42 ' BULLETIN 41, U. S. DEPARTMENT OF AGRICULTURE. 



high-priced land under an expansive system of agriculture. In the 

 region studied the owners made good profits. The average labor in- 

 come of the farm owners was $408 and of the tenants $870. In addi- 

 tion, the operators had a house to live in and those products which the 

 farm furnished toward their living. • 



The landlords, on the average, received 3.5 per cent on their in- 

 vestments. The size of their investments had no appreciable bearing 

 on the rate of income. 



Assuming that the year in which this study was made was a nor- 

 mal one, a labor income of $870 to the operator, whether owner or 

 tenant, and a return of 3.5 per cent on the capital invested may be 

 expected. 



The tenant's income is in direct proportion to his capital and the 

 size of the farm he operates. Men owning small farms often materi- 

 ally increase their incomes by renting additional land. This affords 

 a better utilization of their equipment without much increase in 

 capital. 



The tenant's income is in proportion to the risk he assumes. On 

 the cash-rent basis his income is greater in a good year and less in a 

 poor year than when he rents on the share basis. 



The farmers making the lowest labor incomes are on big farms, 

 but fail through inefficient management. Poor crops, low prices for 

 products sold, poor stock, failure to work, and unused capital are 

 the main causes contributing to their failure. 



Modern machinery, with the use of more horses and fewer men, has 

 made the farm of less than 100 acres an inefficient unit. Further re- 

 adjustments in area will occur, which will tend to lessen the number 

 of persons needed and at the same time increase the net production of 

 the farm. 



The system of agriculture found in the corn-growing States is an 

 excellent example of the expansive type of farming developed on the 

 basis of the farm work horse as the motive power. This system is in 

 direct contrast to the intensive type found in some of the countries of 

 southern Europe, where the man and not the horse furnishes the 

 labor. The American type needs large areas and is based on the 

 maximum product per man. The European type requires a small 

 area and is based on the maximum product per acre of land. 



In the corn-belt States the family-size farm is the most desirable. 

 It provides work for the farmer and his sons and permits the best use 

 of men, horses, and machinery. If the small farm has a place it 

 must be near a city and should be highly diversified in its organi- 

 zation. 



WASHINGTON : UOVIOKV MK.vr PRINTING OFFICE: 1014 



