6 4 2 



READINGS IN RURAL ECONOMICS 



live. The average labor income of the 722 tenants is $770, a 

 much higher figure than one might expect. In these same studies 

 it is found that the tenant's income is in almost direct proportion 

 to the capital he has invested. This is most encouraging, in that 

 a tenant can rise to the position of a farm owner by using his 

 accumulating savings to operate larger farms until he has sufficient 

 funds with which to buy. 



A tenant's labor income is influenced by the kind of lease he 

 has. Under normal conditions, those tenants who rent on a cash 

 basis receive better incomes than those renting on a share basis. 

 Under this system, however, the landlord gives less supervision 

 and expects a lower rate of income on his investment. The ten- 

 ant takes more chances, and in good years has possibilities of an 

 excellent income, while in poor years he may lose everything. 



In Table IV is given the distribution of the tenants' income 

 for 588 farms in six states. It is noted that 5.6 per cent of 

 them make over $2000 as a labor income. One-fourth of them, 

 or 25 per cent, make between $100 and $400. Practically none 

 is making a minus labor income. 



TABLE IV. DISTRIBUTION OF LABOR INCOMES, 588 FARMS 

 OPERATED BY TENANTS 



