1 3^ iSuLLEflK 2';1. 



In all, 178 of the farm reports which were received were found suf- 

 ficiently complete and accurate to tabulate. Of these, 82 were for the 

 year 1906 (41 of these were copied from records handed to the 

 Department of Agronomy by Professor T. F. Hunt's students) and 

 96 wer6 for the year 1907. These 178 farms represent 41 counties 

 of the state. Their distribution is shown by the accompanying map. 

 (Page 15). 



All farms were divided into two classes. Mixed or general farms are 

 those on which no one source of income constitutes 40 per cent, of the 

 total income. Special farms are those deriving 40 per cent, or more of 

 their income from one special crop or industry. This latter class was 

 further divided into dairy, fruit, potato, and truck farms. Not enough 

 potato and truck farms were obtained to make it safe to draw con- 

 clusions from their averages. 



A comparison of the other three types, general, dairy and fruit, will 

 be made in detail. 



METHODS OP CALCULATION 



Receipts or gross income include all cash receipts plus any increase 

 in the value of property on hand at the end of the year. 



Expenses include all cash expenses plus any decrease in the value of 

 property. The value of labor by members of the family other than the 

 farmer is also added to expenses because we desire to learn the product 

 of the labor of one man. Household and personal expenses are not 

 included but the value of board fuiu^shed to hired help is counted. 



Net income represents the difference between receipts and expenses. 

 Net income, however, does not represent profit because in it are included 

 a percentage on the investment as well as the earnings of the farmer 

 as a laborer. 



Labor income. Five per cent, on the investment was arbitrarily 

 assumed as a reasonable rate of interest. Since the net income includes 

 both interest on the money invested and pay for the farmer's work, we 

 must deduct the interest on his capital to get the amount that he makes 

 as a result of his labor. This is called the farmer's labor income or far- 

 mer's salary. If a farmer's labor income is $500, it means that he has 

 made 5 per cent, interest on his capital and 'cleared $500 above all 

 farm expenses besides having the use of a house and such farm pro- 

 duce as was consumed in the house. 



