36 BULLETIN 87-i, U. S. DEPARTMENT OF AGRICULTURE. 



average net worth of the youngest and oldest age-groups. The 

 former group is largely recruited by young men who have obtained 

 their wealth by inheritance, marriage, or gift. This is indicated by 

 the figures on inheritance, the average being much larger for the 

 youngest age-group than for the older age-groups. On the other hand, 

 the eldest age-group is constantly being depleted by retirement 

 from farming. 



It should be noted that the amount of net worth not accounted 

 for by the above explanations was not all acquired during the 12 

 years of ownership, for many owners had acquired considerable net 

 worth as tenants before becoming owners. 



Finally, there can be little question but that a considerable part 

 of the present average net worth is due not only to increase of land 

 values but also to accumulations made possible by the unusually 

 favorable conditions of the war period affecting farm incomes. 



It is difficult to see how tenants with an average net worth of 

 $9,552 can hope to acquire the ownership of farms which together 

 with necessary operating capital represent an average investment 

 per farm of $86,957 in August, 1919. The process of climbing to 

 the top of the agricultural ladder may have been easier in 1913 when 

 the total investment averaged $46,029, or even in 1918 when it 

 was $60,663, than it is likely to be in the future. The process of 

 acquiring ownership by borrowing a large part of the purchase 

 price of a farm must be especially difficult when under the favorable 

 conditions of 1918 owners of farms made an average net return 

 which would yield only 3.5 per cent on the average value of the 

 farm investment in August, 1919. Moreover, the relative financial 

 undosirability of assuming ownership under present conditions is 

 emphasized by the fact that tenants were able to earn 32 per cent 

 on their invested capital besides earning the estimated value of their 

 labor and superintendence. (See Table XVI.) 



In the Warren district conditions are in some respects more favor- 

 able to the passage from tenancy to ownership than in the Tama 

 district. Not only has the average value of land been lower, but 

 also it has been capitalized at a higher rate of interest, which is 

 shown by the fact that the average not return of landlords, even in 

 the unfavorable year of 1918, was 5.33 per cent, as compared with 

 2.43 per cent in the Tama district. (Table XIV.) However, the 

 annual labor income of farmers in this district from which savings 

 may be derived was very much lower than in the Tama district, 

 not only in the unfavorable season of 1918, but also in 1915. This 

 general fact is reflected in the lower average net worth of tenants in 

 the Warren district, which is less than half that of the Tama district. 



The difficulties of acquiring ownership of this high-priced land 

 should not be confused with the question of the possibility of accumu- 



