The Dawson news. (Dawson, Ga.) 1889-current, 1925-08-11
.F|FTY-N|NE BILLION WAS
FARM INCOME LAST YEAR
ANALYSIS OF DEPARTMENT
OF AGRICULTURE OF BAL
ANCE SHEET PAST YEAR.
NOTABLE IMPROVEMENT MADE
Income of S2,7l2,oOOOOO Still Too
Low to Yield Fair Return. Unin-
numbered Capital of Farmers Is 49,
oOO,0OO,0OO Dollars.

Although agriculture in the United
States did better financially in the
year ended June 80, 1925, than in the
preceding II months its income was
nevertheless not sufficient to yield
both fair return on the capital in
vested in the business and fair wage
for the labor of farm operators and
their families.
This is brought out by the depart
ment of agriculture in an analysis OF
the agricultural balance sheet for the
last crop year.
On the capital invested in agricul-
ture the return for the year ended
June 80, 1925, says the department
was at the rate of 40 per cent COM
pared with 3.3 per cent in the year
ended June 80, 1924. This return rep
resented interest OIL the investment
and payment for the managerial SER
vices of farmers. 1t was the net income
that remained after providing for
operating expenses and property taxes,
and making an allowance for the I'M
paid labor of the farmer and his fmily
at hired labor wage rates. In round
figures the net income for the l924-25
season was $2,712,000,000 compared
with 1902, 100000 in 1923-24.
But this sum did not go exclusively
to farmers because farmers do not
own all the capital invested in agricul-
ture. They own only about 70 per
cent of it, and have to pay interest
on the balance 1t is estimated by the
department that the current value of
the total capital invested in agricul-
ture was $59,154,000,000 in l924-25,
compared with $59,548,0OO,OOO in
1923-24. When farm Indebtedness is
subtracted from these figures the re-
naming amounts are approximately
the value of the capital owned by
actual farm operators. In 1924-25 the
value of the farmers unincumbered
capital. according to the department,
was 904000,000, compared with
$47 ,298,OO0, 900 in the preceding crop
year.
In estimating the net return to the
actual farm operator in the crop year
1924-25 the department divides the
gross return on this unencumbered
capital in the same way as it does the
gross return to all the capital invest
ed in agriculture That is to say, it
reckons the net income available for
interest on capital and the managerial
services of the farmers after deducting
operating expenses, taxes and an al
lowance for the labor of the farmer
and his family On this basis the re-
turn on the farmers encountered cap
ital in 1924-25 was Al per cent, com
pared with IS per cent in the preced-
ing year.
While this is a gratifying increase
| If still comes far short of equaling the
rates that the farmer has to pay Tor
the use of borrowed capital. Interest
paid by farmers on mortgage and 9th
er Indebtedness in 1924-25 was "a per
cent, and 90 per cent in the preceding
year. Thus, as a combined return for
the use Of their capital and for their
own managerial services farmers re-
ceived around 2 per cent less than was
paid solely for the use of other capital
under conditions not requiring the
lenders to take any responsible part
in production.