12 



BULLETIN 41, TJ. S. DEPARTMENT OF AGRICULTURE. 



Iii addition to this sum available for a living, each has what the 

 farm furnishes in the shape of produce. After the tenant pays his 

 living- and personal expenses out of this amount his savings can not 

 be large. If we allow the owners 3.5 per cent on their investment 

 instead of 5 per cent they would then receive approximately the 

 same labor income as the tenants ($870). This percentage is the 

 same as that received by the landlords from the rented farms. Tak- 

 ing into consideration the results from all the farms managed by 

 owners and by tenants, they show that a return can be expected of 

 3.5 per cent on the investment and a labor income of $870. 



Seasonal variation and fluctuating prices have a marked influence 

 on the profits from farming in the districts studied. The average 

 price received for corn sold by the landlords of the 247 tenant farms 

 was 41 cents, and a drop of 5 cents alone would have reduced the 

 income G per cent. 



INCOMES RECEIVED BY LANDLORDS. 



The farm, in the case of the landlord, is a business investment. 

 He furnishes the capital, largely in the form of land, and the tenant 

 furnishes the necessary labor and other means for its operation. The 

 average investment of the 247 landlords for the three States studied 

 was $25,210. The average net income on the capital invested was 

 3.5 per cent. All items of expense, including repairs, seeds, taxes, 

 and insurance, were deducted before figuring the net returns. Table 

 V gives the average capital, receipts, expenses, and returns for the 

 landlords in each State. 



Table V.- 



-Average capital, receipts, expenses, and profits of landlords for 21fi 

 farms operated by tenants, as shown in Table IV. 



Item. 



Average area acres. 



Average capital 



A verage receipt s 



Average expenses 



Average farm income 



Average profit on investment ' per cenl . 



Indiana 



(83 

 farms). 



128 



SIS, 423 



1,002 



351 



651 



3.53 



Illinois 



(71 

 farms). 



202 



136, 479 



1, 538 



213 



1,325 



Iowa 



(93 



farms). 



is; 



$20, 728 



1,014 



354 



660 



3.19 



Average 

 (247 



farms). 



172 



$25,210 



1,185 



306 



879 



3.5 



Obtained by dividing the farm income by the average capital. 



The average return on investment from the farms in Illinois was 

 3.6 per cent, in Iowa 3.2 per cent, and in Indiana 3.5 per cent. The 

 income is a moderate return on the large capital, considering the 

 enormous rise in land values during the past 10 years. In computing 

 this income no credit has been allowed for the rise in value of real 

 estate, except in case of actual improvements. 



