A FIVE-YEAR FARM MANAGEMENT SURVEY IN OHIO. 11 



I of the objects was to determine important yearly variations. This is 

 best done by comparing the same farms over the five-year period. A 

 ^tiidy, based upon the data for the farms with the five-year records is, 

 therefore, presented below. 



A FIVE-YEAR STUDY OF 25 FARMS. 



When studying the farming of an area from a business stand- 

 ipoint some advantages are derived from extending the study over 

 la period of years rather than limiting it to a single year. A study 

 [of the yields of crops, prices received for products, expenses in- 

 curred in operating the farms, etc., when extended over a period of 

 lyears will give economic information that can not be obtained from 

 the study of a single year. By extending the study over a period of 

 j'^ears data are furnished that show the yearly variations of the many 

 items that enter into a year's farm business, and that define the 

 changes taking place in the agriculture of an area. Studies like 

 these are best made" by comparing results on the same farms for sev- 

 eral years. In this area, usable records were obtained from 25 farms 

 every year for five consecutive years. These farms were quite repre- 

 sentative of all those in the area, and the results derived from the 

 study of this group, whether by years or for the entire period, should 



1 Certain terms used in this bulletin are here defined : 



Farm investment. — The- value at the beginning of the farm year of all real estate, ma- 

 chinery, live stock, and other investment used to carry on the farm business. It includes 

 the value of the farm dwelling, but not the household furnishings. 



Receipts. — The amount received from the sale of crops, the net increase from stock, and 

 the receipts from outside labor, rent of buildings, etc. The net increase from stock is 

 found by subtracting the sum of the amount paid for stock purchases and the inventory 

 value at the beginning of the year from the sum of the receipts from stock products, sales 

 of live stock, and the inventory value at the end of the year. If the value of crops or 

 supplies on hand was greater at the end of the year than at the beginning, the difference 

 was considered a receipt. 



Expenses. — The amount of money paid out during the year to carry on the farm busi- 

 ness, together with the value of the unpaid labor performed by members of the family, 

 if the value of crops or supplies at the end of the year was less than at the beginning, this 

 was considered an expense. Household or personal expenses are not included. 



Farm income. — The difference between receipts and expenses. It represents the amount 

 of money available for the farmer's living above the value of family labor, provided he 

 has no interest to pay on mortgages or other debts. 



Laior income. — The amount that the farmer has left for his labor after 5 per cent 

 interest on the farm investment 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 investment has been 

 deducted. In addition to the labor income the farmer received a house to live in, fuel 

 (when cut from the farm), garden products, milk, butter, eggs, etc. 



Per cent on investment. — The rate returned on the farm investment after the value of 

 the farmer's labor is deducted from the farm income. It represents what the investment 

 earned after all expenses have been deducted and the farmer has received a fair wage for 

 Ms labor. 



Animal unit. — In order to compare the different classes of animals and to compute the 

 total amount of live stock on these farms all stock has been computed in terms of animal 

 units. In this area one horse, cow, or steer was counted as one animal unit ; two head 

 of young stock (of the above kind) were counted as one animal ; 10 sheep, 5 hogs, or 100 

 chickens were each counted as one animal unit. The number of productive animal units 

 includes all stock exci'pt work stock. 



