4 BULLETIN 920, U. S, DEPARTMENT OF AGRICULTURE. 



are located in Verona and adjoining townships, Dane County — a typi- 

 cal area of the dairying region of southern Wisconsin. 1 



In each area, for the period of the investigation, figures are shown 

 covering the following points: 



Distribution of farm area. 

 Crop yields. 



Amount of work stock and of other live stock. 

 Amount of labor used. 

 Amount and distribution of farm capital. 

 Amount and distribution of farm receipts and farm expenses. 

 Value of the family living direct from the farm. 

 Amount of the more important products sold and prices received 

 for them. 



Farm earnings have been computed as follows: 



1. Farm income. — The combined earnings for the farm capital and 

 for the farmer's own labor and management, found by deducting the 

 farm expenses from the farm receipts. 



2. Labor income. — The earnings for the farmer's own labor and 

 management after charging 5 per cent interest for the use of the 

 farm capital. (This is in addition to supplies furnished by the farm 

 toward the family living.) The labor income is found by deducting 

 from the farm income a fair rate of interest on the farm capital. 



3. Per cent return on capital. — The earnings for the farm capital 

 after allowing for the farmer's own labor and management. This 

 is found by deducting from the farm income a conservative charge 

 for the farmer's own labor and management. 



4. Family income. — The combined income of the farmer and of his 

 family. This is found by deducting the total expenses (excluding 



1 The authors are greatly indebted to those who cooperated in the study, as the success of conducting 

 these investigations over this period of time is primarily dependent upon the diligent and painstaking efforts 

 of the men performing the field work and the cooperating farmers. The farmers showed increased interest 

 in these studies from year to year. Some began keeping accounts, others kept accounts in more detail 

 than formerly that the data might be more complete. Acknowledgment is hereby tendered to the fol- 

 lowing named persons for their cooperation in obtaining these data, which should be an aid to farmers 

 in general as well as to others, in a better understanding of the economics of the farm business: 



Ohio area. — The Ohio study was conducted each year by Mr. H. W. Hawthorne, assisted at various times 

 by Messrs. E. D. Strait, C. E. Hope, R. D. Jennings, Bruce McKinley, Office of Farm Management; and 

 Mr. S. C Hartman, of the Ohio Experiment Station. The results of the first five years of this survey were 

 published in U. S. Department of Agriculture Bulletin 716, "A Five- Year Farm Management Survey in 

 Palmer Township, Washington County, Ohio, 1912-1916" (Hawthorne). 



Indiana area.— The work in this area was started by Mr. E. H. Thomson for the year 1910, and in addition 

 to the authors, the following investigational force assisted in one or more years of this study: Messrs. H. F. 

 Williams, O. S. Rayner, E. M. McGrew, E. L. Currier, C. Wentsel, W. C. Funk, E. D. Strait, F. H. Shel- 

 ledy, C. C. Taylor, H. R. Smaliey, H. N. Humphrey, J. C. Rundles, T. H. Summers, W. I. Myers, Chas. E. 

 Miller, A. P. Brodell, R. D. Jennings, Office of Farm Management, and W. L. Elser, Lynn Robertson, and 

 W. W. Sylvester, of the Indiana Experiment Station. The results of the first year of this study were 

 published in U. S. Department of Agriculture Bulletin 41 (Thomson and Dixon). 



Wisconsin area. — This study was in cooperation with the Wisconsin Experiment Station and was con- 

 ducted under the supervision of Dr. H. C. Taylor, assisted by Messrs. H. W. Hawthorne, O. A. Juve, S. W. 

 Mendum, C. L. Holmes, J. A. Becker, H. O. Watrud, G. W. Forster, W. I. Myers, and student assistants. 

 The results of this study were published in Wisconsin Experiment Station Bulletin No. 300, "War Prices 

 and Farm Profits" (Taylor and Mendum). 



Acknowledgment is also due Miss Mabel G. Darcey and staff of clerical assistants for compilation of 

 these data. 



