20 
BULLETIX 853, U. S. DEPABTVLEXT OF AGRICULTURE. 
organized, neither are they so well adapted to conditions which 
exist in this area as are the dairy farms of corresponding size. 
Table X shows all farms, by size-groups, classified according to 
labor income. 
Table X. — Number of farms in each size-group making labor incomes as specified (349 
dairy or general farms. Grove City, Pa., area). 
Farm area group. 
Xuml 
er 
Xuml 
er 
Number 
of farms 
of farms 
of farms 
Number 
with la 
bor 
with labor 
of farms 
income 
SOf 
income 
sof 
showins 
§1,000 an i 
$500 t 

labor loss. 
over 
S999 
Si 
1 
12 
IS 
130 
3 
21 
33 
74 
3 
:: 
13 
64 
s 
21 
15 
70 acres or under . 
71 to 100 acres 
101 to 130 acres... 
130 acres and over 
Total 
349 
15 
66 
This table shows the chance these farmers have, when operating 
farms of the various sizes shown, of making a large income. 
On the 81 farms 70 acres or under in size, only one operator made 
a labor income of $1,000 or over, and only 13 made incomes of 8500. 
In the group of largest farms, those of 130 acres and over in size. 
one-eighth made labor incomes of SI, 000 or more, and nearly one- 
half labor incomes of $500 or more. 
The three preceding tables serve to emphasize what has been 
brought out in every similar study conducted by the Office of Farm 
Management thus far, namely, that the smaller farms (except those 
operated under intensive methods near good markets) are relatively 
less profitable than the larger ones. In farming, as in every other 
business, the man with large capital has a much better chance of 
getting a large income than the one with little capital. It took a 
capital of 811.912 to give an average labor income of S42-i in this 
area, this being the average capital of 64 farms of 130 acres and 
over in size. 
Often large incomes are made by farmers operating small farms 
intensively, but in such cases the investment is relatively large. 
Farm management studies uniformly indicate that the farmers with 
little capital invested make little money. Size of business is just as 
important with the farmer as with the merchant. 
EFFECT OF YIELDS PER ACRE AND RETURNS FROM LTYE STOCK ON LABOR INCOME. 
We have seen in Tables VIII, IX, and X that the larger farms 
make more money in this area than the smaller ones, and the ques- 
tion arises naturally whether this is due to higher yields or simply to 
greater production. 
