FARM INCOME 1926 



■^^ DDING sales of crop and livestock items 

 A from 1926 production gives a total of $129,- 



JTjl 856,000, which establishes a new record of 



total farm income for the state. In 1925 

 total income was $123,732,000 and in 1924, 

 $124,474,000. Estimates of farm income in 

 Montana date back only to 1923, but from 

 all information available, the total income 

 of 1924 had not previously been exceeded. 



^ The increase in total 1926 income over 

 the relatively high totals of the preceding 

 two years was brought about by unexpect- 

 edly high returns from livestock sources 

 and principally from the heavy sales of 

 cattle and sheep. Livestock income in 

 1926 was $71,490,000 or about 5.5 million 

 dollars larger than in 1925 and fully twen- 

 ty million dollars larger than in 1924. On 

 the other hand income from crops was only 

 about 0.5 million dollars larger than in 

 1925 and nearly sixteen million dollars 

 smaller than in 1924. 



NATURE OF THE INCOME ESTIMATES 



These estimates of income are made by the statistical division of the State 

 Division of Publicity. They are based on official estimates of yearly crop pro- 

 duction, prices paid to producers and percentages of crop production sold by 

 farmers, and the principal end desired is to show the relative changes in yearly 

 farm income. While an attempt is made each year in the light of market receipts 

 stockyard receipts, railroad, and other data on crop and livestock consumption, 

 to correct each preceding year's estimate, it is not claimed that the estimates 

 are exact computations of farm income. However, made on the same basis each 

 year, the estimates are comparable and tend to show the relative changes in 

 farm income irrespective of such error as exists in the actual figures them- 

 selves. Duplication of value in the case of crops fed to livestock and later 

 marketed as meat, milk, and what not, is largely eliminated by estimating the 

 proportion of the production that is marketed for cash. 



THE ESTIMATES 



Income Income Total 



Year From Crop Sources From Livestock Sources Income 



1923 $46,784,000 $50,872,000 $ 97,656,000 



1924 74,343,000 50,131,000 124,474.000 



1925(a) 57,877,000 65,855,000 123,732,000 



1926(b) 58,366,000 71,490.000 129,856,000 



(a) Estimates revised for 1925. (b) Preliminary estimate for 1926. 



ANALYSIS OF INCX)ME SOURCES 



The total income dollar for 1926 is divided into 55.0 cents from livestock 

 sources and 45.0 cents from crop sources. This represents a gain of 1.8 cents 

 for livestock sources over 1925; a gain of 15.0 cents compared with 1924 and a 

 gain of 2.8 cents compared with 1923. 



With the development of dairying, poultry and bees, and, in the case of 

 cattle, a tendency toward larger total numbers compared with the old range 

 days, there has been an upward trend in the value of livestock items that has 

 enabled livestock to retain its relative importance in the face of steadily growing 

 income from cash grain crops and special crops. 



Only in 1924, when large grain crops at relatively high prices combined 

 with moderate shipments of cattle and sheep, did the contribution from crop 

 sources exceed that from livestock. From such evidence as is available for 

 former years this appears to have been the only time such a shift has occurred. 



In the following graph relative contributions to the farm income dollars 

 from crops and livestock sales are shown for the past four years. 



