No. 4.] FACTORS IN SUCCESSFUL FARMING. 55 



THE MOST IMPORTANT FACTORS IN SUCCESSFUL 



FARMING. 



G. F. WARREN', PROFESSOR OP PARM MANAGEMENT, CORNELL UNIVERSITY. 



During the past six years we have been securing from 

 farmers in 'New York State records of their capital and busi- 

 ness receipts and expenses, in order to find out how much 

 farmers are making, and why some are making more than 

 others. During this time we have obtained records of 2,917 

 farms. 



From seven years' study of this question we have de- 

 termined the relative 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 corresponds 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 $5,527. This includes 

 land, buildings, stock, machinery, tools, feed and seed on 

 April 1 and cash to run the farm. The average receipts for 

 the year were $1,146. 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 



1 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 excel- 

 lent means of measuring the success of a farmer, as it is directly comparable with hired man's 

 wages when the man gets a house and farm products. 



