Smyrna times., 1939-04-27
FARM PROSPECT
LOOKS BRIGHT
Buying Power of Family Is
Shown to Keep Pace
With Income
SI,O94 CASH PER FAMILY

MINNEAPOLIS. = Cash income
per U. S. farm family, including
government payments, averaged
$1,094 for the year 1888, compared
with $1,237 per family in 1887, and
81, ,140 per family in 1896, according
to an analysis of rural buying pow
er made by Northwestern National
Life Insurance company.
In spite of low prices received for
farm products in 1888, actual farm
buying power was only SO per cent
less than in 1887, most prosperous
agricultural year since 1929. the
study shows. Larger crops were
marketed in 1888, partially offset
ting the decline in prices; govern
ment benefits increased $40 per fam
lily, and costs of things the farmer
buys dropped per cent from 1887
to 1888.
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 90 per cent of
1909-14 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
1887. and was within per cent of
1886, due to the bigger production
sold. AS matter of fact, the COM
parative price ratio stood at 86 per
cent Of parity in 1885, when the
average total cash income per farm
family was only s1,018, 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 $179
worth of produce off its farm for
its own use in 1888. which, added to
the cash income, gives a gross in
come of $1,273 per family. This
compares with corresponding gross
income figures of 81, ,439 in 1887 and
81, ,337 in 1886.
Government benefit payments
climbed to an average of S71.72 per
farm family in 1888, compared with
$52.79 in 1887 and $41.18 in 1886.
The 1928 payments thus approach
the payments made in the disaster
years of 1884 and 1885. In 1884 the
average farm family received SIG. 81
from Uncle Sam, and in 1885, S93. 81.
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 1887 totals.
The study estimates 6,972, 900 fam
lilies living on farms in 1888, based
on U. S. department Of agriculture
total farm population figures.
With farm income figures down,
1888 labor rates were considerably
higher than in 1886, though a little
less than in 1887. Average monthly
wages paid farm labor, with board,
were S2349 in 1888, compared with
$24.09 per month in 1887 and $21.54
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
era1 land banks have remained fixed
at per cent since 1886, and in gen.
eral, interest rates paid by farm
borrowers to various lending insti-
tutions have shown similar stability.