The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1890-08-21
AN INSTRUCTIVE CIRCULAR.

justified in reprinting the greater
portion OF it. Mr.. Sovereign says:
The books Of this bureau contain
the addresses of little more than
200 Iowa farmers, representing
every county in the state. These
names were recommended to me AZ
reliable persons to answer any ques.
tions relating to the conditions OF
our people engaged in agriculture. ]
am pleased to say that | have not
been disappointed. Seven hundred
and twenty of them have already re-
sponded. as shown by my books July
3lst. The striking uniformity Of
these reports is evidence of the
knowledge and ability OF the CORES.
pondents. Comparatively there are
very few extremists among them.
An average of oil farm reports re.
ceived to July 3lst, show that shelled
corn should sell at thirty cents per
bushel at local markets to net eight
per cent. profit on the investment,
calculated from the cost of produc-
ton, the value Of the land and the
average yield for the last five years.
AS shown by these reports, seventy
six per cent. of Iowa farmers are pre-
vented by the pressure of their debts
from holding their grain and other
products for the best market prices.
That eight per cent. have lost their
farms by mortgage foreclosure since
1880. That owing to labor saving
machinery farms are now cultivated
with thirty-seven per cent. less labor
than was required to do u like cult
walton in 1870 That thirty eight per
cent. Of farmers children, between
the age OF eight and sixteen years,
are kept from school fifty-eight days
each school year to do farm labor
Six hundred and sixty-three report
that the general range of farm pro-
ducts have sold below the cost of pro-
duction since 1885, and fifty seven re-
port that they have been sold above
cost. Six hundred and eighty-three
report that there has been no profit
on the labor of hired men since 1885;
thirty-seven report a small profit.
Seven hundred and thirteen report
that 5000 invested in farming has
returned less profit since 1880 than
5000 loaned at eight per cent. in
terest, compounded semi-annually.
Seven report that 5000 invested in
farming has returned more profit
than the same sum loaned at eight
per cent. interest. Ten report that
shelled corn must sell at fifty cents
per bushel to net eight per cent.
profit, and two report about fifty
cents. Twelve report that corn will
net eight per cent profit If sold at
twenty cents per bushel, and six re-
port twenty cents.
Therefore, considering the large
number reported, the extremists are
few, and they do not materially af-
feet the general average, for the ex-
tremely high are counterbalanced by
the extremity low. One farmer sent
with his report close calculation,
showing that the average annual cost
of crib-room for 1880 bushels OF corn
Is $1,000. This epitomized statement
is made at this time for the purpose
OF aiding b few who say the questions
are difficult to answer. and to encour.
age those to report who have not.
In estimating the price shelled corn
should sell at to net eight per cent
profit, it is necessary to employ bust
ness principles The investment in
horses and machinery, the cost Of re.
pairs, seed corn, fencing, taxes, real
and personal, and the average per
cent. of loss by wind, hail. etc, are
items which should be considered in
the cost Of production. II cattle are
grown in one field and corn In an ad-
joining field, it il necessary that a
fence or herder should keep them
apart, and the expense should be
charged pro rata to the cattle and
the corn. Where fence is necessary
along the public highway the ex-
pense is chargeable to the aggregate
production of the whole farm, and
corn, if grown, should bear its just
share. When considering the item
of taxes it should be remembered
that corn is not only expected to pay
the taxes on the land on which it
grew but it must pay Its just proper
ton OF the taxes on every nook Of
waste land on the farm, the quantity
used for cribs and other buildings,
and that portion of the farm re-
served and used for highway pur.
poses. In short, all necessary ex-
penses OF farming of whatever char.
acter must be borne proportionately
by each element of income.
II farm is used entirely for rails
ing corn, the entire expenses of that
farm is chargeable to corn, and net
profit cannot begin until after all
necessary expenses, including the
labor of man and beast, are paid for.
Every corporation engaged in manu-.
featuring, run on business principles,
takes out of the receipts from it's
sales the entire running expenses OF
the business, including repairs, taxes.
insurance and interest on investment,
and whatever remains of It's income
is called profit, and farmers should
adhere to the same rules. But a few
estimate the profit of corn after it is
converted into pork or beef without
considering the extra risk and labor,
and no such basis for calculating
profits should enter into the esti-
mate, for corn is an article Of coA,-
lnerce within itself and the demands
for it are co-extensive with the civil
lied world, and my question is con.
fined to the form in which corn is