FARMING IN THE BLUEGRASS REGION. 15 



on investment. If all the farmers were found to be making more 

 than the current rate of interest on their valuation of the land the 

 tendency would naturally be toward an increase in land values and a 

 rise in rents. The farmers in this section have evidently valued their 

 land approximately on the basis of its real earning capacity. 



The fact that the average farmer in the group studied had left, 

 after counting out all operating expenses, just about enough to pay 

 interest on his land investment does not indicate that the farmer is 

 not making money. On the other hand, it may indicate quite the 

 opposite. In arriving at the remainder left for interest the average 

 farmer is allowed fair wages for his services as manager and his 

 family is allowed common wages for the work they do. In addition, 

 the family have a home and a large percentage of their food free of 

 money cost and a fair rate of interest on the working capital in- 

 vested. In the case of a large number of farmers in the region equal 

 comfort in the home and its surroundings and equal opportunity for 

 outdoor recreation could not be afforded in the city except by the 

 more wealthy. These advantages have a real value, but they evi- 

 dently have not been capitalized by the farmers who gave the records. 



A few farmers during the year made comparatively large profits, 

 while a few suffered large losses, the main reasons for which will be 

 pointed out in the following pages. The large majority, however, 

 could live in comfort and lay aside something in the bank. 



It will be noticed that cash tenants pay less rent than do those who 

 rent on shares. There would naturally be a certain difference in 

 favor of the cash tenant, since usually the landlord would rather rent 

 at a lower rate for cash than for a share of the crop ; but the large 

 difference shown in the table is due principally, no doubt, to the fact 

 that most of the share-rented land is in relatively small areas and 

 much of it is devoted to tobacco, one-half of which is turned over to 

 the owner. On the other hand, cash-rented land is in large areas 

 and devoted more largely to pasture. 



IMPORTANCE OF SIZE OF FARM. 



The farms vary greatly in size. The smallest farm had 35 acres, 

 the largest 5,000. This factor more than any other seems to deter- 

 mine their organization, as the following analysis will show : 



RELATION OF SIZE OF FARM TO DISTRIBUTION OF RECEIPTS. 



In Table VI it will be seen that the small-sized farms get most of 

 their receipts from crops, while the large farms get most of their 

 income from live stock. Small farms have the largest percentage of 

 receipts from tobacco. This crop decreases in relative importance as 

 the farms increase in size. 



