9 BULLETIN 713, U. §. DEPARTMENT OF AGRICULTURE. 
In addition to the labor income of $356.55, this average farm fur- 
nished a part of the family living and a house to live in, the value of 
which is estimated to be $500. Besides, an average of $81 for unpaid 
labor was charged in expenses, which should be regarded as a part 
of the income of the family. Thus the total net income of an average 
family owning their farm might be summarized as follows: 
Interest. on. investmen {is 2 o- ¥-2e7 ve suee ee $851. 45 
Labor +ReOMEC o= 222-2 = eae ere eee err ee 306. 55 
Estimated value of family living and house furnished by 
the; *tarms2 £3'5') bib. ie Bt Se eR RS Os eee 500. 00 
Unpaid family tabor__ 2 => 4s ee coe ee Bee 81. 00 
Oras Es = ee eee 1, 789. 00 
Labor income is commonly used to measure the business success of 
ene farm as compared with another. It does not always show whether 
an individual is a successful or unsuccessful farmer. 
FACTORS WHICH MAKE SOME FARMS MORE SUCCESSFUL THAN 
OTHERS. 
Two definite objects should be kept in mind when considering 
successful farming, namely, obtaining profits and maintaining soil 
fertility. The ordinary diversified farm to a large extent must 
depend on crop rotations and a proper system of live-stock farming 
to maintain the fertility of the soil. On nearly all farms in the 
part of Kentucky studied, however, lime and commercial fertilizers 
are used to great advantage. 
The factors which most directly affect profits are: Size of business, 
crop yields, returns from live stock, type of farming, diversity, and 
the selection and proportioning of crops and live stock. 
SIZE OF BUSINESS. 
A matter of first importance-in farming is the size of the busi- 
ness. However skillful or energetic a farmer may be, or however 
fertile his land, he can not hope for business success if his business 
is not on a large enough scale. Inthe area studied 29 farmers on farms 
under 100 acres in size made an average farm income of $370 and 
a labor income of only $81. Such an income, in addition to what 
the farm may furnish for the family living and a house to live in, 
could not be counted as more than a wage. Sixty farms averaging 
286 acres in size made an average labor income of $356, while 46 
farms averaging 715 acres in size made a labor income of $1,133. 
The extent to which a farmer may enlarge his business depends 
on the capacity of the operator to organize and operate a large busi- 
ness, and on available capital and labor. Among the 342 farms 
studied, $134,000 was the largest amount of invested capital handled 
