DRY-FARMING CONGRESS, WICHITA, 1914 235 



the unsuccessful farm is largely a question of applied efficiency in produc- 

 tion, and organization of the farm business. A recent publication covering 

 investigations in the corn belt as to causes of profits or losses on the farm 

 states that the farmer fails to make a profit "through neglect of work, low- 

 crop yields, inefficient stock, poor farm organization and unused capital. 

 His expenses are practically the same per acre as the good farmer. His 

 receipts are the weak point. His neighbors succeed, not by spending less 

 but by taking: in more." There is no reason to believe that the conclusions 

 as obtained from groups of farms are not applicable to every agricultural 

 community. They may be even more prominent in the region in which many 

 of us are interested. In this area particularly, the difference between the 

 continuously profitable farm and the unprofitable one is dependent not only 

 on the factors named but on a diversification and organization which will 

 enable the owner to obtain a sufficient income to cover operating expenses 

 in even the dry years. 



How Profits May Be Made. 



Warren of New York, in his study of farm oganization, states that the 

 four factors of greatest importance in affecting profits "have been size of 

 business, crop yields, production per cow or of other animals (productivity), 

 and diversity of business. In few cases do practical farmers make other 

 mistakes of so serious a nature as to prevent getting a good labor income 

 if these four factors are favorable." Of the four factors essential to the 

 success of the business of farming, three, viz., crop yield, productivity of 

 livestock, and diversity, may be determined to a large degree by the farmer, 

 while the size of the business responds readily to increased labor force. On 

 our most successful farms, the crop yield per acre is approximately 20 

 percent better than the average in the neighborhood. The productivity of 

 livestock, as determined by the dairy cow, must be approximately twice that 

 of , the average in the state. Thus we may trace the leaks in the farm 

 business, to a very large degree, to inefficiency in production of crop or 

 livestock products and to lack of diversification. Correct these troubles on 

 the farm, and to a considerable degree you have corrected the greatest dif- 

 ficulty in the way of profitable farm business. 



The Development of Efficient Agriculture. 



It has been shown that one-third or more of our farmers operate their 

 farms at a loss. Another third to one-half obtain a relatively small income, 

 one which is unsatisfactory from the standpoint of business management, 

 while approximately one-sixth, about 14 percent, pay themselves a fair 

 rate of interest on their investment and a fair labor income for their year's 

 work. . 



The great problem of agriculture is the development of at least a fair 

 degree of efficiency in the farm business among the remaining 86 percent 

 of the farm operators. Men do not operate the farm business on an un- 

 profitable basis because they wish to or because it is pleasant. All men 

 desire prosperity for themselves and their families. Furthermore, it has 

 been demonstrated time and time again that it is possible to increase the 



