FARM -MANAGEMENT SUKVEY OP REPRESENTATIVE AREAS. 



19 



are making better incomes, it means that the larger farms are pay- 

 ing better. 



RELATION OF THE OWNER'S CAPITAL TO HIS INCOME. 



In Table XII is shown the relation of capital to labor income 

 on the 273 farms operated by owners. 



Table XII. — Relation of the farm, owner's capital to his income on 273 farms 

 in Indiana, Illinois, and Iowa. 



Capital. 



Number 

 of farms. 



Average 

 labor in- 

 come. 



Capital. 



Number 

 of farms. 



Average 

 labor in- 

 come. 



$5,000 and less 



9 



37 

 44 

 45 

 55 

 32 



$74 

 45 

 283 

 265 

 264 

 483 



$40,001 to $60,000 



29 

 10 

 12 



$315 



$5,001 to $10,000 



$60,001 to $80,000 



1,114 



$10,001 to $15,000 



$80,001 and over 



1,804 



$15 001 to $20 000 







$20,001 to $30,000 





408 



$30,001 to $40,000 













It will be noticed that of the entire number 9 men with less 

 than $5,000 capital received $74 for their year's work. Only 2 farm- 

 ers out of 4G with less than $10,000 invested made over $400. Out of 

 the entire 273 only 12 men received over $2,000 labor income. Each 

 of these had more than $20,000 invested. The chance of a farm owner 

 making a labor income of $1,000 with less than $15,000 invested is 

 less than 1 in 20. 



The data in other tables are conclusive in showing more efficient 

 use of man, horse, and machine labor on the large farms. The results 

 also show no appreciable difference in the crop yields obtained on the 

 different-sized farms. When the same system of farming is followed, 

 larger returns must result on the larger farms. Men who have large 

 capital invested and who operate the big farms have a right to expect 

 greater returns for the risk and responsibility incurred. Of course, 

 if the type of farming followed is an unprofitable one, then the large 

 farms will necessarily show large losses. The area a farmer works 

 limits the use of his labor. The amount of capital he has invested 

 limits the income from that source. 



RELATION OF LABOR INCOME TO THE DISTRIBUTION OF OWNER'S CAPITAL. 



The farm owner has about six-sevenths of his total capital invested 

 in land and buildings. The balance is largely in live stock, there being 

 only a small percentage in machinery, tools, and supplies. Farmers 

 making good incomes have their capital invested in very much the 

 same manner as those receiving poor incomes. Table XIII shows 

 the distribution of capital for the 273 farm owners, arranged accord- 

 ing to the incomes they receive. 



