THE MOST IMPORTANT FACTORS IN SUCCESSFUL FARM- 

 ING, IN RELATION TO DOLLARS AND CENTS. 



By G. F. Warken, 



Professor of Farm Management, Cornell University, N. Y. 



During the past six years we have been securing records from farmers 

 in New York State of their capital and business receipts and expenses in 

 order to find out how much farmers are making and how it is that some 

 men are making more than others. During this time we have obtained 

 records of 2917 farms. 



From seven years' study of this question we have determined the rela- 

 tive importance of different factors on profits. 



Labor Income Defined. 

 In order to understand this discussion, it will be necessary to know 

 what is meant by labor income. By this we mean the amount of money 

 that the farmer has made in addition to interest on his capital. It corre- 

 sponds to a hired man's wages when the hired man receives a house and 

 some farm products. 



Table 1 shows the averages for Tompkins County.* .The average 

 capital on these farms was $5527. This includes land, buildings, stock, 

 machinery, tools, feed and seed on April 1st and cash to run the farm. 

 The average receipts for the year were $1146. Any unsold products or 

 increase in animals is counted as a receipt. The average expenses were 

 $389. This includes all business or farm expenses. It does not include 

 any personal expenses, but includes the value of board furnished to hired 

 help. 



Table 1. — Averages, Tompkins County. 



Number of farms 615 



Average capital $5,527 



Average receipts 1,146 



Average business expenses 389 



Receipts less expenses 757 



Interest at 5 per cent 276 



Income frohi unpaid labor 481 



Value of unpaid labor except owner's 58 



Labor income 423 



The difference between the receipts and expenses averaged $757. 



* For a fuller discussion of methods of work and other conclusions, see Bulletin 295 of the Cornell 

 Experiment Station. 



The purpose of this work is not to compare farming with city work, but to study the relation of 

 various factors to profits in farming. The hired man and the farmer get many farm products from the 

 farm. These and very many other factors must be considered in order to compare farming with city 

 work. Labor income is an excellent means of measuring the success of a farmer as it is directly com- 

 parable with hired man's wages when the man gets a house and farm products. 



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