88 4 



AGRICULTURAL ECONOMICS 



farm business should show the reasons why so many of these men 

 failed to receive anything for their labor. Is it because of poor crops, 

 inferior stock, improper organization of the farm, or merely plain 

 indifference on the part of the farmer? It may justly be said that 

 all these factors are contributing causes. 



Leaving out of consideration the limitations set by the size of the 

 farm and the capital invested, the characteristics of the inefficient 

 farmer stand out prominently. Economically speaking, the greatest 

 losses figured on the basis of a labor income are due to indifference or 

 contentment on the part of the farmer. His farm area and capital 

 are sufficient to earn a substantial income. He fails through neglect 

 of work, low crop yields, inefficient stock, poor farm organization, 

 and unused capital. His expenses are the same per acre as those 

 of good farmers. His receipts are the weak point. His neighbors 

 succeed, not by spending less, but by taking in more. 



The size of the farm must also be considered in figuring losses, 

 but large losses are not probable in a small business. The little 

 farmer may lose all he has, but the greatest amount he can lose is 

 small. 



The relation of profits to the efficiency of the farmer is shown in 

 Table XI. 



TABLE XI 



RELATION OF PROFITS TO THE EFFICIENCY OF THE FARMER ON 273 FARMS OPERATED BY OWNERS 

 IN INDIANA, ILLINOIS, AND IOWA 



In Table XI the farms are classified according to labor income. 

 The men making the poorest and those making the best profits have 

 large farms. Those just "breaking even" have, on an average, small 

 farms. 



