FAEM PROFITS. 49 



Figure 18 shows graphically the distribution of the average gross 

 income on the 60 farms for each year and for the five-year average. 

 This chart shows how much of the gross income is represented in 

 operating expenses, interest on capital, unpaid family labor, and 

 food products, fuel, and house rent furnished by the farm. As in the 

 case of both the Ohio and Indiana groups, both receipts and ex- 

 penses increased materially during the last two years, the former 

 more rapidly than the latter, so that the spread between the two 

 became wider, thus increasing tho farmer's wages (labor income). 



The interest on capital averaged $885 per farm for the five-year 

 period, with no appreciable change over the period. The chart 

 shows how it may be possible for some farmers to have fairly large 

 incomes to dispose of, even though their labor incomes may be small. 

 With the farms that are free from debt the item of interest does not 

 have to be paid out and is therefore available for other purposes. 



In Wisconsin Experiment Station Bulletin No. 300, the discussion 

 of receipts, expenses, and profits over the period of study in this area 

 is summed up as follows: 



In the years 1914 and 1915 both the gross receipts and farm profits fell below the 

 level of 1913. In 1916, the year prior to our entering the war, farm receipts increased 

 appreciably and were followed by a still greater increase in 1917. 



In both of these years the expenses increased, but not so rapidly as the income; 

 hence there was an increasing proportion of the gross income left for the farmer's 

 profits, or labor income. 



The study shows that the higher profits of 1916 were due in part to better crops, but 

 more largely to higher prices, and that the relatively high returns in 1917 must be 

 attributed entirely to high prices, because the crops were poorer. 



FAMILY LIVING FROM THE FARM. 



The estimated value of the family living from the farm in this area 

 amounted to S392, or nearly as much as the labor income. Owing 

 to advances in prices this value increased from $351 in 1913 to $525 



in 1917. 



PRODUCTS SOLD AND PRICES RECEIVED. 



The lower part of Table IX shows the quantity of the more im- 

 portant products sold and the prices received during the period. 

 The amount of milk sold per farm increased from 67,080 pounds in 

 1913 to 80,910 pounds in 1917. Comparing the first two years with 

 the last two, the average production of milk per cow increased only 

 50 pounds, which means that the most of this increased production 

 came from increasing the size of the dairy herd. An average of 

 34.5 hogs were sold per farm and 2.5 produced for family use. 



