8 BULLETIN 1034, U. S. DEPARTMENT OF AGRICULTURE. 



growing crops. Both crop area and woodland area showed slight 

 decreases in 1918, the falling off being offset by an increase in pasture 

 area. Woodland occupied 30 per cent of the total acreage in 1913 and 

 28 per cent in 1918. 



FARM ORGANIZATION AND BUSINESS ANALYSIS OF FARMS.^ 



Of the 534 farms from which data were obtained in 1913, 268 were 

 operated by white owners, 31 by colored owners, 49 by white tenants, 

 and 186 by colored tenants. Of the 550 farms in 1918, 280 were oper- 

 ated by white owners, 48 by colored owners, 56 by white tenants and 

 166 by colored tenants. " Croppers " are not counted as tenants, but 

 as farm laborers. 



The relative importance of the white and colored owner and ten- 

 ant farms included in this study is shown in Plate I. From the 

 standpoints of crop acreage and crop production the farms operated 

 by white owners are of greater importance than indicated by the 



* In order to present the data clearly, certain terms -which will be used throughout the 

 following discussion are here defined. It is important that the reader thoroughly under- 

 stand these terms, as such understanding will materially assist in the interpretation of 

 the results. 



Tilledr area. — The number of acres of the ifarm devoted to raising crops. 



Owner. — The man who owns the farm or one hired in his stead. 



Tenant. — Locally known as " renter." One who operates land owned by somebody else, 

 furnishing all labor and equipment, directing operations, and paying rent in cash or a 

 fixed amount of cotton. 



Landlord. — ^^The owner of a leased farm. 



Farm capital. — The value at the beginning of the farm year of all real estate, ma- 

 chinery, live stock, and other property used to carry on the farm business. It includes 

 the value of the farm dwelling, but not of the household furnishings. 



Receipts. — Proceeds from the sale of crops, the increase from stock, and the receipts 

 from outside labor, rent of buildings, etc. The increase from stock is found by subtract- 

 ing the sum of the amount paid for stock purchases and the inventory value at the be- 

 ginning of the year from the sum of tiie receipts from stock products, sales of live stock, 

 and the inventory value at the end of the year. If the value of crops or supplies on hand 

 at the end of the year was greater than at the beginning, the difference is considered a 

 receipt. 



Expenses. — Annual expenditures made in carrying on the farm business, including the 

 value of the unpaid labor performed by members of the family and depreciation on build- 

 ings and equipment. If the value of crops or supplies at the end of the year was 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 net 

 amount available for the farmer's living above the value of family labor, provided he has 

 no interest to pay on mortgages or other debts. 



Lahor income. — The amount that the farmer has left for his labor after 7 per cent 

 interest on the farm capital is deducted from the farm income. It represents what he 

 has earned as a result of his year's labor after the probable earning power of his invest- 

 ment has been deducted. In addition to labor income, the farmer receives a house to 

 live in, fuel (when cut from the fai-m), garden products, milk, butter, eggs, etc. A 

 " minus " labor income means that the farmer received no returns above food products, 

 fuel, and house rent for his year's labor, and that he lacked the amount indicated of pay- 

 ing 7 per cent interest on the farm capital. 



Per cent return on capital. — The rate returned on the farm capital after the value 

 of the farmer's labor is deducted from the farm income. It represents what the capital 

 earned after all expenses have been deducted and the farmer has received a fair wage 

 for his labor. When the per cent return on the capital is preceded by the minus sign, 

 it means that the farmer did not realize even fair wages for his own labor and manage- 

 ment, thus leaving nothing for the earnings on the farm capital. 



