SOME ECONOMIC ASPECTS OF FARM OWNERSHIP 15 
trend in primary net rents was more than offset by upward-moving 
real-estate taxes. In other words, secondary net rent showed a down- 
ward trend when expressed in terms of purchasing power. In short 
the abnormally rapid increase of real-estate taxes was responsible 
for converting a slightly upward trend of primary net rent in terms 
of purchasing power into a downward trend of secondary net rent 
as thus measured. 
Much of the compounding or geometric character in the data of 
the factors traced here may be fairly attributed to the fact that a 
given amount of money was becoming increasingly easier to get in 
exchange for a fixed amount of product. This tendency was main- 
tained over most of the quarter century and was most marked dur- 
ing the last years. | 
An important influence in the trend of land valuation was the 
decrease in the interest required each year for the use of a fixed 
PER CENT, 
J yj 
N 
N 
Rents Compared with Increments in Value of Land, Selected Farms, North Dakota, 1896-1920 
N 
N 
NEN SiN N cance NiO Nien WN ONG Nat TR 
NN NANA NN NNN NNN hi 
NN N—N—N_-N__N-N_-N_-N_ NN _N_N NN 
EN NiNsNeNaNeNmNeN Neh | \ 
Se al 
CLLLLLLLLLLA 
Peer sees 
ETE ES 
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ORT FE EK Ma. 2 E ULLLLLLLLLLLAL 
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RG 
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CLLLLL LLAMA 
LLL LL LL MMMM 
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Berle 
LLLLLLLL LLL Lh 
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(i = eld ES] 
CLLLLLA Ls 
UZLZLZLLLLLLL LLAMA MMA 
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LLL {LLAMA 
LLL A LAAN 
OLLLL LL hd hh 
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VILLLLLLL A MA Me 
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RES 
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LLLLL, 
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LLLLLLLL LLAMA MA 
LLG LILA ALA ALMLAL ALM NM 
Dalla 
ULLLZLL LL ALAA LL 
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CLLLL LLL LLM A MA 
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MR LLZLLLLLLILILILL 
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i896 1900 1905 1910 91 
Fig. 4.—Two sources of economic benefits are shown here in relation to one another. 
Increment was the major source during the first half of the quarter century. Data 
for each year are based on moving averages for five years centering in that year 
ACE 
amount of borrowed cash capital. The market from which capital 
was borrowed and to which products were sold was evidently sup- 
plying money to the owners of these farms on terms that were eas- 
ing gradually but persistently. 
DEVIATIONS FROM TRENDS IN OWNERSHIP CONDITIONS 
As shown in figures 3 and 4, the extent to which the yearly data 
approximated or stood away from the lines of trend is studied in 
the case of eight factors. The variability of primary net rent per 
acre was about the same as that of physical yield of wheat and con- 
siderably larger than that of price of wheat per bushel. 
That the deviations in primary net rent per acre occurred in more 
marked correlation with those of the price of wheat than with those 
of the physical yield of wheat per acre is indicated in Table 6. In 
both cases the correlation is direct, as might be expected, but in 
neither case does the correlation coefficient stand high enough to 
indicate close conformity with movements in primary het rents. 
