26 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. 
ner... The reader must keep in mind the fact that the figures given 
in the table apply only to the average farm of each type, and that 
while some farmers are selling the crop at below the cost of produc- 
tion, others get much more than the cost. Farming may be said to be 
profitable when the operating costs, rightly interpreted, about equal 
the returns, since the costs include pay for the farmer’s labor and 
services as manager, allowance for family labor, current rate of 
interest on working capital, and rent for his land, if he is an owner. 
Then, too, he is insured employment for himself and family, and a 
fair rate of interest on a secure investment. Also, if the farm is 
rightly organized and its fertility well maintained, it will tend 
to increase in value. A comparison of the cost and value per 
pound of tobacco on the average of 187 farms ilustrates these 
facts. Included in the cost of one acre of this crop are $92.69 for 
labor and management, $11.36 for horse labor, $1.05 for fertilizer, 
$2.38 for miscellaneous costs, and $34.73 for rent. This value for rent 
is the average estimated cash amount which the landlord should get 
for the use of the land for tobacco. The average cost per pound, on 
this basis, is shown to be slightly above the average price received. 
The crop, nevertheless, may be regarded as a profitable one for the 
reason that it employs labor almost continuously throughout the year 
and it may be depended on for a reliable income. - It gives the owner 
a high rent for his land rather than the relatively low rent which he 
would have to accept for its use for other crops. 
The values of all crop enterprises, except wheat and tobacco, are 
based on prices of imported products. Oats, corn, hay, and rye are 
consumed by stock, and during parts of the year these products are 
shipped in to supply deficiency. The cost of hay and of all other 
products includes the hauling to market. 
Live stock does not seem to be profitable on the tobacco or the 
mixed type of farms. These types emphasize crops, especially to- 
bacco, and evidently neglect live stock. 
In general it is the aim of farmers in this region to raise Just 
enough hay to supply the needs for live stock. It is not a profitable 
IC Ri ae SIAR ee Mp oe ern eS 
1 The costs as shown in Table XXI were distributed to each enterprise in the following 
manner : 
Labor costs were distributed in proportion to the number of labor units Tequired by 
each enterprise (see Table IV). ‘‘ Cash to run farm” was distributed in the same way. 
Power costs were distributed in proportion to the power units required by each enter- 
prise (see Table IV). Machinery costs were distributed in the same way. 
Rent charges included interest on fixed capital, such as buildings, fences, etc. The 
renting value of land on the averdge farm was about $5 per acre. Land used for 
general crops, such as corn, wheat, rye, pasture, including bluegrass pasture, was 
shown to have a uniform renting value on each farm, ranging from $2.25 to $6 per acre. 
The average rent for pasture land was $3.50 per acre; for general crop land, about $3.60. 
Renting value given for tobacco land ranged between $25 and $75 per acre, the average 
being about $35. ie 
Live stock was charged for feed, including pasture, at firma, prices. Six dollars and 
fifty cents was credited to each animal unit for manure and the same amount charged 
to field crops in proportion to acreage. Six per cent interest was charged on investment 
in live stock and an allowance made for depreciation. 
