84 ECONOMIC CONDITION OF THE FARMER 



change has taken place since the decade 1890-1899, with the result that there 

 has been a general outcry from consumers over the rise in the cost of living. 

 During the calendar year 1913 the twenty principal farm staples included in 

 the price tables of the Bureau of Labor averaged 165.8 per cent of the average 

 level of the same commodities in the period 1890-1899. It would be naturally 

 supposed that with this advance in the prices of his products, the position 

 of the farmer must have improved; but it is seriously argued that this is not so. 

 Statisticians and experts are contending that farming is still a business of 

 very poor returns." 



Bulletin 41 of the United States Department of Agriculture 

 consists of a report of a survey of 520 typical farms in Indiana, 

 Illinois and Iowa made by representatives of the Department. 

 Of these farms 273 were operated by the owners, and it is reported 

 that after allowing five per cent interest on the capital investment, 

 these owners only received an average of $408 per year, plus house 

 rent and food supplied by the farm, for their labor and manage- 

 ment. The 247 renters did better, for they received an average 

 of $661, but this was because the landlords received only 3.5 per 

 cent interest on the value of their investment. This showing 

 leads the investigators to the conclusion that the assertion that 

 farmers are making large profits is erroneous. "They are living 

 on the earnings of their investment and not on the real profits 

 of the farm." The report says: 



"As farming is a business, investing both capital and labor, the farmer 

 should receive a fair income on his investment as well as wages for his labor." 



The problem for the man on a farm is no different from that of the man in 

 a railroad office or a bank; it is to get himself into the class that is above the 

 average in efficiency. By so doing he will not only benefit himself but help 

 to raise the level of production and consumption for the whole community." 



An Example of Successful Farming. One of the well-known 

 bankers of the State of Iowa, Mr. Charles Shade, President of the 

 First National Bank of Rock Rapids, having referred incidentally 

 to the success of a young farmer of his acquaintance, as an example 

 of what was being accomplished by industry and good manage- 

 ment in the business of farming Iowa soil, was asked to give the 

 account in writing and did so, adding another instance, and his 

 statement is quoted below. It was written without reference to 

 the above discussion, but is given as explaining why farming lands 

 have been advancing in value. 



" The young man referred to is a German by descent was born and reared 

 in our own country. His people are hard working, frugal farmers so that he 

 has had the proper training in his profession and has been taught to make 

 the most of his opportunities in cultivating the soil. His name is John Busch. 

 The story runs as follows: 



"After reaching his majority he began farming on his own account in the 

 Spring of 1908 by renting 80 acres of land from a neighbor, giving one-third 



