FARM LAND VALUES IN IOWA. 43 
This tendency is attributable to several causes. The. most im- 
portant is the fact that constantly increasing values of land have 
yielded an increment which may be counted as a substantial addition 
to the income derived annually from the rent or use of the land. It 
is obvious, however, that whether this fact may be considered a justi- 
fication for the present high land values depends on whether the 
increase may be expected to continue. The reply of many people in 
Iowa is that land always has increased in value; therefore it will 
continue to increase. 
Another reason for the lowe rate at which farm land is capitalized 
is the fact that the farm is not only the source of money income, 
but also yields satisfaction as a home. Therefore a part of the fen 
land values represents allowance for home advantages, fidantse 
residence and other conveniences, good roads, schools, and nites 
social benefits. 
A most important reason, however, is the tendency for farmers 
to invest in land with little consideration for the possibilities of 
other lines of investment. This tendency may be explained by 
ignorance of other methods of investment, by the belief that invest- 
ments in farm land are peculiarly safe, and by the pride of ownership, 
or the mere blind passion for ownership which causes many farmers— 
especially peasant immigrants—to accept a low standard of living in 
order to acquire land. 
As a result of these conditions the average cash rental of farm land 
in 49 Iowa counties in 1918 was 2.71 per cent of land values, March 
1, 1918, and 2.35 per cent of land values, March 1, 1919. The 
percentage of land values for August, 1919, would be still less. 
In the Tama district cash rentals were 2.15 per cent of land values 
in 1913, 1.90 per cent in 1918, and 1.30 per cent of the land values 
of August, 1919. It should be noted, however, that owners operating 
their farms are able to earn a slightly larger percentage of return than 
would be derived from renting them to others for cash rent. Thus, 
the per cent of average return to owners from operation in the Tama 
district was 3.98 in 1913, 4.99 in 1918, and 3.5 on the basis of land 
values in August, 1919. 
If, on account of the various motives mentioned above, farm owners 
are willing to pay prices for land which will make it necessary to take 
considerably less than 5 per cent for the use of the land, shall we con- 
sider the value of farm land abnormal, and the condition itself one 
to be deplored ? 
The question may first be considered from the standpoint of farm 
owners, however they may have attained that status. If the owner 
is free oi debt, the rent of the land combined with the income assign- 
able to the labor of the farmer and his family, together with interest 
on operating capital, may enable him to live in considerable comfort. 
