FARM ORGANIZATION IN SOUT1 1 EB X ARIZONA. 47 
another enterprise were not so successful, one of them lacking $] ,808 
of paying current interest rates on the investment and the ol her mak- 
ing a labor income considerably below the average for the group. 
Returns for the 11 farms obtaining 67.8 per cent of their receipts 
from beef cattle were: Receipts, $8,790; farm income, $5,481 ; labor 
income, $1,414. The grain and pasture farms were comparatively 
unsuccessful, as were the diversified farms. Diversified farming in 
this group and in the group of farms of 160 acres does not pay as well 
as on the smaller farms, chiefly because the leader of the diversified 
enterprises has been changed from dairying to hay and grain. 
Thirty- two of the farms studied were larger than 320 acres, the 
average area being 530 acres. The enterprises found on these farms 
were distributed as follows: Dairy, 2 farms; beef cattle, 9; beef 
cattle and grain, 4; beef cattle and hogs, 1; hogs and dairy, 1; hay, 
4; grain, 7; cotton and grain, 1; diversified, 3. Of these enterprises, 
dairying and beef cattle proved to be far the most profitable, and 
where hogs were combined with either dairying or beef cattle the prof- 
its were greatly reduced. 
The average returns on 17 farms having a live-stock organization, 
and upon which live stock contributed 80.8 per cent of the total 
receipts, were: Receipts, $18,163; farm income, $11,019; labor 
income, $3,318. Corresponding returns on 12 farms having an 
organization based upon the sale of crops, with crops contributing 
81.5 per cent of the total receipts, were: Receipts, $13,720; farm 
income, $6,718; labor income, $970. 
The superiority of a farm organization based on live stock over one 
based on the sale of crops has been shown in every size group. It 
has already been shown that as the percentage of receipts from 
dairying increases both farm income and labor income rise steadily. 
A classification of all farms on the basis of increasing percentage of 
receipts from live stock gave similar results; as the percentage of 
receipts from five stock rises there is a steady increase in both farm 
income and labor income. A classification of all farms based on 
increasing amount of working capital per acre also gives similar results. 
This would be expected, since an increase in working capital per acre 
usually represents an increase in the number and value of live stock. 
THE RELATION OF CAPITAL INVESTED AND SIZE OF FARM TO FARM 
INCOME AND LABOR INCOME. 
The amount of capital required for farming in the irrigated valleys 
of southern Arizona depends, first, upon the size of the farm to be 
purchased, and, second, upon the type of farming to be followed. 
The amount of capital invested has a direct and important bearing 
upon the standard of living afforded the farm family, and also upon 
the wages the farmer earns for his labor and supervision. In study- 
