THE YOUNG FARMER 



ing from the farm income the interest on the 

 capital at five per cent. The amount of 

 capital is determined by dividing by two 

 the sum of the inventories at the beginning 

 and end of the period.* 



It will be noted that the gross receipts, 

 the expenses, the farm income and the labor 

 income on these actual farms are all more 

 closely related to the capital invested than 

 the size of the farm. Thus, on the 30 farms 

 with a capitalization of about $13,500, the 

 average yearly receipts were about $25 an 

 acre, while on the 28 farms with a capitali- 

 zation of about $8,300, the average yearly 

 receipts were about $16 an acre. Likewise 

 on the high-priced farms the labor income 

 was approximately $10 an acre, while on the 

 lower priced ones it was about $7. 



*For further details see Hunt, "How to Choose a Farm," 

 Chaps. X and XI. 



'34 



