72 



BULLETIN 341, U. S. DEPARTMENT OF AGRICULTURE. 



Nevertheless the cash tenants made an average labor income of $954 

 as compared with $669 for the share tenants, allowing capital 5 per 

 cent interest. As was to be expected, the cash tenants had on the 

 average considerably more capital than the share tenants. The share 

 tenant is usually such because of the small amount of his capital. 

 The tenant who has capital enough to pay cash rent for a farm ap- 

 proximately as large as he wants is inclined to do so because of the 

 greater freedom he thus acquires in his farm operations. He has 

 greater economic independence than the share tenant, and in order to 

 be able to pay cash rent he selects on the average a somewhat smaller 

 farm. From the standpoint of the tenant cash rent is more satisfac- 

 tory than share rent. From the standpoint of the landlord the reverse 

 is true. In the case of the share renter the landlord is entitled to a 

 larger income on his investment because of the greater responsibility 

 he assumes. For similar reasons the cash tenant is entitled to and re- 

 ceives a larger income than the share tenant. 



Table XXXIX shows the relation of the landlord's profits to the 

 size of farm and to the type of tenancy. There is not much differ- 

 ence in the percentage of the landlord's income on farms of different 

 size, except in the case of the very small farms, where the landlord's 

 income is less for both types of tenancy. In the case of the cash 

 tenant the average profits of the landlord are only 3.92 per cent on 

 his investment, while in the case of the share tenant it is 8.81 per cent. 



Table XXXIX. — Relation of size of farm to landlord's profits on 12^ farms 



operated by tenants. 





Per farm. 



Size of farms, in acres. 



Cash rent. 



Share rent. 



♦ 



Number 

 of farms. 



Average 

 capital. 



Per cent 

 on invest- 

 ment. 



Number 

 of farms. 



Average 

 capital. 



Per cent 

 on invest- 

 ment. 





17 

 15 

 14 



7 



$3,581 

 6,231 

 10,010 

 11, 557 



3.09 

 3.53 

 4.39 

 4.15 



9 



21 

 31 

 10 



$6,370 

 9,181 

 12, 777 

 19,263 



6.91 



61 to 100. 



8.02 



101 to 160 



9.48 



161 to 200 



8.82 









53 



7,082 



3.92 



71 



11,803 



8.81 







The actual amount of the landlord's income increases, therefore, in 

 about the same proportion as the size of the business increases, while 

 the percentage profit remains approximately constant. The tenant's 

 labor income, as was shown in Table XXXVIII, increases markedly 

 with increase in the size of the business, as was found to be the case 

 on farms operated by their owners. 



