UNITED STATES DEPARTMENT OF AGRICULTURE 
DEPARTMENT BULLETIN No. 13 
Washington, D. C. 
January, 1926 
THE RELATION BETWEEN THE ABILITY TO PAY AND THE STANDARD OF 
LIVING AMONG FARMERS 
A Socio-Economic Study of 861 White Farm Families of Kentucky, Tennessee, and Texas 
By E. L. Kirkpatrick, Associate Economic Analyst, Bureau of Agricultural 
Economics, and J. T. Sanders, Head Department of Agricultural Economics, 
Oklahoma Agricultural and Mechanical College, formerly Assistant Agricul- 
tural Economist, Bureau of Agricultural Economics 
CONTENTS 
Page 
Scope of study 3 
Composition of families and house- 
holds 4 
Classification of expenditures 5 
Significance of advancement goods 
as an index to standard of living- 6 
Expenditures and goods used 8 
Comparison of expenditures among 
owners, tenants, and croppers 9 
Comparisons with families of other 
localities and of other industries- 9 
Distribution of average expenditures 
in relation to amount of total 
expenditures 10 
Cost-consumption unit and household- 
size index 12 
Application of the cost-consumption 
units 15 
Page 
Criteria of the ability of farmers to 
pay 17 
Ability of farmers to pay as related 
to standard of living- 22 
Relation of factors influencing de- 
sires or demands of family to 
standard of living 23 
Further consideration of relation of 
factors by method of gross corre- 
lation 27 
Interrelation of factors and criteria 
used in analysis and consideration 
of other factors not accounted for 
by gross correlations. Multiple 
correlations 28 
Presentation of inferences or conclu- 
sions 30 
Definition of factors 31 
Leaders who are looking for solutions of the problems of agri- 
culture are seldom agreed on the exact relation between the eco- 
nomic status and the standard of living of farm families. Many 
contend that, as rapidly as farmers have larger returns from farm- 
ing, they will of their own accord raise their standards of living: 
and the problem becomes that of increasing the farm income. 
Others hold that the desire for higher standards of living results 
finally in larger incomes, by means of which the economic goods 
constituting the standard of living may be procured. To these, the 
principal problem is the farmer's appreciation of the satisfactions 
accruing from higher standards of living. 
Regardless of the view taken in this matter, there is much need 
for more information than is available at present on the relation 
existing between the standard of living and the ability of farmers 
to provide or to pay. Does ability to pay mean a higher standard 
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