A large number of farms included in the investigation specialized in dairying 

 to a high degree. To show the general effect of the practice, Table No. 16 was 

 prepared. Farms were divided into four groups, according to size. Each of 

 these groups was divided into sub-groups, according to the percentage of total farm 

 receipts which came from the dairy. As approximately half the farms of each 

 main group received less than 65% of their total farm receipts from the dairy, 

 65 was taken to represent the dividing line, and each main group was divided into 

 sub-groups accordingly. 



With interest calculated at both 1% and 3%%, Table No. 16 shows that, of 

 each main group, the sub-group of farmers who realize less than 65% of their 

 total farm receipts from the dairy receive better labour incomes than those whose 

 total farm receipts from that source are above 65%. The dairy diversity index 

 column of the best farm of Table No. 16 shows that, in each group, practically 

 all the farms featured the dairy to a high degree. The best farm of Group No. 5 

 received only 5% of total farm receipts from the dairy a very low percentage. 

 The operator's receipts in this case came largely from the sale of crops. Other 

 farms of the same group, though they received a slightly lower labour income, 

 made up to 50% of their farm receipts from the dairy. The average labour 

 incomes of Table No. 16 indicate that it might be well not to feature the dairy 

 as strongly as some farmers did. The best labour income column of Table No. 16, 

 considered in connection with the dairy diversity of these best farms (columns 9 

 and 10), makes one hesitate to suggest curtailment of the dairy; the inference to 

 be derived is rather that more side lines should be carried in addition to the dairy 

 farming business as conducted at present. This would mean that the total 

 receipts from the farm would be increased, while the proportion of the receipts 

 from the dairy would be reduced. The side lines may be hogs, sheep, poultry, 

 horses, or such grain or seed crops as may fit well into the dairy business the 

 chief concern of these farms. 



With interest on investment calculated at 7%, the average labour incomes 

 of all groups of Table No. 16 show a minus. With interest figured at 3%%, all 

 labour incomes are shown as plus. The greater interest charge against the 

 business was more than the average farmer could pay. Yet in each group the 

 best labour income indicates that, by careful and thoughtful planning on the part 

 of some farmers, satisfactory returns were possible, even at the higher rate of 

 interest. These farmers built up their total farm receipts to a high point and 

 practised economy in the matter of farm expenses. 



The best labour income of Group No. 1, of Table No. 16, was $1,997.10. The 

 acreage in this group is small as compared with that of the other groups, yet the 

 best labour income was greater than any other best labour income except those 

 of the largest farms. This was owing in a large measure to the size of the 

 business developed. It would appear, then, that in the dairy business it is not 

 the size of the farm that influences farm profits so much as the size of business 

 per farm. W T ith the high capitalization per acre of the farms studied, it seems 

 essential that a large-sized business be developed to meet the heavy overhead 

 expenses in interest. Table No. 16 shows that, with the exception of Group No. 3, 

 the larger the farm the greater was the minus labour when interest was calculated 

 at 7%. 



With interest calculated at 3%%, the smallest farms returned the smallest 

 labour incomes, and the largest farms the greatest labour incomes. This is as it 

 should be, as the larger farms handled the greatest amount of business. The 

 labour incomes of Groups 3 and 4, however, are greater than those of Groups 

 5 and 6, and this fact indicates that possibly the 61 to 100-acre farms were too 

 difficult to handle with profit as compared with the 36 to 60-acre farms. The 

 farms from 36 to 60 tillable acres offered practically as great opportunity to the 

 dairy farmers as did any other size of farm when interest was calculated at 3 % %, 

 and the greatest opportunity with interest calculated at the higher rate. 



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