FARM ORGANIZATION IN SOUTHERN ARIZONA. 



55 



group of largest farms, and in those two groups the rate would be 

 very close to that paid by the farms of 40 acres. Farms ranging in 

 size from 40 to 160 acres pay the highest rate of interest. 



Table XXVI. — Relation of size rffarm to rate of interest earned on capital invested. 



Size group. 



Area. 



Average 

 total 



invest- 

 ment. 



Farm' 

 income 

 plus farm 

 contribu- 

 tion to 

 family 

 living. 



Opera- 

 tor's val- 

 uation of 

 his labor 

 and man- 

 agerial 

 ability. 



Amount 

 earned 



on 

 invest- 

 ment. 



Rate 

 earned 



on 

 invest- 

 ment. 



Acres. 

 to 19 



A crcs. 

 11 

 20 

 30 

 40 

 62 

 80 

 101 

 137 

 160 

 244 

 530 



$5, 417 

 7,205 

 10, 845 

 11,119 

 15, 401 

 16, 584 

 20, 929 

 27, 050 

 32, 158 

 46, 963 

 89, 470 



$956 

 1,220 

 1,660 

 1,688 

 2,215 

 2,461 

 2,508 

 3,484 

 3,938 

 5,310 

 9,286 



$528 

 515 

 597 

 554 

 672 

 659 

 672 

 771 

 844 

 1,000 

 1,159 



$428 

 705 

 1,063 

 1,134 

 1,643 

 1,802 

 1,836 

 2,713 

 3,094 

 4,310 

 8,127 



Per cent. 

 7.90 



20 



9.79 



21 to 39 



9.80 



40 



10.20 



41 to 79 



10.02 



80 



10.87 



811.0 119 



8.77 



120 to 159 



10.03 



160 : 



9.62 



161 to 320 



9.18 



Over 320 



9.08 







There is a definite relation between size of farm and the magnitude 

 of the receipts, expenses, percentage of receipts paid out in expenses, 

 and the percentage of expenses paid for labor. These relations are 

 shown in Table XXVII. 



Table XXVII. — Relation of size of farm to receipts, expenses, percentage of receipts 

 paid out in expenses, and per cent of expenses paid for hired labor on irrigated farms in 

 southern Arizona. 











Per cent 



Per cent 



Average 

 area. 



Number 

 of farms. 



Receipts. 



Expenses. 



ofreceipts 

 paid out in 

 expenses. 



of expenses 



paid for 

 hired labor. 



Acres. 













11 



54 



$l,OS0 



$382 



35.4 



24.1 



20 



45 



1,416 



481 



34.0 



28.7 



30 



54 



1,874 



557 



29.7 



27.3 



40 



84 



2,045 



658 



32.2 



29.6 



62 



103 



2,907 



1,015 



35.9 



44.5 



80 



75 



3,357 



1,201 



35.5 



40.5 



101 



47 



3,612 



1,457 



40.2 



44.8 



137 



39 



5,526 



2,385 



43.1 



50.8 



160 



44 



5,951 



2,361 



39.7 



51.0 



244 



50 



8,465 



3,546 



41.9 



51.2 



530 



32 



16,354 



7,420 



43.7 



49.0 



There is a common belief in Arizona that the expenses in running 

 a small farm are much less than those incurred in operating a large 

 farm. While this is true abolsutely, it is not in general true relatively. 

 Table XXX shows that the percentage of receipts paid out in ex- 

 penses does not vary greatly in any of the size groups, and that this 

 percentage is as large on farms smaller than 20 acres as it is on farms 

 of 80 acres. On farms larger than 80 acres the percentage rises slightly, 

 but the rise is not great enough to verify the common opinion. The 

 percentage of expenses paid out for labor is progressively larger on 



