592 



R LADINGS IN RURAL ECONOMICS 



12. AREA RELATED TO INVESTMENT IN BUILDINGS. 

 578 FARMS. LIVINGSTON COUNTY, NEW YORK 



The barns on the small farms also take a much larger propor- 

 tion of the capital. The smallest farms have 19 per cent of their 

 capital thus invested, the largest farms have only 1 1 per cent thus 

 tied up. An equally good barn for ten head of stock costs much 

 more than half as much as a barn for twenty head of stock. The 

 smallest farms have an investment in barns of $164 per animal 

 unit. 1 The largest farms have only $50 per animal unit. Yet 

 observations lead to the conclusion that the stock on the larger 

 places is better housed. If interest, repairs, depreciation, and 

 insurance on a building amount to 10 per cent of the value, then 

 the housing cost per animal unit will vary from $16 per year on 

 the smallest farms to $5 per year on the largest. 



Similar results for the United States are shown in Table 13. 

 These indicate, as for other points in this work, that the results 

 are of general rather than local application. The farms of less 

 than 20 acres have 36 per cent of their capital invested in build- 

 ings and machinery. Those of 100 to 174 acres have only 17 

 per cent of the money thus invested, yet they have much better 

 buildings and more machinery. Money thus employed not only is 

 unproductive, but is a source of constant cost for repairs. If a 

 farmer had all his money invested in buildings and machinery, 

 his income would, of course, be zero. In fact, he would not be a 

 farmer at all. 



1 For definition of " animal unit," see page 587. 



