f)S BULLETIN 6o4, U. S. DEPARTMENT OF AGRICULTURE. 



The labor income is affected both by the total receipts and the 

 price of the land, higher priced land calling for a higher interest 

 charge against the farm income, and lessening the labor income to 

 that extent unless the higher priced land produces correspondingly 

 higher receipts. Where the element of speculation is not present 

 the price of land is usually a good measure of its agricultural value, 

 but where speculative values are attached to the land the returns 

 obtained by farming may not be in any wa}^ commensurable with the 

 price. 



In both groups of farms the average. farm income rises with the 

 size of the farm, but in the group failing to make 8 per cent the minus 

 labor income becomes greater as the size of farm advances, since on 

 a losing rate of interest the greater the capital invested the greater 

 will be the loss. 



