FARMERS EARNINGS IN SOUTHEASTERN PENNSYLVANIA 
55 
The relative importance of the different factors in determining 
operator's earnings, as shown by the coefficients of determination, 
were as follow : 
Factor: Percent 
A . Number of cows 22 ( — ;7. 
B. Acres in crops ( — )11. 1 
C. Acres in pasture ( — ). 5 
D. Crop index . 1 
E. Labor index 1. 4 
F. Percentage of dairy feed purchased .2 
G. Receipts from crops 18. 7 
H. Receipts from dairy herd 57. 
I. Receipts from beef cattle . 
K. Receipts from hogs 1. 9 
L. Receipts from sheep . 
M. Receipts from poultry 10. 4 
Combined importance of all 71. 
These results showed that the size of farm, both as regards the 
number of cows and the acres in crops, were important in determining 
earnings in this area. They further show that, during 1922-23 at 
least, differences in the labor index, in the labor employed relative to 
the size of the enterprise, were of only negligible importance. Like- 
wise, for the year of the survey it made practically no difference what 
part of the feed for the dairy cows was purchased and what part was 
raised. This result proves the earlier statement to the same effect 
illustrated by tabular material (p. 21). 
Differences in the different "'organization" factors were respon- 
sible for most of the differences in returns. Of the livestock enter- 
prises, differences in dairy returns and poultry returns were most 
important. Hogs were the only other livestock enterprise that had 
any measureable significance. It is noteworthy that even in this 
analysis, including many farms that were not primarily dairy farms, 
the dairy enterprise should stand out as more important than all the 
other enterprises put together. 
The effect of crop sales upon returns and the result for crop index 
show that larger areas of cash crops rather than higher yields were 
primarily responsible for the importance of crop sales. Even in 
this year when crops were selling at relatively low prices, income from 
crop sales had a greater effect upon earnings than did income from 
any other source except the dairy enterprise. 
The coefficients of net regression, which show the average change 
in earnings for a given change in each factor, after eliminating the 
effect of other factors, give further information on the relation of 
each factor to operator's earnings. (Table 49.) 
Table 49. — Xet regression of operator's earnings on several factors 
On the average, for each increase of- 
1 cow 
10 acres in crops 
10 acres in pasture 
10 points on crop index.. 
One month in " labor index" 
10 per cent in dairy feed purchased. 
Operator's 
earnings 
increased 
Dollars 
-22 
-L53 
-24 
+2 | 
-44 ' 
—8 ; 
On the average, for each increase of- 
Operator's 
earnings 
increased 
$100 in crop recripts 
$100 in dairy receipts... 
$100 in beef receipts 
$100 in hog receipts 
$100 in sheep receipts... 
$100 in poultry receipts. 
Dollars 
+63 
+1 
~ri7 
a The negative sign (— ) indicates determination in the negative direction: that is, holding constant the 
receipts from the dairy, the more cows the less the income, hence the negative sign— the determination 
from this variable is a deduction from the effect foi variable U. 
