FARM-MANAGEMENT SURVEY OF REPRESENTATIVE AREAS.’ 13 
There has been a marked tendency throughout the entire country 
to consider the farm more and more as a business proposition. The 
landlord who is receiving 3.5 per cent net from his farm, with the 
bare land figured at $150 or more an acre, has a good, safe invest- 
ment. It would seem from the results that if the year studied was 
a normal one, land in the corn belt is not overvalued. Changes in 
the price of the staple products, such as corn or oats, or material 
changes in the cost of production of these crops would be reflected 
in the price of farm land. Unless the price of corn becomes much 
higher for the next period of years, a pronounced increase in the value 
of land in this region can not be expected. 
The advisability of buying a farm as an investment with the 
intention of not living on it is often a perplexing question. 
VARIATION IN THE PROFITS OF LANDLORDS. 
Table VI gives the variation in the landlords’ returns in the three 
States studied. 
TaBLeE VI.—Variation in profits of landlords on 247 tenant farms in Indiana, 
Illinois, and Towa, 
Percent- Percent- 
Landlord’s profit on invest- aes age Landlord’s profit on invest- Sen age 
ment (per cent). lor He of total ment (per cent). Torade of total 
number. | * | number. 
Wessitbamwlessseen 158 cap caso! 6 OSAMA STONE aN ty ihc nie toi Ny Nae ge 42 0) 
Vs T ETO) ORE ea acinar he ere Oe 20 Royale Ale GONG ese eo, eee, a geet haa eral an 13 NR 
Pad HO) Bes <5 oh nleeorte, Sareea tee ame 75 SOSA NIG EE CON is seins Bete CES eee ul 253 
Sle Oy zee eke oo sR a eh Ne 78 PSH DAS I fea Wp Oke ee eyes Sa ee eg eal 6 ' 2.4 
Out of 247 men 6 received less than 1 per cent on their invest- 
ments. The same number received between 7 and 8 per cent; none 
received over 8 per cent. It is clear that no phenomenal returns 
can be expected from capital put in farm land in those States at 
the present time. It is believed that the data in Table VI are a 
very good indication of the returns one may expect from a farm 
investment in those districts. The chances of making more than 5 
per cent are about 1 in 10. 
BANKERS’ ESTIMATES OF FARM PROFITS. 
In the corn-belt States one is nearly always referred to the local 
banker for information concerning the farmers of the region. The 
banker is considered good authority on all questions relating to the 
farmer’s business, his income, investment, etc. Inquiry relative to 
the incomes of the farmers was made of the cashiers of 90 banks in 
