 

 experience very often makes disastrous mistakes. It is probable that 

 the majority of these fail because they do not plan a farm business 

 large enough to provide a sufficient income. Another mistake almost 

 equally common and oftentimes associated with this mistake is that 

 too large a proportion of available funds are invested in real estate and 

 too small a proportion is invested in equipment. In many cases, all the 



