The Dawson news., 1924-09-30
Farm Income.


The biggest business in the United States
| is agriculture Not only are more persons en-
gagged in it, but greater amounts OF money are
| invested in farming than in any other bust
ness. The vastness OF farming as business
! is shown by the figures estimating farm
values. The farms Of this country are act
uallv worth, on the basis OF estimates made
by government authorities, from S59,4O9 OOO-
600 to $40. .6O7 100000, the figures showing the
extremes from the present valuation to the
highest ever known as indicated in 1920.
Compared with the railroads farm prop
ertv in the United States is, taking tenta-
tive valuation of the lines by the interstate
commerce commission at $l9,0OO,0OO OOOO
worth anywhere from three to four times as
much. As compared with the motor car in
dustry the farms of the United States are
worth perhaps 20 times as much as the total
OF all automobile plants, machinery and gen
eral equipment. Indeed, no single industry
even approaches in value the farm invest
ments.
This ought to impress any one with the i'm
portance OF farming, which in the nature
OF its service providing them with food, the
first requisite OF lie, actually is paramount
under any and all circumstances having to
do with the economic order; and, when that
is considered, it becomes more convincing
that even as the laborer is worthy OF his
hire the farmer is entitled to full reward for
his service.
The farm income studies, just completed,
show that since the slump OF 1920 American
agriculture has not yielded commercial in
terest rate on the invested capital equal to
a fair wage for the average farm operator
and his investments The average farm oper-
ator actually earned, says the agricultural de
partment report, in the five years OF agrcul-
tural depression less than what was paid to
common hired farm hands. After all eXpens
es OF operation and interest payments the
average farmer had hardly enough to support
himself.
The departments estimate for the hve-year
period of the return on all capital invested
in agriculture is shown in these figures: The
return for 10000 was o. per cent; for 1920
p, 90 per cent; for 1921-22, Ia per cent;
LOT l9ZZ-ZO, Ol per cent, anu lOI 17-J--T, 81
per cent. The best figure here is considered
meager in that it shows the entire return on
the capital without anything allowed for the
enormous amount Of farm labor contributed
by the farmers themselves. In manufacturing
vote themselves salaries in
amounts sufficient to take care OF their per-
sonal living expenses. Salaries in any busi-
ness but farming go into production cost as
part of the necessary overhead, and later in
to the sales price demanded of the ultimate
consumer. The American farmer has been
forced to accept return rate on his invest
ment that is discouragngly and distressingly
low, and to throw in his own labor as good
measure.
Easily the most important business man iii
the country because OF his service to the gen
eral public and the dominant position held
by farm capital the economic plan is one
that has worked to the farmers disadvantage.
That plan is one that has exacted Of the farm
er the most in capital, effort and service and
has rewarded him the least.