LAND TENURE AND LAND POLICY 659 



high yields in the case of share croppers than in the case of share or 

 cash renters, and has a greater object in keeping close supervision 

 over his share croppers. 



209. COMPARATIVE INCOMES IN THE CORN BELT 1 

 BY E. H. THOMPSON 3 



A survey of 247 tenant farms in the corn belt indicated labor 

 incomes of $870 for the farm operators, on the average of three dis- 

 tricts. It rose as high as $1,139 in Illinois and fell as low as $716 in 

 Iowa. The average labor income of 273 owners who worked their 

 farms was $310 in Indiana, $622 in Illinois, and $291 in Iowa. 



The 247 tenant farmers made an average labor income of $870 

 from an investment of less than $2,500. When it is remembered that 

 the farm owners with over 12 times this investment made less than 

 half the labor income of the tenants, the evidence is unmistakable 

 that the man with small capital should rent rather than buy a farm. 

 Of course the farm owner has a larger sum available for the family 

 living, since, with an average capital of $30,606, he has $1,530 as well 

 as his labor income of $408. If the farm owner is free of debt, as 

 one-half of them are, he has $1,938 available for a living, as compared 

 with the tenant's $992. 



In addition to this sum available for a living, each has what the 

 farm furnishes in the shape of produce. After the tenant pays his 

 living and personal expenses out of this amount his savings cannot 

 be large. If we allow the owners 3 . 5 per cent on their investment 

 instead of 5 per cent they would then receive approximately the same 

 labor income as the tenants ($870). This percentage is the same as 

 that received by the landlords from the rented farms. Taking into 

 consideration the results from all the farms managed by owners and 

 by tenants, they show that a return can be expected of 3 . 5 per cent 

 on the investment and a labor income of $870. 



Seasonal variation and fluctuating prices have a marked influence 

 on the profits from farming in the districts studied. The average 

 price received for corn sold by the landlords of the 247 tenant farms 

 was 41 cents, and a drop of 5 cents alone would have reduced the 

 income 6 per cent. 



Incomes received by landlords. The farm, in the case of the land- 

 lord, is a business investment. He furnishes the capital, largely in 



1 Adapted from Bulletin 41, United States Department of Agricitlture, pp. 9-13. 



3 H. M. Dixon, joint author. 



