Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-12-28
GROSS FARM
INCOME GAINS
Minnesota Total S h o w S
Twenty Million Dollars
Over Last Year.
Cash Expenses are Cut to
Seven Million Under
1892.

The Division of Agricultural
Economics at the University
Farm in st. Paul has issued
report on the income and ex-
penses of the farming industry in
Minnesota as compared with GER
tain former years and 1t is in
teresting to note that progress in
getting back to normal has been
made during the past year even
though certain branches of agri-
culture, dairying especially, has
suffered con siderabl An
abridged form of the report fol-
lows in the words of the Division:
Present indications are that the
gross cash income from the sale of
the principal Minnesota agricultural
products in 1888 will be about 1876
million dollars. This is 20 million
dollars above the preliminary esti-
mate of 165 million dollars for 1882,
and about half the average annual
cash income of 382 million dollars in
the period from 1925 to 1929.
Cash expenses for farm operation,
which include taxes and interest, ap-
pear to be about 142 million dollars.
This is million dollars less than the
estimated expenses of 149 million dol
lars in 1882 and about three-fourths
of the average annual cash expense
of 1914 million dollars in the period
of 1925 to 1929.
Net cash income for 1888 will be
about 43 million dollars. This is the
amount the farmers have available
for payment for their own labor and
return on capital investment; or, in
other words, the amount available
for family living and saving. The
1888 net cash income is q million
dollars greater than the income of
16 million dollars in 1882, but less
than one-feurth of the average annual
net cash income of 1873 million dollars
for the period 1925-1929.
How Income is Computed.
The gross cash income is the total
of the sales of the sixteen principal
Minnesota agricultural products; but
terfat, hogs, cattle, wheat, eggs, milk,
corn, flax, oats, barley, potatoes.
calves, chickens, hay, rye and lambs
sheep. The amounts of the principal
products sold each month multiplied
by their farm price constitute the
cash income for each month. The
sum of the twelve calendar months
is the estimated annual cash income.
A number of minor crops have been
omitted. These figures do not repre-
sent the total value of agricultural
production and no allowance has been
made either for the value of farm pro-
ducts used by the farm family or for
changes of inventory value of live
stock or crops. Cash income obtained
| from other sources than the sale of
farm products is not included.
Cash Expenses.
The cash expenses are the sum of
the annual estimates for the follow
| ing twenty items: taxes, interest on
Indebtedness, hired labor, stocker and
feeder cattle, hogs and sheep, veter-
mary charges, stallion fees, thresh-
| ing, Irvine, sacks, spray materials.
gasoline, auto and truck licenses, ma
chine repairs, building repairs, farm
papers, organization fees, insurance,
| fertilizer and electricity. These data
represent the cash operating expenses
of farmers and do not represent all of
the cash outlay.
| Total inventory values declined
slowly from 1924 to 1880. A decline
of about 500 million dollars in real
estate values was offset in part by an
increase of about $50 million dollars
in the inventory of livestock and ma
chinery. In the last three years de-
clines were marked in all of the
property classes. The mortgage in
debtedness declined almost continu-
ously throughout the period.
This decline in inventory values of
agricultural property has been an i'm
portant factor in the growth of UNI
rest in agriculture. For many de-
cades prior to 1920 inventory values
of agricultural property had in
creased, and the farmer was content
with small net cash income be-
cause he saw constant increase in
the value of his property and the
prospect of a competence when he
retired. With declining inventory
values, this prospect is changed and
larger cash income is required in
order to provide the farmer with the
means of securing the same property
values upon his retirement from &C
tual farming.
Minnesota agriculture has expanded
its volume of production somewhat
since the beginning of the depression,
probably in large part the result of
an attempt by farmers to offset lower
prices by larger physical volume of
sales.