32 BULLETIN 650, U. S. DEPARTMENT OF AGRICULTURE. 



or 4 per cent. If, for example, $1,200 is the maximum rent which a 

 landowner can expect to obtain for the use of his farm by a tenant, 

 it is apparent that the owner may consider this $1,200 as 2 per cent 

 interest on $60,000 or 4 per cent on $30,000. Some landowners have 

 felt that the rate of income derived from rented land ought to keep 

 pace with the increase in land values. In the attempt to obtain such 

 an increase of income they have tried to avoid the appearance of 

 claiming more than one-half of the net proceeds. This has been ac- 

 complished by requiring the tenant to furnish more than half of the 

 working capital, by charging cash rent for the farmstead, pasture, 

 or certain other " privileges," or by exacting an arbitrary " improve- 

 ment rent." The tenant is thereby forced to pay as rent not only 

 half of the farm income but also an additional sum in cash. 



There is an obvious advantage to both parties in the strictly half 

 and half system of leasing. It offers no opportunity for either party , 

 to get the better of the bargain by indirect methods. Landlord and 

 tenant contribute equally to the partnership, share all expenses 

 equally, and therefore receive equal shares of the farm income. The 

 manner in which this system operates may be seen in the following 

 average example constructed from survey records on farms in the 

 corn belt. In this example the business of a 160-acre farm worth 

 $25,000 is analyzed on a basis of good average yields and normal 

 prices under a strict partnership system of leasing. 



Analysis of the business of a $25,000 farm leased under the half-and-half 



system. 

 Receipts : 

 Crops — 



65 acres corn — Tenant. Owner. Farm. 



1,500 bushels sold $375 $375 



800 bushels fed. 



35 acres wheat, 1,000 bushels sold 500 500 



15 acres oats — 



300 bushels sold 60 60 



300 bushels fed. 

 20 acres hay — 



5 tons sold 25 25 



20 tons fed. 



135 acres crops. 



20 acres rotation pasture. 



5 acres waste. 

 Stock— 



12 cows, cattle, milk, etc 350 350 



6 horses or mules =35 —35 



Swine 250 250 



Poultry and eggs 75 75 



Total 1,600 1,600 $3,200 



