nl 2 BULLETIN 41, U. S. DEPARTMENT OF AGRICULTURE. 
In addition to this sum available for a living, each has what the 
farm furnishes in the shape of produce. After the tenant pays his 
living and personal expenses out of this amount his savings can not 
be large. If we allow the owners 3.5 per cent on their investment 
instead of 5 per cent they would then receive approximately the 
same labor income as the tenants ($870). This percentage is the 
same as that received by the landlords frem the rented farms. Tak- 
ing into consideration the results from all the farms managed by 
owners and by tenants, they show that a return can be expected of 
3.5 per cent on the investment and a labor income of $870. 
Seasonal variation and fluctuating prices have a marked influence 
on the profits from farming in the districts studied. The average 
price received for corn sold by the landlords of the 247 tenant farms 
was 41 cents, and a drop of 5 cents alone would have reduced the 
income 6 per cent. 
INCOMES RECEIVED BY LANDLORDS. 
The farm, in the case of the landlord, is a business investment. 
He furnishes the capital, largely in the form of land, and the tenant 
furnishes the necessary labor and other means for its operation. The 
average investment of the 247 landlords for the three States studied 
was $25,210. The average net income cn the capital invested was 
3.5 per cent. All items of expense, including repairs, seeds, taxes, 
and insurance, were deducted before figuring the net returns. Table 
V gives the average capital, receipts, expenses, and returns for the 
landlords in each State. 
TABLE V.—Average capital, receipts, expenses, and profits of landlords for 247 
farms operated by tenants, as shown in Table IV. 
Item. (83 (71 (93 (247 
IN SRE OMG oe Be bat eneirson = Sous sno eos aecessoseogsasSs¢ acres. . 128 202 187 172 
Ryerace capital eer 2 ester” i ee iel aay rele eae eee $18,423 | $36,479 |} $20,728 | $25,210 
AV CLASCITCCCIDIS scisn ste ee Sees oe see oe eee eee cee 1, 002 1, 538 1, 014 1,185 
AV ETALCIOXCDISES apie as eee le eee eee ee ee 351 213 304 306 
PAV CTADG MALT DUICOMIG mite = ee ae eres 651 1,325 660 879 
Average profit on investment !._............--- per cent. - 3.53 3.64 3.19 | 3.5 
1 Obtained by dividing the farm income by the average capital. 
The average return on investment from the farms in Illinois was 
3.6 per cent, in Iowa 3.2 per cent, and in Indiana 3.5 per cent. The 
income is a moderate return on the large capital, considering the 
enormous rise in land values during the past 10 years. In computing 
this income no credit has been allowed for the rise in value of real 
estate, except in case of actual improvements, 
