644 IOWA DEPARTMENT OF AGRICULTURE. 



5 to 6 per cent interest on a large loan to cover his investment and for 

 the same reason as the speculator decides not to buy here. 



But let us consider the land owner himself. We have in mind a good 

 quarter section of Ida county land owned by a capable farmer who makes 

 the farm his home and seeks to make the farm produce as large a yield as 

 possible. We ask, does it pay him to own ithat farm? Or would it not be 

 better for him to sell and buy newer, cheaper land where chance of ap- 

 preciation is greater? 



Let us see. Under a good system of crop rotation and proper manage- 

 ment our farmer raises 60 bushels of corn per acre. This crop is worth 

 on his farm 30 to 35 cents per bushel making a gross return of $18 to $20 

 per acre. Now if it costs him $6 or $7 per acre to raise the corn he still 

 has a net return of $10 to $12 per acre; certainly a good return on the 

 money invested. True his corn crop does not cover the entire farm, for 

 his oats, barley or the hay crop will, under present market conditions, yield 

 him a return of from $5 to $10 per acre, and our farmer still has the op- 

 portunity to feed out this crop to the hogs, cattle or sheep that will in 

 return increase the net profits per acre of his lands. Under present con- 

 ditions of markets and good crops our farmers who own and manage 

 their farms can make a good rate of interest on their investment. But in 

 this connection we believe there are a good many farms in our country 

 either through poor management or inability to produce good crops, are 

 not paying a fair rate of interest on the investment. 



We still have another class to consider. He is called the "lonesome 

 farmer." He has moved to town to have closer neighbors and city advan- 

 tages. Now if he owns a $100 an acre farm and rents for cash at $3 to $4 

 per acre, we can not see that he owns a good paying investment unless we 

 consider the probable increase in value of the land in his locality. Under 

 the present system of cash rent we do not believe he has a good income 

 after deducting the amount necessary for improvements. But if he could 

 find the right man who would rent for shares and properly manage the 

 farm he will under present conditions get a fair rate of income. But like 

 the majority, he rents for cash and knows he has a safe investment. 

 He refuses to sell the old place where he has farmed so long. He says 

 keep hold of Ida county land, and this advice is no doubt very good. 



But the experience and advice of the retired farmer does not answer 

 our question, and it is a question we can not answer for the public but 

 must leave it for each individual investor. We have heard it predicted 

 by men of good judgment that Ida county farms will in the future sell 

 for $200 per acre, and if this should ever come true an investment in our 

 land at present prices, even with a low rate of income, would certainly be a 

 good investment. But what we have observed, we believe the newer lands 

 to the west of us are at the present time increasing rapidly in value and 

 under present conditions offer good investments for the purchaser. 



What we need today is better farming, better system of rotations and 

 more of the land in grass. Under such management, our farms can be 

 made to produce better crops, and as a result rents will be higher, thus 

 affording greater income on the investment. The trouble today is more 

 in the management than with the land itself, and our answer therefore 

 will depend much upon the farmer himself. 



