The Denison review. [volume] (Denison, Iowa) 1867-current, 1915-03-31
THE FARMERS . INCOME.
Cash Profits Do Not Measure the Re.
turns From a Farm.

Cash Profits Do Not Measure the Re
turns From Farm.
| Prepared by United States department O
| agricultural
| Just how much does the average
farmer make? The answer to this puz
cling question has been long sought by
agricultural experts, since it is the uIti
mate test Of all systems Of farm man
| agelnent. 1t is simple enough to calcu
late the cash profits received in the
course Of the year, hut these do not
measure the farmers success. The
farm supplies him with much besides
money-with food, shelter and fuel
For these things the city worker has
to pay out large part of his wages.
They must. therefore, be included~in
any just estimate of the farmers in
come. In other words, tho city worker
lis paid entirely i'll cash, the farmer
partly in cash. partly directly in the
necessities of life.
value of this direct contribution from
the farm. the United States department
Of agriculture has recently concluded
an Investigation which included 43S
farm families. divided among ten
states in different sections of the coun-
try. The investigators found that on
these farms tile cost Of maintaining
each grown person was on the average
SIG year.
OF this sum only about % per cent
was paid out in cash. The remainder
was furnished by the farm. not in the
form Of money. but in those things fer
which the money would have been ex-
changed. The extent to which farm
can thus be made self sustaining. made
to supply the wants or the family that
lives upon it without resorting to buy
ing and selling, is indicated by condi-
ti0ns in the particular area Of North
Carolina included in the investigation.
This area, it may be said. is not re.
garded as typical of Southern agricul-
ture.
The investigators found that the av-
erage annual value OF the food, fuel.
oil and shelter enjoyed by the farm
family was $5O5. OF this sum the aver
age farm furnished directly $429. leav-
ing only $40 to be bought. The grocery
bill was always the largest item in the
cash expenditure.
This was even more apparent in
other sections where the farms We're
less nearly self sustaining than in this
particular area of North Carolina. The
bulk Of the groceries was always
bought, but the total quantity con-
sumed depended to a great extent
upon the quantity Of animal products
and vegetables raised on the farm.
Where these abounded the consump-
ton of groceries diminished. From
this it would seem that an obvious
way to effect an important saving In
expenses is to raise more vegetables
and animal products on the farm.
Whether 1t is better to, cut down ex-
penscs in this way Or to increase re-
ceipts by concentrating attention on
cash crops is one OF the great problems
in farm management. the answer to
which in each individual case depends
upon local conditions. In the past.
however, many farmers have not re-
allied the existence of the alternative.
The two other important items in the
cost Of maintenance are house rent
and labor. Both of these 1t is CON-
mon error to overlook in estimating
the farmers income. Since the house
usually goes with the farm and the la
Dor is performed by members Of the
family both are taken for granted.
With labor it is much the same. The
members of theNfamily secure by their
work comfort which they would other
wise have to buy. or. to put it another
way. il they did the work for some
body else they would be paid. AS it is,
they pay themselves.
It is obvious. therefore, that what
the farm furnishes directly in food. in
fuel, in shelter and in rent Is an impor-
tant part of the farm family's income.
On the other hand. it must be remem.
bered that the farmer has capital in
vested in his business. the interest on
which must be earned before he can
truly he said to be making money. In
the proper relation of the three factors
interest on the investment, cash re-
ceipts and direct income from the farm
lies the secret of successful farming