FARM LAND VALUES IN IOWA. 



23 



Iowa farmer pays not less than 6 per cent and commonly 8 per cent. 

 It is also important to recognize the fact that although farmers can 

 obtain at least 5 per cent for their own capital at the present time by 

 investing in bonds of undoubted security, they have largely preferred 

 to invest in land yielding an annual return, not counting increase of 

 value, of much less than 5 per cent. 



Table XIII shows the farm labor income at different periods; that is, 

 what is left to pay for the labor and risk of the farm operator after 

 charging the farm with the use of the capital employed. This 

 charge is made both at 5 per cent and at 5^ per cent. In order to 

 determine the effect of increased value of land on farm labor income, 

 these percentages are calculated both on the value of total capital 

 in March, 1918, and on the value of total capital in August, 1919. 

 The farm income in both cases is that of 1918, a year characterized 

 by normal production in one of the districts, as well as by the high 

 level of war prices for farm products; therefore, in at least one 

 district, a year as favorable from the standpoint of income as the 

 farmer may expect in the near future. 



Table XIII. — Farm labor income classified by tenure, 1913, 1915, 1918, 1919. 



TAMA DISTRICT. 



Tenure. 



Number of 

 farms. 



Farm labor income after 

 charging 5 per cent for 

 capital, a 



Farm labor income after 

 charging 5-£ per cent for 

 capital." 





1913 



1918 



1913 



1918 



Aug., 1919. 



1913 



1918 



Aug., 1919. 





965 



211 



$306 



$1,537 



$222 



$75 



81, 234 



6—8213 









308 

 154 

 503 



86 

 28 

 97 



253 

 435 

 298 



1,166 

 2,030 

 1,723 



6-148 

 642 

 429 



32 

 167 



74 



855 

 1,737 

 1,423 



6—590 



Owners additional 



Tenants 



210 

 6- 1 



WARREN DISTRICT. 





1915 



1918 



1915 



1918 



Aug., 1919. 



1915 



1918 



Aug., 1919. 





832 



183 



$370 



$746 



$69 



$262 



$597 



5—8149 







Owners 



Owners additional 



345 

 190 



297 



84 

 43 

 56 



212 

 495 

 474 



506 



1,017 



897 



6-207 

 335 

 275 



106 

 382 

 366 



357 

 851 

 759 



6-427 



101 



75 







a In this table and subsequent tables the investment value per farm for 1918 is that of March 1 and that 

 of 1919, Aug. 1. The value at a particular time, rather than the average value at beginning and end of the 

 fiscal year, is employed because of the marked changes in farm land value during the period and in order 

 to show the effect of these changes on incomes. For 1913 and 1915 the usual method of averaging values at 

 beginning and end of year is employed. 



6 Loss. 



On the basis of land values in 1918, farmers of all classes of tenure 

 in the Tama district made farm labor incomes averaging $1,537 foiv 

 all farms, after deducting 5 per cent on the value of all farm capital, 

 including the value of land, whereas in 1913 the average for all 

 farms was only $306. Even charging 5£ per cent on the value of 



