24 BULLETIN 874, U. S. DEPARTMENT OF AGRICULTURE. 



farm capital, the farm labor incomes averaged $1,234 as compared 

 with $75 in 1913. These labor incomes may be compared with 

 the estimated value of the time spent by the farmers in labor and 

 superintendence. In 1913 this averaged $719, or $413 more than the 

 average farm labor income calculated at 5 per cent, and $644 more 

 than the farm labor income calculated at 5£ per cent. In 1918 the 

 estimated value of farmer's labor and superintendence was $1,169. 

 Consequently, the farmers of this district made labor incomes which, 

 calculated at 5 per cent, averaged $368 more than the value of labor 

 and superintendence. When calculated at 5J per cent the excess 

 of labor incomes above the value of labor and superintendence 

 averages $65. 



When calculated on the basis of a 5 per cent deduction for capital, 

 the farm labor incomes of the Tama district in 1918, as compared 

 with those of 1913, increased several hundred per cent. Thus, the 

 farm labor incomes of owner operators were 361 per cent higher; 

 those of owners additional, 367 per cent higher; and those of tenants, 

 478 per cent higher than in 1913. Even making allowance for the 

 decline in the purchasing power of the dollar, there can be no doubt 

 that the farmers of this district earned a considerably larger return for 

 operator's labor and risk than in 1913, a larger return attributable to 

 the favorable combination of good crops, high prices for farm prod- 

 ucts, and land values that had not yet advanced in proportion to 

 farm income. 



In the Warren district the increase in farm labor income is not so 

 marked on account of the poor crop season. Nevertheless, the 

 increase in this district ranges from 89 per cent for tenants to 139 

 per cent for owners. 



If farm labor income be calculated by charging 5^ per cent instead 

 of 5 per cent for the use of capital, the average farm labor income for 

 each of the several classes of tenure in the Tama district is, of course, 

 smaller than when capital is charged only 5 per cent. However, the 

 increase in percentage as compared with 1913 is even greater than 

 when calculated on the 5 per cent basis, for the higher rate charged 

 for capital accentuates the relative advantage of 1918 due to the 

 failure of land value to increase in the same proportion as farm income. 

 Thus, in the Tama district the average farm labor income was about 

 sixteen times as great in 1918 as in 1913. This result may be 

 expressed in another way by saying that it was impossible for the 

 average farmer to pay 5£ per cent for all of his capital in 1913 and 

 have any considerable remainder for his own time and risk, while the 

 proportionately greater increase of farm incomes of 1918 as compared 

 with the increase of land values enabled the farmer to pay 5| per cen^ 

 on capital and still havo a substantial remainder. 



