FARM-MANAGEMENT SURVEY OF REPRESENTATIVE AREAS. 23 
Of course, in order to make a substantial income, the tenant must 
have the use of a large amount of capital, which is furnished by the 
landJord. The system of renting as practiced in the corn belt to- 
day is particularly well suited to the tenant’s advancement. Not 
only is he free to move from a small to a larger farm as soon as he 
acquires sufficient working capital, but the returns that he receives 
from his investment are exceedingly large. Tenants as a rule avoid 
small farms. They are not large enough to pay the interest on the 
capital and leave anything for labor. The amount of capital that 
a tenant needs to operate a certain-sized farm depends quite largely 
on the type of farming that he wishes to follow and also on the 
system of rental. 
$3,000 
2,500 
ly 2,000 
9 
GO 
2 1,500 
~ 
& 
S 1,000 
Xt 
N 
500 
O $1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 
CAPITAL 
WG, 4.—Chart showing the relation of the tenant’s labor income to the capital he has 
invested. 
In the case of live-stock farmers, some landlords furnish half of 
the live stock. Few,if any, furnish any of the work stock or equip- 
ment. 
In the case of a cash rental the tenant has to furnish everything, 
and if he wishes to follow the live-stock type of farming he needs 
to have a good-sized investment on the large farms. 
The system of farming practiced in the corn belt is one which 
enables a tenant to work a large area of land with small capital. 
The machinery that is used is simple and inexpensive. The work 
horses are, perhaps, the largest investment. 
RELATION OF THE SIZE OF THE LANDLORD’S INVESTMENT TO HIS INCOME. 
The size of the landlord’s investment apparently makes little dif- 
ference in the percentage of income, as shown in the preceding tables. 
