The Ronan pioneer., 1917-02-09
FARMS SHOULD BE
BETTER MANAGED
RETURNS WILL BE INCREASED
BY APPLICATION OF SOUND
BUSINESS PRINCIPLES.
Most Profitable Acreage in Gallatin
Valley Found to Be Between 200
Doubled With Addition of Machin-
cry and Livestock.

That the application of sound
ment of the farm will bring as large
financial returns as in any other pro-
fession or business is conclusively
proven in an important bulletin just
published by the Montana State COL
lege at Bozeman. The bulletin is
entitled: "Profits in Farming on Ir-
rlgated Areas" and is a survey of
l86 farms in the Gallatin valley.
Inc survey was conducted in 1912
by Prof. u. l.. Currier, who states
that it's object was to find the more
profitable farms and by careful study
determine in what respects they diff
Ter from other farms in the region
that have been less successful; in
other words to determine the factors
that make for successful farm opera
ton.
Labor Income.
Labor income" is used as the
measure of success or failure in farm
management. Professor Currier de-
fines "labor income" as what the
farmer has left after paying all farm
expenses and setting aside an amount
sufficient to pay six per cent inter-
est on the capital invested. This. in
addition to the use of dwelling and
to such products as the farmer fur
n1shes toward the family living, rep
resents what the farmer actually re-
ce1ves for his labor. The survey
shows the average labor income re-
ceived by the Gallatin valley farmer
to be $555. This at first may seem
small but can the average man in
other professions boast of having
more than $555 in his pocket after
all business and family living ex-
penses of the year are paid and after
ne has set aside an amount equal to
six per cent on his capital invested?
The more successful Gallatin valley
farmers receive incomes that COM
pare very favorably with those of the
more successful lawyers, doctors, pro-
fessors, etc. Thus we find that one
out of every two farmers has $1,000
clear money to show for his labor at
the end of the year, one in seven
makes over $4,000 and one in six
teen makes over $4,000. The largest
labor income of any of the farmers
included in the survey was $4,413.
1t should be also borne in mind that
the survey was conducted in 1918
when farm products were consider
ably lower in price than at the pres
ent time.
More Machines Required.
The results of the survey show
that the following factors have an
important bearing on the success or
failure of farm business:
The amount and distribution oil
C4nifq1 iTnnnrfonf Tohor
incomes are found to increase as cap
ital increases. One reason for poor
returns is that the larger percentage
of the total capital is tied up in real
estate. At least one fifth should be
used in working capital. Prof. Cur
rier states that after a careful study
of the survey he is convinced
that if the amount of equipment in
the shape of machinery and livestock
on farms in this region were doubled,
1t would at least double the labor in
come.
Diversified farming pays the best.
IS the number of important sources
OF income increases, the labor income
increases. A farm
with only one or two important en-
terprises is at a serious disadvantage
III Cue maLLeT CT utlI1Zlng labor
throughout the year and in using the
by products of the farm that would
otherwise be wasted.
Two factors or combinations of
factors that are probably of greatest
as affecting labor in
comes in the Gallatin valley are Cd
a sufficient acreage of crops of good