14 BULLETIN 694, U. S. DEPARTMENT OF AGRICULTURE. 
Tasie VII.—Relation of type of farming to amount of capital used and labor income on 
farms operated by owners, Lenawee County, Mich. 
= Average | Average 
Type of farming. . tater invest- lnbee 
“| ment. | income. 
Dairyingshogsandieraimss uss (sieges See ae ko Lane meaner sae 114 | $12,897 $626 
Dairy IME AMG OSS Hee oe ere eet ee Cele Cee Seen mee re epee EI 54 10,974 433 
ID Bar yAN eRe EA RI RARE Pea eee hee Dene eae ei ye eae en Fee | 28 12,640 378 
ID airy Seam era anes em ro oe a ee el ee ea Ee er Ta $.| 17 12,522 278 
| | 
| 
Since the capital invested averages about the same for each of 
these groups of farms, the influence of the size of business as measured 
by capital is practically eliminated. It is therefore fair to conclude 
that the difference in labor income is largely, if not altogether, due 
to the type of farming. The farms operated with dairying, grain, 
and hogs as the leading enterprises returned their operators the 
largest incomes. After taking out 5 per cent on the investment, 
these farms had an average labor income of $626 clear of all expenses. 
On the same basis the dairy and hog farms made an average labor 
income of $433. The 28 farms classed strictly as dairy farms made 
an average labor income of $378. The lowest average labor income 
was made by the combination dairy and grain farms, namely, $278. 
The figures given in this table are representative of normal condi- 
tions, but dairy and grain farming, especially with grain production 
predominating, would show decidedly different results during the 
abnormally high prices of 1916-17. 
The farms classified under the heading ‘‘ Dairying, hogs, and grain”’ 
are practically of the type ordinarily classed as general, or diversified. 
Besides having the three more important enterprises, these farms have 
a greater use for small enterprises than the more specialized farms, 
thereby enabling them to use capital and labor to better effect. This 
type is most prevalent in this section, and the figures given confirm 
the apparent belief of the farmers of the region that the general farm, 
with a limited amount of dairying, is under normal conditions the 
“most profitable type of farm organization so far developed there. 
Diversity is an important factor which helps to make these general 
farms profitable and comparatively certain of income. This is 
brought about not only through the larger number of sources from 
which the income is derived, but by reason of the fact that this type 
is less subject to fluctuations from year to year than the specialized 
type. 
There are comparatively few farms in this area which may be 
classed as dairy and grain farms. Specialized dairy farms are 
_shghtly more numerous than dairy and grain farms and under 
normal grain prices have a slightly higher average labor income. 
