FORTY-FIFTH ANNUAL REPORT. 149 



good yields but is Incl^iug in two things; quality of stock is below 

 par and the horse labor is not etlicient. It takes years to raise up a 

 new and better lot of farm animals and this farmer needs suggestions 

 that will be of immediate help in increasing his income. The farmer 

 knows more and the demonstrator knows more about this man's busi- 

 ness than can be shown on a single chart. 



Farm B sells half his hay and thus has 20 acres of hay, wheat and 

 peas for his cash crops. Farm A has 23 acres of potatoes, wheat, peas 

 and buckwheat, for his cash crops. The acreage of cash crops is about 

 the same and each farmer has adopted those respective crops thiidving 

 them the best considering the amount of labor available but evidently 

 farm B has chosen wrongly. He is spending so much of his time on his 

 stock, his unprofitable stock, that he feels it necessary to devote his 

 land to crops taking the minimum amount of labor. If he should keep 

 his stock, he would have time to raise some of the more intensive crops 

 that require more labor than does hay and pay more for that labor. 

 That ten acres devoted to hay sold will make larger profits if he raises 

 some of the hoed crops common in his neighborhood. Thus we conclude 

 that this man must reorganize his business by improving the (piality 

 of his stock, i)lan so that he can dispose of two horses and while this 

 is being done he should keep less stock and raise more of the iu^tensive 

 cash crops. In the limited time at my disposal I have attempted to 

 show how Ave figure labor income, how some of more important efliciency 

 factors atfect that income and how we api»ly to each farm visited a test 

 of efficiency in these factors. We do this work in counties having 

 County Agricultural Agents that the county agent and his farmers 

 may learn a method of analyzing the farm business which determines 

 the factor that limits the farmer's income. After this analysis has 

 been completed, it then becomes the duty of the county agent to render 

 such assistance as he may to the farmer that the labor income may 

 be increased. It is a new line of extension work but we believe it 

 fully as important as any being done by the College and we thank you 

 for the opportunity of presenting the work. 



DISCUSSION. 



Question: Is not the wife entitled to something? Why should she 

 not be figured wages? Her Avork is never done. Why not charge that 

 as part of the farm expenses? 



Answer: We can not do it for this reason, no matter where you are, 

 the household and family expenses go on just the same, and that is 

 not figured in, working on the basis that Ave do. 



Question: Where is it that you get your basis for 5% interest? 



Answer: Of course there is a chance to argue — ^just Avhat interest 

 to charge. There are plenty Avho are paying G% and taxes besides. 

 It is figured 5% after the taxes are paid. This might vary with differ- 

 ent communities, but this has been thrashed over and over and the 

 conclusion has been reached that this is about as fair a standard as 

 we can get. Four per cent is good returns on money Avith the best of 

 security. We regard farm property as the best security. Livestock 

 should have a much higher per cent, perhaps ten per cent. The princi- 



