12 



N. II. Agr. Experiment Station [Bulletin 265 



need of adequate financing in the periods of low margins over expenses. 

 The advantages and economy of the various credit sources should be 

 given careful consideration by the poultrymen, and perhaps some 

 attention to organizing the business to avoid short-time credit. 



Financial Returns 



Receipts minus expenses, including allowance for changes in inven- 

 tory, averaged $2070. This "farm income" is the return on capital 

 invested and labor and management of the operator. 



Assuming the returns on capital as b% of the inventory, the interest 

 would average $671 annually. This taken from the farm income would 

 leave $1399 for returns on the operator's labor and management, or 

 "labor income." As shown in Table 7, the labor income varied from 

 -$726 to $8342. Six operators had minus labor incomes, five were be- 

 tween and $1000, seven had between $1000 and $2000, and five had 

 over $2000. The labor income per bird (using average number of birds) 

 averaged $1.40. In addition to this, the family used farm products in 

 the home, — not only poultry products, but a considerable amount of 

 garden produce as well as milk, and wood. Valuation of these items is 

 shown in Table 8 on the basis of farm prices. In the case of eggs used 

 in the home, value was placed at 25^ per dozen, since most of them were 

 cracked or dirty and rather difficult to market. The total average value 

 of products from the farm used in the home was estimated at $248. It 

 is well to recall also that the operator had a house to live in which 

 might be conservatively estimated as worth $250 per year. 



Table 7 — Farm income and labor income on individual farms 



Rank in 

 income 



Farm 

 income 



Labor 

 income 



Value of 

 farm product' 

 used in home 



Labor income 



plus value 

 produce used 



23 



22 



21 



20 



19 



is 



-\: 



16 



15 



1 ! 



13 



12 



11 



Ki 



9 



8 



7 



6 



4 



2 



1 



$2070.25 



$1399.05 



$248.38 



$1647.43 



