The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1914-11-14
RELATION OF BUSINESS TO
THE FARMERS INCOME

agriculture in regard to the profits
made by large number of farmers
in different parts of the United
States shows that the size Of the farm
business is one of the most import
ant factors controlling the farmers
income. The problem of how large
an investment Is needed In order to
carry on a certain type of farming
to advantage is of the utmost i'm
portance. The amount of this in
vestment will vary according to the
type of farming and to the region
selected
In a survey of over 100 farms in
an irrigated district in Utah only
three farm owners, with less than
| $4,000 total capital, received lab
or income of more than $1,000 for
their years work.
BY labor income in this case is
meant what remains of the net in
come after deducting 6 per cent for
invested capital and working capital;
in other words, what the farmer him
self receives for his years work
and supervision.
In q group of 80 of these men who
had small farms and an average car
ltal of $5,3i5, the average labor in
come was $685.. One out of every
five received nothing for his labor
and made less than per cent inter
est on his farm investment. With
high priced land this amount of cap
ital gave him too small an area to
utilize to advantage. If land were
cheaper, so that much larger area
could be obtained with this same
amount of money, then $4,000 might
be sufficient investment to give the
farmer substantial income.
In. the Central States, where corn,
wheat, and oats are the prevailing
crops and where land is from $3.50
to $3.50 an acre, $4,000 would be
entirely too small an investment to
yield the owner q good income, for
the reason that 40 to 80 acres-the
total amount of land he could posi-
bly, buy with this amount of money
would not utilize his teams, ma
chlnery, or labor to the fullest ad.
vantage.
On the other hand, the number OF
acres is not always a true measure,
as a big business can be conducted
on a small area; 20 acre farm de-
voted to grain. hay, cattle, and hogs
1t Is the type OF farming that de-
termines the number OF acres neces'
sary for efficient operation. Many
persons have made the mistake OF
buying too high priced land for sue
cessful general farming. In other
words, they paid truck farming prIc
es for land which, on account OF
market relations, should be used for
only grain and general farming.
The proportion OF the total invest.
ment that should be- used as working
capital is equally as important as
size of investment. Generally speak
Ing, about rs to SO per cent OF the
farmers investment Is In real es-
tate, the other IL to 25 per cent be-
ing In live stock and other equip
ment. This proportion will vary &C
cording to the type OF farming fol-
lowed. In regions where dairying Is
the main enterprise the amount OF
working capital may represent one
fourth of the entire investment.
A third point in the consideration
of the farmers Investment Is the
quality of material in which working
capital Is invested. This, Is especial
iy true in regard to live stock. In
vestigations relating to profits In
farming show conclusively that the
efficiency of the animals to which
the crops are fed is one Of the most
important factors in determining the
farmers net income. This Is to be