24 



BULLETIN 1068, U. S. DEPARTMENT OF AGRICULTURE. 



FAEM INCOMES AND NET EETUENS ON CAPITAL. 



The farm income is the difference between receipts and expenses. 25 

 If from this farm income we deduct the value of the operator's labor 

 and add to the remainder the value of the family living furnished by 

 the farm, we get a figure that represents the net return to the farm 

 and its equipment for their services in production, regardless of 

 what portion of this return goes to the landlord or to the tenant. 

 In other words, this figure represents the net increase of wealth 

 attributable to the farm, irrespective of tenure. 26 The income for 

 share tenants' farms, when figured in this way, compares favorably 



250 

 240 

 230 

 220 



210 

 200 

 190 



ISO 



170 

 160 

 150 



140 



130 



90 















. liOVEKEST OF PRICES OF ARTICLES 

 FARMERS RIIY 





















MOVEMENT OF THE VALUE OF COTTON RAISED 



III ELLIS AND WILLIAHSON COUNTIES 

















/ / 





- MOVEMENT OF THE WAGES PAID FOP 













FARM LABOR. 





■ 



/ 



/ / 















1 



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/ / 

 / 















1 



\ 





/ 















1 



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/ 















1 



y\ 



/^— ■"■* 



f 







/ 



\ 







1 













/ 

 / 



\ 



\ 







/> 













/ 



V 







"i — "■"" 



/ 











/ 



\ 







1 









~Z^ 





/ 





\ 





1 









S-' 



— « 



r 





\ 

 \ 





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250 

 240 

 230 

 220 

 210 

 200 

 190 

 ISO 

 170 

 160 

 150 

 140 

 130 



110 

 100 



90 



SO 



70 



1909 1910 1911 1912 1913 1914 1915 1916 1917 191S 1919 



Fig. 4. — Movement of the prices of articles farmers buy. of farm wages, and of the 

 value of cotton raised in Ellis and Williamson Counties, Tex. (5-year average 1909-13. 

 equals 100). 



with the income of the farms of the two owner classes, while the 

 income from cropper farms is only about two-thirds as large as the 

 income from farms of the other tenure classes. 



25 Incomes were not calculated by the usual receipts and expense method, but by taking 

 inventories of the farm business at the beginning and the end of the year. To the differ- 

 ence between inventories was added any sum taken out of the farm business and put in 

 outside enterprises, and the sum of all family living expenses. From this sum was taken 

 receipts from sources outside of the farm business. This gave a basic figure from which 

 the various income figures were calculated. 



20 It will be seen by comparing items 1 and 2 of Table 15 that the value of the operator's 

 labor is not as great as the value of family living furn ; shed by the farm, hence item 2, 

 which includes the family living furnished by the farm but does not include the value of 

 the operator's labor on the farm, represents the net return of the farm more nearly than 

 item 1. Items 1 and 2, however, include the value of the operator's management and the 

 value of uninsured risk ; that is, nothing is deducted for these. The value of family labor 

 on farm is considered a farm expense. 



