PART I 



Introductory 



OLLOWING up the dairy farm survey, which they had inaugurated 

 in 1920, the Department of Animal Husbandry of the University of 

 British Columbia found themselves in a position in 1921 to extend 

 this work of investigation so aa to include two new districts. 

 These new districts are Salmon Arm and Arrow Lakes in the 

 interior of British Columbia, the farms of which areas are herein 

 reported upon for the first time in this investigational work. In 

 addition to these sections, the farms in the Chilliwack and Ladner 

 districts in the Lower Fraser Valley, and Courtenay, Vancouver 

 Island, are further studied* and reported upon in this bulletin. 

 Farmers operate their farms with varying degrees of success. 

 In this report an attempt has been made to determine the factors 

 that make for gain or loss on farms in certain areas within the 

 Province. 



In order to get the necessary information, a field-man called on each farmer 

 included in the survey and secured detailed records of each farmer's receipts and 

 expenses for one year. These records included, in addition to the business 

 transacted during the year, an inventory of all livestock, equipment, buildings 

 and land as at the beginning and the end of the year covered in the investigation. 

 The year herein reported upon extended from May 1st, 1920, to April 30th, 1921, 

 and thus may be called the crop year of 1920. The records compiled through 

 the co-operation of the farmers and with the aid of feed houses and creameries 

 that were able to give detailed accounts of the feed the farmers bought and the 

 milk the farmers sold, are the data on which this report is based. 



EXPLANATION OF TERMS USED. 



Farm Income. The farm income is the amount of farm receipts left after 

 paying all expenses in connection with the operation of the farm. In the expenses 

 are reckoned wages for all help, including family labour, depreciation on all 

 buildings and machinery, in addition to the other current expenses in connection 

 with the farm. Wages to the operator for his labour are not included in expenses. 



Labour Income. It is recognized that the farmer has a considerable amount 

 of capital invested in his farm, livestock and equipment. Provision must be made 

 for interest on this capital. The farm income is divided into two parts interest 

 income or income due to interest on investment, and labour income or income 

 due to the labour arid managerial ability that the farmer has put into the 

 business during the year. Labour income is then the farm income, less interest 

 on investment. Interest on investment has been calculated at 1% all through 

 this report, except where otherwise stated. No record is made of the farm 

 products used in the house, except in the case of beef and pork. The farmer 

 has had, in addition to his labour income, the eggs, milk, potatoes and garden 

 truck that he has used from the farm. He has also had a house, free of rent, 

 which has been kept in repair. It can be seen, then, that a farmer, whose farm 

 returns him a minus labour income, may still live well and even save money. 

 It may be that he owns his farm and does not have to pay interest, and he may 

 not have paid cash for the family labour which the report allows for. In this 

 case he has not made money by means of his labour, but on his investment, 

 which is due to return him interest, or on his unpaid family help. In cases, 

 however, where he has paid interest and did pay for his family labour and still 

 has shown a minus labour income, and continues to show minus year after year, 

 there are only two avenues of escape from eventual bankruptcy: either he must 

 leave the farm, or so manage his farm business that his labour income will be 

 increased. 



Labour income represents the wages the farm returns to the operator for 

 his labour and management of the farm. It is used as a means of comparing 



For earlier study of these districts, see Agricultural Department Circular No. 36. 



