ae 
aD) 
FARM LAND VALUES IN IOWA. 23 
Iowa farmer pays not less than 6 per cent and commonly 8 per cent. 
It is also important to recognize the fact that although farmers can 
obtain at least 5 per cent for their own capital at the present time by 
investing in bonds of undoubted security, they have largely preferred 
to invest in land yielding an annual return, not counting increase of 
value, of much less than 5 per cent. 
Table XITI shows the farm labor income at different periods; that is, 
what is left to pay for the labor and risk of the farm operator after 
charging the farm with the use of the capital employed. This 
charge is made both at 5 per cent and at 54 per cent. In order to 
determine the effect of increased value of land on farm labor income, 
these percentages are calculated both on the value of total capital 
in March, 1918, and on the value of total capital in August, 1919. 
The farm income in both cases is that of 1918, a year characterized 
by normal production in one of the districts, as well as by the high 
level of war prices for farm products; therefore, in at least one 
district, a year as favorable from the standpoint of income as the 
farmer may expect in the near future. 
Tasie XITI.—Farm labor income classified by tenure, 1913, 1915, 1918, 1919. 
TAMA DISTRICT. 
Farm labor income after | Farm labor income afte1 
Buraber of charging 5 per cent for| charging 54 per cent for 
Tenure. : capital.a capital. 
1913 1918 1913 1918 | Aug., 1919.} 1913 1918 | Aug., 1919. 
PASIISLATEIING esos eas pen se 965 211 $306 | $1, 537 $222 $75 | $1, 234 b—$213 
Owen et 308 86 | 253 | 1 166 b—148 S00 igs b—590 
Owners additional......-- 154 28 435 | 2,030 642 167 1, 737 210 
DEN aAnitS eee aoe 503 97 298 1, 723 429 74 1, 423 b— 1 
WARREN DISTRICT. 
1915 1918 1915 1918 |Aug., 1919.| 1915 1918 | Aug., 1919. 
PAGAN Gause eee re as 832 183 $370 $746 $69 $262 $597 b—$149 
Ownersiec 222 222.. ie eae 345 84 212 506 b—207 106 357 b—427 
Owners additional. ...-.-. 190 43 495 1,017 335 382 851 101 
TREMAINE SR Ae cree 297 56 474 897 275 366 759 75 
a Tn this table and subsequent tables the investment value per farm for 1918 is that of March 1 and that 
of 1919, Aug. 1. The value at a particular time, rather than the average value at beginning and end of the 
fiscal year, is employed because of the marked changes in farm land value during the period and in order 
to show the effect of these changes onincomes. For 1913 and 1915 the usual method of averaging values at 
beginning and end of year is employed. 
b Loss. 
On the basis of land values in 1918, farmers of all classes of tenure 
in the Tama district made farm labor incomes averaging $1,537 for 
all farms, after deducting 5 per cent on the value of all farm capital, 
including the value of land, whereas in 1913 the average for all 
farms was only $306. Even charging 54 per cent on the value of 
