28 BULLETIN 874, U. S. DEPARTMENT OF AGRICULTURE. 
rent paid by tenants averaged 5.33 per cent on the value of the land 
in 1918 (see Table XV); whereas in 1915 the average operator’s 
labor income of tenants was $725. Although the small labor income 
of 1918 is partly due to a poor corn crop in this district, it does not 
appear that landlords could materially increase the rent charged 
without seriously reducing the labor income of the tenant. 
PER CENT OF LANDLORDS’ NET RETURN ON PRESENT VALUE OF INVESTMENT, AND 
ECONOMIC RENT. 
In Table XVI is shown the percentage of the landlord’s net rent to 
the total value of the land and buildings owned by him. The table 
shows also the economic rent of the land—that is, the amount that 
could be paid as rent if all the other factors of production were allowed 
just the amount necessary to obtain their services. This quantity 
has been calculated by deducting from farm income (1) 5 per cent 
on the operating capital of the farmer (excluding land value), and (2) 
the value of the farmer’s own labor and supervision. The remainder 
includes only one other item besides the annual value of the land— 
namely, uninsured risk. Disregarding this item, the remainder may 
be considered as the maximum amount that may be attributed to 
the land without cepriving the other factors of production—labor, 
equipment, and superintendence—of the competitive value of their 
services.! 
TaBLE X VI.—Landlord’s per cent of net return on investment; economic rent.2 
TAMA DISTRICT. 
| 
Per cent of landlord’s net re- | Economic rent per 
Number of farms. return on farm capital. acre.a 
Tenure. 
1913 1918 1913 1918 Aug, | 4913 1918 
1919 : 
Ommersee taser Sen 308 86 [ese a eee ee ene $7. 89 $12. 01 
Owners additional. -...-<-.-- = 154 28 2.73 4.10 2.76 8. 46 15. 90 
MEN Anis eet ee Soe. Fee 503 OF 2.48 2. 43 1.65 7.59 14. 42 
CAS ia ee eee ses Der heer 326, 76 2.45 1.90 1.30 7. 43 14. 62 
Stock Share! ease 2. ese | 51 7 2. 82 4. 03 2. 82 6. 74 10. 06 
Share-cash and share____.--- 126 14 3.19 4. 54 3. 00 8. 65 15. 93 
WARREN DISTRICT. 
915 | | 1915 1918 | Aug., | 1915 | 1918 
1915 1918 915 g | 1919 | 5 
een Were re ee 
ONVSIOTS air ose oak Soe eee 345 SA lun Se Mes Ile eae eee [Seeeemetee $4. 00 | $4. 92 
Owners additional........-....- 190 43 5. 06 6. 82 4.49 5. 83 7.95 
WEN ANS se eee oe ee eee 297 56 3.95 Fes 3. 60 5. 37 6. 89 
GASH a at Musa es See a er 88 9 2. 95 3.138 2.09 3. 92 PTS) 
SLOCK=SHATC ss Pee oe = eee 70 16 3. 85 4. 24 2. 98 5. 87 6. 95 
Share-cash and share.....--- 139 31 4.65 6. 52 4.37 5. 86 8. 03 
- a@Economicrent—the amount that could be paid as rent if all the other factors of production were allowed 
just the amount necessary to obtain their services. 
1 The term ‘‘economic rent” is usually employed to mean the annual economic value of the land over a 
period of years, taking both fat and lean yearsinto consideration and excluding the annual value ofimprove- 
ments. For lack of a better term, the expression is here applied to the earnings imputable to the landina 
single year, and no attempt is made to separate the values of land and improvements. 
* 
