Evening star., 1926-08-21

THAT comparatively few farmers
make large profits.
That a considerable number "f
them are making a. bare living.
"rhat most of them make a labor
income of less than $500 per year
over and above the things the farm
furnishes toward the family living.
which. however, constitutes an inn
portant factor.
THAT their average return on In
voStment after deduCtinG the value
of their own labor was about 3i2 per
cent prior to 1916. and about Z per
cent for the years 1917-1S''-the boom
years for farming, because of war
dema ndS.
The value Of their own labor
means what the farmer might earn
as q common lahorer in shop re
quirinG no skilled training. If the
investment in his farm We're counted
as earning 6 per cent. instead of Sl2,
the wages" to be credited upon his
labor and that of his family would
he wiped out. in many cases. leaving
the family unrequited tolcrS.
In one of the best areas Of Ohio
a survey. as quoted I'm Bulletin 920.
showed the average farm income of
25 farmers in Palmer Township.
Washington County. Ohio. for the
seven years. 1912 to 1918. was Ss10.
which made the labor income $276
and the return on the capital 4.6
per cent"
How many city laborers are con
tent with $276 Il year wages?
The summary published In 1920
closes with this:
From the study of the profits of
the farms in the three areas, we have
seen that the incomes of most farm
ers were much higher during the last
few years than for previous years.
1t must he remembered, however. that
the increase in income is more ap-
parent than real because of the de
creased purchasing power of the dol.
lar"-the boom year of war.
The war brought great initiation Of
land prices, followed by depression
and general farm bankruptcy in wide
areas of the Northwest. This resulted
in foreclosures of mortgages ana
large tracts of lands fell into the
hands of the money interests. out
of that condition has come a new
phase Of agriculture, especially in
Montana. where the Rockefeller in
tereStS have undertaken to combine
under one management individual
farms aggregating thousands of acres
The enterprise is called the Fairway
Farms Corporation.
A system has been formulated by
which tenants are put onto individual
farm units and assisted with stock
and machinery and especially with
expert guidance. These tenants are
encouraged 10 work by an option to
buy the farm at a fixed price when
ever their crop profits accumulate so
that the net in the hands of the cor
poration equals % per cent Of the
purchase price. No fixed annual pay
ment is required, but the corporation
finances the farmer and waits while
his profits ultimately pay off the bal
ance in the meanwhile, the crops are
sold through the corporation manage
ment The plan is only now getting
under way. since il dates from 1924,
hence it has not passed the expert
mental stage.
X 4
a new phase OF agricultural re.
habilitation comes now in connection
with industry. Henry Ford years
ago advocated a marriage Of industry
and farming when he recommended
that industrial workers might work
in factories during the Winters ana
on the farms surrounding the fac.
tories in the Summer. This idea has
not been put into extensive practice
for it meant idle factories all Summer
but better one is being watched
with interest by the department econ.
omists. 1t is made feasible by the
automobile which enables the indus
trialist (or even the Government EN-
ploye) TO live a few miles outside OF
the city. work 3 hours in shop or
office. then speed home and during
the cool of the evening" cultivate
a little plot of land. The difference
in distance between a city apartment
and a country home is made imma
terial by the improved transporta-
ton. and the country location enables
the younger members of the family
TO aid in the income by work in or
chard or poultry yard, while the head
of the family can continue to make
his regular wages in the city.
This mode of living Is becoming
very popular in New England and
in some localities of the Middle West.
especially in northern Indiana. 1t is
recommended by department econo-
mists TO the careful consideration OF
the Senator from Michigan. who
might divide his 500 acres into plots
of two or three acres with cottage
homes for 200 or 800 of Henry Ford's
tOilers, who could ride back and forth
In their automobiles. without the loss
of their jobs and yet make the
acres pay.
ic0psriEht.. 1895. by. Paul Y. collias.)