FARM-MANAGEMENT SURVEY OF REPRESENTATIVE AREAS. 19 
are making better incomes, it means that the larger farms are pay- 
ing better. 
RELATION OF THE OWNER’S CAPITAL TO HIS INCOME. 
In Table XII is shown the relation of capital to labor income 
on the 273 farms operated by owners. 
TABLE XI1.—Relation of the farm owner's capital to his income on 273 farms 
in Indiana, Illinois, and Iowa. 
Average Average 
an Number : : Number 8 
Capital. ~ | labor in- Capital. labor in- 
of farms. Saris of farms. ee 
$5,000 and less.............--- 9 $74 || $40,001 to $60,000.............-. 29 $315 
$5,001 to $10,000.........-..-. 37 45 || $60,001 to $80,000.............. 10 1,114 
$10,001 to $15,000...........--- 44 283 || $80,001 and over.............. 12 1, 804 
$15; 001 to'$20;0002-2 =: 222: 2-. 45 265 
$20,001 to $30,000.............. 55 264 SAV CTA OS heer tye eet pel aeons eee gs | 408 
$30,001 to $40,000.............- 32 483 || | 
It will be noticed that of the entire number 9 men with less 
than $5,000 capital received $74 for their year’s work. Only 2 farm- 
ers out of 46 with less than $10,000 invested made over $400. Out of 
the entire 273 only 12 men received over $2,000 labor income. Each 
of these had more than $20,000 invested. The chance of a farm owner 
making a labor income of $1,000 with less than $15,000 invested is 
less than 1 in 20. 
The data in other tables are conclusive in showing more efficient 
use of man, horse, and machine labor on the large farms. The results 
also show no appreciable difference in the crop vields obtained on the 
different-sized farms. When the same system of farming is followed, 
larger returns must result on the larger farms. Men who have large 
capital invested and who operate the big farms have a right to expect 
greater returns for the risk and responsibility incurred. Of course, 
if the type of farming followed is an unprofitable one, then the large 
farms will necessarily show large losses. The area a farmer works 
limits the use of his labor. The amount of capital he has invested 
hmits the income from that source. 
RELATION OF LABOR INCOME TO THE DISTRIBUTION OF OWNER’S CAPITAL. 
The farm owner has about six-sevenths of his total capital invested 
in land and buildings. The balance is largely in live stock, there being 
only a small percentage in machinery, tools, and supplies. Farmers 
making good incomes have their capital invested in very much the 
same manner as those recelving poor incomes. Table XIII shows 
the distribution of capital for the 273 farm owners, arranged accord- 
ing to the incomes they receive. 
