24: 
BULLETIN. 1068, U. S. DEPARTMENT OF AGRICULTURE. 
FAEM INCOMES AND NET RETURNS ON CAPITAL. 
The farm income is the difference between receipts and expenses. 2J> 
If from this farm income Ave deduct the value of the operator's labor 
and add to the remainder the value of the family living furnished by 
the farm, we get a figure that represents the net return to the farm 
and its equipment for their services in production, regardless of 
what portion of this return goes to the landlord or to the tenant. 
In other words, this figure represents the net increase of wealth 
attributable to the farm, irrespective of tenure. 26 The income for 
share tenants' farms, when figured in this way, compares favorably 
250 
240 
230 
220 
210 
200 
190 
130 
170 
160 
150 
140 
130 
120 
90 
1 
. 
■ MOVEMENT OF PRICES OF ARTICLES 
FARMERS BUY 
- MOVEMENT OF THE VALUE OF COTTON RAISED 
IN ELLIS AND WILLIAMSON COUNTIES 
- MOVEMENT OF THE WAGES PAID FOP 
FARM LABOR. 
1 
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250 
240 
230 
220 
210 
200 
130 
170 
160 
150 
140 
130 
120 
110 
100 
90 
1909 1910 1911 1912 1913 191^ 1915 1916 1917 191S 1919 
Fig. 4c. — Movement of the prices of articles farmers buy. of farm wages, and of the 
value of cotton raised in Ellis and Williamson Counties, Tex. (5-year average 1909-13 
equals 100). 
with the income of the farms of the two owner classes, while the 
income from cropper farms is only about two-thirds as large as the 
income from farms of the other tenure classes. 
25 Incomes were not calculated by the usual receipts and expense method, but by taking 
inventories of the farm business at the beginning and the end of the year. To the differ- 
ence between inventories was added any sum taken out of the farm business and put in 
outside enterprises, and the sum of all family living expenses. From this sum was taken 
receipts from sources outside of the farm business. This gave a basic figure from which 
the various income figures were calculated. 
- >u It will be. seen by comparing items 1 and 2 of Table 15 that the value of the operator's 
labor is not as great as the value of family living furnished by the farm, hence item 2, 
which includes the family living furnished by the farm but does not include the value of 
the operator's labor on the farm, represents the net return of the farm more nearly than 
item 1. Items 1 and 2, however, include the value of the operator's management and the 
value of uninsured risk ; that is, nothing is deducted for these. The value of family labor 
on farm is considered a farm expense. 
