Imperial Valley press., 1926-08-06
IMPROVEMENT In
THE AGRICULTURAL
INCOME IS SLIGHT

WASHINGTON, Aug. 6.-Ineome
from farm production the past sea
son, lg2J-2G. again showed a mod
crate Improvement. but farmers as
class are still at financial dis
advantage TO industrial workers, ac-
cnrdiug 10 an analysis Of receipts
and expenditures just completed
b. the United States department
of agriculture.
Gross income from agriculture is
estimated at Sl2.4lj, 900 for the
wear, compared with $l2,003, ,000, 600
for 1924 p, an increase of about 3
per cent, the increase appearing in
both cash income from sales and in
the value Of products consumed bv
farm families. Increased income
from potatoes, dairy products. and
meat animals more than offset de-
clines in income from grains and
cotton, tie department says.
The total gross income is made up
~ 9.s1l D0OO00 computed as cash
income from sales. and $2,J24, ,000,-
OOO the value Of food and fuel con
sumed on farms. IT includes 3d.
. v
products: -. .7lG.0 600 for meat an
imals. Lose. 900 900 for cotton and
cotton seed: : .G2j 900 900 for fruits
and vegetables, aud $l,56J, 100000
for grains.
Receipts increased somewhat more
than expenses. yielding an increase
IN net income available for all cap
itnl employed including reward 70:
managing the industry, of ! per cent,
compared with - per cent in
crease IN l924-2J. This larger net
income represents n rate of return
for all capital and management of
40 per cent compared with A per
cent the preceding year. These rates
are not comparable with rates of
return usually shown for other in
duStrics. Estimates of comparable
returns for corporations in 1923
gave II per cent as the return on
capital and management compared
with 80 per cent for agriculture.
Billions for Wages
Out of the gross income Of $l2,
4lj,000,0O0 farmers paid $6,sl2,-
400, 600 including 100000 wag-
IS to hired labor; S3,076,0O0,O00 for
products and services of other in
dustrieS, repairs and maintenance
Of building and equipment; $500
900 900 taxes on operat0r-Owned in
vcstmcnt... $l,l27, 100000 rent on
property rented from non-Operators,
and $7jS, 900, 900 interest on mort
gage and other indebtedness held
by non-operators.
The difference is $5,603, ,000, 900
of which $2,j24 100000 represents
the value of food and fuel con
sumed ON farms, and $3,079, 900, 700
is the net cash income. which gives
an average per farm of 1919 com
pared with 1854 in l9242j for OPP
orators capital, labor and manage
ment.
The ANALYSIS shows further that
the farm operators earned on their
own net investment including man
agcment. after paving rent and in
tcrcst on debts, 80 per cent. com
pared with 30 per cent in l924-2j.
than the rates earned bv the other
than the rates earned by theothcr
owners Of farm capital such rs mort
gage holders,
If conservative interest return is
allowed on investment. the average
farm family earned S64S for labor
and management, or S24 more than
in the preceding year. Although
this figure is considerably above
the very meager earnings during
thc severe years of the depression,
il is still nearly 80 per cent below
tho earnings of 1920.
Factory wage carncrs, on the other
hand. the department points out, for
the past three years have earned
approximately the same money in
come as thcv did in 19l9-20 and
have been able TO buy with those
earnings about 10 ner cent more than
they could in 1919 90. while the
farmer with his income has been able
To buy about 90 per cent less.