PROFITS IJST FARMING ON IRRIGATED AREAS IN UTAH. 5 



Nearly all of the settlers in this valley are affiliated with the same 

 church, to which they are deeply loyal, and it is difficult to measure 

 the influence this factor has had in the agricultural development of 

 the district. The children, naturally wishing to retain their church 

 connections, have stayed at home. This has resulted in the subdivision 

 of many of the larger farms into small areas, which has unquestionably 

 been one of the reasons for the development of the intensive type of 

 agriculture prevailing in this section. 



PROFITS IN FARMING IN THIS REGION. 



CLASSIFICATION OF FARMS BY GROUPS. 



Financial statements of the year's business were obtained from 

 118 farms. In this study the farmers whose records appear were 

 divided into the following classes: (1) Owners, (2) owners renting 

 additional land, and (3) tenants. Of the 113 records received, 69 

 were from farms operated by owners, 23 from farms operated by owners 

 renting additional land, and 3 from farms operated by tenants. A 

 few records that were not considered complete and accurate were dis- 

 carded. Records from farmers 50 per cent of whose total receipts 

 came from work done outside the farm were also omitted. All records 

 have been checked carefully, and the 95 used in this report should 

 represent with fair accuracy the agricultural conditions in the valley. 



In order to present the data clearly, certain terms which will be 

 used throughout the discussion are here defined. It is important 

 that the reader thoroughly understand them, for such knowledge 

 will materially assist in the interpretation of the results. 



Farm capital. — The farm capital is the average at the beginning and at the end of 

 the year of the value of all real estate, improvements, machinery, live stock, feed and 

 supplies, and cash necessary to carry on the farm business. It includes the value of 

 the farmhouse but not of the household furnishings. 



Receipts. — The farm receipts include the amount received from the sale of all 

 farm products and also the receipts from outside labor, rent of buildings, etc. If the 

 value of buildings, stock, produce, or equipment is greater at the end of the year than 

 at the beginning, the difference is considered a receipt. 



Expenses. — The farm expenses represent the amount of money paid out during the 

 year to carry on the farm business. If the value of buildings, stock, produce, or equip- 

 ment at the end of the year is less than at the beginning, this decrease is considered an 

 expense. Household or personal expenses are not included, except the value of board 

 furnished to hired help. 



Farm income. — The farm income is the difference between the receipts and expenses. 

 It represents the amount of money available for the farmer's living, provided he has 

 no interest to pay on mortgages or other debts. 



Labor income. — The labor income is the amount that the farm operator has left for 

 his labor after 5 per cent interest on the average capital is deducted from the farm 

 income. It represents what he earned as a result of his year's labor after the earning 

 power of his capital has been deducted. In addition to the labor income the opera- 

 tor received a house to live in, fuel (when cut from the farm), garden products, milk, 

 butter, eggs, etc. The labor income corresponds to what a hired man receives 

 when he is given so much wages in cash, together with board and room. 



