The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-01-17

pTOit. we are DeElumlu6 10 ma LHat
the successful operation Of farm
does not rest upon any one OF these,
but upon the three.
Methods TO Increase Profits.
THE ordinary method by which the
individual farmer increases his income
on the farm is first. working harder;
second, by choosing a region or farm
that pays better than the average of
the farms in the community; third, by
better organizing and managing his
business, or fourth, by forecasting the
future accurately and buying to meet
future shortages.
Factors in Reorganization.
There are a few simple features
which seem to materially affect profit
1 These may be considered as features
Of the three great essentials of pro-
duction: land, labor and capital. They
have to do with the efficiency of
operation and consequently with the
permanence of agriculture. They may
be considered as size of business
quality of business, capital invest
ment and diversity.
Size Of the farm business refers
to the number of cropped or used
acres of the farm and the number Of
| productive animals maintained on the
| farm. Acreage alone does not de-
| termine the size OF the business. A
combination Of the capital employed,
1 the acreage, the labor employment
and the amount of business carried on
| through the year are the determining
| factors as to whether a business is
large or small.
| Equality Of the business refers to
the crop yields and to the productivity
| OF livestock, as compared to the aver
| age Of the farms in the neighbor-
hood.
Capital refers to the investment in
buildings, in equipment, in livestock
or in land. 1t represents the actual or
potential money values.
Diversity refers to the number of
| sources of income that are being
utilized. At times a farm may
develop too many sources of income,
but more frequently, in this section,
we have too few sources Of in
come.
Under conditions which generally
prevail in our state, the problem of
the farmer is to run the business at
the capacity which earns the largest
profits. Under the one crop system
the business is operated only a part
Of the year, consequently, such system.
whether it be in the production of,
wheat. of corn, or of cotton, finally
fact that it is a low capacity business.
Study Of Farms.
During the past year the farm
business of group Of farms In the
western part Of the state was analyz-
ed. This group is extensively engaged
in dairying. The results for the year
1915, which was a year of excellent
production and fairly good prices,
showed that the best livestock farms
1 produced the greatest labor income.
The group of best farms considered
from the standpoint of the returns
made to the farmer. averaged 405 crop
acres in 4sh livestock units to the
was 1884. The poorer group of farms
brought in an average labor income
Of $1.2S2 with 35 livestock units to the
farm.
IN another instance, in the north
western part of the state group of
80 farms were studied to determine
the basis of their profits or losses.
The results Of this study showed that
there were nine outstandingly profit
able farms. The acreage of most Of the
farms was very similar. The chief
difference was the income produced
from them. On the most profitable
farms approximately Is per cent OF
| the income was. produced from the
sale Of livestock products. On the next
group Of farms approximately 30 per
cent Of the income was obtained from
|
ucts.
Number of Stock on Farm Unit.
! "The number of livestock that should
be carried on the farm will vary with
the economic conditions which pre-
vail If general rule may be stat
ed, we might say that with livestock
of ordinary productivity, a SUFFICIENT
number should be maintained to con-
sumo the roughage produced by
good rotation Of grain farming.
"The second factor to take into con-
sideration in reorganizing farm busi-
ness is the size. AS has been pre-
viously explained, this does not refer
to acreage solely, but it is a combina-
ton Of the labor and capital employed.
the acreage and the livestock that is
maintained. f.. M, .a.g...4
"The third important factor. which
has to do with successful farm oper-
alton is the quality OF the business
or the rate Of production as compared
with the surrounding community.
This is indicated from two considera-
tons; first, the yield of crops. and
second, the yield of livestock.
Capital is perhaps one Of the most
effective aids in obtaining profits
through farm organization. It's prop
er use increases the efficiency of labor
and decreases waste. Over-capitali-
zation in building and sometimes in
DISQUALIFICATION Of the productive
enterprises is equally common.
TN summarizing the experience of
successful farmers, one might say
that as large a proportion Of this cap
ital as possible should be used in en-
terprises that are productive through
out the year or that tend to turn over
the capital investment often.
1.-THE results of studies of the profit
able farm unit indicate that the most
important problem in farm organiza-
ton is the efficient use Of labor and
capital. The farmers who obtain the
greatest efficiency from these factors
are the men who have the largest
labor incomes. The area of the farm,
the diversity of the enterprises, and
the type of farming should be deter
mined upon the basis of the efficient
use of labor and capital throughout
the year.
Under North Dakota conditions
the chief aid to Investigation and to
labor employment is livestock. This
enterprise is needed to properly ball
ance the organization and make eff
4 a.