FARM-MANAGEMENT SURVEY OF REPRESENTATIVE AREAS. { 
The average size of the 227 farms studied was 186 acres. Of this 
area 91 per cent was tillable. Approximately one-half of the crop 
land was in corn, the other half being in oats and hay. Nearly 30 per 
cent of the tillable area was used for pasture. 
The rotation that was often followed was corn (two to three years), 
oats, clover and timothy hay. — 
Beef cattle and hogs constitute the most important part of the 
farm business. Large numbers of western steers are purchased and 
fed, while in the hilly sections, distant from a railroad, a few cattle 
are raised, : 
The selling of corn is generally confined to the farms on the level 
lowlands and near the stations. Many of the farms are far from 
market and, although the roads are fairly good, transportation is 
an important factor. 
DEFINITIONS OF TERMS USED IN THIS SURVEY REPORT. 
In order to present the data clearly, certain terms which will be 
used throughout the discussion are defined below. It is important 
that the reader thoroughly understand these, as they 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, improve- 
ments, machinery, live stock, feed and supplies, and cash necessary 
to carry on the farm business. It includes the value of the farm- 
house, but not 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. 
EHupenses—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 equipment at the end of the 
year is less than at the beginning, this loss 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 re- 
ceipts and expenses. It represents the amount of money available 
for the farmer’s living, provided he has no interest to pay on mort- 
gages or other debts. 
— Labor income.—The labor income is the amount that the farm oper- 
ator has left for his labor after 5 per cent interest on the average capi- 
tal 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 
