PROFITS IN FARMING ON IRRIGATED AREAS IN UTAH. 5 
Nearly all of the settlers in this valley are affiliated with the same 
church, to which they are deeply loyal, and it is difficult to measure 
the influence this factor has had in the agricultural development of 
the district. The children, naturally wishing to retain their church 
connections, have stayed at home. This has resulted in the subdivision 
of many of the larger farms into small areas, which has unquestionably 
been one of the reasons for the development of the intensive type of 
agriculture prevailing in this section. 
PROFITS IN FARMING IN THIS REGION. 
CLASSIFICATION OF FARMS BY GROUPS. 
Financial statements of the year's business were obtained from 
118 farms. In this study the farmers whose records appear were 
divided into the following classes: (1) Owners, (2) owners renting 
additional land, and (3) tenants. Of the 118 records received, 69 
were from farms operated by owners, 23 from farms operated by owners 
renting additional land, and 3 from farms operated by tenants. A 
few records that were not considered complete and accurate were dis- 
carded. Records from farmers 50 per cent of whose total receipts 
came from work done outside the farm were also omitted. All records 
have been checked carefully, and the 95 used in this report should 
represent with fair accuracy the agricultural conditions in the valley. 
In order to present the data clearly, certain terms which will be 
used throughout the discussion are here defined. It is important 
that the reader thoroughly understand them, for such knowledge 
will materially assist in the interpretation of the results. 
Farm capital. — The farm capital is the average at the beginning and at the end of 
the year of the value of all real estate, improvements, machinery, live stock, feed and 
supplies, and cash necessary to carry on the farm business. It includes the value of 
the farmhouse but not of the household furnishings. 
Receipts. — The farm receipts include the amount received from the sale of all 
farm products and also the receipts from outside labor, rent of buildings, etc. If the 
value of buildings, stock, produce, or equipment is greater at the end of the year than 
at the beginning, the difference is considered a receipt. 
Expenses. — The farm expenses represent the amount of money paid out during the 
year to carry on the farm business. If the value of buildings, stock, produce, or equip- 
ment at the end of the year is less than at the beginning, this decrease is considered an 
expense. Household or personal expenses are not included, except the value of board 
furnished to hired help. 
Farm income. — The farm income is the difference between the receipts and expenses. 
It represents the amount of money available for the farmer's living, provided he has 
no interest to pay on mortgages or other debts. 
Labor income. — The labor income is the amount that the farm operator has left for 
Ms labor after 5 per cent interest on the average capital is deducted from the farm 
income. It represents what he earned as a result of his year's labor after the earning 
power of his capital has been deducted. In addition to the labor income the opera- 
tor received a house to live in, fuel (when cut from the farm), garden products, milk, 
butter, eggs, etc. The labor income corresponds to what a hired man receives 
when he is given so much wages in cash, together with board and room. 
