12 



BULLETIN 678^ U. S. DEPARTMENT OF AGEICULTUEE. 



These facts relative to the type of farming have an important rela- 

 tion to the value of land and the size of farm, as is indicated also in 

 this table. Farms increase in size and the rent per acre decreases as 

 the distance from the city increases. 



The lesson to be learned froin these facts is that close proximity to 

 a large growing city tends to make it more profitable to grow truck 

 crops which can be marketed fresh to the consumers in the city than 

 the staple crops characteristic of general farming and supplying a 

 wide market. The nearer a location is to the city the more valuable 

 the land becomes, because it is demanded for dweUing, factory, and 

 transportation sites, etc., in competition with agriculture. On high- 

 priced land none but intensive agriculture will pay. Because land is 

 more valuable near the city, and since a large farm business may 

 be conducted on a small piece of land, the farms tend to be smaller 

 near the city. 



Frequently a farmer owning a comparatively large tract of land, 

 300 to 400 acres, finds the city growing towards him, increasing ^^ear 

 by year the value of his land. With this increase in value of land goes 

 an increase in costs of production. Unless the farmer changes his 

 type of farming to meet these conditions his business can not be made 

 to yield interest on the increased capitaUzed value and a profit in 

 addition. Under such conditions the farmer usually sells all or a 

 part of his land to be divided into smaller tracts, either for dwelling 

 and industrial sites or for smaller farms operated more intensively. 



THE SMALL, INTENSIVE FARMS NEAR THE CITY ARE THE MOST PROFITABLE. 



With intensive farming and higher production per acre the farmer 

 is enabled to carry on a good-sized business on a small-sized farm. 

 In fact, in this study no relation appeared between the size of the 

 farm and the size of the business conducted. The capital invested 

 in the average large farm did not differ materially from that invested 

 in the small intensive farm. (See Table VIII.) 



Table VIII.- 



-Relation of size of farm to operating expenses per acre and to land earnings 

 per acre. 



Size of farm. 



Number 

 of farms. 



Distance 

 to Louis- 

 ville. 



Average 



area of 



improved 



land. 



Operat- 

 ing ex- 

 pense 

 per acre. 



Gross 

 receipts 

 per acre. 



Land 

 earnings 

 per acre, a 



Labor 

 income. 



Profit on 

 invest- 

 ment. 



Acres. 



Less than 80 6 



80 to 159 



21 

 25 

 33 

 21 



Miles. 

 9 

 12 

 13 

 16 



A cres. 

 44 

 121 

 212 

 420 



$73 

 36 

 15 

 14 



$96 

 45 

 20 

 18 



$23 

 9 

 5 

 4 



$1,000 

 800 

 100 

 140 



Per cent. 

 7 

 5 6 



160 to 299 



4 



300- and over 



4 



All farms 



100 





199 



32 42 



10 



















a Land earnings per acre as here used is what is left after paying all operating expenses, which include 

 all current expenses, 6 per cent interest on working capital, and the farmer's estimate of the value of his 

 labor and services as manager, amounting for the average farm to about $600. Land earnings would be 

 then approximately what the landlord might expect as rent. 



6 Improved land. 



