A FIVE-YEAR FARM MANAGEMENT SURVEY IN OHIO. 11 
of the objects was to determine important yearly variations. This is 
best done by comparing the same farms over the five-year period. A 
study, based upon the data for the farms with the five-year records is, 
therefore, presented below. 
A FIVE-YEAR STUDY OF 25 FARMS. 
When studying the farming of an area from a business stand- 
point some advantages are derived from extending the study over 
a period of years rather than limiting it to a single year. A study 
of the yields of crops, prices received for products, expenses in- 
curred in operating the farms, etc., when extended over a period of 
years will give economic information that can not be obtained from 
the study of a single year. By extending the study over a period of 
years data are furnished that show the yearly variations of the many 
items that enter into a year's farm business, and that define the 
changes taking place in the agriculture of an area. Studies like 
these are best made by comparing results on the same farms for sev- 
eral years. In this area, usable records were obtained from 25 farms 
every year for five consecutive years. These farms were quite repre- 
sentative of all those in the area, and the results derived from the 
study of this group, whether by years or for the entire period, should 
1 Certain terms used in this bulletin are here denned : 
Farm investment. — The value at the beginning of the farm year of all real estate, ma- 
chinery, live stock, and other investment used to carry on the farm business. It includes 
the value of the farm dwelling, but not the household furnishings. 
Receipts. — The amount received from the sale of crops, the net increase from stock, and 
the receipts from outside labor, rent of buildings, etc. The net increase from stock is 
found by subtracting the sum of the amount paid for stock purchases and the inventory 
value at the beginning of the year from the sum of the 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 was greater at the end of the year than at the beginning, the difference 
was considered a receipt. 
Expenses. — The amount of money paid out during the year to carry on the farm busi- 
ness, together with the value of the unpaid labor performed by members of the family. 
If the value of crops or supplies at the end of the year was less than at the beginning, this 
was considered an expense. Household or personal expenses are not included. 
Farm income. — The difference between receipts and expenses. It represents the amount 
of money available for the farmer's living above the value of family labor, provided he 
has no interest to pay on mortgages or other debts. 
Labor income. — The amount that the farmer has left for his labor after 5 per cent 
interest on the farm investment is deducted from the farm income. It represents what he 
earned as a result of his year's labor after the earning power of his investment has been 
deducted. In addition to the labor income the farmer received a house to live in, fuel 
(when cut from the farm), garden products, milk, butter, eggs, etc. 
Per cent on investment. — The rate returned on the farm investment after the value of 
the farmer's labor is deducted from the farm income. It represents what the investment 
earned after all expenses have been deducted and the farmer has received a fair wage for 
his labor. 
Animal unit. — In order to compare the different classes of animals and to compute the 
total amount of live stock on these farms all stock has been computed in terms of animal 
units. In this area one horse, cow, or steer was counted as one animal unit ; two head 
of young stock (of the above kind) were counted as one animal ; 10 sheep, 5 hogs, or 100 
chickens were each counted as one animal unit. The number of productive animal units 
includes all stock except work stock. 
