FARM PROFITS. Ly) 
cent) in the Ohio area, 54 (54 per cent) in the Indiana area, and 25 
(42 per cent) in the Wisconsin area realized a return ranging from 5 
per cent to 8 per cent on the farm capital. 
Many farmers receive low returns for-their own labor if the capital 
represented in the business is allowed a fair rate of interest. Even 
with a low labor income, the available income of a given farm may 
be fairly large, if the owner is free from debt. On farms where a 
relatively large capital is represented the interest on capital may be 
enough to make the business apparently prosperous. 
In figures 6, 12, and 18, the disposition of the farmer’s gross income 
for the three areas is portrayed graphically. Just how much of the 
income goes for operating expenses, interest on capital, pay for labor 
performed by members of the farmer’s family, the amount left for 
pay for the farmer’s own labor and the value of food, fuel and house 
rent furnished the farm family may be observed from these charts. 
The increases in farm earnings for the later years covered by these 
studies has been more apparent than real, because of the decreased 
purchasing power of the dollar. 
THE OHIO AREA. 
The area in Ohio is representative of much of the hill land border- 
ing the Ohio River. The topography grades from reiling to steep 
and is often rocky. Large unbroken fields are seldom found. The 
farms are from 4 to 9 miles from railroad points, and the wagon roads 
are hilly and unimproved. The farmers practice a general or mixed 
type of farming. 
THE FARM BUSINESS. 
A summary of the farm business for the 25 farms, over the seven- 
year period 1912 to 1918, is shown in Table I. 
