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34 X. ir. A(iK. ExPERiMEXT Statiox [Bulletin 260^ 



DEFINITIONS 



Acres openifcd or tolal acres per farm is the number of acres used in ' 

 the farm unit. This may include acres rented, so that to avoid duplica- > 

 tion, acres rented out are not considered a part of the farm to which i 

 they originally belonged. 



Capilal is the value of all farm property, including houses, barns, * 

 land, livestock, machinery, feed, seed and cash reserved for farm pur- 

 poses. It does not include house furniture or other household equip- 

 ment. Unless otherwise stated, "capital" refers to the average amount 

 for the beginning and end of the year. 



Farm income is the difference between farm receipts and farm ex- ' 

 penses. This is the remuneration to the operator for his manual labor, , 

 his managerial ability, and liis capital invested in the farm business : 

 for one year. 



Labor income is obtained from the farm income by subtracting in- 

 terest on the average capital invested. In these computations 5 per 

 cent was used for the annual value of capital invested. This is the 

 usual rate of interest on farm mortgages in New Hampshire and is the 

 one most commonly used in figuring labor incomes. Labor income, 

 having eliminated the contribution made by capital, is comparable to 

 the cash wages of a married man who is given a house to live in and 

 various farm products besides. Labor income is the best measure of 

 financial success for com])aring one farm with another. It is not com- 

 parable to city salaries. 



As used for this work the term "labor income" means the farm labor 

 income, or the operator's labor income on the assumption that he owns \ 

 the farm and does not pay rent. Most of these operators did own their | 

 farms, in which case there is no distinction between farm labor income | 

 and labor income. 



Labor earnings is the labor income plus the value of farm products i 

 used from the farm by the oi)erator and his family, and an allowance '< 

 for 12 months' use of the farm house. Unless otherwise stated, it is \ 

 figured as if the operator owned the farm, or as farm labor earnings. i 



Labor re/urns per man is the sum of labor income antl all expenses I 

 for labor including board for both paid and unpaid labor, divided by ( 

 the average number of men working on the farm for the year. 



Man equivalent is a figure that expresses the average number of men i 

 working on a farm for a year. It is obtained by dividing by 12 the total ; 

 number of months that tlie o])erator and paid and unpaid laborers have '• 

 worked. The time of women and children is reduced to its equivalent I 

 in man time. 



Nu7nber of conis means the average number of cows for the year. It 

 may not be the average of the two inventories because a farmer may 

 have had extra cows for a few months to establish a milk rating, or he 

 may have sold a large number just previous to the final inventory. In 

 such cases, it was assumed that an estimate could be made which would 

 more nearly rei)resent the average. 



Man work units is used in lieu of the expression productive man work 

 units to mean the amount of productive work accomplished in a year. 

 ]\Ian work units are based on the average amount oF labor required to 



