4;V2 



FARM FINANCE 



made recently by Professor Warren of 615 farms operated 

 by owners, of Tompkins County, New York. The fol- 

 lowing are the results of this investigation: 



RELATIONS OK CAPITAL TO PROFITS 



It will at once be noticed from the foregoing table that 

 farmers with $4000 capital were making less than the 

 hired man, and that farmers with the larger capital were 

 getting the larger labor income. Hence it is more profit- 

 able, ordinarily, unless a farmer can get control of about 

 $5000 worth of capital, to be a hired man, a share renter, 

 a cash renter, or part owner, than to be a full owner. 1 



For this reason young farmers, especially, enter the 

 tenant class, and, unless they can control later on a 

 reasonable amount of capital, find it most profitable to 

 remain indefinitely in this class. 



But it is necessary, whether owners or tenants, to get 

 the control of some capital the more, within certain 



1 A share renter is one in which the landlord may furnish the tenant the 

 land only; or the laud and some of the live stock, feed and fertilizer; or 

 everything except human labor. The tenant and the landlord divide up or 

 " share " the produce of the land, each taking the part agreed on, often one 

 half. 



The cash renter usually furnishes everything except the fixed capital 

 land and buildings, and agrees to pay a stipulated sum to the landlord for the 

 use of the fixed capital. 



