26 BULLETIN 482, IT. S. DEPARTMENT OF AGRICULTURE. 



ner. 1 The reader must keep in mind the fact that the figures given 

 in the table apply only to the average farm of each type, and that 

 while some farmers are selling the crop at below the cost of produc- 

 tion, others get much more than the cost. Farming may be said to be 

 profitable when the operating costs, rightly interpreted, about equal 

 the returns, since the costs include pay for the farmer's labor and 

 services as manager, allowance for family labor, current rate of 

 interest on working capital, and rent for his land, if he is an owner. 

 Then, too, he is insured employment for himself and family, and a 

 fair rate of interest on a secure investment. Also, if the farm is 

 rightly organized and its fertility well maintained, it will tend 

 to increase in value. A comparison of the cost and value per 

 pound of tobacco on the average of 1ST farms illustrates these 

 facts. Included in the cost of one acre of this crop are $92.69 for 

 labor and management, $11.36 for horse labor, $1.05 for fertilizer, 

 $2.38 for miscellaneous costs, and $31.73 for rent. This value for rent 

 is the average estimated cash amount which the landlord should get 

 for the use of the land for tobacco. The average cost per pound, on 

 this basis, is shown to be slightly above the average price received. 

 The crop, nevertheless, may be regarded as a profitable one for the 

 reason that it employs labor almost continuously throughout the year 

 and it may be depended on for a reliable income. It gives the owner 

 a high rent for his land rather than the relatively low rent which he 

 would have to accept for its use for other crops. 



The values of all crop enterprises, except wheat and tobacco, are 

 based on prices of imported products. Oats, corn, hay, and rye are 

 consumed by stock, and during parts of the year these products are 

 shipped in to supply deficiency. The cost of hay and of all other 

 products includes the hauling to market. 



Live stock does not seem to be profitable on the tobacco or the 

 mixed type of farms. These types emphasize crops, especially to- 

 bacco, and evidently neglect live stock. 



In general it is the aim of farmers in this region to raise just 

 enough hay to supply the needs for live stock. It is not a profitable 



1 The costs as shown in Table XXI were distributed to each enterprise in the following 

 manner : 



Labor costs were distributed in proportion to the number of labor units required by 

 each enterprise (see Table IV). "Cash to run farm" was distributed in the same way. 



Power costs were distributed in proportion to the power units required by each enter- 

 prise (see Table IV). Machinery costs wore distributed in the same way. 



Rent charges included interest on fixed capital, such as buildings, fences, etc. The 

 renting value of land on the average farm was about $5 per acre. Land used for 

 general crops, such as corn, wheat, rye, pasture, including bluegrass pasture, was 

 shown to have a uniform renting value on each farm, ranging from $2.25 to $G per acre. 

 The average rent for pasture land was $3.50 per acre ; for general crop land, about $3.60. 

 Renting value given for tobacco land ranged between $25 and $75 per acre, the average 

 being about $35. 



Live stock was charged for feed, including pasture, at farm prices. Six dollars and 

 fifty cents was credited to each animal unit for manure and the same amount charged 

 to field crops in proportion to acreage. Six per cent interest was charged on investment 

 in live stock and an allowance made for depreciation. 



