56 BULLETIN 920, U. S. DEPARTMENT OP AGRICULTURE. 



even with war prices in 1916 and 1917 to bring up the average for the five years. Yet 

 it must be admitted that under the same conditions more than half the farmers made 

 labor incomes which, when combined with what the farm furnished the family, put 

 them -in a position to get ahead financially year after year. The future of American 

 agriculture demands that the road be kept open to the top. A high percentage of 

 the young farmers must be able to save from their earnings "and buy farms. This 

 requires adequate prices, and while there is no law of human justice which demands 

 that prices be so high that the man without ability and willingness to work success- 

 fully under his own guidance shall be made to flourish as the manager of a farm, 

 prices should be high enough to give at least five out of six a labor income. It took 

 the prices of 1916 and 1917 to bring the Verona farmers up to this level and to give 

 them a 5-year average labor income of $408. 



From the study of the profits of the farms in the three areas we 

 have seen that the incomes of most farmers were much higher during 

 the last few years than for previous years. In this connection it 

 must be remembered, however, that the increase in income is more 

 apparent than real because of the decreased purchasing power of the 

 dollar. 



Whether or not farmers have bettered their conditions through 

 this increased income depends upon the way in which the additional 

 income is used. If the additional money is used in better equipping 

 the farm, providing more conveniences, or, in other words, raising 

 the standard of living on the farm and in the farm home, and a more 

 satisfactory rural social life results, the industry and the rural popu- 

 lation have been benefited. On the otner hand, if this increased 

 income becomes absorbed in increased land value, it may be of im- 

 mediate advantage to those selling out of the business but may 

 react upon those who purchase farms by going in deot for them. 

 These purchasers must make interest on the investment, enough for 

 their own wages and management, pay living expenses, and make 

 payments upon the principal. The harm comes when men purchase 

 farms with the idea of paying for them out of the results of their 

 labor and management and at the same time maintaining or im- 

 proving their standard of living, but later find that they are unable 

 to do this because the land values were not based upon what the 

 land yields. 



o 



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