Show Farmers Farmer's Business and Income A careful study by government govern govern- ment experts in regard to to the profits made by a large number of farmers in different parts of the United States shows that the ize r-ize of the farm busin business s is isone ison one on of the most important fac fac- the farmers farmer's in income in- in come com The problem of how large an investment is needed in order to cary on a certain type of farming to advantage is of the utmost importance The amount amount amount a- a mount of this investment will vary according to the type of farming fanning and to the region select select- ed In a survey of over farms in n an irrigated distri district t in Utah only three farm owners owners with less ess than total capital received a labor income of more than han 1000 for their years year's work By labor income in this case cases is s mc meant nt what remains of the thenet net income after deducting 6 per percent per percent cent gent for invested capital and working capital capita in other words what the farmer himself receives for or or his years year's work and super super- vision In a group of 35 of these men who vho had small farms and an average capital of the average labor income was One ne out of every five received nothing for his labor and made less ess than 5 per cent interest onus on his us farm investment With priced high land this amount of capital gave him too small an anarea area rea rca to utilize to advantage If Ifland and land were cheaper so that a much ouch larger area could be obtained obtained ob ob- ob- ob with the same amount of money coney then might be a sufficient investment to give the farmer farmel armer a substantial income In the Central Stat States s where orn corn wheat and oats are the prevailing crops and where land landis lands is s from to an acre would be entirely too small mall an investment to the awner a good income for the reason eason that 40 to 50 acres the acres the total otal amount of land he could possibly buy with this amount of would money money would not utilize his teams yams machinery or labor to the he fullest advantage On the other hand the number number num num- ber er of acres is not always a true measure as a big business cane can be e conducted on a small area 20 acres cres of truck and small fruits may equal a acre farm devoted devot- devot ed d to cattle attl and a hogs It is the type of farming fanning that determines de- de determines determines de de- the number of acres necessary for efficient operation Many lIany persons have made the mistake of buying too high priced land for successful general gener gener- al farming In other words they paid truck farming prices for land which on account of market t relations should be used for only grain and gen general ral farm farm- ing The proportion of the total in investment investment ill in- vestment that should be used as working capital is ia equally as important important im- im important im im- as size of investment Generally speaking about 75 to of the farmers farmer's iniA in- in 38 8 per cent 1 iA LL 4 1 estment vestment is in real rem estate ine 1111 other 12 to 25 per percent cent being in live stock and other equipment This proportion on will vary according according according ac ac- ac- ac cording to the type of farming followed follo In regions where dairying is the m main in enterprise the amount of working capital may represent one fourth one fourth of the entire investment A third point in the consideration consideration consideration consider consider- of the farmers farmer's investment is the quality of material in which working capital is invest invest- ed This is especially true in regard to live st stock ck I Investigations Investigations relating to profits in farming farm farm- jug ing show conclusively that the efficiency of the animals to which of the the crops are fed is one most important factors in determining determining determining de de- de- de the farmers farmer's net in in- in come This is is isto to be expected ted since on many farms in this country the bulk of the crop i is in reality sold to the dairy herd producing meat-producing animals or ir to If f these are such poor quality that they yield low returns for their feed fe d the income to the farmer must be correspondingly matter how small mall Hence no large arge the total investment if the quality of the equipment is deficient deficient de de- financial failure is table J J 1 r R I |