FARM-MANAGEMENT SURVEY OF REPRESENTATIVE AREAS. 



13 



There has been a marked tendency throughout the entire country 

 to consider the farm more and more as a business proposition. The 

 landlord who is receiving 3.5 per cent net from his farm, with the 

 bare land figured at $150 or more an acre, has a good, safe invest- 

 ment. It would seem from the results that if the year studied was 

 a normal one, land in the corn belt is not overvalued. Changes in 

 the price of the staple products, such as corn or oats, or material 

 changes in the cost of production of these crops would be reflected 

 in the price of farm land. Unless the price of corn becomes much 

 higher for the next period of years, a pronounced increase in the value 

 of land in this region can not be expected. 



The advisability of buying a farm as an investment with the 

 intention of not living on it is often a perplexing question. 



VARIATION IN THE PROFITS OF LANDLORDS. 



Table VI gives the variation in the landlords' returns in the three 

 States studied. 



Table VI. — Variation in profits of landlords on 2!fi tenant farms in Indiana, 



Illinois, and Iowa. 



Landlord's profit on invest- 

 ment (per cent). 



Number 

 of land- 

 lords. 



Percent- : 



age 

 of total 

 number. 



Landlord's profit on invest- 

 ment (per cent). 



Number 

 of land- 

 lords. 



Percent- 

 age 

 of total 

 number. 



Less than 1 



6 

 20 

 75 



78 



2.4 



8.1 i 

 30.4 ! 

 31.6 



4.1 to 5 



-12 

 13 

 7 

 6 



17.0 



1.1 to 2 



5.1 to 6 . 



5.3 



2.1 to3 



6.1 to 7 



2.8 



3.1 to4 



7 1 to 8 



2.4 









Out of 247 men 6 received less than 1 per cent on their invest- 

 ments. The same number received between 7 and 8 per cent; none 

 received over 8 per cent. It is clear that no phenomenal returns 

 can be expected from capital put in farm land in those States at 

 the present time. It is believed that the data in Table VI are a 

 very good indication of the returns one may expect from a farm 

 investment in those districts. The chances of making more than 5 

 per cent are about 1 in 10. 



BANKERS' ESTIMATES OF FARM PROFITS. 



In the corn-belt States one is nearly always referred to the local 

 banker for information concerning the farmers of the region. The 

 banker is considered good authority on all questions relating to the 

 farmer's business, his income, investment, etc. Inquiry relative to 

 the incomes of the farmers was made of the cashiers of 90 banks in 



