FARM PROFITS. 



MINN, 





% < *C~ r \? 







> 



i 







vvistjT'i'y 







JIO WA 











QXJlTi -l i 1 liT> r 



1moMz\R 



Sr 



:> 



/r v7rn 







1 





J^iCcT^xxv<^^\ft 



Fig. 1. — Map showing the location of the counties in which 



these studies were made. 



These are factors that can not always be measured in dollars and 

 cents in considering whether the farm business is profitable or not. 

 From a strictly business standpoint, assuming that every business 

 should pay a fair rate of interest on the investment therein and a 

 fair return for the labor expended in its operation, there may be 

 drawn rather definite conclusions relative to the farmer's returns. 

 When these are made, how- 

 ever, the compensating 

 factors, such as increase in 

 value of land, the living 

 furnished by the farm, the 

 sentimental appeal of the 

 home site, and the per- 

 sonal desires of the farmer, 

 should be kept in mind. 



SOURCES AND CHARACTER 

 OF DATA. • 



This bulletin presents 

 the data obtained through 

 from five to seven years' 

 continuous analyses of the 

 business of 185 farms in three areas, one each in Ohio, Indiana, 

 and Wisconsin. (See fig. 1.) 



The data for the area in Ohio are for 25 farms for seven years, 

 1912-1918. These farms are located in Palmer township, Washington 

 County — a township typical of the hill land of southern and eastern 

 Ohio. The data for the area in Indiana are for 100 farms for seven 

 years, 1910 and 1913-1918. These farms are located in Forest and 

 Johnson townships, Clinton County — townships typical of crop and 

 live-stock farming in north central Indiana. The data for the area 

 in Wisconsin are for 60 farms for five years, 1913-1917. These farms 



as the money earned by his capital. A "minus" labor income means that the farmer received no money 

 returns above food, products, fuel, and house rent for his y«ar's labor, and that he lacked the amount indi- 

 cated by the minus sign of paying 5 per cent interest on the farm capital. 



Per cent return on capital. — The rate returned on the farm capital after the value of the farmer's labor is 

 deducted from the farm income. It represents what the investment earned after all expenses have been 

 deducted and the farmer ha3 received a fair wage for his labor. When the per cent return on the capital is 

 preceded by the minus sign, it means that the farmer did not realize even fair wages for his own labor and 

 management, thus leaving nothing for the earnings on the farm capital. 



In computing the return on capital the values of supplies furnished by the farm toward the family living 

 have not been carried in the financial accounts for the reason that if they are carried as a receipt to the farm 

 they likewise must be added as a part of the farmer's own wages. The value given to the farmer's own 

 labor is in addition to what the farm contributes toward his living. 



Animal unit. — In order to compare the different classes of animals and to compute the total amount of 

 live stock on these farms all stock has been computed in terms of animal units. In these areas one horse, 

 cow, or steer was counted as one animal unit; two head of young stock (of the above kind) were counted as 

 one animal; 7 sheep, 5 hogs, or 100 chickens were each counted as one animal unit. The number of pro- 

 ductive animal units includes all stock except work stock. 



