58 BULLETIN 654, U. S. DEPARTMENT OF AGRICULTURE. 
The labor income is affected both by the total receipts and the 
price of the land, higher priced land calling for a higher interest 
charge against the farm income, and lessening the labor income to 
that extent unless the higher priced land produces correspondingly 
higher receipts. Where the element of speculation is not present 
the price of land is usually a good measure of its agricultural value, 
but where speculative values are attached to the land the returns 
obtained by farming may not be in any way commensurable with the 
price. 
In both groups of farms the average farm income rises with the 
size of the farm, but in the group failing to make 8 per cent the minus 
labor income becomes greater as the size of farm advances, since on 
a losing rate of interest the greater the capital invested the greater 
will be the loss. 
