ORGANIZATION AND MANAGEMENT OF FARMS IN PENNSYLVANIA. 13 



The average size of the dairy farms was 97 acres and of the general 

 farms 104 acres. The general farms had an average of a little over 

 6 acres more of pasture than the dairy farms. Woods, the greater 

 part of which is used for pasture, occupy about 14 acres per farm. 

 According to estimates made by 168 of these farmers, it takes 3 acres 

 of average woods pasture to equal 1 acre of average open pasture. 



DISTRIBUTION OF CAPITAL. 



Table III shows the average amount of capital used and its distri- 

 bution for the dairy and general farms. 



Table III. — Average capital and its distribution on 159 dairy and 190 general farms, 



Grove City, Pa., area. 



Dairy 



General 



farms. 



farms. 



88, 112 



S7, 252 



Per cent. 



Per cent. 



42 



44 



16 



16 



17 



16 



75 



76 



17 



16 



5 



5 



2 



2 



1 



1 



Average capital 



Capital distributed to— 



Land 



Dwellings 



Other buildings 



Total real estate 



Live stock 



Machinery 



Feed and supplies 



Cash 



As shown, about three-fourths of the total capital used in the 

 operation of these farms is in real estate. It may be noted that the 

 capital investment of the dairy farms is somewhat higher than that 

 of general farms. On the dairy farms dwellings average $1,334 in 

 value, and all the other buildings $1,369 per farm; on the general 

 farms the average of dwellings is $1,121 each and all the other build- 

 ings $1,158. The value of real estate for all the farms here under 

 study averaged $57 per acre. 



On the dairy farnts the sum of the value of the live stock, ma- 

 chinery, feed, and cash, that is, the working capital, averages $1,994, 

 and on the general farms, $1,746 per farm. In other words, if one 

 were to go into this area and buy the average farm of about 100 acres 

 he would need this much additional to invest in stock and tools 

 before he began to farm. Of course, this does not mean that a man 

 would need this total amount in cash in order to buy and stock the 

 average farm, but that he would have to make an investment of that 

 amount. 



Too many farmers make the serious mistake of attempting to 

 operate a farm with too little working capital. It is better to have a 

 mortgage on the farm, if necessary in order to provide sufficient work- 

 ing capital, than to have the farm clear and be handicapped because 

 of the lack of stock and adequate equipment. 



