2 BULLETIN 113, U. S. DEPAKTMENT OF AGKICULTUEE. 



In addition to the labor income of $356.55, this average farm fur- 

 nished a part of the family living and a house to live in, the value of 

 which is estimated to be $500. Besides, an average of $81 for unpaid 

 labor was charged in expenses, which should be regarded as a part 

 of the income of the family. Thus the total net income of an average 

 family owning their farm might be summarized as follows: 



Interest on investment $851.45 



Labor income 356.55 



Estimated value of family living and house furnished by 



. the farm 500.00 



Unpaid family labor 81.00 



Total 1, 789. 00 



Labor income is commonly used to measure the business success of 

 one farm as compared with another. It does not always show whether 

 an individual is a successful or unsuccessful farmer. 



FACTORS WHICH MAKE SOME FARMS MORE SUCCESSFUL THAN 



OTHERS. 



Two definite objects should be kept in mind when considering 

 successful farming, namely, obtaining profits and maintaining soil 

 fertility. The ordinary diversified farm to a large extent must 

 depend on crop rotations and a proper system of live-stock farming 

 to maintain the fertility of the soil. On nearly all farms in the 

 part of Kentucky studied, however, lime and commercial fertilizers 

 are used to great advantage. 



The factors which most directly affect profits are : Size of business, 

 crop yields, returns from live stock, type of farming, diversity, and 

 the selection and proportioning of crops and live stock. 



SIZE OF BUSINESS. 



A matter of first importance in farming is the size of the busi- 

 ness. However skillful or energetic a farmer may be, or however 

 fertile his land, he can not hope for business success if his business 

 is not on a large enough scale. In the area studied 29 farmers on farms 

 under 100 acres in size made an average farm income of $370 and 

 a labor income of only $81. Such an income, in addition to what 

 the farm may furnish for the family living and a house to live in, 

 could not be counted as more than a wage. Sixty farms averaging 

 286 acres in size made an average labor income of $356, while 46 

 farms averaging 715 acres in size made a labor income of $1,133. 



The extent to which a farmer may enlarge his business depends 

 on the capacity of the operator to organize and operate a large busi- 

 ness, and on available capital and labor. Among the 342 farms 

 studied, $134,000 was the largest amount of invested capital handled 



