The Wyandotte herald. (Wyandotte, Mich.) 1879-1943, 1939-03-24
Farm Prospect
Looks Brighter
Buying Power Of Family Il
Shown to Keep Pace
With Income.

MINNEAPOLIS. Cash income
per u. S.. farm family, including
government payments. averaged
81. 094 for the year 1888, compared
with 81 ,237 per family in 1887. and
81 lao per family M 1895, according
to an analysis Of rural buying pow
er made by Northwestern National
Life Insurance company. h.%.. =.
In spite of low prices received for
farm products in 1888, actual farm
buying power was only SO per cent
less than .in.19S7, most prosperous
agricultural year since 1922, the
study shows. Larger. crops were
marketed IN 1898, partially Offset
ting the decline IN prices; govern.
ment benefits increased SO peT'fam-
lily, and costs OF things The farmer
buys dropped 8 per cent from 1887
| to 1888. "a 80 % STA
Brighter Picture.
Thus the real picture of the farm
family's buying power is much
/ brighter than that drawn by the ra-
ito of prices received to prices paid,
the analysis shows While farm pro
duce prices were at o. per cent of
1909-l4 buying power +parity" in
1886. and SO per cent OF parity in
1887, they were only n per cent Of
] parity in 1888. Yet the average
/ farm family's actual purchasing
power was only SO per cent below
1897, and was within per cent of
1886. due to the bigger production
sold. AS matter of fact, the COM
parative price ratio stood at IS per
cent of parity in 1885, when the
average total cash income per farm
family was only $l,0l8, and prices
paid by the farmer were slightly
higher than in 1888, giving consid-
erably lower actual purchasing pow
er than with agricultural prices at
" per cent of parity in 1888.
The average family also took $l79
worth of produce off its farm for
its own use in 1888. which, added to
the cash income, gives. gross in
come of $1,273 per family. This
compares with corresponding gross
income figures of 81 ,439 in 1887 and
1887 in 1886.
| Government benefit payments
climbed to an average of SILT per
farm family in 1888, compared with
$52.79 in 1887 and $41.l8 in 1886.
The 1928 payments thus approach
the, payments made in the disaster
years of 1894 and 1895. In 1884 the
average farm family received $79 81
from Uncle Sam, and in 1885, $83.6
Cotton, fruit and vegetable farm
ers Jared worst in 1888, comparing
cash receipts from these crops with
returns in preceding years; in fact
total cash crop values on cotton,
fruit, and vegetables were approx
mately at the 1885 levels.
Labor Rates Higher.
Tobacco and dairy farmers Jared
best, with the cash value of these
classes of produce running little be-
hind 1897 totals.
The study estimates 6,972, 900 fam
lies living on farms in 1888, based
on U. S. department of agriculture
WA Aoih POHthotiOb bSdiCS.
With farm income figures down,
1888 labor rates were considerably
higher than in 1895. though little
less than in 1887. Average monthly
wages paid farm labor. with board,
were $23.49 in 1888, compared with
$2409 per month in 1887 and SCI "a
per month in 1886.
Another major farm expense, in
terest on borrowed money, has stood
| practically stationary for three
years. Borrowers rates at IL fed
eral land banks have remained fixed
at 4 per cent since 1885, and in gen.
eral, interest rates paid by farm
borrowers to various lending insti-
buttons have shown similar stability.