ORGANIZATION AND MANAGEMENT OF FARMS IN PENNSYLVANIA. 3 



this survey, 46 per cent of the farms studied might be classed as 

 dairy farms. 



Size of farm.- — The 422 farms studied averaged 101 acres in size, 

 60 per cent of the land being tillable. The 40 per cent nontillable 

 was mostly used for pasture. The average value of real estate was 

 $57 per acre. 



Capital invested. — The average capital invested in the dairy farms 

 was $8,112 and in the general farms $7,252. About three-fourths 

 of this represented real estate. It required a working capital of 

 $1,994 to operate the average dairy farm and of $1,746 to operate the 

 average general farm. b . 



Income. — For the year 1916 the average labor income of 159 

 dairy farms was $279; of 190 general farms, $291. * 



For all farms the amount available for family living averaged 

 $740. This was in addition to the value of food products, fuel, and 

 use of house furnished by the farm without money cost. The average 

 amount available for family living on the dairy farms was $773 and 

 on the general farms $714. 



For all farms of 70 acres or under, the average amount available 

 for family living was $568; for the farms of over 130 acres, it was 

 $1,152. One-eighth of the men operating farms of over 130 acres 

 made labor incomes of $1,000 or more, and one-third made labor 

 incomes of $500 or more. 



Receipts. — About three-fourths of the total receipts for all farms 

 came from live stock. Dairy products, cattle, poultry, and hogs were 

 the four leading sources of income. The leading cash crop is wheat, 

 returns from that crop representing over one-fourth of all returns 

 from crops. Wheat, however, occupies but one-tenth of the crop 

 area on the average farm. 



1 Certain terms as used in this bulletin are here denned: 



Farm investment. — The value at the beginning of the farm year of all real estate, machinery, 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 oflive stock, and the inventory value at the end of the year. If the value 

 of crops or supplies on hand is greater at the end of the year than at the beginning, the difference is con- 

 sidered a receipt. 



Expenses. — The amount of money paid out during the year to carry on the farm business, together with 

 the value of the unpaid labor performed by members ol the family. If the value of crops or supplies at the 

 end of the year is less than at the beginning, this is considered an expense. Household or personal expenses 

 are not included. 



Farm income. — The difference between receipts and expenses. It represents the amount of money avail- 

 able for the fanner's living above the value of family labor, provided he has no interest tp pay on mortgages 

 or other debts. 



Labor 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 has 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 receives 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 earns after all expenses have 

 been deducted and the farmer has received a fair wage for his labor. 



