24 BULLETIN 874, U. S. DEPARTMENT OF AGRICULTURE. 
farm capital, the farm labor incomes averaged $1,234 as compared 
with $75 in 1913. These labor incomes may be compared with 
the estimated value of the time spent by the farmers in labor and 
superintendence. In 1913 this averaged $719, or $413 more than the 
average farm labor income calculated at 5 per cent, and $644 more 
than the farm labor income calculated at 54 per cent. In 1918 the 
estimated value of farmer’s labor and superintendence was $1,169. 
Consequently, the farmers of this district made labor incomes which, 
calculated at 5 per cent, averaged $368 more than the value of labor 
and superintendence. When calculated at 54 per cent the excess 
of labor incomes above the value of labor and superimtendence 
averages $65. 
When calculated on the basis of a 5 per cent deduction for capital, 
the farm labor incomes of the Tama district in 1918, as compared 
with those of 1913, increased several hundred per cent. Thus, the 
farm labor incomes of owner operators were 361 per cent higher; 
those of owners additional, 367 per cent higher; and those of tenants, 
478 per cent higher than in 1913. Even making allowance for the 
decline in the purchasing power of the dollar, there can be no doubt 
that the farmers of this district earned a considerably larger return for 
operator’s labor and risk than in 1913, a larger return attributable to 
the favorable combination of good crops, high prices for farm prod- 
ucts, and land values that had not yet advanced in proportion to 
farm income. 
In the Warren district the increase in farm labor income is not so 
marked on account of the poor crop season. Nevertheless, the 
increase in this district ranges from 89 per cent for tenants to 139 
per cent for owners. 
If farm labor income be calculated by charging 54 per cent instead 
of 5 per cent for the use of capital, the average farm labor income for 
each of the several classes of tenure in the Tama district is, of course, 
smaller than when capital is charged only 5 per cent. However, the 
increase in percentage as compared with 1913 is even greater than 
when calculated on the 5 per cent basis, for the higher rate charged 
for capital accentuates the relative mee of 1918 due to the 
failure of land value to increase in the same proportion as farm income. 
Thus, in the Tama district the average farm labor income was about 
sixteen times as great in 1918 as in 1913. This result may be 
expressed in another way by saying that it was impossible for the 
average farmer to pay 54 per cent for all of his capital in 1913 and 
have any considerable remainder for his own time and risk, while the 
proportionately greater increase of farm incomes of 1918 as compared 
with the increase of land values enabled the farmer to pay 53 per cent 
on capital and still have a substantial remainder. 
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