8 BULLETIN 1034, U. S. DEPARTMENT OF AGRICULTURE. 
growing crops. Both crop area and woodland area showed slight 
decreases in 1918, the falling off being offset by an increase in pasture 
area. Woodland occupied 30 per cent of the total acreage in 1913 and 
28 per cent in 1918. 
FARM ORGANIZATION AND BUSINESS ANALYSIS OF FARMS.‘ 
Of the 534 farms from which data were obtained in 1913, 268 were 
operated by white owners, 31 by colored owners, 49 by white tenants, 
and 186 by colored tenants. Of the 550 farms in 1918, 280 were oper- 
ated by white owners, 48 by colored owners, 56 by white tenants and 
166 by colored tenants. “ Croppers” are not counted as tenants, but 
as farm laborers. 
The relative importance of the white and colored owner and ten- 
ant farms included in this study is shown in Plate I. From the 
standpoints of crop acreage and crop production the farms operated 
by white owners are of greater importance than indicated by the 
In order to present the data clearly, certain terms which will be used throughout the 
following discussion are here defined. It is important that the reader thoroughly under- 
stand these terms, as such understanding will materially assist in the interpretation of 
the results. 
Tilled area.—The number of acres of the farm devoted to raising crops. 
Owner.—The man who owns the farm or one hired in his stead. 
Tenant.—Locally known as “ renter.’’? One who operates land owned by somebody else, - 
furnishing all labor and equipment, directing operations, and paying rent in cash or a 
fixed amount of cotton. : 
Landlord.—The owner of a leased farm. 
Farm capital.—The value at the beginning of the farm year of all real estate, ma- 
chinery, live stock, and other property used to carry on the farm business. It includes 
the value of the farm dwelling, but not of the household furnishings. 
Receipts.—Proceeds from the sale of crops, the increase from stock, and the receipts 
from outside labor, rent of buildings, etc. The increase from stock is found by subtract- 
ing the sum of the amount paid for stock purchases and the inventory value at the be- 
ginning 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 
at the end of the year was greater than at the beginning, the difference is considered a 
receipt. 
Expenses.—Annual expenditures made in carrying on the farm business, including the 
value of the unpaid labor performed by members of the family and depreciation on build- 
ings and equipment. If the value of crops or supplies at the end of the year was less 
than at the beginning, this is considered an expense. Household or personal expenses are 
not included. 
Farm income.—The difference between receipts and expenses. It represents the net 
amount 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 7 per cent 
interest on the farm capital is deducted from the farm income. It represents what he 
has earned as a result of his year’s labor after the probable earning power of his invest- 
ment has been deducted. In addition to labor income, the farmer receives a house to 
live in, fuel (when cut from the farm), garden products, milk, butter, eggs, etc. A 
‘““minus’”’ labor income means that the farmer received no returns above food products, 
fuel, and house rent for his year’s labor, and that he lacked the amount indicated of pay- 
ing 7 per cent interest on the farm capital. 
Per cent return on capital.—The rate returned on the farm capital after the value 
of the farmer’s labor is deducted from the farm income. It represents what the capital 
earned after all expenses have been deducted and the farmer has received a fair wage 
for his labor. When the per cent return on the capital is preceded by the minus sign, 
it means that the farmer did not realize even fair wages for his own labor and manage- 
ment, thus leaving nothing for the earnings on the farm capital. 
