14 



BULLETIN 41, XL S. DEPARTMENT OF AGRICULTURE. 



the regions studied. Fifty-three replies were received and the results 

 are given in Table VII. 



Table VII. — Bankers 1 estimates of farmer's. profits compared with facts brought 



out hi/ the surrey. 



States 



Landlord's profit on 

 farm investment (per 

 cent). 



Tenant 's labor income. 



Bankers' 



estimate. 



Returns as 



shown by 



survey. 



Bankers' 

 estimate. 



Incomes as 



shown by 



survey. 





4.20 

 4.91 

 4.06 



3.53 

 3.64 

 3.19 



S625 

 691 

 656 



$755 



Illinois 



1,139 



Iowa 



716 







Average .' 



4.91 



3.50 



657 



S70 







These estimates, although not agreeing identically with the results 

 as found by the survey, are exceedingly interesting. The bankers 

 believed that the landlords were getting about 1.4 per cent more than 

 they were and the tenants $213 less than they were. Thus, the 

 bankers' estimates of the total income from the rented farms com- 

 pares very closely with the results of our investigations. 



Inquiry was also made as to the interest that the farmers would 

 receive if they sold their farms and placed their money in the bank. 

 The average rate given is 3.7 per cent. This nearly corresponds with 

 the returns that the landlords are actually receiving from their 

 capital invested. It also agrees with the income of the farm owners, 

 if we allow them the same labor income that the tenants receive. 



The average value per acre of the land (including buildings) in 

 the three States is approximately $145 in Indiana, $175 in Illinois, 

 and $111 in Iowa. The profits which are shown in the preceding 

 tables are figured on this basis. 



INCOMES OF FARM OWNERS WHO RENT ADDITIONAL LAND. 



The stages that almost every farmer goes through in becoming a 

 farm owner are, first, as a hired man ; second, as a tenant ; third, as an 

 owner. In addition, there is another step that many men take in 

 acquiring farms of sufficient size to give them comfortable incomes. 

 Many men are able to own a small farm but feel the need of having 

 a larger area to work. By renting additional land, usually parts of 

 an adjoining farm, they utilize their labor and work horses to better 

 advantage and receive greater returns, without any appreciable in- 

 crease in investment. Table VIII gives the capital, receipts, expenses, 

 and labor income for 129 farmers Avho are following this method. 



