12 BULLETIN 941, U. S. DEPARTMENT OF AGRICULTURE. 



FARM BUSINESS AND INCOME. 



The farms surveyed were classed in one of two divisions, based 

 upon considerations of soil and topography. The first of the divi- 

 sions comprises the farms located on rolling uplands, hills, and ridges, 

 and these will be referred to in the following text as "rolling and 

 hilly" farms. The second includes those located on the creek bot- 

 toms, valleys, bench lands, and level uplands, and these will be re- 

 ferred to as " valley and level-upland" farms. The farms in the first 

 division are operated under difficulties of varying proportions due to 

 topography and the presence of stones; the farms in the second divi- 

 sion are in the main fairly level and free from stone. Practically 

 every farm studied in this region included an acreage of rough wood- 

 land, and in most instances the greater part of this woodland can 

 never be utilized economically for cultivation. 



In Table I is shown by classes the size of farm, acres of crops, capi- 

 tal, receipts, expenses, and income for rolling and hilly farms and 

 valley and level-upland farms, for the year 1917. The table fur- 

 nishes a measure of the relative importance of the size of farm, capital, 

 receipts, and expenses for the farms when grouped according to the 

 number of acres devoted to crops. The rolling and hilly upland 

 farms were placed in two groups, those with 40 acres or under in 

 crops and those with over 40 acres in crops. The average size of the 

 farms in the smaller-size group was 128 acres, with 26 acres in crops 

 and $3,832 capital, while the larger-size group averaged 240 acres 

 per farm with 72 acres of crops and $7,133 capital. 



The valley and level upland farms showed a wide range in size, and 

 were placed in three groups, namely, those with 40 acres or under in 

 crops, those with from 40 to 70 acres, and those with over 70 acres. 

 The farms with 40 acres or under in crops averaged 29 acres in crops 

 and had an investment of $4,631 per farm. Those with from 40 to 

 70 acres in crops averaged 52 acres in crops and an investment of 

 $8,937. Those with 70 acres or more in crops averaged 105 acres in 

 crops and an investment of $12,602. 



FARM INCOME AND LABOR INCOME. 



The farm income represents the difference between the gross income 

 and the expenses. As the farmer's time is not included in the ex- 

 penses of the farm, his earnings are included in the income figure. 

 The earnings of the capital invested in the farm business are also 

 included in this figure. To separate the two and arrive at the earn- 

 ings of the farmer due to his work and supervision, interest at the 

 rate of 5 per cent on the capital invested has been allowed as the 

 earnings due to the capital in the business, and the remainder of the 

 farm income is considered to represent the farmer's cash earnings for 



