Morgan County Democrat. (McConnelsville, Ohio) 1886-1943, 1932-02-04
THE OUTLOOK FOR FARMING
By II. F. Eaton)

The year just passed has been a
difficult one for almost everyone
engaged in any business. 1t has
been particularly difficult for the
farm business to show a profit, be-
cause of the spread between the
prices farmers receive for things
they sell and prices they have to
pay for things they buy This
spread is now the widest that it
has been since 1921. The wider it
is the more difficult it is to make
the farm business yield a profit.
Farmers are fortunate as compared
With city people out of a job, be-
cause they have a home to live, in,
fuel and large share Of their
food needs met, whereas the city
unemployed have to have these
things given, them if they get them
The farmer, however, has demands
constantly for cash TO pay taxes, in
terest, insurance and other bills.
At time like this it is very diff
cult to get the cash from the farm
business, with which to meet these
more or less fixed costs. The strik-
ing thing is that some farmers are
making profits now and did make
them in 1890 and 1881. Farm ac-
Mt II
ty during 1880 and 1881 showed
that the average farmer in the high
income group received 40 interest
on his investment and had 1922
left for his labor after all farm eX-
penses including taxes, interest, in
surance, ETC., were paid. Compare
this with the average farmer in
the low income group who, with the
same acreage of land in total and
in crops, with the same numbers of
livestock, lacked 5000 of receiving
4 % interest on his investment
Here is a difference of better than
1000 in labor income between
farmers having the same numbers
Of livestock. farming the same num-
ber Of acres and farming the same
type of soil. Immediately this
raises the question: "Why this diff
ference?" The answer is: "Great-
er efficiency on the part Of the high
income group" The farmers who
made a profit We're doing a better
job of the interest Of farming. They
were able to produce beef, lambs,
wool, butterfat, poultry and eggs at
a low enough cost to sell their PROD
ucts at the prevailing low prices
and still make a profit.
1t is true that some farm com
modities are selling at prices below
cost of production, even under the
most efficient methods of produc-
ton. The farmers producing these
particular products are certainly
out of luck, but the thing to keen
IN mind is that even in this Situa
tion the farmer whose costs are
lowest is the farmer who is losing
the least and who will be the last
one to be forced out of the business.
AS his less efficient neighbors are
forced out, his chances of making a
profit, if he can weather the storm,
are continually better as the total
supply becomes less and less due
to the most inefficient being forced
out of the business.
Probably the best and quickest
way for Morgan county farmers to
help raise the price of lambs and
wool for instance would be to kill
the sheep in the county and get out
of the business. That would be
helpful to all other sheep men ex-
cept Morgan county sheep owners.
1t would certainly be tough blow
to them. Are they going to do it,
Certainly not. They are bringing
up their families from the income