3% BULLETIN 1382, U. S. DEPARTMENT OF AGRICULTURE 
interest except when actually paid by the operator. It includes all 
goods furnished by the farm for family living purposes. 
Acres per farm refer to the total size* of farm, that is, to all land 
worked by the farmer, alone or with paid or unpaid labor from 
within or from without his immediate family. 
Total farm capital represents the value, expressed in terms of 
dollars, of all property per farm; including land and buildings, 
stock, machinery, supplies, and cash for running expenses averaged 
for the beginning and the end of the year of study. 
Operator's working capital includes that part of the total farm 
capital not invested in land, buildings, and permanent improvements. 
Cost of operation of the farm business means interest on the total 
investment along with the cost of all labor expended in producing 
crops, livestock, and other products during the year of study. 
Diversity of faun enterprises: The index of diversity is calcu- 
lated as outlined in United States Department of Agriculture, De- 
partment Bulletin 341 (p. 81) by finding the sum of the magnitude 
in terms of the value of total receipts, of all enterprises on the farm, 
expressing the magnitude of each enterprise as a percentage of the 
total magnitude of all farm enterprises, squaring these percentages, 
adding the squares and dividing their sum into unity. The diversity 
index thus calculated gives weight not only to the number of farm 
enterprises but also to the relative size of these enterprises. 
Net worth of the fanner is the value of all his wealth, in terms 
of dollars, in whatever form it was found, less all indebtedness, both 
for the year of study. 
Percentage of net worth obtained as gratuitous wealth is the per- 
centage of the total net worth received from inheritance, gift, or 
marriage. 
Percentage of net worth obtained through net increase in the value 
of land is the percentage of all net worth resulting from net increase 
in land value. This net increase was calculated by deducting the 
purchase price from the sale price of all pieces of land ever owned 
by the farmer, and subtracting from this difference the value of all 
improvements put on the place while it was owned. If the farmer 
had not resold the farm an estimated present value was taken instead 
of the sale price. 
Number of years since the farmer began his earning life means 
the total number of years he has spent at all occupations since having 
been employed without pay on his father's farm or elsewhere. 
The operators average annual rate of accumulation is calculated 
by taking the total net worth for the year of study less any wealth 
received from inheritance, gift, marriage, or net increase in land 
values and dividing the remainder by the number of years that have 
lapsed since the operator began earning for himself. 
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