OREGON FARMER 105 



Average Rate of Profit and Family Labor. 



The Oregon farmer is prosperous. He is making a good living and 

 a reasonable rate of interest on his investment. This is the central 

 fact which appears from the table herewith. It does not matter 

 which division is showing the largest rate of profit. That depends 

 largely on the valuation placed on the land, but the important fact 

 which appears evident is that in every section of the state, well 

 managed farms are returning a satisfactory profit on the capital 

 invested. 



It may be objected that since the rates given include the family 

 labor, in many cases, the rate of profit would be reduced to a minus 

 quantity were the family labor paid a reasonable wage. This would 

 doubtless be true in some instances, but would not hold as an average 

 of a large number of farms. The value of a comfortable living, 

 including dwelling, clothing, food, schooling, doctor bills and many 

 luxuries, and a fair allowance for recreation, is more than the average 

 mechanic enjoys in town, to say nothing of a steady increase in land 

 values. The last census shows a rise in land values of considerably 

 over 200% in every section of the state. (See table on page 107). 



OVER320 



The average value of the dwelling, r as shown in the' table on page 

 100, would be more than double added. Ordinary driving vehicles 

 and horses, and many items of capital were included which no one 

 would think of charging to the operating expenses of any other kind 

 of business. To rent as good a home and save as much as the average 

 Oregon farmer has saved would require an^ income far in excess of 

 the wages of an ordinary mechanic or small trader. Add_ to < this 

 the joy of an independent vocation, and it must be admitted that 

 the average farm offers far greater advantages than most other voca- 

 tions. 



It is not my purpose to enter into a discussion of the results found 

 in the different sections. The results are, of course, only close 

 approximations. One thing stands out clearly, and that is, the small 

 farm is the most profitable in many parts of the state while the larger 

 farm is the profitable unit in Eastern and Central Oregon. 



Only one rate requires special explanation. I refer to the profit 

 of over fourteen per cent on the small farms in the Columbia Basin. 

 This must be due largely to a number of highly productive irrigated 

 farms in the Freewater, Milton, Cove, and Hood River districts. 



