882 AGRICULTURAL ECONOMICS 



he did. These estimates for the farms operated by owners in four 

 towns averaged $326. The difference between receipts and expenses 

 on these farms was $757. If we subtract from this the value of all 

 labor done by the farmer and his family, the balance may be said 

 to be interest that the farmer received on his investment. This 

 amount is $373, which is 6.7 per cent on the average capital. 



Profits made by landlords. The landlords' receipts above expenses 

 amounted to 8.3 per cent interest on their capital. This appears to 

 be a good rate of interest. The money could be loaned on farm 

 mortgages at 5 to 5^ per cent. But landlords have the trouble of 

 looking after their farms. This usually causes more or less worry 

 as well as labor. There is also more risk than with mortgages. Crops 

 are not so sure as interest. The 2j to 3 per cent seems to be the 

 average pay that the landlord gets for the additional trouble and risk. 

 An analysis of the figures indicates that, while the majority of the 

 landlords made a fair profit, there were none of the fabulous profits 

 that sometimes occur in other enterprises. Thirteen per cent of the 

 landlords received 4 per cent or less on their money; 23 per cent of 

 them received more than 4 but not to exceed 6 per cent; 19 per cent 

 got between 6 and 8 per cent; 18 per cent between 8 and 10; 17 per 

 cent between 10 and 15; and 10 per cent of them received 15 per cent 

 or more on their investment. Of this latter group, 4 per cent received 

 a return of over 20 per cent upon their investment. 



The average labor income for the best of the four townships was 

 nearly twice that for the poorest township in the case of owners and 

 more than twice as great in the case of tenants. The difference was 

 less marked in the case of landlords' return, but even here the best 

 region excelled the poorest by nearly 50 per cent. The character of 

 the land is of more importance to the man who operates it than to 

 the landlord. 



287. CONDITIONS IN THE CORN BELT 1 

 BY E. H. THOMPSON 



An investigation of 273 farms operated by owners in three repre- 

 sentative areas in the corn belt shows that the receipts per farm in all 

 three regions approximate one-tenth of the capital invested. After 

 allowing the expenses of operation, there remains a farm income of 

 $1,938. This farm income, which represents the income earned by 



1 Adapted from Bulletin 41, United Slates Department of Agriculture, pp. 9-11. 



