2 BULLETIN" 582, U. S. DEPARTMENT OF AGRICULTURE. 
divided into the following classes: (1) Owners, (2) owners renting 
additional land, and (3) tenants. There are 75 records in the first, 
22 in the second, and 7 in the third division. All the records were 
carefully checked a number of times, farms revisited one or more 
times when the records seemed inaccurate, and in some cases indi- 
vidual statements were sent back to farmers for them to recheck at 
their leisure, that the figures obtained might be more trustworthy. 1 
SUMMARY. 
Following is a brief summary of the facts brought out by this 
study and of the conclusions drawn therefrom. 
(1) The size of the farm business, the type of farming followed, 
and the diversity of income, each has an important bearing on 
profits. As regards size, the labor income from 26 small fruit farms 
and general farms averaged $350; for 29 large fruit and general 
farms, $598 ; and for 20 live-stock farms, $1,394. As regards type of 
farming, the labor income of 16 small fruit farms averaged $302; 
of 18 small general farms, $383 ; of 17 large fruit farms, $611 ; and 
of 24 large general farms, $616. Eighteen dairy farmers made an 
average labor income of $1,427, and three small poultry farms aver- 
aged $483. 
1 In order that the reader may readily follow the discussion, certain technical terms 
which are used are explained. It is necessary that the reader understand them thor- 
oughly ; otherwise the interpretation of the results may be somewhat difficult. These 
terms are as follows : 
Farm capital. — The farm capital is one-half of the combined value 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 cost to the farmer 
of board furnished to hired help. The value of labor performed by members of the 
farmer's family for which no payment was given is charged as an* expense. 
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, providing 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 
his labor after 5 per cent interest on the average capital is deducted from the farm in- 
come. 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 operator 
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, or, in the case of a married hand, 
so much wages in cash, together with a house to live in, and produce from the farm 
for his kitchen. Interest at 5 per cent is deducted in order that the results secured may 
be compared with the results of similar surveys made in other sections where the pre- 
vailing rate on farm mortgages is 5 per cent or thereabout. Although the prevailing 
rate of interest on farm mortgages is 8 per cent in Utah (6 per cent in the case of 
money borrowed from the State), the farmers who rent land in this section pay a little 
more than 4 per cent on the average. 
