LAND RENTAL AND FARM TENANTRY 859 



in case of the owners was $17,000, $51,000 and $23,000, respectively, 5 per 

 cent interest on the investment being considered as part of the expense 

 this percentage being deducted in order to find the labor income. 



Starting as a Tenant. — It is seldom advantageous for a young man to 

 start farming as a tenant with less than $1000 in capital. The good farm 

 workman will generally make more as a farm laborer than he can make 

 with a capital of less than $1000. 



In most of the livestock, grain and hay regions, one should have from 

 $1500 to $2000 worth of stock and equipment before one is ready to start 

 as a tenant. Part of this may be borrowed. In such regions a tenant with 

 $3000 can run a business with a total capital of about $15,000. 



It is usually better to rent a good farm than a poor one. Half the crop 

 on good land is frequently equal to the entire crop on poor land. 



If land is likely to rise in value, a tenant is justified in purchasing a 

 farm sooner than would otherwise be advantageous. Increase in land 

 values are sometimes greater than rents or interest. 



Basis of Rental. — 

 The rent or share of 

 crops demanded by the 

 landlord should be in 

 proportion to his risk 

 and trouble. Cash rent 

 involves little trouble 

 on his part and no risk. 

 It is, therefore, the 

 cheapest form of rent. 



The more the land- 

 lord furnishes, the 

 larger is his risk. He 



takes a risk on weather conditions and upon the possible loss of livestock. 

 The more the landlord furnishes, the greater the necessity on his part of 

 looking after his interest. This demands considerable of his time, and 

 he therefore should have a larger proportion of the products. 



The extreme of this system occurs in the South with the negro tenants 

 where the landlord supplies everything and trusts the tenant for his 

 groceries. 



Investigations in Tompkins County, N. Y., show that landlords 

 who rent for cash averaged 5.2 per cent on their investment, while those 

 owning part of the stock and equipment and receiving half the proceeds, 

 made 9 per cent. In the same county, tenants renting for cash averaged 



yearly for their labor, while those renting for a share averaged only 



a year for their labor. 

 As a general principle, tenants who are good farmers had best rent for 

 cash when possible. They assume all responsibility and all risk of loss, but 

 by good management generally make more than by renting for shares. 



The Home of a Negeo Tenant in the South. 



