UNIVERSITY OF
ILLINOIS LIBRARY
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http://www.archive.org/details/farmfinancialrec2224univ
QMSOJ S'77
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ANNUAL FARM BUSINESS REPORTS PREPARED FROM RECORDS
KEPT IN THE ILLINOIS FARM FINANCIAL RECORD BOOK FOR
\h AREAS FOR 192^; 10 AREAS FOR 1923; AND g AREAS
FOR 1922.
Prepared by the Department of Farm Orga^ni-
zation and Management of the Univereity of
Illinois.
Reports are included for 1^ areas in 192^; 10 areas
for 1923; and g areas for 1922, and are filed in the
following order:
For \32^
1. Adams, McDonough, and Hancock Counties
2. Champaign, Ford and McLean Counties
3. Clinton County
4. Douglas, Moultrie, Coles and Clark Counties
5. Henry, Marshall -Put nam, and Whiteside Counties
6. Jo Daviess, Stephenson and Ogle Counties
7. LaSalle County
g. Macoupin, Jersey and Greene Counties
9. Monroe and Randolph Counties
10. Saline and Gallatin Counties
11. Tazewell, Logan, Macon and McLean Counties
12. Wabash, Edwards, Richland and Lawrence Counties
13. Woodford County
14. Will County
For 1923
1. Clinton Coiinty
2. Ford County
3. Gallatin County
^. Jersey County
5. Jo Daviess County
6. Kane County
7. McDonough County
S. Monroe County
9. Wabash County
10. Woodford County
For 1922
1. Clinton County
2. Coles County
3. Jo Daviess County
h. Kane County
5. Lawrence County
6. Lee County
7. Monroe County
S. Woodford County
STATEMENT CONCERNING ENCLOSED DATA
The year 1922 represents the initial
preparation of individual county reports for those
counties where the Farm Adviser has cooperated in
the Farm Management Extension work. In a nwnber
of instances, the reports included too few farms
to justify a report excepting as a means of en-
couraging the county to develop the project.
This same statement would apply to many
of the counties for which reports were prepared
for the year 1923. However, it will be noted that
an increased number of records were completed in
the different counties in 1923.
In 192^ the policy was adopted of pre-
paring separate county reports for those counties
completing thirty or more records. Coimties having
a fewer number of completed records were combined
with other counties in the same general farming
type area, giving a sufficient number of records
to justify a separate report in most instances.
The policy followed in preparing the
reports for the three years was intended to en-
courage the cooperating counties to secure suf-
ficient records to give a good volume of data for
a separate county report. From an extension point
of view, this is highly desirable, as the Farm
Adviser is usually quite well acquainted with all
the individual farms and it gives him a better op-
portunity of studying the factors influencing farm
earnings and assisting the cooperating farmers in
improving the organization and operation of their
farms.
H. C. M. Case
^'IJUAL FARl.: BUSINESS KEPORT
AD ALB, Mcdonough, hai\cock counties - 1924
Prepared by H.G.M. Case, M.L. Mosher, K. H. liyers*
The 51 farmers in thene three counties who kept farm records in 1924
in the book prepared by the Extension Service earned a rate of 5.34^ on an aver-
age investment of 0 43,653 after figuring their own time at about $600 per year.
These fariTiS averaged 202.2 acres in size. The Labor and Liaiiageinent wage which
represents what a nan has left as pay for his own work and managing ability after
paying all expenses and allowing 5 per cent interest on the total investment,
amounted to $723 as an averai^o for all farmers. The value of the food productr.
furnished the home and the use of the dwelling house represent an income in addi- ■•
tion to that shown. On 11 furms in Champaign and Piatt counties a careful record
was kept of these two items, the value of v/hich amounted to !i^726 per farm at farm
prices.
A oomparison with other farmers in your community will help you to find
at what point you can strengthen your farm. The tables on pages 2 and 3 show the
average results of the 51 farms in comparison with those of more profitable and
less profitable farms. The 17 most profitable farms earned 9,155'o on the investment,
while the least profitable group made only 1.99/>„ Expressed as the Labor and Man-
agement wage, the bettor group made an average labor income of $2330 while the least
profitable group lacked |830 of having anything loft to pay the manager for his
own labor and management, a difference of v3160. In comparing the more profitable
farms with the least profitable it vn.ll be noted that the 17 more profitable farms
averaged over 30 acres smaller in size, but had a larger percent of tillable land.
This should be considered in comparing the efficiency v/ith which equipment , machin-
ery, and labor is usod.
The records shov/ that the more profitable group had much larger crop
yields than the least profito.ble group. Tho more profitable farms received 30/o
larger returns for every §100, invested in all productive livestock and the same
was true for each class of livestock, with the exception of poultry. They re-
ceived 57.6^3 of their income from livestock compared with 90.0/o on the least
profitable farms. The more profitable farms then had larger crop yields and bet-
ter livestock, and while a smaller percentage of their returns came from live-
stock their total income from livestock was greater. There was little differ-
ence in the efficiency with v/hich man labor vms used on the two groups. The upper
group made the better use of horse labor. The use of man and horse labor should
be considered in relation to the method in which livestock is handled, and the ef-
ficiency with v;hich it Sis handled.
For every ^plOO, taken in, the 17 most profitable farm.s had an expense
of §38.38, while the 17 least profitable farms had an expense of $73.41. This may
be due to any one of a large num.ber of items of cost. It may be due to lov; income
as well as to high expenses, VtTiatever it is due to, low expenses per ylOO* in-
come are essential to profitable farming. The more profitable farms received
$17,91 larger gross returns por acre and their expenses were only $1.38 more per
acre than on the 17 least profitable farms, giving as a result the net receipts of
^20,70 per acre as comipared with §4.17 per acre on the 17 least profitable farmsc
*R. E. J.Iiller, R. C. Doneghue, and J.K. Lloyd, farm, advisers in .idams , McDonough,
and Hancock Counties, respectively, cooperated in supervising and collecting the
records used in this report.
L ).'/<> n
fjsi^A
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af/^/^ii rA^^ l<mAGcnj£
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A detailed statenent of the far:.. eLxnirgs is given on page 3, while on page 4 you
will find a chart on which you uay plot the results from your own farm which will
show at what points your farn shov/ed strength or weakness.
Adams, McDonough, Hancock Counties
Factors helping to
Your
Average
17 most
17 least
analyze
of 51
profitable
profitable
the farm business
farm
farms
farms
farms
Rate Earned
/=
5.34^
9.15
1.99
Labor & Managenent Wage
e
$723.
2330.
-030
Size of Farm - Acres
202.2
185.9
210.0
Crop Yields - Corn - Bushels
41.2
47.3
32.2
Oats - bushels
42.4
47.0
37.6
Wheat - Bushels
24.9
22.9
19.3
Percent of land area Tillable
f.
90.1;i
95.6
04.4
Percent of tillable land in legumes
9.7fo-
7.7
10.5
Returns per $100, invested in all
productive livestock
%
$140.05
164.00
123.40
For $100 in - Cattle
- Swino
- Poultry
%
%
$ 92.90
$179.04
$170.00
109.15
216.00
174.55
84.40
152.70
171.10
Percent of gross Income from Livestock
if
69.470
57.6
90.0
Man Labor Cost por Acro
Crop Acres per Man
Crop Acres per Horse
%
$ 5,90
74.6
23.2
10«5
6.10
76.5
21.8
20.3
5.76
76.1
18.2
10.9
Expense per $100. gross income
Machinery Cost per Acre
Building S; Fencing cost per Acre
%
$ 51.30
$ 2.04
0 1.12
30.30
2.55
1.02
73.41
1.66
1.13
Gross Receipts por Acre
Total Expenses por Acre
Net Receipts per Acre
%
$ 23=66
0 12.14
$ 11.52
33.59
12.09
20.70
15.50
11.51
4.17
-^.^.•s.r.tSffc.siTKi-^^tr.^ri'rA.'-.i-, .-w.Wtg-^
> *^*-.
-3-
Adams, McDonough, Hancock Countios 1924
•
Your
Average
17 most
17 least
of 51
profitable
profitable
i
farm
f arm.s
f arms
f arms
1.
2. "
Capital Investment - Total
Land
t^
^436 53
33442
_t£43061
32492
_^5779
e
3 5308
3.
Farn Iraprovements
e
3850
3300
4099
4.
Machinery and Equipment
e
1417
1558
1352
5.
Food and Supplies
2179
2250
18 59
6.
Livestock
$
276 5
2451
3161
7.
Horses
0
573
618
587
8.
Cattle
$
957
708
1198
9.
Sheep
0
58
87
46
10.
Swine
0
1034
907
1173
11.
12.
13.
Poultry-
0
143
131
157
Receipts - Not Increases - Tote
ii 0
% 478 4
1342
^245
2437
^419
Feed and Grain
0
291
14.
Labor off Farm
s^
65
123
2
15.
lliscellaneous
$
58
89
49
15.
Livestock - Total
0
3319
3596
3077,
17.
Horses
e
«•_«•«•
„_
— -..«
18.
Cattle
$
693
751
737
19.
Sheep
$
79
175
22
20.
Swine
$
2139
2292
1923
21.
Poultry
0
106
118
95
Egg Sales
$
132
116
161
<;-3.
Dairy Sales
0
170
144
139
24.
25.
Expenses - Net Decreases - Totr
Farm Iraprovements
1 0
a 1668
<"> o ry
$16 30
190
^1720
e
246
26.
Livestock
e
24
22
32
27.
Horses
e
24
22
32
^O •
Cattle
e
29.
Sheep
$
30.
Sv/ine
0
31.
Poultry
32.
ilachinery and Equipment
%
413
475
361
33.
Feed and Supplies
e
34.
Livestock Expense other than 'feed
55
53
60
35.
Crop Expenses
0
159
153
16 4
36.
Labor hired
e
408
36 7
46 5
37.
Taxes, Insurance, etc.
V
332
343
350
38.
Miscellaneous
40
22
42
39.
Receipts less Expenses
s
$3116
04615
016 99
40.
Operator's and Unpaid Family Labor
786
76 7
790
41.
Net Income from Investment
0
2330
3848
909
42.
Farms with fractor - Percent
i
53.9
50.0
52.9
43.
Value of land per Acre
e
16 5
175
152
44.
Total Investment per Acre
0
216
226
210
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'To shall endeavor in the folloTrin.5 discussion t3 p^int out the importance
of certain factors ^n their influence or. the far:;- profits. Cost of production data
will froqiacntly be referred to. Tlic cost of producin.'j fam; products hyr, hoon studied
during the past t\-.'clvo rearr, i:: different parts of lll^noir.. Tnile your record does
not pemlt determining the cor>t of prO'.luc'na; separate -oroducts on vour farm, the
information from your farri docs anahle you to learn whether the. different parts of
your busincsp correspond favorably vTi th other fur:v.s in yon.r coinr-iuni ty. A study of
a grouu of farm records fro'-r any co/:;:;"uni tv ali-'avr, inprcG'scs one r/i th the fact tiiat
each farmer can profit at some po^nt from utudring the results ihtained oy his more
G f f i c i en t f ar nc r n e 5 ghb 0 r s .
Different factor-:', v/hich wc Avish to call tj your attention include the
following:
1. To tal 7ar;-i Earnin^;s. Ti-.csc .ore shov.-n first in ter.:!s of the rate earned
on the total frrm iavestment, and second, in lcrr.iS of the Labor and i-Ianagcmcnt ■.7age.
However, in studying the frrm; earnings you v;ill bo interested in noting the last
three items on page 2 which show tho wide differences between the one- third most
profitable and the one-third le2,,t profitable ihnrs in the gross receipts and the
total erqDensea -oor o.cre, and in the resulting difference in the net receipts per
acre. These wide differences in farm Garni r-^s call for a:i analysis of a nxunber of
different factors v;hi ch affect the farm earnin.:-s. These factors are included in the
followin.g dincussiori in which we endeavor to point ov.t v.-hy these different factors
arc of special Importance.
2. Crop Yields. Good crop yields are one essential requirement for good
Incomes. Cost of production studies on IS farms in one comrriUJii tjr showed ^".hat the
cost of producing a bushel of corn voried from 3'3«f '^''- ore farm to 79^ per bushel on
another farm for the sa;.c 3/ear. Simila,r differenco'5 occurred on other crops. A
large pa.rt of the difference in cost is du.e to the difference in yield per acre. It
is not Txicorxvon to find a dificrunce of 2^,^ a bushel in the cost of producing corn
which can be attributed directly to the difference in the j-icld per s,cre since most
items of cost do not increase as the yield increases. I'/hen crop yields are low one
can well afford to study the practices of men whi scc-jrc higher --ields. In order
to determiinc wl^a.t is responsible for these differences attention shjiild be given to
the rotation of crops, quality and varlct'/ of sc:'d, use of legi^mes and m.nnure, use
of limestone amd phospha.te where reeded, prep.ar.o,tion of seed bed, cultivation, pro-
tection from diserss and insects, and drainoge.
3. He tixrn s f r ^m. Li\^-jpt )ck. One of the best mc.o,srres of the efficiency of
livestock, in these records, i r, the returns per $100.00 invested. The returns per
$100.00 worth of feed fed any class of livestock, however, gives you more reliable
information, as ti vhether the efficiency of that class of livestoch may be improved.
You are urged, therefore, to keep thj feed record on pages 33 and 39 of the farm
account book, o.t le.nst for the livestock from which you receive considerable incom.e.
As evidence of the wide var^^ation in livestocic efficiency on fanns, cost accounts
Bccurc'd on IS farms in the same con.nunity showed a ra...ge in the cost of feed in txo~
ducing pork of $'4»1S to $S.S1 per 100 pounds gain i:^. weight for che same year.
Tlie per cc.:t. of total receipts from livestock enables one to laiov; how large
a factor livestock in in determining the farm income. On some farms where livestock
represented a considerable part of the income in iS'd^'.- t/e earnings were rodxiced dtic
to the abnormal price situation. As com.p,ared with the five-year average of farm
prices from. I9O9 to 191^ the prices of meat anim.als in 152^ were only %? higher tliar
for the five-year period, while the prices of grains were 29^^" and the prices of dairy
products and eggs were 37/^ higher. Tiii s me?ns ti.p.t farms which were heavy produce^;.
- 6 -
of neat ai-imals "in 192U did not fare '3;^ 'V.-11 p-z they might oxpoct lo do on jux
average of a nurnber of yccrs whon coirparod -.73 th cither grain or dairy frrms. In
spite of this fn.ct the Irxger propartioa of livestock returns on the totter forms
*:^licate ttiat good livet-toc'c prjpcrly ha;:dled pr.id even \Ti.der the advers'^ price
si tua-tion.
Success v.ith livestock, as T7i th crop production, depends upon a n-uiriber of
fr.ctors among v/hich the follo'.7ing should be noted: Raising a large per cent, of
young animals, sanitation, prevention of disease, abilitv in buying and selling livo-
ptock, keeping animals of good cp::ality, good feeding prcctices - especially the grow-
ing of sufficient legume forage to supply rrost of the protein requi reraento , careful
p-'orchasing of additional protein and mineral sapplements v/hen needed, and the eco-
nomical use of roughage which is available on all i'r-rms.
Some men are more successful than others in handling livestock, it is not
rccommondcd that anyone quickly change hir. prr.cticc anu suddenly go into extensive
feeding or breeding operations. It is better to work gradually into the livestock
business, building up either breeding or feeding operations as he finds that live-
stock is filling a place in his system of farming.
U. Use of Man and Horse Lab or ♦ One of the best measures of the use of
labor is the number of crop seres •■vorked per man or per horse when the farms are of
the same general t jT)e . When the cost of man labor and horse labor are noted it em-
phasizes at once the importance of v/stching these items of expense and arranging
the organization of the farm to make efficient use of labor.
Cost accounting data secured on IS farms in the same comrr/oi-ity for the
same year show that the net cost of keeping a v/ork horse ranged from. $63 '76 to
$12U.15; or an average of $93«OS per h^rsc. Irhen it is considered that a horse
usually works about 20 acres jf crops when a tractor is not em.plDyed, it means that
horse labor costs \7i 11 range from $3*50 to over $6.00 per acre on different farms.
This wide range in the cost of horse labor is dependent not jnly on the number of
acres handled with one horse, but also upon the economy -.vi th \"hich the horse is fei
and whether or not other- i tem.s of ez'ipense are keiot at a lov; figure. The careful
planning of a rotation of crops is probably one of the best ways to reduce both m.an
and horse labor costs. A rotation should be chor.en so triat as uniform an amount of
man and horse labor is required from early spring ui-ti 1 late fall as possible.
Frequently the size of certain enterprises within the farm business may be adjusted
to utilize the available family labor to oavant':'.ge. Feeding down crops a:".d keeping
enough livestock to utilize labor during the seasoiis when farm work is light are
other definite means of increasing the efficiency with which labor is used. Re-
peated study Jf farm records over the state indicate t'.iat occasionally a man may
reduce the amount of both r.an labor and horse labor to a point where lower profits
are secured from, both crop and livestock enterprises b'^^cause of a lack of v/ell
directed labor. It is us\X3,lly found, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per v/orker or
per horse,
5. Expense per $100. G-ross I :ic omc . Ta-.s is a measure of thrift in all
parts of the farm business. It does not misrepresent a farm which has a largo. .ex-
pense if the income is correspondingly hi/fn. Eov/evcr, it is a wcll-leiown principle
in all business organization that eirpenses must be kept low in proportion to incom.e
if the business is to prove profitacle. Cost accounts kept on l£ f-:.ms in the
sair^e comm.unity showed tlis.t thu a.,nual bi-ilding expense per acre varied from; $1.'42
to $6.63 per acre; the annual expense for fences varis:' from $ .32 to $2.36 per acre;
and machinery and equipment ejrpcnsos va,ried from $ .o3 per acre to $2.U6. Tnese
data'-'show how much more efficient s^me fanners are than others in keeping expenses
i low.
- 7 -
Fnmcrs -.iho arc most s'^cecssful in kcopin^; cxporses lo\7 in proTiortior. to
the Incone plan their r.-^rk s:) as tj nal'e th.o lo-bDr ^f thecsolvns and no-nLcrs of th.e
f ani ly as productive as porsitle. Enterprises are included in the farn business
th.at utilize available labor at all seasons of the year. Fiii le they F.e>:;xxrc: good
va.rieties of seed, in so far as possible, they raise and prepare their o^vn seed.
Rainy days and off seasons are used to repair buildings, fences, machinery, and har-
ness. This prolongs the life of equipr.ent, saves in the purchase of nc\7 equipr.;ent
and also saves paying out money for highly pa.i d skilled labor. By having equipment
in shape they also save the expense incident to delay in the busy season caused by
broken nachiner^^ or fences, vrhich might have beer prevented by timely repair.
6. Size of Ipxv. . in most t:rpe3 of farming there is a limit to the amount
of product which can be profitably seciircd per acre. Then one finds his farm is
smaller than the more profitable farms in his locality and his income is I0.7 even
though he has good crop yields and good returns from livestock, a '..'calo'sss is fre-
quently found in the small size of farm. Tlii s situation may bo ror-icdied by buying
or renting additional land or changing the type of fanning to a more highly inten-
sive or specialized type Trhich v.'ill bring a larger v^li^ne of production, it must
be recognized, however, that some men have more ability tiian others in handling a
large sized business. Some men may find the'-r fann is consi der-'bly la.rger than the
best paying farms, but the income is lov! because of too large an area handled from
one point. Some farmers may find that thoy can seci-.ro a larger net profit by rent-
ing out som.e land and doing more efficient v/orlc on a. sr.aller acrea^je. It i 3 a \7ell-
known principle of farm m.anagemont that a fam must be large enough to utilize
capital in the form of buildings, macn^nery a:id other eqiipment , and labor in an
economical way. Just ho:? large the farm should be, however, is a Question 7/hich
depends upon the ability of the operator himself as a manager.
Balanced Farming Fayc-
Each of the factsrs previorsly discussed plays a part in determ.ining farm
profits. Pall success in fanming reqiaires tliat all parts of the farmer's business
be given attention. One may have gDod crop yields mvl maire good U!5e of livestock,
but receive a small net income beca.use of inefficient use of labor. Dr one may
work a large acrea.gc per m^n and per horse, but fail because of lov; crop yields or
poor returns from, livestock. A well balanced farm, with a fair degree of efficiency
along all lines brings the operator returns which A7ill enable him to miaintain a
good standard of living for his far.ily.
MJ:rUAL FMI« BUSil'IESS REFORT
CHAlvlPAIGU, FOKD, AIID McLEAI'I* GX'NTiSS - 192U
Prepared by K. CM. Case, M.L.Mosher, K.H.Myers
«*
The 52 fanners in the three counties who kept farm records in 192U in the
took prepared by the Extension Service earned a rate of 7 •'+3f^ on an average invest-
ment of $5U,11S after figuring their own time at $600 per year. These farms averaged
223.3 acres in size. The Labor and Management wage which represents what a man has
left as pay for h5s own work and managing ability after paying all expenses and
allowing 5 per cent, interest on the total Investment, amounted to $1S6S as an
average for all farmers. The value of the food products furnished the home and the
use of the dwelling house represent an income in addition to that shown. On 11
farms in Cliampaign and Piatt co-unties a careful record was kept of these two items,
the value of which amounted to $726 per farm at farm prices.
A com.parison v;ith other farmers in your community will help you to find at
what point you can strengthen your farm. The tables on pages 2 and 3 show the
average results of the 52 farms in comparison with those of more profitable and less
profitable farms. The I7 most profitable farms earned lO.Ul^o on the investment,
while the least profitable group made k.^ikfo. Expressed as the Labor and Management
wage, the better group made an average labor income of $3S0S . while the least
profitable group had only $l6U left to pay the manager for his ov7n labor and manage-
ment, a difference of $36UU. In comparing the more profitable farm.s with the least
profitable it v;ill be noted that the 17 more profitable farms averaged over Uo acres
larger in size, making it possible to use equipnent, machinery, and labor to greater
advantage.
The records show that the more profitable group had larger crop yields
than the least profitable group. Both groups te.d considerable land in legume crops.
The more profitable farms received over 30^ larger retiirns for every $100.00 invested
in productive livestock and the saiae v^as true for each class of livestock. They re-
ceived only 23. 8/0 of their income from livestock compared with 3S.^/b on the least
profitable farms. The more profitable farms then had larger crop yields and better
livestock, and while the more profitable farms received a smaller percentage of their
return from livestock the total income from livestock was greater on these farms.
The livestock returns, however, should be interpreted in the light of the discussion
on page 5« They also handled about 12.5 acres more crops with each man and U.5 acres
more crops '.7i th each horse '.Yhere tractors were used, than did the least profitable
group, a factor which was respDnsiblc for a slightly lower labor cost per acre.
For every $100.00 taicen in, the I7 most profitable farms had an expense of
$30, Ul while the I7 least profitable farms had an expense of $52. OU. This may be due
to any one of a large nxomber of items of cost, but as sho\7n, the more profitable
farms kept the machinery expense, and building and fencing expenses, as well as other
operating expenses, at a lower figure per acre. This may be due in part to the size
of the farms, but low expenses in relation to income is essential to profitable farm-
ing. The more profitable farms received $11. Ul larger gross returns per acre and
their expenses were $1,65 loss per acre thr'.n on the I7 least profitable farms, giving
as a result the net receipts of $214.^3 per acre as compared with only $11.37 per acre
on the 17 least profitable farms.
Records in iho east part of McLean county only, v;crc used in this report.
** C. C. Burns, G. T. Swaim, and K. Fahrnlcopf, farm advisers in Champaign, Ford and
McLc.on couiiticB respectively, cooperated in supervising and collecting the
records used in this report.
•-i-^jo-lw:!;
; «/;s.i
r-i'-s-
..■■• 7. -.■>
t :
I
I
- 2
A detailed statement of the farm earnings is g^veij dh page 3« while on page k you
will find a chart on whioh you may plot the results from your own farm which will
show at wliat points your farm showed strength or weakness.
CHAJffAlGN, FORD, AND McLEAIJ COUNTIES
Factors helping to
analyze
the farm business
Your
farm
Average
of 52
farms.
17 most
profitable
farm.s.
17 least
profitable
farms.
Rate Earned
Labor & J^Ianagement V/age
$
7.^3^
1S6S»00
lO.Ul^t
3S0S.00
U.3U^
16U.OO
Size of Farm - Acres
Crop Yields - Corn - Bushels
Oats - Bushels
Wheat - Bushels
Percent of land area Tillable
Percent of tillable land in legumes
1
223,3
Uo.7
U9.0
18 .7
95.0
16.0
255.3
4U.7
51.1
20.0
9U.7
12.3
2l!4.1
38.2
Us. 5
18.0
95.3
16.7
Returns per $100, invested in
all productive livestock
$
118 .U5
133.10
99.00
For $100. in - Cattle
- Swine
- Poultry
$
$
$
86.75
15U.S5
lUs,60
169.00
U7.7O
1^6.10
141.60
Percent of gross Income from Livestoc
^
28.5
23. S
3S,U
Man Labor Cost per Acre
Crop Acres per Man
Crop Acres per Korse(With tractor)
(Without tractor)
Expense per $100. (gross income
Machinery Cost per Acre
Building & Fencing cost per Acre
$
$
$
$
U*99
107.1
28.2
19.9
3S.S2
I.7S
1*15
k.jk
lll+.l
29.6
19.6
30. Ui
1.63
.95
5.03
101.1+
25.1
19.7
52. oU
1.31
1.69
&ross Receipts per Acre
Total Srpcnses per Acre
Net Receipts per Acre
$
$
$
29.UI1
11. U3
IS .01
35.11
10.68
2U.U3
23.70
12.33
11.37
-:: £■•*:.
# i
-. ?
■r- ^v.
i '^
* 5
t.^^^
't ''
•J ^. ...... ■•' .•«.;
- 3 -
CHAJ/IPAiGN, FOHD, ASD J.IcLEAi: C^UKTiSS
Your
Average
17 most
17 least
1
of 52
profitable
profitable
farm
farms
farms
farms
1.
Capital investment - Total
$
^UllS
59920
^6 OS 9
2.
Land
$
UU303
U935^
U52S7
3.
Farm Improvements
$
3571
3706
U35U
k.
Machinery and Equipment
$
1397
1I463
1375
5.
Feed and Supplies
$
2637
3163
2323
6.
Livestock
$
2210
223^
2750
7.
Horses
$
713
73s
829
8.
Cattle
$
675
736
S36
9.
Sheep
$
123
200
62
10.
Swine
$
5US
U03
S6S
11.
Poultry
$
151
157
155
12.
Receipts - Net Increases - Total
$
6575
S96U
5075
13.
Feed and Grain
$
I462O
6719
3071
lU.
Labor off Farm
$
66
100
30
15.
Miscellaneous
$
17
12
23
16.
Livestock - Total
$ •
1S73
2133
1951
17.
Horses
$
—— .
3
18.
Cattle
$
35s
660
159
19.
Sheep
$
12S
77
6U
20.
Swine
$
SS6
771
1300
21.
Poultry
$
lis
171
66
22.
Egg Sales
$
115
122
lUo
23,
Dairy Sales
$
26 s
329
222
2^.
Expenses - Net Decreases - Total
$
1SS9
1959
2028
25.
Farm Improvements
$
256
2U2
362
26.
Livestock
$
26
—
28
27.
Horses
$
26
2S
2S.
Cattle
$
29.
Sheep
$
30.
Swine
$
•
31.
Poultry
$
32.
Machinery and Equipment
$
393
^15
408
33.
Feed and Supplies
$
—
—
3k.
Livestock Expense other than feed
3S
3S
kl
35.
Crop Expense
$
230
270
198
36.
Labor Hired
$
1^51
kk2
U66
37.
Taxes, Insurance, etc.
$
^5
520
501
3S.
Miscellaneous
$
30
32
2k
39.
Receipts Less Expenses
ii6S7
700^
ipU7
ko.
Operators & Unpaid Family Labor
$
66U
767
613
Ui.
Net Income from Investment
$
U023
623s
2U3U
U2.
Farms with Tractor - Percent
f^
67.3/i
SS .2fb
5S.Sfb
U3.
Value of land per Acre
$
19s.
193.
212,
uu.
Total Investment per Acre
$
2i+2.
235.
262.
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K3IT TO SaijDY Y>j2 FaEI,: HSC.iRD
V/e shall endea\'or I", the followiUi:-: disCTassion t^ point otit the importance
lof certain factors in their influence on the far.r profits. Cost of production data
will frequently be referred to. Tio cost of pro^icing fara products ha=; hecn studied
during the pact twelve yearn in different parts of illnioif-.. '^TtJla your record does
not permit detcrir.ining the cost of produc^ni' separate products on your farni, the
information froa your farm docs cnahle yor. to Icam \7hether the different parts of
your business correspond favorably with other fanris in your conii-ouii ty. A stuiy of
a Qvovxi of farm records frox any cor-::m-mi tv always inpren-scs one with the fact tliat
each farncr can profit at aonic point fro.M stud-ing the results obtained by his nore
e f f i c i en t f ar n e r n e i ghl" ore;.
Different factors w?iich we wish to call to vour attention include the
following;:
1. To tal Far.'. S.nrni n;£;pi. These arc sho'.',Ti firft in terns of the rate earned
on the total farr. invecitmcnt , and second, in terms of the Labor and i.ianagcmcnt wage.
However, in studying the fsTr.: earnings yor^. v,'i 11 be interested in noting the last
three items on page 2 \7hi ch show the w^dc differences between the one- third most
profitable and the one- third leapt profitable f^rms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These Ytidc difi'erercss in fare eaminjrs call for an analys"'s of a nnnber of
different f-actors which affect the farm earnings. Tlieso factors are included in the
following discussion in which wc endeavor to point out why these different fa.ctors
are of speci.al inrportance.
2. Crop Yi elds. C-ood cnp yields are one essential requirement for good
incomes. Cost of production studios on IS farras in one co.'m'uni ty shov/ed that the
cost of prodiicing a bushel of corn varied from 3S<^ o- one fprm to JSr^ per bushel on
another farm for the sa;ne year. Similar differences occuxrcd on other cro'os. A
large part of the difference in cost is due to the difference in yield per a.cre. It
is not vuiconiiuon to find a difference of 25(# a bushel in the cost of producing corn
v.'hich can bo attributed dircctl]'- to the difference in the yield per acre since most
items of cost do not incrc?.sc .ac; the yield increases. Fv'h.en crop yields are low one
can well afford to study the practices of men '.vho secure higher yields. In order
to determine ',7hat is responsible for these differences attention should be given to
the rotation of crops, quxility and variety of seed, use of legumes and manure, use
of limestone a:id pihosphatc where needed, preparation of seed bed, cultivation, pro-
tection from disCr?se and insects, and drainage,
3. Re turn s from Livestock. One of the best measures of the efficiency of
livestock, in these records, io t'lc ret'orns per $100.00 invested. The returns per
$100.00 worth of feed fed any clas^^ of liventDCk, however, gives you more reliable
information o.s to ;.hethcr the efficiency of tho,t class of livestock may be improved.
You are urged, therefore, to keep the feed record on pages 3S and 39 of the farm
account book, at le.nst for the livestock from v.hi ch you receive considerable income.
As evidence of the wide variation in livestock efficiency on farms, cost acco^ju-.ts
secured on IS ff^rms ir the same comnxmi ty showed a r;u-ge in the cost of feed in pro-
ducing pork of $!4">1S to $S,S1 per 100 pounds gain i.i weight for the same year.
Tlie per ct/t. of total receipts from livestock enables one to kno;-? how lar^-c
a frctor livestock la in determining the farm income. On some farms where livestock
represented a considerable part of the income in 192v the earnings were reduced due
to the abnormal price situation. As compared v,n th the five-year average of farm
prices from I909 to 191^ the prices of meat a--;imals in 1S2U were only 9^o higher tlian
for the five-year period, while the prices of grains were 29^ and the prices of dairy
products a-id eggs were 37^^ higher. This means that faiT.s which wore heavy producers
- 6 -
of meat ai-.imn.l8 ilr. I92U did not fnrc sd '.veil as thty might orpoct to do on an
average of a ntLmber of years ^7hGn compared '.7i th either grain or dairy frms. In
spite of this f-^-ct the larger proportion of llvestoclc returns on the tetter farms
Indicate that good livestock properly ha::dled paid even under the adverse price
si tustion.
I Success -.Tith livestock, as -171 th crop production, depends upon a number of
I factors among v/hich the follovMng should he noted: Raising a large per cent, of
yo\mg animals, sanitation, prevention of disease, ahility in buying and selling live-
stock, keeping animals of good q'j.ality, good feeding practices - especially the gro'.7-
ing of sufficient legume forage to supply most of the protein requirements, careful
pirrchasing of additional protein and mineral supplements -.Then needed, and the eco-
nomical use of roughage which is available on all fanris.
Some men are more successful than others in handling livestock. It is not
recommended that anyone quickly change his practice and suddenly go into extensive
feeding or breeding operations. It is better to v/ork grrdually into the livestock
business, building up either breeding or feeding operations as he finds that live-
stock is filling a place in his system of farming.
U. Use of Man and Horse Labor. One of the bept measures of the use of
labor is the number of crop acres v.'orked per man or per horse vvhon the farms are of
the same general tjT)e. When the cost of man labor and horse labor are noted it em-
phasizes at once the importance of watching these items of expense and arranging
the organization of the farm to make efficient use of labor.
Cost accounting data secured on IS farms in the same commomity for the
same year show that the net cost of keeping a \7ork horse ranged from $63.76 to
$124.15; or an average 3f $93«OS per horse, IThen it is considered that a horse
usually works about 20 acres of crops when a tractor is not em>ployed, it means that
horse labor costs will range from. $3-50 to over $6.00 per acre on different farms.
Tliis wide range in the cost of horse labor is dependent not only on the number of
acres handled with one horse, but also upon the economy with which the horse is fed
and whether or not other items of expense are kept at a lov/ figure. The careful
planning of a rotation of crops is probably one of the best ways to reduce both man
and horse labor costs. A rotrtion should be chosen so that as ■uniform an amount of
man and horse labor is required from early spring until late fall as possible.
Frequently the size of certain enterprises within the ferrn business may be adjusted '
to utilize the available family labor to advantage. Feeding dow:i crops a;id keeping
enough livestock to utilize labor during the seasons when farm work is light are
other definite means of increasing the efficiency with which labor is used. Re-
peated study of farm records over the state indicate tl^iat occasionally a man may
reduce the amount of both man labor and horse labor to a point v/here lower profits
are secured from both crop ai-d livestock enterprises beca,use of a lack of \7ell
directed labor. It is usually found, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per worker or
per horse.
5. Ex-pen se per $100. &ross Income. 'Tlii s is a measure of tlirift in all
parts of the farm business. It does not r.i srepresent a farm which has a large ex-
pense if the income is correspondingly high. However, it is a well-known principle
in all business orga.ni zation that expenses must be kept livt in proportion to income
if the business is to prove profitable. Cost accounts kept on IS farms in the
sar.e commuiiity showed that the annual building expense per acre varied from $1.U2
to $6.63 per acre; the annual expense for fences variod from $ .32 to $2.36 per acre;
ajid m^achinery a.nd eauipment expenses varied from $ .S3 per acre to $2.U6. Tliese
data 'show how much more efficient some faarm.ers are than others in keeping expenses
low.
i ■ ^.1
r.i ■ ':?,j
iv"-.x^> A^
Farncrs v/ho are nust successful in keeping ojqpcr.scs lo'.? in proportion to
the incone pla:: their r;ork so as to nakc the labor of ther.sclves and nernhcrs of the
fanily as productive as possible. Enterprises are included in the farr. business
that utilize available labor at all seasons of the year. Win le they secure good
varieties of seed, in so far as possible, they raise and prepare their own seed-
Rainy days and off seasons are used to repair buildings, fences, machinery, and har-
ness. Tlii s prolongs the life of equipment, saves in the purchase of new equipment
and also saves paying out money for highly paid skilled labor. By having equipment
in shape they also save the expense incident to delay in the busy season caused by
broken machinery or fences, vrhich might have been prevented by timely repair.
6. Size of Farm. In most types of farming there is a limit to the amount
of product V7hich can be profitably secured per acre, ?iQien one finds his frjrm is
smaller than the more profitable farms in his locality and his income is lov; even
though he has good crop yields and good returns from livestock, a './ealcness is fre-
quently found in the small size of farm. This situation may be remedied by buying
or renting additional land or changing the type of farming to a r.ore highly inten-
sive or specialized type which T7ill bring a larger volume of production. It must
be recognized, however, that some men have more ability than others in handling a
large sized business. Som.c men may find their farm, is considerrhly larger than the
best paying farms, but the income is low because of too large an area handled from
one point. Some farmers may find that they can secure a larger net profit by rent-
ing out som.e larA and doing more efficient work on a smaller acreage. It Is a well-
known principle of farm management that a farm must be large enough to utilize
capital in the form of buildii^gs, machinery and other equipment, and labor in an
economical wav. Just how large the farm should be, however, is a question v-hich
depends upon the ability of the operator himself as a manager.
Balanced Farmlnis: Pays_
Each of the factors previously discussed plays a part in determining farm
profits. F'all snaccess in farming requires that all parts of the fanner's business
be given attention. One may have good crop yields and males good use of livestock,
but receive a sm.all net income because of inefficient use of labor. Or one may
work a large acreage per man and per horse, but fail because of low crop yields or
poor returns from livestock. A well balanced farm with a fair degree of efficiency
along all lines brings the operator returns which will enable him to maintain a
good standard of living for his family.
4,<j^.-" y.:
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aN1:UAL F.iRl..! BUSINESS REPORT
CLIIITOK COUNTY - 1C24,
Prepared by H. CM. Cace, I«i. L. Moshcr, K. H, Myers*
The 5o farucrs in your county who kept f ami records in 1924 in the book
prepared by the Extension Service earned a ra-^c of ^^=12% on an average investment
of Ol7,2l2 after figuring their own tine at about s,j500 per year. These farms aver-
aged 164 acres in size. The Labor and Hianagenent v;agc which represents what a man
has left as pay for his ovm work and managing ability after paying all expenses
and allov/ing 5 per cent interest on the total investment, amounted to O'^'iS as an
average for all farmers^ Tlic value of the food products furnished the home and
the use of the dwelling house represent an income in addition to that sho\vn^ On 11
farms in Champaign and Piatt counties a careful record v;as kept of these two items,
the value of which amounted to v726. per farm at farm prices,
A comparison v/ith ot?ier farmers in your ccr.ir.:unity will help you to find
at what point you can strengthen your farm. The tables on pages 2 and 3 show the
average results of the 5G farms in com.paris^n with thoce of more profitable and
less profitable farms. The 13 most profitable farms earned 9.16/ on the invest-
ment, while the least profitable grjup lacked 0.l9/i> of breaking even. Expressed
as the Labor and Management v;age, tnp better group made an average labor income
of vl243. while the least profitable group lacked 03O2 of having anything left to
pay the manager for his oTiTn labor and management, a difference of 01545. In com-
paring the more profitable far;.s with the least profitable it will be noted that
both groups of farms were the same size and both had about the same percent of
tillable land.
As shown on page 2, the more profitable group received larger crop yields
than did the least profitable group. Both groups of farms had considerable land
in legume crops. The upper group received a 20yo larger return for each siJlOO in-
vested in productive livestock, and in each class of livestock, but their livestock
represented only 68,2/o of the total gross income compared to CS.e^i. on the lov/er
group. However, the better farms had much larger incomes from the f fjrm as a whole
and from livestock. The more profitable farms then had larger crop yields, bet-
ter livestock, and a larger total income from livestock. Generally the more strict-
ly grain farms v;ith livestock well handled paid bettor in 1924 than the more
strictly livestock farms. This is an abnormal condition, however, and no inter-
pretation should be given without reading the explanation of prices given on page
5, There was no difference in the efficiency with #iich nan and horse labor was
used. The upper group had a higher man labor cost per acre. This should be con-
sidered in relation to the amount cf livestock and the returns secured from live-
stock. The upper group received twice as much income from livestock. The larger
amount of livestock demands more labor, increasing the cost per acre.
For every OlOO taken in, the 19 most profitable farms had an expense of
§55,30, while the 19 least profitable farms had an expense of ^101.70. This may
be due to any one of the large number of factors. It may bo due to low income as
well as to high expenses, Fnatever it be due to, low expenses per OlOO income is
essential to profitable farming. The more profitable farms received $11,48 larger
gross returns per acre and their expenses were only Ol'55 per acre more than on
the 19 least profitable farnis, giving as a result the net receipts of 'i^.lb per
acre as compared with a loss of (), 18 per acre on the 19 least profitable farms.
*C. H. Rehling, farm adviser in Clinton County, cooperated in supervising and col-
lecting the records used in this report.
-2-
A detailed statenent of the far:: eirnir.£iG ±o £i\Qn on pa^c 3, v.hile on page 4 you
will find a chart on which you i:ay plct tho rojults fro:.i your own f am which Virill
shoT^ at v/hat point 3 your fan., siicwsd utrur^th or wcakr.oan.
Clinton
County
Factors helping to
V
our
average
19 nost
19 least
analyze
of 5L
profitable
profitable
the farm business
f
arc
f arns
f arriS
f arr.s
Rate Earned
7»
4.73
9.16
- 0.19
Labor & Iilanagonent V^a^e
$
443.
1243.
-302.
Size of Farm - Acres
16 4, 0
16 4. a
16 4.3
Crop Yields - Corn - Bushels
26.7
30.2
21.3
Oats - Bushels
30„1
33.5
2uo 2
li'Tieat - Bushels
0.1
11.4
5.9
Percent of land area Tillable
7"
01., 5
02.4
00.7
Percent of. tillable land in le^unos
;»
14.3
13.4
16.2
Returns per yiOO. invested in
all productive livestock
0
154.45
172.95
141.35
For OlOO. in - Cattle
0
146^10
163.30
131.90
- Svri.ne
^
121.20
157.90
106.00
- Poultry
0
202.10
223.75
193.10
Percent of gross Incone fron Livestock
%
73.0
60.2'
03.6
I.Ian Labor Cost per Acre
$
5.10
6.65
5.04
Crop Acres per Man
6 4.9
65.4
6 5.1
Crop Acres per Horse
21.2
21.2
21.9
Expense por OlOO. gross Incone
e
6C.74
55.30
101,70
Jiiachinery Cost per Acre
0
1.44
1.54
1.33
Building & Fencing cost per .".ere
0
1.22
1.39
1.23
Gross Receipts per ^^icre
e
15. o7
21.01
10.33
Total Expenses per Acre
$
10.91
12.06
10. 51
Net Receipts per Acre
0
4.96
9.75
- .10
■3-
Clinton County
I our
f arm
.ivcrciijo
of 5G
f o.rns
19 cost
profitable
f arr.13
19 least
profitable
farms
1.
Capital Invcctnent - Total
2.
Land
3.
Farm Inprovomonts
4.
Machinery and Equipment
5.
Food and Supplies
6.
Livestock
7.
Horses
G.
Cattle
9.
Sheep
10.
Swine
11.
Poultry
12.
Receipts - Net Increases •
13. Feed and Grain
14. Labor off Farm
15. Miscellaneous
16. Livestock - Total
17.
Horses
10.
Cattle
19.
Sheep
20.
Swine
21.
Poultry
22.
Egg Sales
23.
Dairy Sales
TotalQ.
- Net Deere
24. Expenses
25. Farm Improvements
26. Livestock
xsos -Total ^
f
0
27. ■ Horses
20. Cattle
29. Sheep
30. Swine
31. Poultry
32. Machinery and Equipment
33. Feed and Supplies
34. Livestock Expense other than feed
35. Crop Expenses
36u. Labor hired
37. Taxes, Insurance, etc,
38. Miscellaneous
39. Receipts l_ess KxTpenses
40. Operator's and Unpaid Family Labor
41; Net Income from Investment
42, Farms with Tractor - Percent
43, Value of lajid per Acre
44, Total Investment per ricre
/.
17:: 12
1056G
2022
109G
106 9
16 55
449
315
10
120
2G0
26_04
5G9
100
14
1901
169
9
159
112
40G
1044
941
200
7
237
25
145
156
144
27
20.7
64
105
1G42
491
962
15
97
277
3595
960
170
12
2453
1C9
270
1607
21.0
53
106
16 90
213
62
3
1420
125
8
I'iG
122
314
703
053
202
22
22
219
20
141
06
133
30
045
G74
- 29
26.3
50
92
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- 5 -
::0W TO STUDY YOUR FARIvi RECORD
We shall endeavor in the follovring discussion to point out the importance
of certain factors in their influence on the farm profits. Cost of production data
■will frequently be referred to. The cost of producing farm products has been
studied during the past twelve years in different parts of Illinois. Fnile your
record does not permit deterrnining the cost of Droducing separate products on your
farm, the information from your farm does enable you to learn whether the differ-
I ent parts of your business correspond favorably with other farms in your community.
■^ study of a group of farm records from any community always impresses one with the
fact that each farmer can profit at some point from studying the results obtained
by his more efficient farmer neighbors.
Different factors v/hich we wish to call to T-our attention include the fol-
lowing:
1. Total Farm Earnings. These are shovm first in term.s of the rate earned
on the total farm investment, and second, in terms of the Labor and Management
wage. However, in studying the farm earnings you will be interested in noting the
last three items on page 2 which shov/ the wide differences between the one-third most
profitable and the one-third least profitable farms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These wide differences in farm earnings call for an aiialysis of a number of
different factors v;hich affect the farm earnings. Thetje factors are included in
the follov;ing discussion in v;hich v/e endeavor to point out why these different fac-
tors are of special importance.
2. Crop Yields. Good crop yields are one essentisLl requirement for good
incomes. Cost of production studies on 18 farms in one cornmunity shov;ed that the
cost of producing a bushel of corn varied from 39j^ on one farm to 790 per bushel on
another farm for the same year. Siiniiar differences occurred on other crops. A
large part of the difference in cost is due to the difference in yield per acre.
It is not uncommon to find a difference of 25!z! a bushel in the cost of producing
corn wiiich can bo attributed directly to the difference in the yield per acre since
most items of cost do not increase as the yield increases, Ythen crop yields are
low one can v;ell afford to study the practices of men v;ho secure higher yields.
In order to determine what is responsible for these differences attention should
be given to the rotation of crops, quality and variety of seed, use of legum.es and
manure, use of limestone and phosphate whore needed, preparation of seed bed, culti-
vation, protection from disease and insects, and drainage,
3. Returns from Livestock. One of the best measures of the efficiency of
livestock, in those records, is the returns per $100.00 invested. The returns per
§100,00 worth of feed fed any class of livestock, however, gives you more reliable
information as to whether tne efficiency of that class of livestock may bo improved.
You are urged, therefore, to keep the feed record on pages 38 and 39 of the farm
account book, at least for tlie livestock from which you receive considerable income.
As evidence of the wide variation in livet'tock efficiency on farms, cost accounts
aecured on 18 farms in tlie sam^e community sho«ved a range in the cost of feed in pro-
ducing pork of $4.18 to $8.31 per 100 pounds gain in v/oight for the same year.
The per cent, of total receipts from livestock enables one to know how
large a factor livestock is in determining the farm income. On some farms v/here
livestock represented a considerable part of the income in 1924 the earnings were
reduced due to the abnormal price situation, as compared v/ith the five-year aver-
I age of farm prices fromi 1909 to 1914 the prices of meat animals in 1924 wore only
9% higher than for the five-year period, while the prices of grains were 29^ and
the prices of dairy products and eggs were 37/^ higher. This means that farms v/nich
v/ere heavy producers of meat animals in 1924 did not fare so well as they might
o>qDect to do on an avorajo of a nunbex- of ycc.rs when compared vitn either grain or
dairy farms. In spite of tiiis fact tho larser proportion of livotstock returns on
the better fariiis indicate thi.t ivood livo-tock Tro-ocrly handled paid even under
the adverse price situation.
Success with livcotcck, as with crop production, depends upon a number of
factors among wliich the following should bo noted : Raising a largo per cent, of
young animals, sanitation, prevention of disease, ability in buying and selling
livestock, keeping aniucds of good quality, good feeding p:-acticcs - especially the
growing of sufficient legume forage to supply most of the protein requirements,
careful purchasing of addition_u. protein and miner^al supplements when needed, and
tho economical use of roughage which is available on all farms.
Some men are more successful than others in handling livestock. It is not
tecomjTiendod that 3inyone quickly change his practice and suddenly go into extensive
feeding or breeding operatiDns. It is better to work gradually into tho livestock
business, building up either breeding or feeding operaticns as ho finds that live-
stock is filling a place in 'lis system of farnang.
4. b'so ^f_ Man and Hor^e Labor. One of the best measures of the use of
labor is the number of crop acres worked per man or per horse y;hcn the farms are of
the same general type. V/nen the cost of r.an labor and horse labor are noted it em-
phasizes at once the inportav'.cs of watching theuO itcuis of expense and arranging
the organization of the frj~mto make efficient use of labor.
Cost accounting data secured on 13 farms in the s;.me coi:im.unity for the
same year show that tho net cost of keeping a work horse ranged from ^63.76 to
$124.15; or an average of v93.08 per horse. Vihon it is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it means that
licrse labor costs will ra:;ge from §3.50 to over $5.00 p-r acre en different farms.
This wide range in the coot -f horse labor is dependent not only on the number of
acres hax;dled v/ith one horse, but also upon the ec:nom.y with which the horse is fed
and whether or not othsr items of expense are kept at a low figure. The careful
planning of a rotation of crops is probably one of the bust ways to reduce both man
and horse labor costs, a rotation should bo chosen so that a.s uniform an amount of
man and horse labor is required from early spring until late fall as possible.
Frequently the size of certain enterprises v/itxiin the farm business may be adjusted
to utilize the available family labor to advantage. Feeding dovm crops and keeping
enough livestock to utilize labor during tho seasons when farm work is light are
other definite means of increasing the efficiency with which labor is used. Re-
peated study of farm records over the state indicate that occasionally a man may
reduce the amount of both man labor and horse labor to a point whore lower profits
are secured from both crop and livestock enterprises because of a lack cf well
directed labor. It is usually found, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per worker or
per horse.
^' Sxperso £££ jlOO. '-■-rcss Income. This is a measure of thrift in all
parts of the farm business. It docc; net r.ls represent a farm which has a largo ex-
pense if the income is correspondingly high. However, it is a well-knowi principle
in all business organi::ation th;-.t expenses must bo kept low in proportion to income
if the business is to prove profitablo. Cost accounts kept on 18 farms in the
same community showed that the c-rnual building es-pense per acre varied from Ol«42
to !(^.63 per acre; the annual expenre for fences varied from 0 .32 to *>2,36 per
acre, and machinery and equipment expenses varied from 0 *S3 per acre to 02.46.
These data show hov/ much r.iorc efficient some farmers are than, others in keeping
expenses low.
FarnorD who -re tior^t ouccessfal in keeping exper.scE lev; in proportion to
the incono plui their work ao 'Xu to u-^ko tno labor of t-iousclvos and r^enbers of the
aiTiily as productive as possible, Enterprises are included in the fern business
that utilize available labor at all seasons of tiie year. •<hilc tliey secure good
varieties of seed, in so far as possible, thc^ raise and prepare their own seed.
Rainy days and off seasons are used to repair buildixigs, fences, niachinery, and har-
ness. This prolon^'E the life of equipr.ent, saves in the purchase of nev; equipment
and also saves paying out noney for highly paid skilled labor. By having equipment
in shape they also save the expense incident to delay in the busy season caused by
broken machinery or fences, which rdght have been prevented by tiucly repair.
6. Size of Farn. In r.ost types of farning there is a liiuit to the anxjunt
of product v;hich can be profitably secured per acre. V»'hon one finds his farm is
smaller than the acre profitable farms in his locality and Ids income is low oven
though he has good crop yields and good returns from livestock, a weakness is fre-
quently found in the snail size of farm. Tliis situation may be remedied by buying
or renting additional land or changing the typo of farring to a more highly inten-
sive or specialized typo v/hich \7ill bring a larger volu.vie ;-f production. It must
be recognized, however, that some men kavo more ability/' than others in handling a
large sized business. Some non may find their farm, is considerably larger than the
best paying farms, but tho incono is lo\7 bocause of too large an area handled from
one point, oome farmers may find that they can secure a larger net profit by rent-
ing out some land and doing more efficient work on a smaller acreage. It is a well-
knov/n principle of farm nanagoncnt that a farm must be large enough to utilize
capital in the form of buildings, machinery and other equipment, and labor aa an
economical way. Just how largo the farm shoiald bo, hov/evcr, is a qui^stion which
depends upon the ability of the operator hiriSolf as a manager.
lalancbd Farmdng Pa-'s.
Each of the factors previously discussed plays a part in determining farm
profits. Full success in fari..ing requires that all pcijrts of the farmer's business
be givai attention. One may ha'vxs good crop yields and make good use cf livestock,
but raceive a small net income bocause of inefficient use of labor. Or one may
work a large acreage per man and per horse, but fail because of low crop yields or
poor returns from livestock. A v.'ell balanced farm with a fair degree of efficiency
along all lines brings the operator returns which v/ill enable him to m.aintain a
good standard of living for his fL\r.'dly,
AIWUAL FARM BUSlJffiSS KEP3ET
Douglas, Moultrie, Coles, and Clark* Counties - 192^
Prepared ty H. C. M. Case, U. L» Mosher, K. H. Myers**
The 32 farmers in the four counties who kept farm records in 192U in the
book prepared hy the Extension Service earned a rate of So225& on an average invest-
ment of $UO,366.00 after figuring their own time at ahout $600.00 per year. These
farms averaged 200 acres in size. The Labor and llanagomcnt wage which represents
what a man has left as pay for his own work and managing ability after paying all
expenses and allowing 5 pcr cent interest on the total investment, amounted to
$1816.00 as an average for all farmer r.. The value of the food products furnished
the home and the use of the dwelling house represent an income in addition to that
shown. On 11 farms in Chai:ir)aign and Piatt counties a careful record was kept of
these two items, the value of which amounted to $726.00 per farm at farm prices.
A comparison with other farm.ers in your community will help you to find at
what point you can strengthen youf farm. The table on page 2 shows the average re-
sults of the 32 farms in comparison with those of more profitable and less profit-
able farms. The 10 most profitable farms earned ll.S65^ on the investment, while the
least profitable group made only 3»9^'-5^<' 3?5)rcg3cd as the Labor and Management wage,
the better group made an average labor income of $3330.00, while the least profit-
able group had onlj^ $120 left to pay the manager for his own labor and management, a
difference of $3710. In comparing the more profitable farms with the least profit-
able, it will be noted that the 10 more profitable farms averaged over 30 acres
larger in size, malcing it possible to use equipment, machinery and labor to greater
advan tage .
The records show that the more profitable group had larger crop yields
than the least profitable group. In the first group 95»S^ of the land area was
tillable, while in the second group S7.2^ was tillable land. Both groups had con-
siderable legume crops. There v/"s little difference in the returns per $100 invest-
ed in livestock. The lower group had better returns in the more important classes
of livestock than did the upper group. The more profitable group, then, had better
crop yields, and slightly better returns per $100 invested in livestock, but less
grain was marketed through livestock than in the lower group. This is an unusual
condition resultfe^j from the price situation. Further explanation of the unusual
condition of prices is given on page 5« This is probably temporary and should not
be considered a basis for chp.nging the system of production to one which includes
less livestock. Farms with the best paying classes of livestock made more money
than farms \T3-th a small amount of income from livestock last year.
For every $100,00 taken in, the 10 m.03t profitable farms had an expense of
$29,30, while the 10 least profitrble farms had an expense of $61,05. This may be
due to any one of a large nu~iber of item.s of cost, but as sho'.vn, the more profitable
farms kept the machinery cx-ocnscF; and building and fencing expenses as well as other
operating expenses at a lower figure pcr acre. While th'' s may be due in part to the
size of the farras, usually, low expenses per $100,00 mean that no unnecessary ejrpen-
ditures are made. The more profitable f,arms received $l6o53 larger gross returns per
acre and their expenses were $1^27 lcr;s per acre than on the 10 least profitable farms,
giving as a result the net receipts of $25,30 per acre as compared with only $7*50
•per acre on the 10 least profitable farnis,
* Records from, the Northwest part of Clark County only were used.
** F.W, Garrett, C.C, Turner, Mclvin Thomas, and W.'T. Mcrritt, farm advisers in
Dou^:las, Moultrie, Coles, and Clark Couiities, respectively, cooperated in supervising
and collecting the records used in this report.
■j:'^. ■'^""V'.l'^f-*;
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- 2 -
A detailed statement of the farm earnings is given on pa-^e 3> while on
page h you will find a chart on which you inay plot the results from your o\'m farm
iffhich will show at what points your farm showed strength or \7eakness.
Douglas
, Coles
, Moultrie, and Clark Counties
Factors helping to
YOVT
Avc;ra,;;e
10 most
10 least
analyze
of 32
pjrofi taole
profi ta.ble
the foi-m husineBs
farm
farms
farms
farms
Rate Earned
^0
S.22fb
11.36fb
3.9^^
Lahor & l/Ianagsnent Wage
$
$ ISlb.
$ 3S3O.
$ 120.
Size of Farm - Acres
200.0
225.7
192.5
Crop Yields - Corn - Buslielfj
U5.O
Ug.9
U^.U
Oats - I^urhsls
ifU.O
UI1.7
41.5
F.ieat - 3u£-:icls
22 a
23 .S
22.1
Percent of land area Tillable
i
91.3
95..3
87.2
Percent of tillable land in legumes
'h
15. s
12.9
19. s
Returns per $100. invested in
'
all productive livestock
$
1^2,10
150,30
145.U5
For $100. in - Cattle
$
100.90
71.U5
95.00
- Swine
$
I99o0
1SS05
210.00
- Poultry
$
1U6.05
160, S5
151.35
Percent of gross income from livestock
'p
35.^
22.2
54.0
Man Lahor Cost per Acre
$
5.16
5.03
5.30
Crop Acres per Ivian
51.5
90, s
2S.5
Crop Acres per Korse(With tractor)
27' /
27. s
22.9
( 173 thout tr ac 1 3 r )
IS. 2
l7o7
19.5
Expense per $100. .gi'oss Incoi.-.e
$
Uc.oi
29.30'
l/[6
6lc05
iiachinery Cost ror Acre
$
l.'S
1-51
Building & Fencin.°; cost per Acre
$
.27
.73
1.11
Gross Receipts per Acre
$
27. eu
35-7G
19»25
Total Expenses per Acre
$
11. OS
10„1+S
11.75
Net Receipts per Acre
$
16.5s
25.30
7.50
,'':1''
: i
- 3 -
DOUGLAS^ LDULraiE
COLES, AITD
CIAHIC COWTTISS
Your
Average
10 most
10 least
1
of 32
profitahle
profi table
'1
fasm
farms
farms
farms
1,
Cenitnl Inveptment - Total
*
$ J 0-66
$'45109
$36553
2.
Land
$
32209
39395
29133
3.
Fa.'m tmprovements
$
J 01 5
35-7
3271
h.
^lachinery and i-quipment
$
10!-^S
lisU
99s
5-
Feed and Supplies
$
1^^,25
21 5U
1261
6.
Livestock
?
1909
16 oy
isso
7»
Hc"^?es
^
606
751
629
S.
Uc-.C'-l3
$
696
:;o9
72U
9.
L>1:Gop
$
Sk
1 42
10
10.
f-.-Jne
$
k03
352
U30
11.
Potiltry
$
105
115
77
12.
Recsi-ots - Vet Increases - Total
$
^2S
SC75
2705
13.
iaed. an! Grain
$
35-3
6191
1652
li^.
La'dor off rariu
16
3
15.
Kiscollaneo"a =
^
50
65
Us
16.
Lives-Goclc - Total
$
1959
1793
2002
17.
Horses
$
m^—mm
— — —
ICo
Cattle
$
292
cS
Zkk
19.
Slie 2p
$
35
HS
25
20.
Swine
$
1122
13^1
1160
21.
Poultry
$
105
116
ii6
22.
Kei Sales
$
67
77
3S
23.
Dairy Sales
$
33s
1^3
Uig
2k.
Expense- r, - INTct decreases - Total
Tai'm Improvements
A
*
l^lS
173
1^69
1/7
15cS
21 U
P-5'
$
?.S,
LiTep-cock
$
35
1+0
39
27.
Herpes
$
35
ko
39
2S.
fattJe
$
29.
rrifjcp
$
30.
5\7-ine
$
31.
Po-iltry
*
32.
iiacliincf-y rrd Equipnient
.'^i
29s
330
291
33.
Fjod arid S-.-pplie^s
—
—
3^.
Livestock T^ypense other than feec
. $
37
2S
U9
35.
Crop Expense
$
211
212
203
36.
Labor hired
J.
337
33s
3U7
37.
TaT.e s , In ?a.ranc e , etc.
J'j
Uoi
i|25
399
3S.
Miscellaneous
$
26
19
Ui
39.
Recei-pts less Expenses
$
Uoio
6506
7 97
5709
2117
67U
l^H3
'40.
Operators & Unpaid Fa-i ly Labor
$
69U
3316
^1.
Net Inco-ne from Investment
$
Up.
\ _
Farris '-'i th Tractor - Percent
$>
%.9f.
60f«
30^
4j.
Value of land per Acre
$
164
175
151 1
U4.
Total Invcs-cment per Acre
$
202
213
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HD:; to SKDY YruH TARI.: 1133 JHD
I7e shall endeavor in the following discussion tj point out the importance
of certain factors in their influence on the far.r profits. Cost of production data
will frequently be referred to. T"ne cost of producin^j farm products ha^ hecn studied
[during the pa.st twelve yearn in different parto of illinoin. '.'/hile your record does
I not permit dotcnr.ining the cost of producing separate products on your farrii, the
information from your fam docs enahle j/ou to learn \7hether the different parts of
" 70ur busi^^osp correspond favorably with other farms in your co;u=r!uni ty. A study of
. group of farm records froir. any cor.-.niani ty always irrprecses one with the fact tliat
ach farmer can profit at some point from studving the results obtained by his more
jfficicnt farmer neighbors.
Different factors which we wish to call to vour attention include the
following:
1. To tal Farm Earnings* These -are shorm first in terms of the rate co-rned
on the total farm, investment, and second, in tcm-.s of the Labor and i.;anagemicnt wage.
However, in studying the farm earnings you ^7ill be interested in noting the last
three i tem.s on page 2 \7i1ich show the w^de differences between the one- third most
profitable and the one- third least profitable farms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These wide differences in farm earnings call for an analysis of a number of
different factors which affect the farm earnings. These factors are included in the
following discussion in which we endeavor to point out why these different factors
ire of special importance.
2. Crop Yields. Good crop yields are one essential requirement for good
incomes. Cost of production studies on IS farms in one community showed that the
cost of producing a bushel of corn varied from 35^ O- one farm to 79^ P^r bushel on
another farm, for the same year. Similar differences occurred on other crops. A
large part of the difference in cost is due to the difference in yield per a,cre . It
is not imcommon to find a. difference of 25^ a bushel in the cost of producing corn
which can be attributed directly to the difference in the yield per acre since most
items of cost do not increase as the yield increases. When crop yields are low one
can well afford to study the practices of men v/ho secure higher yields. In order
to determine v/hat is responrjible for those differences attention should be given to
the rotation of crops, quality a.nd variety of seed, use of legumes and manure, use
of limestone a:id phospha.tc where needed, preparation of seed bed, cultivation, pro-
tection from disease and insects, and drainage.
3. Be turns from. Livestock. 0:ie of the best mua.surcs of the efficiency of
livestock, in these records, is the returns per $100.00 invested. The returns per
$100,00 worth of feed fed any class of livestock, however, gives you m.ore reliable
information a.s to v.hether the efficiency of that class of livestock may bo improved.
You are urged, therefore, to keep the feed record on pages 3S a:id 39 of the farm
account book, at least for the livestock from which you receive considerable income.
As evidence of the wide variation in livestocji efficiency on fa.rms, cost accouiits
secured on IS farms In the same contnunity showed a raiige in the cost of feed in pro-
ducing pork of $U',1S to $S.S1 per 100 pounds gain in weight for the same year.
Tlic per cent, of total receipts from livestock enables one to Icnow hov; large
a factor livestock is in determining the farm income. On some fa.rms where livestock
represented a considerable part of the income in 192't the earnings were reduced due
to the abnormal price situation. As compared v.-! th the five-year average of farm,
prices from. I9O9 to 191^ the prices of neat a:-iimals in I92U were only 9/' higher than
for the five-year period, while the prices of grains were 29^ and the prices of cla.iry
products and eggs were 37^ higher. This means t'riat farms which wore heavy producers
■ I ■. .-r
■¥^.H~^.^ s-
- 6 -
of meat a:--imals in 192U did not f-^rc go v.-c11 as thLy might expect to do on an
average of a number of years '.rhcn compared ■.-:: th ci th'^r grain or dairy frms. In
spi to of this fact the larger proportion of livestoc?c returns on tho hotter fnrras
Indicate that good livet'tock properly h-x-.dled paid even uitder the adverse price
si tuation.
Success v.-lth livestock, as -.71 th crop production, depends upon a numher of
factors among v/hich the folloTjing shoi'.ld he noted: Saisin^'^ a large per cent, of
young animals, sanitation, prevention of disease, ahility in huying a:id selling live-
stock, keeping animals of good CjUality, good feeding practices - especially the grow-
ing of sufficient legurno forage to s^apply r.ost of the protein requi rcaentc, careful
purchasing of additional pr:)tein and mineral supple.-nents vThcn needed, and the eco-
nomical use of roughage which is availaole on all faiiris.
Some men are more successful than others in handling livestock, it is not
recommended that anyone quickly change his practice .'..nd suddenly go into extensive
feeding or Irocding operations. It is better to work grrd'oally into the livestock
business, building up either breeding or feeding operations as he finds that live-
stock is filling a place in his system of farming,
h. Use of Man and Horse Labor, One of the ber.t measures of the use of
labor is the n-'omber of crop acres v;or1;3d per man or per horse when the farms are of
the same general t.ype. When the cost of man labor a:id horse labor are noted it em-
phasizes at once the importance of watching these items of expense and arranging
the organization of the fam; to malce efficient use of labor.
Cost accounting data secured on IS farms in the same commurJty for the
same year show tha.t the net cost of keeping a work h^rse ranged from ^63 -76 to
$12^.15; or an average jf $93«OS per horse. '.Then it is considered th^t a horse
usually works about 20 acres of crops when a tractor is not employed, it means that
horse labor costs will range from $3-50 to over $6.00 per acre on different farms.
Tlii s wide range in the cost of horso labor is dependent not only on the number of
acres handled with one horse, but also upon the economy v/i th which the horse is fed
and whether or not other items of expense a.re kept at a lov,' figarc. The careful
planning of a rotation of crops is probrbly one of the best ways to reduce both man
and horse labor costs. A rotation should be chosen so that as unifonn an amount of
nrj. and horse labor is reqti.ired from early spring ■^jnti 1 late fall as possible.
Frequently the size of certain enterprises within the frm business may be adjusted '
to utilize the available f£jni ly labor to advantage. Feeding down crops and keeping
enough livestock to utilize labor during the seasons when farm work is lig?-t are
other definite means of increasing the efficiency with wh'lch labor is tised. Re-
peated study of farm records over the state indicate tli?t occasionally a man may
reduce the araoTont of both r.an labor and horse labor to a point where lower profits
are secured from both crop a::d livestock enterprises beca.U£e of a lack of well
directed labor. It is usually found, however, that the more profitable farm.s not
only secure larger yields per acre, but taey handle a larger acreage per worker or
per horse.
5. Ex-pcnse per $100. 3-ros5 I"corie. Cii s is a measure of thrift in all
parts of the farm business. It does not misrepresent a farm which has a large ex-
pense if the income is correspondingly high. However, it is a well-known principle
in all business organization thiat expenses must be kept lov/ in proportion to incom.e
if the business is to prove profitable. Cost accoxu.ts kept on IS farms in the
sa:ne communitj- showed that the a;:nual building expense per acre varied from $1.^2
to $6.63 per acre; the annual expense for fences variod from $ .32 to $2.36 per acre;
and machinery a,nd eauipment expenses varied from. $ .S3 per acre to $2.U6. Tuese
data 'show how much more efficient some farm.ers are than others ■'n keeping e>rpenses
low.
..!>.^ti:'^u rt--;
. ». it, ..
.•r. \^ -
■* -■f*'- *f-?i *•»/. jr
Fnrir.crs -.vho ctc nnst s-acciLssiul in kci-ping expenses lo\7 ^rx proportion to
the dnone pla:: their u'ork r,o as tj n.iJr.c the labor of ther.sclvcs and nenloors :)f the
faj-iily as productive as poccicle. Enterj.iri ses are included in the fare business
that utilize available labor at all seasons of the year. Wii le they secure good
varieties of seed, in so far as possible, they raise and prepare their own seed.
Rainy days mid off seasons are used to repair bui?din2s, fences, machinery, n:id har-
ness. Tills prolongs the life of equipnert, sav?s in the purcliasc of ne\7 equipment
and also saves paying out noney for highly paid £;1-J].led labor. By hD.ving equipment
in shape thcj'- also save the expense incident to delay in the busy season caused by
broken machinery or fences, -.vhi ch might have been prevented by timely repair.
6. Si_ze _of Farm. In most types of farraing there is a limit to the amount
of product ^7hich cem be profitably secured per acre. Wien. one finds his farm is
sm.aller than the more profitable farms in his locality and his income is lov; oven
though he has good crop yields and good returns from livestock, a '.vecloiess is fre-
quently found in the small cize of farm. This si T^ua^icn may be remedied by buying
or renting additional land or changing the type of fa.rming to a r.ore highly inten-
sive or specialized type which will bring a larger volume of production, it must
be recognized, horever, that some men have more ability than others in handling a
large sized business. Som.c men may find their farm Is considerably larger than the
best paying farms, but the income is low because of too large an area handled frori
one point. Some f.-^r.iers may find tiiat they can secure a larger net profit by rent-
ing out som.e land ana doing more efficient v7ork on a smaller a.creage. it is a well-
known principle of irrm management that, a farm m'ast be large enough to utilize
capital in the form of buildings, machinery and other equipment, and labor in an
economical wav . Just how large the farm should be, however, is a question which
depends upon the ability of the operator himself as a mianager.
Balanced Farming Pay3_
Each of the factors previously discussed plays a part in determining farm
profits. F'^ll s'lccets in farming requires that all parts of the farmer's business
be given attention. One may have good crop yields and m,alce good use of livestock,
but receive a small net income because of inefficient use of labor. Or one may
work a large acropge per m^an and per horse, but fail b'ioause of 1-. ,7 crop yiolda or
poor returns from, livestock. A well balanced farm, v/ith a fair degree of eff-'ciency
along all lines brings the operator returns which will enable him to maintain a
good standard of living for his family.
tf;.f.Kf;-r
"^---j^d
i.l*j'* / t.^ ti'i
.J<JNUAL FARI.-I BUSINESS REPORT
HENRY, ;.iARSHALL-PUTNAI.I A!'D VffllTESIDE COUNTIES - 1924
Prepared by H.C.IJ. Case, M.L. Moshor^ K.K< Myers*
The 41 farmers in the four counties who kept fann records in 1924 in the
book prepared by the Extension Service earned a rate of 7.'i2^c on an average invcst-
lont of 046,855 after figuring their ov/n time at about v600 per year. Those farms
'averaged 208.5 acres in size. The Labor and 'vianagoment wage \7hich represents what
a man has left as pay for his ovm work and managing ability after paying all ex-
penses and allowing 5 per cent interest on the total investment, amounted to vl725
as an average for all farmers. The value of the food products furnished the home
and the use of the dwelling house represent an income in addition to that shown.
On 11 farms in Champaign and Piatt counties a careful record was kept of these two
items, the value of which amounted to 0726 per farm at farm prices,
A comparison with other farmers in j'lDur community will help you to find
at what point you can strengthen your farm. The tables on pages 2 and 3 show the
average results of the 41 farms in comparison with those of more profitable and less
profitable farms. The 14 most profitable farms earned 10..947o on the investment,
while the least profitable group made 3.70/o. Expressed as the Labor and Management
wage, the better group made an average labor income of v3778, while the least prof-
itable group had only 054 left to pay the manager for his own labor and management,
a difference of s;3724. In comparing the more profitable farms with the least
profitable it will be noted that the 14 more profitable farms averaged over 45
acres larger in size, and had a larger percentage of tillable land. This should
be considered in comparing the efficiency v;ith which equipment, machinery, and labor
is used.
The records show that the more profitable group had better crop yields,
especially corn and wheat, than the lov/er group, L-oth groups had considerable land
in legume crops. The records indicate that there was very little difference in the
amount of livestock kept, or in the efficiency v/ith which livestock was handled on
the two groups of farms. The fact that only 82.5/o of the land area in the lower
group was tillable compared with 94,5 in the upper group, and the fact that live-
stock made up 91,07<, of the gross income in the lower group compsired with 41,3/o in
the upper group, indicates that livestock was a more important source of income on
the lower group. The more profitable farms received as much income from livestock,
but due to larger size and a larger percent of tillable land they were able to pro-
duce a larger surplus of feed which was marketed direct. Studies over a long period
of years indicate that farms on v^hich a considerable part of the grain is marketed
through livestock, return a better income than those on which a large part of the
grain is marketed direct, 1924 was an exception to this due to the abnormal price
situation, which is further explained on page 5 of this report.
For every vlOO, taken in, the 14 most profitable farms had an expense of
v33,12, while the 14 least profitable farms had an expense of v59.85. This may be
due to any one of a large number of items of cost. It may be duo to low income
as well as to high expense, V/hatevor it bo due to low expenses per OlOO income
are essential to profitable farming. The more profitable farms received vl7,01
larger gross returns per acre and their expenses wore only vO, 06 more per acre
than on the 14 least profitable farms, giving as a result the not receipts of 25.32
*J, W, Whisenand, F.E, Fuller, and L.O.Wise, farm advisers in henry, Marshall-Putnam
and \Vhiteside counties, respectively, cooperated in supervising and collecting the
records used in this report.
-2-
por aero as conparod with 8.37 por acre on the 14 least profitable f arns. ji de-
tailed statonont of the farn earnings is given an page 3, v,riiilo oh page 4 you will
find a chart on which you nay plot the rooults iron your own farm which will show
at what points your farn showed strength or v;eakn08S,
Honry, Marsnall
-Putn:
in
and Whiteside Counties.
Factors helping to
Your
Average
14 nost
13 least
analyze
of 41
profitable
profitable
the farn business
farn
f arns
f arns
f arns
Rate Earned
%
7.42fo
10.94
3.70
Labor and Managenent Wage
0
$1725.
3778.
54.
Size of Farn - Acres
208.5
231.2
186.0
Crop Yields - Corn - Bushels
41.8
43.8
34.4
Oats - Bushels
54.9
54.0
53.4
Wheat - Bushels
28.1
28.1
14.9
Percent of land area Tillable
%
85. 5f,
94.7
82.5
Percent of tillable land in legunes
%
16,2>i
16.4
17.5
Returns por $100. invested in
all productive livestock
$
$126.95
135.35
137.70
For $100. in - Cattle
$
$ 88.90
86.15
108.00
- Swine
$
$167.35
170.50
160.85
- Poultry
$
$157.20
167.50
185.20
Percent of gross Income fron Livestc
)ck
i
59.4/0
41,3
91.0
Man Labor Cost por Aero
0
$ 6.21
6.71
6.07
Crop Acres per Man
80.6
88.2
79.6
Crop Acres per Horse (With tractor)
24.6
20.9
32.4
(Without tractor)
16.9
15.4
19.2
Expense per UIOO. gross Incone
0
$ 42.80
33.12
59.85
i^Iachinery Cost por Acro
0
$ 2.20
2.19
2.00
Building & Fencing cost per Acro
0
C 1.16
.90
1.11
Gross Receipts per Acre
i
0 29.15
37.86
20.85
Total Expenses per Acro
$
0 12.43
12.54
12.40
Net Receipts per Acre
0
0 16.67
25.32
0.37
-3-
Honry, Ivlarshall-Putiian'., Vj'niteslis Counties*
Your
Average
14 most
13 least
I
of 41
profitable
profitable
Farm
farms
farms
f arms
1. .
Capital Investnent - Total
♦
146855
$53533
$42146
2.
Land
e
35353
42044
30930
3.
■> 4.
Farn Inprovemonts
$
4869
5053
4506
Machinery and Equipment
e
1457
1330
1510
5.
Feed and Supplies
$
1973
2082
2115
6.
Livestock
f
3198
3019
3005
1 .
Horses
«
593
603
645
a.
Cattle
$
1489
1200
1319
9.
Sheep
$
29
17
17
10.
Swine
$
953
1050
936
11.
Poultry
$
129
149
110
12.
13.
Receipts - Net Increases - Total
1
^ 6079
23o0
$ 8754
4975
i 3078
26 3
Feed and Grain
14.
Labor off Farn
*
61
121
40
15.
Miscellaneous
$
39
46
45
16.
Livestock - Total
e
3611
3612
3530
1
17.
Horses
$
._«•-•
-•»* —
18.
Cattle
$
944
671
1042 i
19,
Sheep
$
61
69
63
20.
Swine
e
2053
2313
1905
21.
Poultry
0
119
127
122
22.
Egg Sales
e
101
145
103
23.
Dairy Sales
$
333
287
295
1
24.Expenses - Not Decreases - Total
*
S 1756
$ 2001
1
^ 1467 i
25.
Farm Improvements
e
243
209
206 i
26.
Livestock
$
28
42
35 '
1
27.
Horses
0
20
42
1
35 1
20.
Cattle
0
i
i
29.
Sheep
0
1
30.
Swine
$
1
31.
Poultry
$
1
32.
Machinery and Equipment ^
e
450
507
373 {
33.
Feed and Supplies
0
~~ 1
34.
Livestock Expense other than f
oedO
51
41
57 !
35.
Crop Expenses
$
171
101
162 1
36.
Labor hired
e
449
6 53
202
37.
Taxes, Insurance, etc.
$
322
335
312
38.
Miscellaneous
0
34
33
40
39.
Receipts less Expenses
f.
i 4323
a 6753
$ 2411
40.
Operator's and Unpaid Family Lab
or?
046
054
41.
Not Income from Investment
S
3477
5055
1557
42.
Farms with Tractor - Percent
7°
61.0
64.3
69.2
43.
Value of land per Acre
s
170.
102.
166.
44.
Total Investment per Acre
0
225.
232.
226.
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f.
HOW TO STUDY YOUR FARIvl RECORD
V/e shall endeavor in the following discussion t6 point out the importance
of certain factors in their influence on the farm profits. Cost of pt-oduotion data
will frequently be referred to. The cost of producing farm products has been
studied during the past twelve years in different parts of Illinois, While your
record does not permit deterriiining the cost of producing separate products on your
farm, the information from your farm does enable you to learn whether the differ-
ent parts of your business correspond favorably with other farms in your community,
■rt- study of a group of farm records from any community always impresses one with the
fact that each farmer can profit at some point from studying the results obtained
by his more efficient farmer neighbors.
Different factors which we wish to call to vour attention include the fol-
lowing:
1. Total Farm Earnings, These are shovm first in terms of the rate earned
on the total farm investment, and second, in terms of the Labor and Management
wage. However, in studying the farm» earnings you will be interested in noting ^he
last three items on page 2 v/hich show the wide differences between the one-third most
profitable and the one-third least profitable farms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These v/ide differences in farm earnings call for an analysis of a number of
different factors which affect the farm earnings. These factors are included in
the following discussion in which T/e endeavor to point out why these different fac-
tors are of special importance.
2. Crop Yields. Good crop yields are one essential requirement for good
incomes. Cost of production studies on 18 farms in one community showed that the
cost of producing a bushel of corn varied from 390 on one farm to 790 per bushel on
another farm for the same year. Sinilar differences occurred on other crops. A
large part of the difference in cost is due to the difference in yield per acre.
It is not uncommon to find a difference of 250 a bushel in the cost of producing
corn which can be attributed directly to the difference in the yield per acre since
most items of cost do not increase as the yield increases, V/hen crop yields are
low one can well afford to study the practices of men v/ho secure higher yields.
In order to determine what is responsible for those differences attention should
be given to the rotation of crops, quality and variety of seed, use of legumes and
manure, use of limestone and phosphate whore needed, preparation of seed bed, culti-
vation, protection from disease and insects, and drainage,
3. Returns from Livestock. One of the best measures of the efficiency of
livestock, in these records, is the returns per §100.00 invested. The returns per
$100.00 worth of feed fed any class of livestock, hov/ever, gives you more reliable
information as to whether the efficiency of that class of livestock may be improved.
You are urged, therefore, to keep the feed record on pages 38 and 39 of the farm
account book, at least for the livestock from which you receive considerable income.
As evidence of the wide variation in livestock efficiency on farms, cost accounts
aecured on 18 farms in the same community showed a range in the cost of feed in pro-
ducing pork of $4.18 to $8,81 per 100 pounds gain in weight for the same_ year.
The per cent, of total receipts from, livestock enables one to know how
large a factor livestock is in determining the farm income. On some farms where
livestock represented a considerable part of the income in 1924 the earnings were
reduced due to the abnormal price situation, ab compared Vi/ith the five-year aver-
age of farm prices from 1909 to 1914 the prices of meat animals in 1924 were only
9% higher than for the five-year period, while the prices of grains were 29^ and
the prices of dairy products and eggs were 377° higher. This means that farms v;hich
v;ere heavy producers of meat animals in 1924 did not fare so woll as they might
- 6 -
ejq^ect to do on an average of a nunber of ycc.rs when compared with either grain or
dairy farms. In spite of this fact the larger proportion of livestock returns on
the better farms indicate that good livestock properly handled paid even under
the adverse price situation.
Success with livestock, as with crop production, depends upon a number of
factors among which the following should bo noted: Raising a large per cent, of
young animals, sanitation, prevention of disease, ability in buying and selling
livestock, keeping animals of good quality, good feeding practices - especially the
grovri.ng of sufficient legume forage to supply most of the protein requirements,
careful purchasing of additional protein and mineral supplements when needed, and
the economical use of roughage which is available on all farms.
Some men are more successful than others in handling livestock. It is not
tecomraended that anyone quickly change his practice and suddenly go into extensive
feeding or breeding operations. It is better to v/ork gradually into the livestock
business, building up either breeding or feeding operations as ho finds that live-
stock is filling a place in his system of farming.
4. Use of ?ian and Horse Labor. One of the best measures of the use of
labor is the number of crop acres worked per man or per horse v/hen the farms are of
the same general type. V/hen the cost of man labor and horse labor are noted it em-
phasizes at once the importance of v/atching these items of expense and arranging
the organization of the farm to make efficient use of labor.
Cost accounting data secured on 18 farms in the srane community for the
same year show that the net cost of keeping a v/ork horse ranged from $63.76 to
$124.15; or an average of 093.08 per horse. Mien it is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it mxans that
horse labor costs will range from $3.50 to over $6.00 per acre on different farms.
This wide range in the cost of horse labor is dependent not only on the nunijer of
acres ha.:dled witli one horse, but also upon the economy with which the horse is fed
and whether or not other items of expense are kept at a low figure. The careful
planning of a rotation of crops is probably one of the best v;ays to reduce both man
and horse labor costs, a rotation should be chosen so that as uniform an amount of
man and horse labor is required from early spring until late fall as possible.
Frequently the size of certain enterprises within the farm business may be adjusted
to utilize the available family labor to advantage. Feeding down crops and keeping
enough livestock to utilize labor during the seasons when farm work is light are
other definite means of increasing the efficiency with which labor is used. Re-
peated study of farm records over the state indicate that occasionally a man may
reduce the amount of both man labor and horse labor to a point where lower profits
are secured from both crop and livestock enterprises because of a lack cf well
directed labor. It is usually found, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per worker or
per horse.
5. Expense per ijlOO, 'jross Income. This is a measure of thrift in all
parts of the farm business. It docs not misrepresent a farm which has a large ex-
pense if the income is correspondingly high. However, it is a wcll-knowi principle
in all business organization that expenses must be kept low in proportion to income
if the business is to prove profitable. Cost accounts kept on 18 farms in the
same community showed that the annual building expense per acre varied from 01^42
to ^.63 per acre; the annual expense for fences varied from Q .32 to i?2.36 per
acre, and machinery and equipment expenses varied from 0 ,83 per acre to $2.46.
These data show hov/ much more efficient some farmers are than others in keeping
expenses low.
- 7 -
1
Farnors who are most successful in keeping oxpensGS lew in proportion to
bho incono pltji their work ao as to nako tho labor of t'^or-sclvcs and L.onber3 of the
anily as productive as possible, Enterprises are included in the f arn business
that utilize available labor at all seasons of the year. "hilc they secure good
varieties of seed, in so fur as possible, they raise and prepare their own seed.
Rainy days and off seasons arc used to repair buildings, fences, roachinery, and har-
ness. This prolongs the life oT equipnent, saves in the purchase of new equipment
and also saves paying out noney for hirhlj'- paid skilled labor. By having equipment
in shape they also save tho expense incident to delay in the busy season caused by
broken machinery or fences, which night have been prevented by tincly repair.
6. Size of Fara, In r.ost types of farming there is a limit to the amount
of product which can bu profitably secured per acre. When one finds his farm is
smaller than the more profitable farms in his locality and Ms income is low even
though he has good crop yields and good returns frori livestock, a weakness is fre-
quently found in the snail size of farm. This situation may be remedied by buying
or renting additional land or changing the type of farming to a m.ore highly inten-
sive or specialized type which will bring a larger volume of production. It must
be recognized, however, that some men have more ability than others in handling a
large sized business. Some D.cn may find their farm is considerably larger than the
best paying farms, but the income is low because of too large an area handled from
,one point. oome farmers may find that they can secure a larger net profit by rent-
ing out some land and doing more efficient v;ork on a smaller acreage. It is a well-
knovm principle of farm mionagomcnt that a farm must be largo enough to utilize
capital in tho form of buildings, niachinory and other equipm.ent, and labor Ln an
economical v;ay. Just how large the farm should bo, hov/evcr, is a question wnich
depends upon the ability of the operator himself as a manager.
balanced Farrdng Pa--s .
Each of the factors previously discussed plays a part in determining farm
profits. Full success in fari.iing requii-es that all ports of the farmer's business
be givaa attention. One nay ha-vc good crop yields and make good use of livestock,
but receive a small net income because of inefficient use of labor. Or one may
work a large acreage per m:m and per horse, but fail because of low crop yields or
poor returns from livestock. A v/ell balanced farm with a fair degree of efficiency
along all lines brings the operator returns v/hich will enable him to maintain a
good standard of living for his family.
ANIJUAL FARM BUSIa-SSS REPDRT
JO DAVIESS, STEPnEI^SDN, OGLE COUNTiES - I92U
Prepared by K. CM. Case, M-L.Mosher, K.H.Myers*
The 51 farmers in the three counties who kept farm records in 192U in the
book prepared by the Extension Service earned a rate of 3«75^ on an average invest-
ment of ^31, 5448. 00 after figuring their own time at about $600.00 per year. These
farms averaged ISO.l acres in size. The Labor and Management wage which represents
what a man has left as pay for his own work and managing ability after paying all
expenses and allowing 5 per cent interest on the total investment, amounted to $1S3.
as an average for all farmers. The value of the food products furnished the home
and the use of the dwelling house represent an income in addition to that shown. On
11 farms in' Champaign and Piatt counties a careful record was kept of these two itans,
the value of which amounted to $726.00 per faxm at farm prices.
A comparison with other farmers in your community will help you to find at
what point you can strengthen your farm. The tables on pages 2 and 3 show the average
results of the 5I farms in comparison with those of more profitable and loss profit-
able farms. The 17 most profitable farms earned 7«23?o on the investment, while the
least profitable group made only 0.66^. Expressed as the Labor and Management wage,
t the better group made an average labor income of $1267*00, while the least profitable
group lacked $S69.00 of having anything left to pay the manager for his own labor
and management, a difference of $2136.00. In comparing the more profitable farms
with the least profitable it will be noted that the I7 more profitable farms averaged
over ho acres smaller in size, but had a larger percent of crop land. This should
be considered in comparing the efficiency with which equipment, machinery, and labor
is used.
The records show that the more profitable group had larger crop yields and
a larger percentage of the tillable land in legume crops. The more profitable farms
received over 3O/0 larger returns for every $100,00 invested in productive livestock
and the same was true for each class of livestock, with the exception of poultry.
They received 5^ .kfi of their income from livestock compared with S9.3^ on the least
profitable farms. The more profitable farms then had larger crop yields s.nd better
livestock, but a slightly smaller percentage of their returns from livestock although
their total returns from livestock were greater. The I7 least profitable farms
handled more crop acres per man and per horse and had a lower man labor cost per aero
than did the 17 most profitable. This should be considered in relation to the amount
of livestock and the returns secured from livestock. It will be noted that the more
profitable farms received larger returns from the sale of hogs and dairy products,
which would mean a demand for labor that would lessen the amount of crops one man
and one horse would handle.
For every $100.00 taken in, the 17 most profitable farms had an expense of
$Ug.0O, ',7hi Ic the I7 least profitable farms had an expense of $90.90. This may be
due to any one of a large number of items of cost, but low expenses per $100.00 in-
come are essential to profitable farming. The more profitable farms received $13.30
larger gross returns per acre and their expenses were only $1.9^ more per acre than
on the 17 least profitable farms, giving as a result the net receipts of $12.85 P^^
acre as compared '.vi th only $0,99 per acre on the 17 least profitable farms.
V. J. Banter, W. A, Herrington, and D, E. Warren, farm advisers in Jo Daviess,
Stephenson, and Ogle Counties, respectively, cooperated in supervising and col-
lecting the records used in this report.
-• ■■■.■, .i I i>.:
.}:<
- 2
A detailed statement of the farm earnings ^s given on pagfe 3) while on page k you
will find a chart on which you may plot the results from your own farm which will
show at what points your farm showed strength or weakness.
JO DAVIESS, SIEP'f32^S0N, OGLE COUIITIES
Factors helping to
Your
Average
17 most
17 least
analyze the
of 51
profitable
profitable
farm business
farm
farms
fanns
farms
1 Rate Earned
5^
3-75^
7.23
0.66
Labor & Management Wage
$
$ IS3.
$ 1267.0
$- S69.
Size of Earm - Acres
ISO.l
172. S
215.0
Crop Yields - Corn - Bushels
3U,0
40.0
39.3
30.0
Oats - Bushels
Us.s
3^.7
Percent of land area Tillable
i
S2.S^
S3.3
73.3
Percent of tillable land in legumes
%
16.5^
21.7
19. s
Returns per $100. invested in
all productive livestock
$
IIS.75
129. Uo
95.25
For $100. in - Cattle
$
SO.U5
95.00
52 .80
- Swine
$
IS7.I5
192. so
176.60
- Poultry
$
163.90
156.00
157.30
Percent of gross income from livestocl
: ■ ^
92.1^
S3 .4
S9.3
Man Labor Cost Per Acre
$
6.03
6.32
5.05
Crop Acres per Man
67. U
70.1
71.1
Crop Acres per Horse(li7ith Tractor)
26.1
25.2
29. u
(Without Tractor)
IS. 5
20.7
20.0
Expense per $100, gross income
$
63.70
Us. 00
90.90
Machinery Cost per Acre
$
1.S5
1.95
1.56
Building & Fencing cost per Acre
$
.95
.97
,3k
Gross Receipts per Acre
$
IS. 05
2U.73
10.93
Total Expenses per Acre
$
11.U9
11. ss
9.9^
Net Receipts per Acre
$
6.56
12. S5
.99
' ;: .; :. t"
•;'■■■. Of. ^^f,
-14.
.-; I
KIK^
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3r.v'-'.(.-i
- 3 -
JO DAVIESS, S'EEPH?,?^-S:i
I, 0GL3 COUNI
^lES
f
Your
Average
17 most
17 least
of 51
profitable
profitable
farm
farms
farms
farms
1.
Capital Investment - Total
$
llUl+?^
3O6SS
3257s
2.
Land
$
2150s
20S75
22S10
3.
Farm Improvements
$
U3Sg
U115
U4S3
^,
Machinery and Eqaipment
$
12Sl
1200
1266
5.
Feed and Supplies
$
1510
IU76
lUS2
1-6.
Livestock
$
27SI
3022
2537
7.
Horses
$
U5I
U66
UoU
g.
Cattle
$
1U51
1620
1297
9.
Sheep
$
65
lU
99
10.
Swine
$
659
77s
5S2
11.
Foul try-
$
155
lUU
155
12,
Receipts - Net Increases - Total
%
3251
II273
62^1
2351
13.
Feed and Grain
$
1S9
169
lU.
Labor dff Farm
$
22
31
23
15.
Miscellaneous
$
45
52
58
16.
Livestock - Total
$
2995
3566
2101
17.
Horses
$
*-— ^
IS.
Cattle
$
U22
6U3
370
19.
Sheep
$
7=4
19
116
20.
Swine
1UI4+
1679
1027
21.
Poultry
$
93
S3
101
22.
Egg Sales
$
16U
136
lU^
3UU
23.
Dairy Sales
$
79s
1006
^K
Expenses - Net Decreases - Total
$
1230
1290
1167
25.
Farm Improvements
$
172
170
ISl
26.
Livestock
$
13
20
16
27'
Horses
$
13
20
16
28.
Cattle
29.
Sheep
30.
Swine
%
31.
Poultry
$
32.
Machinery and Equipment
%
332
339
335
33.
Feed and Supplies
—
—
3U.
Livestock Expense other than j
'eed
57
62
\z
35.
Crop Expense
$
123
lis
103
36.
Labor hired
$
zh'o
331
116
37.
Taxes, Insurance, etc.
$
266
230
3U6
3S.
Miscellaneous
$
22
20
28
39.
Heceipts loss Expenses
$
2021
29S3
IISU
UO.
Operators & Unpaid Family Labor
$
sUo
762
970
Ui.
Net Income from Investment
$
llSl
2221
21U
U2.
Farms with Tractor - Percent
'P
33 -3^0
\\.2.$
35.3^
^^*
Value of land per Acre
%
120.
121,
106.
\\.
Total Investment per Acre
%
175.
177.
151.
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I7e shall endeavor in t'lC i"ollowin£: discussion tj point out the importance
of certain factors in their influence on the far;:' profits. Cost of production data
ffi 11 frequently ho referred to. Tac cost of producing;; fain products ha^^ been studied
during the patt twelve years in diffcront partrs of ill'nois, 'iTrJlc your record docs
aot permit dotcnuinin^ the cor.t of pror'uc'nT separate products on your farm, the
information from your farm docs enable yov. to loam ^Thether the different parts of
your ■busi::csf; correspond favorably -.Ti th other farms in your co;,i;:uuii t]/. A study of
a group of farm records from, any co;'.;mrojai tv alvrays inpreo'ijes one with the fact that
each former Caji profit at some point from stud-^ing the results obtained by his more
e f f i c i cTi t farmer no i ghb or s .
Different factors which we wish to call to your attention include the
follovTvic;:
1. Total Far;-: Sprnint^s. These arc sho-'n firft in terh;s of the rate earned
on the totfl farm nivot;tmont, and second, in terms of the Labor and i-lanagemcnt wa-;'C.
However, in studying the farm carnin;'rs y^u v:i 11 be interested in noting the last
throe items on page 2 which shov/ the wMc differences between the one- third most
profitable and the one-third leart profitable ifrma i-i the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These wide differences in farm, earnings call for an analyses of a nujiiber of
different factors -.vhi ch affect the farm, earnings. Tlieso factors are included in the
following discus!;lon in wliich wc endeavor to point out why the?c different factors
arc of special importaiiCc,
2. Crop Yi elds. C-ood crip viclds are one essential requirement for good
incom;es. Cost of production st^^di cs on IS farms in one cor.TCu;ii t^/ sho?;ed that the
cost of producing a. bushel of corn varied from 35^ on one farm to 79?^ per bushel on
another fsxn for the sar.c year. Similar differencos occurred on other crops. A
large part of the difference in cost is due to the difference in yield per a.cre. It
is not uncorx.:on to find a difference of 25«^ a bushel in the cost of producing corn
which can be attributed directly to the difference in the yield per acre since most
itcm,s of cost do not increase a::- the yield increases, V/hen crop yields are low one
can well afford to study the practices of men v;ho secure higher yields. In order
to determine v/hrt is responsible for these differences attention should be given to
the rotation of crops, qUcility and variety of seed, use of le,gurnes ar,d m.anure, use
of limestone a-id phospha.tc where needed, preparation of seed bed, cultivation, pro-
tection from disease ar.d insects, "nd dra.inage.
3. Returns from Livef.toclc. One of the best mea.sures of the efficiency of
livestock, in these records, i 0 the ret'orns per $100.00 invested. Tlie retiurns per
$100.00 worth of feed fed any class of livostoch, ho^"'ever , gives you more reliable
information a.s to vhether the efficiency of that class of livestock may be improved.
You are urged, therefore, to keep the feed record on pages 3S and 33 of the farm
account book, at least for the livestock from v.hich you receive considerable income,
Ab evidence of the '.vide variation in livestocic efficiency on farms, cost accoimts
secured on IS farms in the ssjno community showed a rrcge in the cost of feed in pro-
ducing pork of $U»1S to $S.S1 per 100 pounds gain in 'weight for the same year.
The per ct.it. of total receipts from livestock enables one to know how large
a factor livestock iz in determining the farm income. On some farms where livestock
represented a considerable part of the income in 192'; the earnings were reduced due
to the abnormal price situation. As compared v.n th the five-yecx average of farm
prices from 1909 to 191^+ the prices of meat a-iimals in 192i+ were only 9/'' higher tlian
for the five-year period, while the prices of grains were 29)^ and the prices of dairy
products and eggs v;ere 37^ higher. This merns that farms which were heavy producers
- 6 -
i ,
?of meat a:"-lmnls i i 1924 did not f"rc sd '.veil as t"it.y eight oxpuct to do on an
uvero^o of a niimber of years r/hcn coir.parcd -.Ti th cTth:r grain or dairy fams. In
spite of this fact the larger proportion of livestoc'c returns on tho "better farms
indicate that good live.-tock properly ha:".dled paid even under the adverse price
si tuation.
Success 'with livestock, as ■a'l th crop production, depends upon a ntimher of
factors among v/hich the follov.'ing should be noted: Raising a large per cent, of
;young animals, sanitation, prevention of disease, ability in buying and selling livo-
jstock, keeping animals of good quality, good feeding practices - especially the gro-,7-
ling of sufficient legume forage to supply r.ost of the protein reqai rcraents, careful
purchasing of additional protein and mineral supplements when needed, and the eco-
Inomical use of roughage v;hich is available on all fanris.
; Some men are more successful than others in handling livestock, it is not
Irecommendcd that anj'one quickly change his practice aiid suddenly go into extensive
feeding or breeding operations. It is better to v/ork gradiially into the livestock
business, building tvp either breeding or feeding operations as he finds that live-
stock is filling a place in his system of farming,
U. Use of Uan and Horse Labor. One of the best measiores of the use of
; labor is the number of crop acres v.-orked per man or per horse when the farms a.re of
'the same general tj^e. When the cost of man labor and horse labor are noted it em-
[phasises at once the importance of -.vatching these items of expense and arra:iging
! the organization of the farm to make efficient use of labor.
Cost accounting data secured on IS farniS in the same community for the
same year show thr.t the net cost of keeping a v/ork horse ranged from $63*76 to
$12U.15; or an average of $93»OS per horse. iThen St is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it means tMt
horse labor costs will range from $3.5^ to over $6.00 per acre on different farm.s.
This wide range in t?ie cost of horse labor is dependent not only on the number of
acres handled with one horse, but also upon the economy with which the horse is fed
and whether or not other items of expense a.re kept at a low figure. The careful
planning of a rotation of crops is probably one of the best ways to reduce both man
and horse labor costs. A rotation should be chosen so that as uniform an amount of
man and horse labor is required from early spring until late fall as possible.
' Frequently the size of certain enterprises within the farm business may be adjusted '
' to utilize the available family labor to advantage. Feeding down crops a:id keeping
enough livestock to utilize labor during the seasons when farm work is light are
other definite means of increasing the efficiency with which labor is used. Se-
peated study of farm records over the state indicate t'nat occasionally a nan may
reduce the amount of both m.an labor and horse labor to a point where lower profits
are secured from both crop and livestock enterprises because of a lack of well
j directed labor. It is usually found, however, that the more profitable farm.s not
I only secure larger yields per acre, but they haridle a larger acreage per worker or
\ per horse.
I 5» FxDcnse per $100. Gross Income . 'Tlai s Is a m.easure of thJ'ift in all
parts of the farm business. It does not misrepresent a farm which has a large ex-
pense if the income is correspondingly high. However, it is a well-known principle
in all business organization that expenses must be kept low in proportion to incom.e
if the business is to prove profitable. Cost accounts kept on IS farms in the
same comm.unity showed tha.t the annual building expense per acre varied frori $1.U2
to $6.63 per acre; the annual expense for fences variod from $ .32 to $2.36 per acre;
osid. m.achincry and equipment expenses varied from $ .S3 per acre to $2.U6. Tliese
data 'show hoTi rrcach m.ore efficient som.e farmers are tha^i others ^n keeping expenses
low.
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Farr.crs •.vho arc nnst successful in koi.ping expenses lo\7 in proportion to
the Incoirie plan their work so as to nakc the labor of ther.selvcs and nemhcrs of the
family as productive as possible. Enterprises are included in the farn business
that utilize available labor at all seasons of the year. Wtii le they secure good
varieties of seed, in so far as possible, they raise and prepa.re their own seed.
Rainy days and off seasons are used to repa.ir buildings, fences, machinery, and har-
ness. Tlii s prolongs the life of equipment, saves in the purchase of ne\7 equipment
and also saves paying out money for highly paid skilled labor. By ha.ving equipment
in shape they also save the expense incident to delay in the busy season caused by
broken machinery or fences, which might have been prevented by tir.ely repair.
6. Size of Farm . in most types of farming there is a limit to the amount
of product which can be profitably secured per acre, Wlaen one finds his fa.rm is
smaller than the m.ore profitable farms in his locality and his income is lo'.7 even
I though he has good crop j^ields and good returns from livestock, a v/calcness is fre-
quently found in the small size of farm. This situation may be remedied by buying
or renting additional land or changing the type of farming to a more highly inten-
sive or specialized type which will bring a larger vTlu.:e of production. It must
be recognized, however, that some men have more ability than others in handling a
large sized business. Som.c r.on may find their farm, is considerably larger than the
best paying farms, but the income is low because of too large an area handled frori
one point. Some farmers may find thiat they can secure a larger net profit by rent-
ing out som.e land and doing more efficient v/ork on a smaller acreage. It is a well-
known principle of farm management that a farm m'ust be large enough to utilize
capital in the form of buildi"jgs, ma.chinery and other equipment, and labor in an
econom.ical wav. Just how large the farm should be, however, is a question which
depends upon the ability of the operator himself as a manager.
Balanced Farming Fays_
Each of the factors previously discussed plays a part in determining farm
profits. Full s^jccess in farming requires that all parts of the farmer's business
be given attention. One may have good crop yields and m^alce good use of livestock,
but receive a sm.all net income because of inefficient use of labor. Or one may
v/ork a large acreage per man and per horse, but fail because of low crop yields or
poor returns from, livestock. A well balanced farm, with a fair degree of efficiency
along all lines brings the operator returns v/hich will enable him to maintain a
good standard of living for his family.
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„M:. I ,!«.!'.- *•^-•
MmJAL FAHM BUSIrlESS RSP3RT
LASALLS COUKTY -132k
Prepared by H, CM. Case, M.L.Uosher, E.H.Ifyers"
j The 3^ farmers in your county who kept farm records in 192U in the "book
prepared "by the Extension Service earned a rate of 7-22/o on an average investment of
167,670 after figuring their own time at $600 per year,. These farms averaged 2U7.3
■■icres in size. The Labor and Maiieigament wage which represents what a man has left
[Jas pay for his own work and marag'ng ability after paying all expenses and allowing
'j5 per cent, interest on the total investment, amounted to $2106 as an average for
ill farmers. The value of the food products furnished the home and the use of the
.iwelling house represents an income in addition to that shown. On 11 farms in
■|3hampaign and Piatt counties a careful record was kept of these two items, the value
'Df which amounted to $726 per farm at farm prices.
A comparison with other farmers in your conmunity will help you to find at
what point you can strengthen your farm. The tables on pa^es 2 and 3 show the aver-
age results of the 3^ farms in comparison with those of more profitable and less
profitable farms. The 11 most profitable farms earned S.Gh'^ on the investment, while
jthe least profitable group made 5''31^« Expressed as the Labor and Management wage,
'the better group made an average labor income of $35^3, while the least profitable
Igroup had $j'63Meft to pay the manager for his own labor and management, a difference
jof $2785. In.'comparing the more profitable farms with the least profitable, it will
"be noted that there was little difference in the size of farm in the two groups, a
'fact which should be considered in comparing the efficiency with which equipment,
machinery, and labor was used.
The records show that crop yields were fairly uniform on all the farms.
Both groups had a considerable acreage in legume crops. The more profitable group
had a little larger percentage of tillable land than the lower group. The more
profitable farms received a 5^^ higher return for each $100. invested in productive
livestock, and also in each separate class of livestock. Both groups received about
one- third of their income from livestock but the income was much larger on the more
profitable farms. While there was little difference in the efficiency with which
horse labor was used, the lo'.Ter group worked more crop acres per man and had a lower
man labor cost per acre. This should be considered in relation to the amount of
livestock kept and the returns secured from livestock. It should be noted that the
more profitable farms received a much larger income from livestock, especially dairy
products, which demands more labor and decreases the number of acres one man can
handle .
For every $100 taken in, the 11 more profitable farms had an expense of
$3^*29, while the least profitable farms had an expense of $U6.50. 'This may be due
to any of a large mamber of items of cost. It nlay be due to low income as v/ell as
high expenses. Fnatever it be due to, low expenses .in relation to the gross income
is essential to profitable farming. The more profitable farms received $10.89 larger
gross returns per acre and their expenses were only $0^22 more than on the 11 least
profitable farms, giving as a result the net receipts of $26.05 as compared with
$15.38 on the lower group of farms.
* W. W. McLaughlin and R. W. Cross, farm advisers in LaSalle County, cooperated in
supervising and collecting the records used in this report.
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A detailed statement of the farm earnings is given on page 3> while on page k you
will find a chart on which you may plot the ra&alts from your own farm which will
show at what points your farm shov/ed strength or weakness.
LA SAI.LE COUiNiTf
r
Factors helping to
analyze
the farm "business
Your
farm
Average
of 3^
farms
11 most
prof i table
farms
11 least
profitable
farms
Rate Earned
Labor & Management vTage
Size of Farm - Acres
Crop Yields - Corn - Bushels
Oats - Bushels
ITheat - Bushels
Percent of land area Tillable
Percent of tillable land in legumes
Retiirns per $100. invested in
all productive livestock
For $100. in - Cattle
- Swine
- Poultry
d
Per cent of gross income from livestock
Man Labor Cost per Acre
Crop Acres per Man
Crop Acres per Horse(Wlth Tractor)
(i?ithout Tractor)
Expense per $100 gross income
Machinery Cost per Acre
Building tS; Fencing cost per Acre
Gross Receipts per Acre
Total Expenses per Acre
Net Receipts per Acre
$
%
$ 2106,
2U7.3
^l.S
5^.7
27,2
91.0^
l^.g^
123.05
9U.20
165.30
13s. 50
32.8
5.92
76,3
2S.0
20.3
39.52
2.36
1.39
32.67
12.91
19.76
9.6U
35Ug.
235-2
U1.9
55.0
27.7
95.S
13.5
15s. 05
lUU.OO
192.50
1SS.30
3U.7
6.73
S2.1
2S.S
20.8
3U.29
2.69
.99
39.6U
13.59
26.05
5.31
763.
226. S
1+2. S
51.3
2U.6
89.7
I7.U
107.50
72.20
1U9.5O
129.00
3^.1
5.62
91.9
29. s
17.1
46.50
2.61
1.77
2S.75
13.37
15.3s
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LA SALLE C3U1ITY
- 3 -
1.
2.
3.
h,
5.
6.
7.
s.
9.
10.
11,
13.
lU.
15.
16.
17.
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19.
20.
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22.
23 •
24,
25.
26.
27.
2S.
29.
30.
31.
32.
33.
^h.
35.
36.
37.
3S.
Ui.
Capital Investraent
La,nd
Total
Faxrr. Improvements
Machinery and Equipment
Feed and Supplies.
Livestock
Horses
Cattle
Sheep
Swine
Poultry
12, Beceipts - Net Incoire - Total
Feed and Grain
Labor off farm
Miscellaneous
Livestock - Total
Horses
Cattle
Sheep
Swine
Poultry
Egg Sales
Dairy Sales
l2f5§.Q.ses - Net Decreases - Total
Farm Improvements
Li ve stock
Horses
Cattle
Sheep
Swine
Poultry
Machinery and Equipment
Feed and Supplies
Youi-
^p^-n
$
$
Livestock Expense other than feed
Crop Expense
Later hired
Taxes, Insurance, etc.
Miscellaneous
Receipts less Expenses
Operators & Unpaid family labor
Net Income from Investment
k2. Farms rith Tractor - Percent
^+3' Value of land per Acre
UU. Total Investment per Acre
$
$
$
$
$
$
Averafce
of 3h
faru'S
67610
53^30
57S6
2101
3205
2£^
S9S
1101
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551
120
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5547
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2650
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2156
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1001
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- 5 -
HOW T3 STUDY YDU2 F.ffil.1 HSOjHD
17e shall endeavor in the folloviin^: di scu-ssi on tj point out the importance
of certain factors in their infl-aence on the far;- T)rofits. Cost of production data
will frequently be referred to. Tac. cost of producin'? farm products ha'-, been studied
during the past twelve yearn in differant parto of Illinois, "■"nilc your record docs
not permit detcnriining the cost of produQ^n-;; separrto products on .your farm, the
informatioii from your farm docs enahle yov. to learn whether the different parts of
your 'busi:'.cs;; correspond favorably with other farms in your coniiruni ty. A study of
a group 01 farm records from any coiV:miini ty always inpreoses one with the fact that
each farmer can profit at some poii^t from stud-ing the rcnults obtained by his more
efficient farm.er neighbors.
Different factor?, which we wish to call to your attention include the
following:
1. Total Farr: 5arninii-s. These are sho';7n first in terms of the rate earned
on the total farm invcLitmcnt , and second, in tem-.s of the Labor and Lianagcmicnt wage.
However, in studying the farm, carnirgs you v/ill be interested in noting the last
three items on pa,ge 2 which show the wide differences between the one- third most
profitable and the one-third lear.t profitable farms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These wide differences in farm earnings call for an analysis of a number of
different factors which affect the farm earnin.^s. Tlieoc factors are included in the
following discuB'jion in which v;c endeavor to point oiit wh^y these different factors
are of special importance.
2. Crop Yi elds. C-ood crop yields are one essential requirement for good
incomes. Cost of production sti^di cs on IS farms in one community showed that the
cost of produ-cing a bushel of corn varied from 35(^ o- one farm to 79^ pei" bushel on
another farm for the sa:nc year. Similar differences occurred on other crops. A
large part of the difference in cost is due to the difference in yield per acre. It
is not u:icom;;ion to find a difference of 25(# a bushel in the cost of producing corn
which can be attributed directly to the difference in the yield per acre since most
items of cost do not increase as the yield increases. T/hen crop yields are low one
can well afford to study the practices of men who secure higher yields. In order
to determine v/ha.t is responrjible for these differences attention should be given to
the rotation of crops, qixsility o,nd variety of sc3d, use of legumes nnd m.anure, use
of limestone a:ia phosphate where needed, preparation of seed bed, cultivation, pro-
tection from disease and insects, and drainage.
3. Returns from Livestock. 0'-ie of the best measures of the efficiency of
livestock, in these records, io the returns per $100.00 invested. The returns per
$100,00 worth of feed fed any class of livostoch, however, gives you more reliable
information as to whether the efficiency of tha,t class of livestock may be improved.
You are urged, therefore, to jceep the feed record on pages 3S and 39 ^f the farra
account book, at least for the livestock from which you receive considerable income.
As evidence of the '.vide variation in livestock efficiency on farms, cost acco^oa^its
secured on 18 farms In the camo coramunl ty showed a ra:~.ge in the cost of feed in pro-
ducing pork of $U»1S to $S.S1 per 100 p3u:ids gain i.z weight for the same year.
Tlie per cent, of total receipts from livestock enables one to knov: hov.- large
a factor livestock io in determining the farm income. On some farms where livestock
represented a considerable part of the income in 192^ the earnings were reduced due
to the abnormal price situation. As compared vri th the five-year average of farm
prices from 1909 to 191^ the prices of meat animals in I92U were only 9/J higher tlia^i
for the five-year period, while the prices of grains v;ere 29/^ and the prices of dairy
products and eggs were 37^ higher. Tlii s means tiiat farms which were heavy producers
- 6 -
of meat ai-.imals in I92U lid rot fare sd :7c11 :\z they might cxpuct to do on an
average of a nuniber of ycrrs K:hcr'. compared ri th ci thor grain or dairy frrms. In
spite of this fn.ct the largor proportion of livestoc'^ rctui^rLS on tho better farms
Indicate that good live^toclv properly handled pnid even under the adverse price
si tuation.
Success with livestoclc, as -ji th crop production, depends upon a numher of
factors among v/hich the follov;ing should ho noted: Raising a large per cent, of
young animals, sanitation, prevention of disease, ability in buying and selling live-
stock, koGping animals of good cjuality, good feeding practices - especially the gro',>
Ing of sufficient legiame forage to s\^pply rr.ost of the protein requirements, careful
purchasing of additional protein and mineral supplements when needed, and the eco-
nomical use of roughage which is available on all fanns.
Some men are more successful than others in handling livestock, -l-t is not
recommended that anj'one quickly change his practice aiid suddenly go into extensive
feeding or breeding operations. It is better to \7ork gradiially into the livestock
business, building up either breeding or feeding operations as he finds that live-
stock is filling a place In his system of farming.
U. Use of Man and Horge Labor. One of the best measures of the use of
labor is the number of crop acres v/orked per man or per horse when the farms are of
the same general type. Wlien the cost of man labor a;\d horse labor are noted it em-
phasizes at once the importance of watching those items of expense and arranging
the organization of the farm to make efficient use of labor.
Cost accounting data secured on IS farms in the same community for the
same year show that the net cost of keeping a work horse ranged from $63-76 to
$12U.15; or an average of $93»OS per horse. IThen it is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it means that
horse labor costs will range from $3*50 to over $6.00 per acre on different farms.
This wide range in the cost of horse labor is dependent not only on the number of
acres handled with one horse, but also upon the economy with which the horse is fed
and whether or not other items of expense are kept at a low figure. The careful
planning of a rotation of crops is probably one of the best ways to reduce both man
and horse labor costs. A rotation should be chosen so tliat as tuiiform an amount of
man and horse labor is required from early sjiring until late fall as possible.
Frequently the size of certain enterprises within the farm business may be adjusted '
to utilize the available family labor to advantage. Feeding down crops and keeping
enough livestock to utilize labor during the seasons when farm work is light are
other definite means of increasing the efficiency with which labor is used. Re-
peated study of farm records over the state indicate tliat occasionally a man may
reduce the amount of both man labor and horse labor to a point v/here lower profits
are secured from both crop a::d livestock enterprises beca.use of a lack of well
directed labor. It is usually found, however, that the more profitable farm.s not
only secure larger yields per acre, but they handle a larger acreage per worker or
per horse.
5. Expense per $100. Gross Income. This is a measiire of thrift in all
parts of the farm business. It does not misrepresent a farm which has a large -ex-
pense if the income is correspondingly high. However, it is a well-lcnown principle
in all business organization that expenses must be kept low in proportion to income
if the business is to prove profitable. Cost accounts kept on IS farms in the
same community showed that the a^^nual building expense per acre varied from $1.U2
to $6.63 per acre; the annual expense for fences varied from $ .32 to $2.36 per acre;
and machinery and equipment expenses varied from $ .S3 per acre to $2.U6. These
data 'show how much more efficient some farmers are than others in keeping expenses
low.
,r'?«;J^p
- 7 -
Farcers who arc nost successful in keeping expenses Iott fn proportian to^
the incor.e plan their vv'ork so as to nal-ze the lahor of themselves and nenbers of the
fanily as productlv-e as possible . Enterprises are included in the fare business
that utilize available labor at all seasons of the year. Wtii le they secure good
varieties of seed, in so far as possible, they raise and prepare their own seed.
Rainy days and off seasons are used to repair buildings, fences, machinery, pjid har-
ness. Tlii s prolongs the life of equipr.ent, saves in the piorchase of nev7 equipment
and also saves paying out noncy for highly paid skilled labor. By having equipment
in shape thej-- also save the expense incident to delay in the busy season caused by
broken machinery or fences, which might have been prevented by timely repair,
6. Sizai of Farm, in most types of farming there is a limit to the amount
of product \7hich can be profitably secured per acre. When one finds his farm is
smaller than the more profitable farms in his locality and his income is lo'.7 even
though he has good crop yields and good returns from livestock, a v/ealcness is fre-
quently found in the small size of farm. This situation may be remedied by buying
or renting additional land or changing the type of farming to a more highly inten-
sive or specialized type T7hich will bring a larger volur.ie of production, it must
be recognized, however, that some men have more ability than others in handling a
large sized business. Some men may find their farm is considerably larger than the
best paying farms, but the income is low because of too large an area handled from
one point. Some farmers may find that they can secure a larger net profit by rent-
ing out some land and doing more efficient work on a smaller acreage. It is a well-
known principle of farm management that a farm mast be large enough to utilize
capital in the form of buildings, machinery and other equipment, and labor in an
economical way. Just how large the farm should be, however, is a question which
depends upon the ability of the operator himself as a manager*
Balanced Farming Fays-
"Eauch. of the factors previously discussed plays a part in determining farm
profits. Full success in farming requires that all parts of the farmer's business
be given attention. One may have good crop yields and malce good use of livestock,
but receive a small net income because of inefficient use of labor. Or one may
work a large acreage per man and per horse, but fail because of low crop yields or
poor returns from livestock. A well balanced farm with a fair degree of efficiency
along all lines brings the operator returns which will enable hiih to maintain a
good standard of living for his family.
^JC^UAL FARM BUSINESS REPORT
MACOUPIN, JERSEY, GREENE COUNTIES - 1924
Prepared by H.C.M. Case, M. L/ Mosher/ K.H< Myers*
The 41 farmers in these counties who kept farm records in 1924 in the
book prepared by the Extension Service earned a rate of 4,63^ on an average invest-
ment of $25,401 after figuring their own time at about ^600 per year. These farms
averaged 174.3 acres in size. The Labor and Management v/age which represents what
a man has left as pay for his own work and managing ability after paying all expen-*-
ses and allowing 5 per cent interest on the total investment, amounted to $402
as an average for all farmers. The value of the food products furnished the home
and the use of the dwelling house represent an incomf in addition to that shown. On
11 farms in Champaign and Piatt counties a careful record was kept of these two
items, the value of which amounted to $726 per farm at farm prices,
A comparison v;ith other farmers in your, community will help you to find
at what point you can strengthen your farm. The tables on pages 2 and 3 show the
average results of the 41 farms in comparison with those of more profitable and less
profitable farms. The 13 most profitable farms earned 10.22% on the investment,
while the 13 least profitable farms lacked 2.18/o of breaking even. Expressed as
the Labor and Management wage, the better group made an average labor income $2037
while the least profitable group lacked $667, of having anything left to pay the
manager for his own labor and management, a difference of li^2704. In comparing the
more profitable farms with ifne least profitable it will be noted that the 13 more
profitable farms averaged 25 acres larger in size, a fact which should be consid-
ered in comparing the efficiency with which buildings and fencing, equipment, mach-
inery, and labor is used.
The table show that the more profitable farms had larger crop yields than
the less profitable farms. The farms in the upper group had a higher percentage of
the total land area tillable. Both groups had quite a large acreage of legume
crops. The more profitable farms received a higher return for each $100 invested
in productive livestock. The sane was true for each class of livestock with the
exception of hogs. V/hile they received only 61.3/3 of their gross income from
livestock compared with 07,9^ from that source in the lower group, their total in-
come from livestock, and the income from the farm as a whole, was three times that
of the lov/er group. The more profitable group of farms then, got larger crop yields,
and bettor returns on the investment of livestock, and a larger total income from
livestock than the loss profitable farms. There was liiTtle difference in the num-
ber of crop acres handled per nan or per horse. It will be noted that the dairy
sales in thoiifefier group amounted to nearly four times as much as in the lower
group. A large amount of livestock, especially dairy cattle, demand aoAe labor,
decreasing the number of acres one nan can handle. The larger amounts of dairy
products and the favorable prices received for these products aa explained on page
5, probably helps in a largo way to account for the better income from the better
group of farms.
For every $100 taken in, the 13 most profitable farms had an expense of
$<»43,56 while the 13 least profitable farms had an expense of >?124.60, This may be
due to any one of a large number of items of cost. It nay be due to low income as
well as high expenses. V/hatever it bo due to, low expenses in relation to the
gross income is essential to profitable farming. The more profitable farms received
$18.63 larger gross returns per acre and their expenses were vC 50 less per acre
than on the 13 least profitable farms, giving as a result the net receipts of
$16,51 per acre as compared v;ith a loss of vj2.62 per acre on the 13 least profitable
farms.
*E.W. Rusk, R.L.Eyman, and E,M. Phillips, farm advisers in Macoupin, Jersey, and
Greene counties respectively, cooperated in supervising and collecting the rec-
ords used in this report.
..VI-«T
jT.iTir;..
-2-
A detailod otatonent of the faru oarnin^B is givon on pa^o 3j while on page 4
you will find a chart on v;hich you nay plot the results fron your ov/n f arn which
will show at what points your farn showed strength or v/oaknoss*
Ilacoupin, Jersey, Greene Counties
Factors helping to
analyze
the farm business
lOur
farn
Average
of 41
f arms
13 most
profitable
f arns
13 least
profitable
farns
Rate Earned
Labor & Uanagenont Wage
Size of Farm - Acres
Crop Yields - Corn - Bushels
Oats - liushols
Uheat - Bushels
Percent of land area Tillable
Percent of tillable land in legunes
Returns per 5100, invested in
all productive livestock
For $100. in - Cattle
- Sv/ino
- Poultry
&
I
Percent of gross Incono fron Livestock
fen Labor Cost per Acre
Crop Acres per llan
Crop Acres per Horse
Expense per iJlOO, gross Incone
Machinery Cost per Acre
Building k Fencing cost per Acre
Gross Receipts per Acre
Total Expenses per Acre
Net Receipts per Acre
%
%
4.63^0
$402.
174.3
31.1
34,5
7.2
83.4/i
lO.O/i
$136.20
OlOO.CO
$210.30
v205.00
71. 2>
0 6.5 5
61.6
.17.7
0 63.75
0 1.59
0 .77
V 10.61
0 11.07
0 6.74
10.32
2037
170.6
37.0
37.7
9.3
GO. 9
15.5
140.35
134.60
lu^. u 5
205.00
61.3
7.
04
60.
7
15.
5
43.
56
2.
00
i
75
29.
26
12.
75
16.
51
- 2.1C
•667
145,9
19.3
30.6
5.4
79,1
16.0
130.00
90.20
202.10
195.90
07.9
6.03
57.2
16.0
124.60
1.56
.ij 5
10.63
13.25
- 2.62
..».«v,(.-ri-. ei*^,^ :.*!%. f-'Oia^ •
■J-
Ilaccupin, Jersey, and Greene Countiesi
Your
/•.verage of
12 most
13 least
41
profitable
profitable
Fare
fame
farms
farms
>
■f •
Capital Investment - Total
Land
0
25.401
10,CG4
27.314
19,216
17.462
11,360
0
3.
Farm Inprovenents
0
2,728
3,290
2,036
i.
Machinery and Equipment
0
1,954
1,1G4
1,019
5.
Feed and Supplies
0
1,490
1,402
1,639
'5.
Livestock
$
2,037
2,222
1,403
7.
Horses
0
462
593
357
8.
Cattle
0
993
1037
543
9.
Sheep
$
42
18
20
iw.
Swin»
$
410
431
356
11.
Poultry
$
130
143
132
12.
,13.
Receipts - Net Increases - Total
3245
783
4993
1783
1552
Feed and Grain
e
14.
Labor off Farm
$
75
118
91
;15.
Miscellaneous
$
76
29
97
16.
Livestock - Total
^
2311
3063
136 4
, 17.
Horses
$
3
57
•• — —
: 18.
Cattlo
0
232
249
114
19.
Sheep
0
87
151
32
20.
Swine
e
913
970
581
, 21.
Poultry
$
125
128
119
22.
Egg Sales
1
149
167
145
23.
Dairy Sales
e
802
1341
373
24.
25.
Expenses - Net Decreases - Tot
al
1263
137
1388
128
1132
125
Farm Improvements
e
26.
Livestock
0
44
27.
Horses
$
44
<o8 .
Cattle
0
29.
Sheep
0
30.
Swine
8
31.
Poultry
$
32.
Machinery and Equipment
e
278
341
228
33.
Feed and Supplies
e
42
34.
Livestock Expense other than feed
49
60
44
35,
Crop Expenses
0
194
122
270
36.
Labor hired
0
353
414
194
37.
Taxes, Insurance, etc.
0
218
262
16 5
38.
Mscellaneous
0
34
61
20
39.
Receipts less Expenses
$
1982
3605
420
40.
Operator's and Unpaid Family Labor ]
806
787
802
41.
Net Income from Investment
V
1176
2818
-382
42.
Farms with Tractor - Percent
%
31.7
30.8
23.1
43.
Value of land per Acre
0
104.
113.
78.
44.
Total Investment per ^cre
0
146.
160.
120.
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- 5 -
HOW TO STUDY YOUR FARlvI RECORD
We shall endeavor in the following discussion to point out the importance
)f certain factors in their influence on the farm profits. Cost of production data
/ill frequently be referred to. The cost of producing farm products has been
studied during the past twelve years in different parts of Illinois. While your
'ecord does not permit deterr.iining the cost of producing separate products on your
"arm, the information from your farm does enable you to learn whether the differ-
|3nt parts of your business correspond favorably with other farms in your community.
^ study of a group of farm records from any community always impresses one with the
fact that each farmer can profit at some point from studying the results obtained
oy his more efficient farmer neighbors.
lowing :
Different factors which we wish to call to vour attention include the fol-
1. Total Farm Earnings. These are shown first in terms of the rate earned
on the total farm inves-<:ment, and second, in terns of the Labor and Fianagement
wage. However, in studying the farm earnings you will be interested in noting the
last three items on page 2 wliich show the wide differences between the one-third most
profitable and the one-third least profitable farms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These wide differences in farm earnings call for an analysis of a number of
different factors which affect the farm earnings. These factors are included in
the follov/ing discussion in which we endeavor to point out why these different fac-
tors are of special importance.
2. Crop Yields. Good crop yields are one essential requirement for good
incomes. Cost of production studies on 18 farms in one community showed that the
cost of producing a bushel of corn varied f rora 39;^ on one f arm. to 79^ per bushel en
another farm for the same year. Sinilar differences occurred on other crops. A
large part of the difference in cost is due to the difference in yield per acre.
It is not uncorrjnon to find a difference of 250 a bushel in the cost of producing
corn which can bo attributed directly to the difference in the yield per acre since
most items of cost do not increase as the yield increases. When crop yields are
low one can v;ell afford to study the practices of men v.-ho secure higher yields.
In order to deternj.ne what is responsible for these differences attention should
be given to the rotation of crops, quality and variety of seed, use of legum.es and
manure, use of Itraostone and phosphate whore needed, preparation of seed bed, culti-
vation, protection from disease and insects, and drainage,
3. Returns f^rom Livestocka One of the best measures of the efficiency of
livestock, in these records, is the returns per $100.00 invested. The returns per
$100.00 worth of feed fed any class of livestock, however, gives you mors reliable
information as to whether the efficiency of thax class of livestock may be improved.
You are urged, therefore, to keep the feed record on pages 38 and 39 of the farm
account book, at least for the livestock from which you receive considerable incom.e.
As evidence of the wide variation in livestock efficiency on farms, cost accounts
aecured on 18 farms in the saiae community showed a range in the cost of feed in pro-
ducing pork of $4.18 to $8.31 per 100 pounds gain in v/oight for the same year.
The per cent, of total receipts from, livestock enables one to know how
large a factor livestock is in determining the farm income. On some farms where
livestock represented a considerable part of the income in 1924 the earnings were
reduced due to the abnormal price situation, hs compared v/ith the five-year aver-
age of farm prices from 1909 to 1914 the prices of meat animals in 1924 were only
9% higher than for the five-year period, while the prices of grains wore 29^ and
the prices of dairy products and eggs were 37> higher. This means that farms v/nich
were heavy producers of meat animals in 1924 did not faro so well as they might
- 6 -
expect to do on an average of a number of yoi-.rs when compared v/ith either grain or
dairy farms. In spite of this fact the larger propot^iion of livestock returns on
the bettor farms indicate that good livcGtock properly handled paid even under
the adverse price situation.
' Success with livestock, as with crop production, depends upon a number of
factors among which the following should bo noted: Raising a largo per cent, of
young animals, sanitation, prevention of disease, ability in buying and selling
livestock, keeping animals of good quality, good feeding practices - especially the
growing of sufficient legume forage to supply most of the protein requirements,
careful purchasing of additional protein and mineral supplements when needed, and
the economical use of roughage which is available on all farms.
Some men are more successful than others in handling livestock. It is not
tecoramonded that anyone quickly change his practice and suddenly go into extensive
feeding or breeding operations. It is better to work gradually into the livestock
business, building up either breeding or feeding operations as ho finds that live-
stock is filling a place in his system of farming.
4. Use of Man and Horse Labor. One of the best measures of the use of
labor is the number of crop acres worked per man or per horse when the farms are of
the same general type. V/hen the cost of cian labor and horse labor are noted it em-
phasizes at once the importance of watching these items of expense and arranging
the organization of the f cjrm to make efficient use of labor.
Cost accounting data secured on 13 farms in the same conununity for the
same year show that the net cost of keeping a v/ork horse ranged from $63.76 to
0124.15; or an average of 093.08 per horse. Vi/hen it is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it means that
horse labor costs will range from $3.50 to over $6.00 per acre on different farms.
This wide range in the cost jf horse labor is dependent not only on the number of
acres hasidled with one horse, but also upon the economy v/ith which the horse is fed
and whether or not other items of expense are kept at a low figure. The careful
planning of a rotation of crops is probably one of the best ¥/ays to reduce both man
and horse labor costs, a rotation should be chosen so that as uniform an amount of
man and horse labor is required from early spring until late fall as possible.
Frequently the size of certain enterprises within the farm business may be adjusted
to utilize the available family labor to advantage^ Feeding dovm crops and keeping
enough livestock to utilize labor during the seasons when farm work is light are
other definite means of increasing the efficiency with v;hich labor is used. Re-
peated study of farm records over the state indicate that occasionally a man may
reduce the amount of both man labor and horse labor to a point v;here lower profits
are secured from both crop and livestock enterprises because of a lack cf well
directed labor. It is usually found, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per T;orkor or
per horse.
5. Expense per Jg^OO. Gross Income » This is a measure of thrift in all
parts of the farm business. It does not risrepresent a farm, which has a largo ex-
pense if the incom.e is correspondingly high. Howovorj it is a well-knowi principle
in all business organization that expenses must bo kept low in proportion to income
if the business is to prove profitable. Cost accounts kept on 18 farms in the
same community showed that the annual building expense per acre varied from t'1.42
to '46,63 per acre; the annual expense for fences varied from 0 '32 to ik'2.36 per
acre, and machinery and equipment expenses varied from 0 •83 per acre to $2.46,
These data show how much more efficient some farmers are than others in keeping
expenses low.
Farnors who are most successful in kaoping expenses low in proportion to
tho incono plan their v;ork s.o as to nako the labor of tnonsolvos and Cionbers of the
ramily as productive as possible. Enterprises are included in the f arr. business
fchat utilize available labor at all sci^sons of the year. -'hilc they secure good
varieties of seed, in so far as possible, they raise and prepare their own seed*
Rainy days and off seasons are used to repair buildings, fences, machinery, and har-
ness. This prolongs the life of equipnent, saves in the purchase of new equipment
and also saves paying out noney for highly paid skilled labor. By having equipment
in shape they also save the expense incident to delay in tho busy season caused by
broken machinery or fences, which might have been prevented by timely repair.
6. Size of Farm, In most types of farming there is a limit to the amount
of product which can bu profitably secured per acre, \7hen one finds his farm is
smaller than the more profitable farms in his locality and his income is low even
though he has good crop yields and good returns from livestock, a weakness is fre-
quently found in the small size of farm. This situation may be remedied by buying
or renting additional land or changing the type of farr.dng to a m.ore highly inten-
sive or specialized type \;hich will bring a larger volume of production. It r,ust
be recognized, however, that some men have more ability than others in hcjidling a
largo sized business. Some men nay find their farm is considerably larger than the
best paying farms, but tho income is low because of too large an area handled from
one point. Some farmers may find that they can secure a larger net profit by rent-
ing out some land and doing more efficient work on a smaller acreage. It is a well-
knovm principle of farm management that a farm must be large enough to utilize
capital in the form of buildings, machinery and other equipnent, and labor in an
economical way. Just how large the farm should bo, ho¥/ever, is a question which
depends upon the ability of the operator himself as a manager.
Balanced Farming Pa^s.
Each of the factors previously discussed plays a part in determining farm
profits. Full success in iar;.d.ng requires that all parts of the farmer's business
be givai attention. One may havo good crop yields and make good use of livestock,
but receive a small net income because of inefficient use of labor. Or one may
work a large acreage per man and per horse, but fail because of low crop yields or
poor returns from livestock. A well balanced farm v;ith a fair degree of efficiency
along all lines brings the operator returns v/hich viill enable him to maintain a
good standard of living for his family.
AIWU.-iL FARI.I BUSII-ffiSS KEPORT
luOMROE, RAIIDOLPK COUNTIES - 1924
Prepared by H.C.M. Case, Iv'.L, Mosher, K.H. Llycra*
Tho 23 farners in these two counties who kept farm records in 1924 in
ho book prepared by the Extension Service earned a rate of 4. 99/o on an average
.nvestnent of Ol6,207 after figuring their ovm time at about v550 per year. These
■ arras averaged 175 acres in size. The Labor and i\ianagonent wage which represents
/hat a man has left as pay for his own work and nanaging ability after paying all
3xpenses ajid allowing 5 per cent interest on the total investnent, amounted to
§540 as an average for all farmers. The value of the food products furnished the
fiome and the use of the dwelling house represent an income in addition to that shovm,,
3n 11 farms in Champaign and Piatt counties a careful record was kept of these two
items, the value of which amounted to s,>726 per farm at farm prices.
By comparing your own record with the average results of the 23 farms in
Monroe and Randolph counties on which records were kept last year you may find at
what point you can strengthen tho organization of your o\7n farm. The tables on
pages 2 and 3 show the average results of the 23 farms and the results of your
farm. These tables will help you to analyze your own record.
The results of severa.1 years of study of a large number of records simi-
lar to your own, show that a few factors doterrdne, to a large extant, the net farm
income, (l ) Good crop yields are necessary to secure a good income. On these farms,
while the average wheat yield was 12. G bushels per acre, the individual farms showed
a range of from 5 to 35 bushels. Corn and oats also shov;cd wide differences, (2)
Returns per vlOO invested in productive livestock is a comparative measure of the
efficiency of livestock. This measure showed a range on these farms of from 043 to
$270 income for each $100 invested. The percent of total income from livestock
shows the importance of livestock in the system of farming followed, ^^ecords over
a period of years show that as an average, farms on which a considerable part of
the grain crops is marketed tlirough livestock return a better income than those on
which little livestock is kept. Last year was an exception to this in some in-
stances since the grain farmer in many areas earned more than the livestock man,
with the possible exception of dairymen. The explanation of this as given on page
5, shows this to be an abnormal situation. The one year's results should not be
made the basis for changes in the system of farming follov/ed unless supported by
other reliable data, secured over a long period of time, (s) The efficiency of
man and horse labor is measured in terms of crop acres per man or per horse. On
these farms this varied from 55 to 110 acres worked per man and from 9 to 44. acres
worked per horse. Tlio type of farming follov/ed must bo considered in comparing
tfee^e factors but it is evident that there arc wide differences in the efficiency
with which different men operate their farms. (4) Tho expense per OlOO gross in-
come is a measure of the relation of expense to income. This varied from v39 to
$170 in this area. To make a more detailed comparison of this item such- things as
man labor cost per acre, machinery cost per acre, and buildings and fencing cost
per acre may be compared, V/hatever it be due to, low expense in relation to the
gross income is essential to profitable farming. A detailed statement of tho farm
*P. G. Ev/ald and E, C. Secor, farm advisers in Monroe and Randolph counties respec-
tively, cooperated in supervising and collecting the records used in this report.
t,. :1':
mj-f- .t -J. .1.. 'y
V;;3-
• .-v *..■<>,■ ■
-•li... J.U -3 , ij ■■... J
.■}.■ iU:
i2«
sarnings is givon on page 3, v;hilo on page 4 you vri.ll I'ind a chart on v/hich you nay
PJ.OX xno rosu±xG iron your ovm i am T/nicn wij
strength or v/cakness.
.1 snov/ at
vmax po
mts your i arm sr
iov;ea
lionroe, Randolph Counties
»
Factors helping to
1 analyze
the farn business
Your
Farn
Averago of
23
f arns
Rate Earned
Labor & Ivlanagenont Wage
e
%
4.99^
% 540,
Size of Farn - Acres
Crop Yields - Corn - Bushels
Oats - Bus lie Is
VJhcat - Susliels
Percent of land area Tillable
Percent of tillable land in legunes
i
175.0
30,4
23.0
12,0
77.9^
21.2/,
Returns per OlCO. invested in
all productive livestock
0
% 142.00
For OlOO. in - Cattle
- Swine
- Poultry
0
% 113.50
0 203.75
Percent of gross Income fron Livestock
30.3>1
Man Labor Cost per Acre
Crop Acres per Iilan
Crop Acres per Horse
$
5.95
64.6
21.0
Expense per OlOO gross incone
lilachinery Cost per Acre
Building & Fencing cost per Acre
$ 69,50
$ 1.07
1 .63
Gross Receipts per Acre
Total Expense per Acre
Net receipts per Acre
0
$ 15.11
0 10, 50
0 4c 61
- ■i*J5i-.'ES^
rf !l
-3-
lloiiVoCj Randolph counties
Your
Average
i f arm
Ox
23 fariis
1. Capital Investnont - Total
t
$ 16 207
10715
2. Land
0
3. Fan.; Iraproveuents
0
2007
4, Liachincry and Equipr.ent
0
1210
5, Feed and Supplies
V
1131
5. Livostock
0
1063
17. Horses
8. Cattle
1
386
0
304
9. Sheep
$
17
10. Swine
e
132
11. Poultry
$
144
12. Receipts - Net Increases - Total
^
§ 26 44
13. Feed and Grain
$
1501
14. Labor off Farn
e
37
15. Miscellaneous ^
e
94
16. Livestock - Total
$
1012
17. Horses
1
____
10. Cattle
s
106
19. Sheep
e
2
20. Swine
e
262
21. Poultry
$
103
22. Egg Sales
0
196
23. Dairy Sales
*
343
24. Expenses - Net Decreases - Total
25. Farn Improvements
*
V
$ 931
119
$
26. Livestock
$
13
27. Horses
e
13
28. Cattle
29. Sheep
30. Swine
31. Poultry
32. Machinery and Equipment
I
320
33. Feed and Supplies
e
---
34. Livestock Expense other than feed
§
11
35, Crop Expense
i
16 5
36. Labor hired
•n-
135
37. Taxes, Insurance, etc.
e
149
30. Ivliscellaneous
e
11
39. Receipts lees Expenses
4
$ 1713
40. Operators and Unpaid Fairdly Labor
e
907
'il. Net Income from Investment
$
806
42, Farms v/ith Tractor - Percent
/.
43.5
43. Value of land per Acre
$
62.
44. Total Investment per ACre
0
93.
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- 5 -
HD"; TO STUDY Yjj" FARM HSCJilD
'7e shall endeavor in the folloipiaiS discussion t3 point out tic importance
:)f certain factors -in their influence .-jn the far:- Tjrofits. Cost of production data
will frequently ho referred to. Tim cost of producin-'j farm products i'la?'. boon studied
during tr.c payt twelve ream i'.: dif-'ercint parts of ill^noir.. Vrnile your record does
not pcrnit determining the cor-t ol pro;luci-.5 separate ■orodi-'.cts on vour farm, the
inforrr.o. tijn from your farn docs enable you to loam \7h0ther the different parts of
your busincsr corrcpipond fav:irably with other farES in your co;ar.:!u:ii ty. A study of
a j-roun of farni records froii. any co..;;rani t"-- always inprcr;scs one iri th the fact t:iat
each farmer can profit at soiac pou^t from otuiv.ing the rcr.ults obtained by h-i s more
efficient faracr neig'hbora.
Different factor?, which wc wish to call tj voirr attention include the
following:
1. To tal Far- Earnings. Ti-.cse are shov,-n firrjt ^n ter;js of the rate earned
on the total frrrr. -invostment , and second, in Lerr;.s of the Labor and i.:a.nagcn:ent ■,7age.
However, in stxidving the frrri carnir.^^'s you 7.^11 be interested in noting;; the last
three i tcnis on page 2 wl'.ich show the wMc differences bet'.veen t-ic one- third nosfc
profitable and the one- third lea^-t profitable isrrriO in the gross receipts and the
total expenses -ocr acre, and in the resv-lting difference in the net receipts per
acre. These -.Tide differences in farr. earnings call for an analysis of a nvinber of
different fo.ctor£ --hich affect the far;:-: earnings. Tl^esc factors are included i;i the
follorring dir,cus;:lon in '.rhich v;e endeavor to point ov.t -.vhy these different fa,ctors
are of special ivr.portance.
2. Crop Yi ells. Good crm yields are one essential rcnuiremont for good
inconies. Cost of production steadies on IS farnis in one coriniunity sho7;ed that the
cost of producing a bushel of corn varied from 3'3# on ore farr. to 79?^ pcr bushel oia
another farir. for the sar;.c year. Similar differ onco?? occurred on other crons. A
large part of the difference in cost is di-.e to t?vc difference in yield per acre. It
is not inicoirriion -to find a difference of 2^rf a b\:.'jhel in the cost of producing corn
i7hich caii be attributed directly t? the difference in the yield ncr acre since most
items of cost do not incronse a? the yield incre-ros. \'/hen crop yields are lo'j OiiG
can ',7ell afford to stud^-r the practices of men nho soc-jrc higher yields. In order
to determine vvtet is responsible for those differences a,ttcntion shjuld be given, to
the rotation of crops, quality nnid vnrict/ of so^d, use of legimes and ir.anr.re, use
of limcTtone and phospha.te \7here roedcd, pre'oara'',io:"_ of s.;ed bed, cultivation, pro-
tection from disease and insects, "nd drainage.
3. Re turn 5 from Li vcstoclc. One of the best ;neaKi\ros of tlie efficiency of
livestock, in these records, in the returns per $100.00 invested. The ret-urns per
$100.00 '.Torth of feed fed any clas'^, of livcstoch, hov;ovv.r, gives you more reliable
information a.s ti vhethcr the efficiency of that class of livostoclc may be in'iprovcd.
You are urged, therefore, to 'coep th:- feed record on pages 33 and 39 of the farn
account took, at least for the live:-:tjck from rhich you receive considerable income.
As evidence of the -.Tide va.riation in livestoc:-: efficiency on farnis, cost accou::ts
secured on 18 farms in the sime c.-)n.:,-imi ty s'nov/ed a range in the cost of feed in pro-
ducing pork of $U»1S to $S.S1 per 100 pounds gain i;^ r;oight for the sanic year.
Tlic per cent, of total receipts from livestock enables one to knov; hoiv large
a factor livestock is in determining the farm income. On some farms where livestock
represented a considerable part of the income in 192^ the earnings '-ere reduced due
to the abnormal price situation. As compared va th the five-yeor average of farm
prices from. I909 to I91U the prices of meat aniiiials in I92U 'jere only 9^.^ higher tlian
for the five-3/ear period, vhilc the prices of grains wore 295 and the prices of dair;/
products and eggs were 37^ higher. This means t;.a-t farms '.vhich vrcre heavy producers
- 6 -
of meat a::iinals ■in 192U did rot fare r,o -y-cll ;'s they Liigiit oxpoct to do on an^
r.vorage of a number of yc.'.rs v;h:'n cornparod -.vi th cithor grain or dairy frnns- In
r.pi te of this f-^ct the larger proportion of livestoclc rctiirns o:. tlio tetter forms
indicate that good livestock properly hxidled paid even ui'-der the adverse price
Ei tuation.
Success v/i th livestock, as with crop production, depends upon a niiriber of
factors among v/hich the following should he noted: Raising a large per cent, of
young animals, sanitation, prevention of disease, ahilitv in buying and selling live-
stock, keeping animals of good crj^ality, good lef^ding practices - especially the grov;-
ing of sufficient legume forage to supply rost of the protein requi rcraentr. , careful
purchasing of additional protein and mineral siapplements v-hen needed, and the eco-
nomical use of roughage which is available on all frrms.
Some men are m.oro successful than others ir. Iiandlin/; livestock, ^t is not
recommended that anyone qui cicly ch;irge his practice a'la suddenly go into extensive
feeding or breeding operations. It is better to work graduoliy into the livestock
business, buildi-.g up either breeding or fee,li-g operations as he finds that live-
stock is filling a place in his system of farming.
U, Use o.f Man and li-'rse Lnb or . One of the b'^st mear'ures of the use of
labor is the number of crop seres worked per man or por horse v/ncn the farms are of
the sane general tjojc. When the coct of r^n labor ar.d horse labor are noted it em-
phasizes at once the importance of v/stching these items of expense and arranging
the organization of the farm to make oificiont use of laD^r.
Cost accounting dsta secured on IS farm.s in the same community for the
same year show tiriat the net cost of keeping a wjrk horse ranged from. $63-76 to
$12^.15; or an average of $93'OS per horse. '.Then it is considered that a horse
usually v7orks about 20 acres of crops wren a tr^ictor is not employed, it means that
horse labor costs -.yill range from $'')«50 ^^ ovv.r $6.00 per acre on different farms.
This wide range in the cost of horse labor ii dependenb not jnly on the number of
acres handled with one horse, but also upon the economy -.yi th which the horse is fed
and whether or not other i tcm.s of expense are korit at a- low figure. T\\e careful
planning of a rotation of crops is probrbiy one of the best ways to reduce both man
and horse labor costs. A rotation should be chosen so tliat as uniform an amount of
man and horse labor is reqiiired frjm. early spring lU-ti 1 Icte fall as possible.
Frequently the size of certain enterprises within the fsrm business maybe adjusted
to utilize the available family labor to advantage. Feeding do\yn crops ai".d Ireeping
enough livestock to utilize labor during the sea.sons when farm work is light are
other definite means of increasing tho efficiency v;i th Wiiich labor is used. ?.e-
peatcd study of farm records over the state indicate th.a.t occasionally a nan may
reduce the amount of both man labor and horse labor to a point where lower profits
ore secured from both crop and livestock enterprises because of a la.ck of well
directed, labor, it is usually found, however, that the more profitable farm.s not
only secure larger yields per acre, but thev h^andle a Ici'ger acreage per v/orker or
per horse.
5. Expense per $100. G-ross Incor^c. 'Thn. s is a measvj-e of thrift in all
parts of the farm business. It does not misrepresent a farm which has a large. .ex-
pense if the income is correspondingly high. rJowevcr, it is a well-laiovm principle
in all business organization that expenses mrast be kc2ot low in loroportion to incomie
if the business is to prove profitable. Cost accounts kcnt or IS f-irms in the
same comm.unity showed "that the a-nnoal building erpense per acre varied from; $1.42
to $6.63 por acre; the arniual expense for fences varied fromi $ .32 to S2.36 per r.cre;
and m^achinery and equipment expenses va,risd fr-o.n $ .83 per acre to $2.U6. Tnese
da,ta''show how much more efficient some farmers are tha.n others ^r keeping expenses
low.
- 7 "
Farncrs '.vho ni'c i.,ost succvjssfril ir. kcjr.ln.er Gxponsas lovr In pro'Dortion to
the incDne plan their work sj as tj uai'e the lah:)r jf thensclvcs and mcr.ibcrs of the
faaily as productive as possitle. Enterprises are included in the fare "business
that utilize available labor at all seasons of the year. Ifui le they secure good
varieties of seed, in so far as possible, they raise and prepare their own seed.
Rciny days and off seasons are use! to repair buildings, fences, machinery, a^:id har-
ness. Tni s prolongs the life of equipnent, saves in the puj-ch-ase of new equipnent
and also saves paying out money for hig-hly paid skilled labor. By having equipment
in chape they also save the expense incident to delay in the busy season caused by
broken nachinery or fences, --hich night have beer prevented by timely repair.
6. gjzc of Fpm . in most types of far:;;ing there is a li]:-.it to the amount
of product T7hich can be profitably seCTired per acre. XTheu one finis his farm is
smaller than the more profitable farms in his locality snd his income is lov; oven
though he has good crop yields and good returns iron livestock, a '..■eaiatess is fre-
quently found in the small size of farm. This situation may be remedied by btrying
or renting additional laiod or chiingir.g the t,"/p.e of farr'ing to a r.ore highly inten-
sive or specialised type '.vhich v.'ill bring a larger vol'j.ne of production, it must
be recognized, hovrever , that some men have iTjore ability than others in handling a
large sized business. Som.c men may find the^'r fam is consider- bly larger than the
best paying farms, but the incom.c is low because of too large an area handled fro~i
one point. Some fanners may find tlist they can seci-.ro a larger net profit by rent-
ing out som.e land and doing m.ore efficient work on :. sr.:aller acrea.ge. it is a well-
Inovm principle of farm management that a farm, ra^st bs l-irge enough to utilize
capital in the form of buildings , mach-inery o.nd other eqiipm.ent , and labor in an
economical wav. Just ho;? large the farm should be, however, is a question v;hich
depends upon the ability of the operator himisclf as a manager.
Balarced Farming Paya ■
Each of the factors previ o^LEiy discussed plays a part in determining farm
profits. F^ll giaccess in fsn.dng reouires that all parts of the farm.er's business
be given attention. One m.ay have good crop y'elds and make good use of livestock,
but receive a small net income because cf inefficient use of labor. Dr one may
work a large acre?g;e per man and per horse, but fail because of low crop yields or
poor returns from, livestock. A well balanced faiT: with a fair degree nf officiencj^
along all lines brings the operator returns which will enable him to maintain a
good standard of living for his family.
■]
a
I
ANNUAL FAHI'.i BUSINESS REPORT
SALINE, GALLATIN COUNTIES - 1924
Prepared by H.C.M, Caso, M.L. Moshor, K,ii. Myers*
The 17 farrners in theso two counties who kept farm records in 1924 in
the book prepared by the Extension Service earned a rate of 5,43/o on an average in-
vestment of 022,764. af torf iguring their ovm time at about v475t per year. These
farms averaged 177 acres in size. The Labor and i-ianageoent v;age which represents
what a man has left as pay for his ovm work and managing ability after paying all
expenses and allowing 5 per cent interest on the total investraent, amounted to $569
as an average for all farmers. The value of the food products furnished the homo
and the use of the dv;olling house represent an income in addition to that shown.
On 11 farms in Champaign and Piatt counties a careful record was kept of those two
items, the value of which amounted to v726 per farm at farm prices.
By comparing your own record with the average results of the 17 farms in
Saline ajid 'Gallatin counties on which records were kept last year, you may find
at what points you can strengthen the organization of your own farm. The tables
on pages 2 and 3 show the average results of the 17 farms, and the results from your
own farm. These tables should help you to analyze your ovm record.
The results of several years of study of records similar to your own, show
that a few important f Actors deterr.iinc, to a large extent the size of the net farm
income. (l) &ood crop yields are necessary to secure a good income. On these 17
farms, while the average corn yield was 35,0 bushels per acre, the individual farms
show a range of from 11 bushels to 60 bushels per acre. Jther crops showed similar
differences. (2) Returns per s/lOO, invested in productivelivcstock is a comparative
measure of the efficiency of livestock. On these farms a variation of from ^6 9 to
$347 return for each OlOO invested, was found. The percent of total incomiO which
livestock represents s?iows the importance of livestock in the system of farming
followed. Records over a period of years show that farms on v;hich a considerable
part of the grain is marketed through livestock return a better income than those
on which little livestock is kept. Last year was an exception to this on some
farms since in many grain farm.crs earned a better income than the livestock man,
with the possible exception of dairymen. The explcjiation of this as given on page
5 shows this to be an abnormal condition due to prices. No changes should be made
in the system of farming followed, on the basis of the one year's records, unless
supported by other reliable data, secured over a longer period of time. (3) The
efficiency of man and horse labor is measured in terms of crop areas per man and
per horse. This varied from 36 to 110 acres worked per man, and frorrlS to 25 acres
worked per horse on these farnse The type of farming follovred must be considered
in comparing these factors but it is evident that there are wide differences in
the efficiency with v/hich different men operate their farms. (4) The expense per
OlOO gross income is a measure of the relation of expense to income. This varied
on theso farms from v32 to 098 last year. This difference may be due to any of a
large number of factors. To make a more detailed comparison, such things as man
labor cost per acre, machinery cost, and buildings and fencing cost per acre may
be compared. Vi/hatever it be due to, low expenses in relation to the gross income
is essential to profitable farming.
* J.E, Whitchurch and C, W, Simpson, farm advisors in Saline and '--allatin coun-
ties, respectively, cooperated in supervising and collecting the records used in
this report.
-2-
A detailed statcnent of the farn earnings is given on page 3, while on page 4 you
will find a chart on v/hich you rx^y plot the results fron your ovm farn v/hich will
show at what points your farra showed strength or wealaiess.
Saline, Gallatin Counties
Factors helping to
Your
Average of
analyze
17
the farn business
farn
f arns
Rate Earned
/»
5. 43 fa
Labor & fenagemont Wage
0
0 569.
Size of Farn - Acres
177cO
Crop Yields - Corn - Bushels
35.0
Oats - bushels
38.1
V/heat- Bushels
15.3
Percent of land area Tillable
?»
87.7;t
Percent of tillable land in legumes
%
l9.l/o
Returns per yiOO. invested in
all productive livestock
$
0 150.25
For OlOO. in - Cattle
0
0 94.80
- Swine
0
\i 200,90
- Poultry
0
0 190,70
Percent of gross Incone fron Livestock
t
41.0 %
Man Labor Cost per Acre
e
0 4,71
Crop Acres per Man
61.4
Crop Acres per Horse
16.3
1 S?. 4^
Expense per OlOO* gross incone
0
Marhinery Coat ner Acre
0
%! 1. 3^
Building DC Foncing cost per Acre
0
0 ,83
Gross Receipts per Acre
e
0 16 . 41
Total Expenses per Acre
0
0 9.42
Net Receipts per Acre
V
0 6.99
- 3 -
Saline, C^allatin Counties
Your
Average
of 17
Farm
farms
1. Capital Investnont - Total
2. Land
^
1 2276 4
$
17245
3. Farm Improvement
e
2159
4. Machinery and Equipment
$
759
5. Feed and Supplies
$
1220
6. Livestock
$
1381
7. Horses
e
542
8. Cattle
e
401
9. Sheep
$
10
10. Sv/ino
$
252
11. Poultry
$
176
12. Receipts - Net Increases - Total
$
$ 2904
13. Feed and Grain
$
1624
14. Labor off Farm
$
59
15. Kiscellanoous
$
33
16. Livestock - Total
$
1188
17. Horses
$
7
18. Cattle
$
148
19. Sheep
*
15
20. Swine
$
440
21. Poultry
$
136
22. Egg Sales
$
207
23. Dairy Sales
235
24. Expenses - Not Decreases - Tctal
^
1 96 3
25. Farm Improvements
^
156
26. Livestock
$
27. Horses
$
28. Cattle
$
29. Sheop
^
30. Swine
0
31. Poultry
e
32. Machinery and Equipment
e
233
33. Feed and Supplies
$
34. j-iivcstock Expense other than feed
e
26
35. Crop Expense
e
154
36. Labor hired
V
129
37. Taxes, Insurance, etc.
e
251
38. Miscellaneous
0
14
39. Receipts less Expenses
40. Operators and Unpaid Family Labor
e
^ 1941
705
e
41. Net Income from Investment
$
1236
42, Farms with Tractor - Percent
/o
30.0/„
43. Value of land per Acre
§
97
44. Total Investment per ^cre
«
129
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- 5 -
KDi7 ID 3TUDY Y^^Z I^Li HIIOJHD
Vi'e shall endeavor in the follcwinj discussion tj pjint out the importance
of certain factors in tht3ir infri-once on the faiv profits. Cost of production data
will frcffacntly be referred to. Tac cost of producin^5 fair, products haf. "been studiec
during the patt ty/elve yearn in different parts of illnioir,. Tn-' Ic your record does
not perr/iit dotcr!;.inlr.^; the cort of pror'uc'n r separate products on your farm, the
information from your far-i docs enable yov. to learn ^-nether the different parts of
your ■busi-.cs;.- correppond favorably v;i tl. other farms in your co-X7uiiity. A study of
a s^ourj of far;n records from aaiy co:.;."r.iTJ tv aiT7ays impreescs one ■vi th the fact that
each farmer can profit at some poi-:t from stud-^in,:; the rerults obtained by his more
efficient farm.sr neighlorj;.
Different factors, y/hich we wish to call to your attention include the
follo\7ing:
1. Total Far:--: S-^rningis. These are shovm first in terms of the rate earned
on the total farm -invostraunt , and second, in terr;.s of the Labor and ilanagemcnt rrage,
Ho\7nver, in studying the farm, carnires you v/ill be interested in noting the last
three items on page 2 which shov; the wide differences between the one- third m^st
profitable and the one-third leart profitable ferma in the gross receipts and the
total expenses per a.cre, a:ia in the resulting difference in the net receipts per
acre. Tlicse Tride differences in f<?j:m. earnings call for an analys-^s of a nu::ber of
different factors '.vhich affect the farm, earnings. Tlieso factors are included in the
folloTing discuseion in which wc endeavor to point out why these different factors
are of special importaiice,
2. Crop Yi elds. Good crop yields are one essential requirement for good
incomes. Cost of production studies on IS farms in o;ic community showed that the
cost of producing a bushel of corn varied from 3S(^ 0-i one farm to 79(# P*''^^ bushel on
another farm for the saiac year. Siir.ilar differencos occurred on other crops. A
large part of the difference in cost is dv-e to the di f fereiice in yield per acre. It
is not uncorauon to find a difference of 25rf a bushel in the cost of producing corn
which can be attributed directly to the difference in the yield per acre since most
items of cost do not increase as the yield increases. When crop yields are low one
ca:i well afford to study the practices of men who secxTe higher yields. In order
to determine what is responniblo for these differences attention shoxild be given to
the rotatio:! of crops, q'Ofdi ty and variety of seed, use of legumes a;id manure, use
of limestone a:id phosph^atc where needed, preparation of seed bed, cultivatio:!, pro-
tection from, disease and i:iscctG, "nd drainage.
3. He turns from. Liver, took. 0:ic of the best 'Heasures of the efficiency of
livestock, in these records, is the returns per $100.00 invested. The returns per
^100.00 worth of feed fed a:iy class of livestDClc, ho-evor, gives you more reliable
information as to '.hethcr the efficiency of that class of livestock nay be i:r.proved.
You are urged, therefore, to keep the feed record on pages 3S and 39 of the farm
account book, at least for the livestock from, v.-hi ch you receive considerable i:-come.
As evidence of the wide variation in livestock efficiency on farms, cost acco^jnts
secured on IS farms in the s^mo CDEir-^onity showed a ra--.ge in the cost of feed in pro-
ducing pork of $UV1S to $S.S1 per 100 pounds gain in weight for the same yeax.
The per cent, of toto,l receipts from livestock enables one to k^iow how large
a factor livestock is in determining the farm income. On some fe-rms where livestock
represented a considerable part of the income in 1924 the earnings were redij.ced due
to the abnormal price situation. As co:iTOared v^i. th the five-yecx average of farm
prices from I909 to 191^ the prices of meat a:iimals in I92U were only 9^o higher thai".
for the five-year period, while the prices of grains were 29'^ and the prices of dairy
products and eggs were 37^ higher. Tl-:i s .merns tnat far::-.s which were heavy producers
- 6 -
of meat aitimals in 192U did r.ot fo.re so --ell as thuy r.ii.glit expect to do on an
average of a nuniber of yor.rs v.'hcn compared -ji th cither grain or dairy frms. In
spite of this f-^ct the Irrger proportion of livestocl-c returns on the "better farms
indicate that good live?toc'<: properly handled paid even under the adv<irse price
si ti^ation.
Success Vv-ith livestock, as with crop production, depends upon a nioriber of
factors among v/hich the following should be noted: Raising a large per cent, of
young animals, sanitation, prevention of disease, ability in buying and selling live-
stock, keeping animals of good quality, good feeding practices - especially the gro',7-
ing of sufficient legume forage to supply r.'ost of the protein requirements, careful
purchasing of additional protein and mineral supplements vmen needed, and the eco-
nomical use of roughage which is available on ail farms.
Some men are more successful than others in "nandling livestock, it is not
recommended that anyone quickly change his practice and suddenly go into extensive
feeding or breeding operations. It is better to work gradually into the livestock
business, building up either breeding or feeding operations as he finds that live-
stock is filling a place in his syr.tem of farming.
h. Use of Man and Horse Lnbor. One of the best measures of the use of
labor is the n-umber of crop acres v.-orked per man or per horse when the farms are of
the same general tj^oe. When the cost of man labor ar.d horse labor are noted it em-
phasizes at once the importance of watching these items of expense aiid arranging
the organization of the farm to make efficient use of laio-r.
Cost accounting do.ta secured on l£ farm.s in the same com~fanity for the
same year show that the net cost of keeping a work horse rsmged from. $63 .76 to
$12U.15; or an average of $93»C''5 per horse, vvhen it is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it means that
horse labor costs will r.onge from $3*50 to ovt.r $6.00 per acre on different farms.
This wide range in the cost of horse Labor is dependent not only on the number of
acres handled with one horse, but also upon the economy ';7i th which the horse is fed
and whether or not other items of expense arc keiot at a- low figure. Tlie careful
planning of a rotation of crops is probably one of the best ways to reduce both man
and horse labor costs. A rotot^'on should be chosen so tnp..t as uniform an amount of
man and horse labor is required from early spring uiti 1 late fall as possible.
Frequently the size of certain enterprises within the larr/i business may be adjusted
to utilize the available frmily labor to advantage. Feeding dotrn crops avA keeping
enough livestock to utilize labor during the seasons v/hcn farm, work is light are
other definite m.eans of increasing the efficiency with which labor is used. Re-
peated study of farri records over the state ii^.dicatc t:"!at occasionally a man may
reduce the amount of both man labor and horse labor to a point where lower profits
a,re secured from, both crop and livestock enterprises because of a lack of v/ell
directed labor. It is usually fo^'ond, however, that the more profitable farm.s not
only secure larger yields per acre, but they hazidle a Icrger acreage per worker or
per horse,
5- Expense per $100. G-ross Income . Tiii s is a measure of thrift in all
parts of the farm business. It does not misrepresent a farm which has a large. .ex-
pense if the Income is correspondingly hi.-h. However, it is s. well-lcnown principle
in all business organization tliat expenses must be kept low in proportion to incom.e
if the business is to prove profitable. Cost accounts kept on IS farms in th^e
same community showed tha.t the aimual building erpense per acre varied from: $1.^2
to $6.63 per acre; the annual expense for fences varied from $ .32 to $2.36 per acre;
and machinery and equipm.ent expenses varied from $ .S3 per acre to $2.U6. These
data'^show how much more efficient some farmers are than others in keeping expenses
low.
- 7 -
Farncrs -.Tho arc i.,ost suceuss.vul ir. kcjTilnir cxpor.sas lo'.7 Ir. prop-jrt'.or. to
the incone pla:: their work sj as tj make the lahar of thcir.solvcs and ner.ibcrs jI" the
fanily as productive as possible. Enterprises are included in the farn business
that utilize available labor at all sea.sons of the year. Wlii le they secure good
va.rieties of seed, in so far as possible, they raise and prepare their own seed.
Rainy days and off seasons are used to repair buildings, fences, machinery, and har-
ness. Tlii s prolongs the life of eq-uipr/ient , saves in the purchase of new equipment
and also saves paying out noaey for highly paid skilled labor. By having equipment
in shape they also save the expense incident to delay in the busy season caused by
broken machinery or fences, vrhich might have been prevented by tiaely repair.
6. Size 0 f Farm . in most tj.'pes of farrr.ing there is a li;;-.it to the amount
of product \7hich can be profitably secured per .^cre. Kien one finis his farm is
smaller than the more profitable farms in his locality and his income is lor: even
though he has good crop yields ar.d good returns Iron livestock, a '..'eaicr-ess is fre-
quently found in the small size of farm. This situa.tion may be remedied by buying
or renting additional land or changing the t/z-p.e of farming to a m.ore highly inten-
sive or specialized type v/hich -.rill bring a larger volume of production. It r.ust
be recognized, however, that some men have more o.bility than others in handling a
large sized business. Some men m.ay find their f3.rr. is consi derf.bly larger than the
best paying farms, but the income is 1ot7 because of too large an oxea handled from
one point. Sor^e farmers m.ay find tliat they can secnrc a larger net profit by rent-
ing out som.e land and doing m.ore efficient -.vork on a sr.ialler acreage, it is a well-
knoun principle of farm m.anagem.ent that a farm must be large enough to utilize
capital in the form of buildings, machinery and other equipment, and Ipbor in an
economical way. Just ho?/ large the farm should be, however, is a q'aestion vrhich
depends upon the ability of the operator himself as a manager.
Balanced Farming Fays.
Each of the factors previously discussed plays a part in determining farm,
profits. Pall s^access in farming recfaires t]mt all parts of the fanner's business
be given attention. One m.ay have good crop yields and malce good use of livestock,
but receive a small net incom.e because of inefficient use of labor. 3r one may
v7ork a large acreage per m^n and per horse, but fail because of lov; crop yields or
poor returns from, livestock. A rvell balanced fai^m ^/ith a fair degree of efficiencj^
along all lines brings the operator returns which will enable hirh to maintain a
good stan'iard of living for his family.
^INU.-J. F^iRI.! BUSIMESS REPORT
TAZK.TELL, LOG^I, MACON, and McLEAll* COUIITIES - 1924
Preparod by H.C.M. Caso, M. L. I»ioshor< K*HiMyors**
The 30 farmers in the four counties who kept farm records in 1924 in
tho book prepared by the Extension Service earned a rate of 7.26/0 on an average
investment of ;;59,6 91 after fibUring thoir ov/ii time at about ,,600 per year. These
farms averaged 232.5 acres in size. The Labor and ^-^anagement wage v/hich repre-
sents what a man has loft as pay for his ovm v/ork and managing ability after
paying all expenses and allowing 5 per cent, interest on tho total investment,
amounted to sA904 as an average for all farmers. The value of the food products
furnished the home and the use of the dv;elling house represent an income in addi-
tion to that shovm. On 11 farms in Champaign and Piatt counties a careful record
v/as kept of these two items, the value of which amounted to v726 per farm at farm
prices.
A comparison with other farmers in your community Vi:ill help you to find
at what point you can strengthen your farm. The tabl03 on pages 2 and 3 show the
average results of the 30 f:.rr.is in comparison with thoac of more profitable and
less profitable farms. The 10 most profitable farms e.irned 10.12^» on the invest-
ment, Vifhile tho least profitable group made only 3.83/i. Expressed as the Labor and
Management wage, the better group made an average labor income of sf3462, while
tho least profitable group lacked v974 of having anything left to pay the manager
for his own labor and management, a difference of v4436. In comparing the more
profitable farms with tho least profitable it will be noted that the 10 more profit-
able farms averaged over 35 acres larger in size, making it possible to use equip-
ment, machinery and labor to greater advantage.
As shown on page 2, the more profitable group received larger crop
yields than did the least profitable group, both grO'-'.ps of farms had considerable
land in legume crops. The more profitable farr.is received a larger return for each
ijilOO invested in productive livestock, and while thoir livestock represented only
29. 8^^ of the total gross income cocipared to 36.9/-' on tiio lower group, they re-
ceived a larger total income from livestock as v/oll as from the farm as a v;hole.
The more prdfitable farms then had larger crop yields and better livestock and a
larger income from livestock but a smaller percentage of the total income from
livestock. This indicates that the farms rocei'jin© ihc pajor part of their income
from the sale of grains c'.nd v/ith livestock well handled paid better in 1924 than
the farms receiving most of their income from livestock. This is an abnormal condi-
tion, doe to the price situation, however, and no interpretation should be attempted
without reading the expljjnation given on page 5, They also handled about 24
acres more crops with each man and about 3 acres more crops with each horse than
did the least profitable group, a factor which was responsible for a lov/er labor
cost per acre.
For every s?100 taken in, the 10 most profitable farms had an expense of
v32.15, while the 10 least ^t^i'of itable farms had an expense of ^0,17. This may be
due to any one of a larger number of items of cost, but as shown, the more profit-
able farms kept the machinery expanses and building and fencing expenses as v/ell
as other operating expenses at a lower figure per acre. This is probably due in
part to the difference in the size of farms. Vi/hatever it is due to is well known
that low expenses in relation to the total income is essential to profitable farm-
ing. The more profitable farms received ^9.75 larger gross returns per acre and
their expenses were ^'3.95 less per acre than on the 10 least profitable farms, giv-
ing as a result the net receijjts of ^23.77 per acre as compared with only $10.07
per acre on the 10 least profitable farms.
*Re cords in the east part of LlcLoan Co, were used in the Chcj7ipaign,Ford Co. Report.
**R.E.^net, J.H.Checkloy, E,E,Walworth and H.Fahrnkopf , farm advisers in Tazevrell,
Logai, Macon, and McLean Co., respectively, cooperated in supervising and collect-
ing the records used in this report, ^
-2-
A detailed otatenent of the fare e:z.rnxncs ±^ [jiven ort paje 3/ i^hile on page 4 you
will find a chart on v/hich you nay plot the recults frou your ovm f arn which will
shov; at what points your faru shov/ed ctrer.Qth or v/eaknecsj
Tazev/ell, Logan, Tuicon and McLean Counties,
Factors helping to analyze the
Your
Average
10 most
10 least
f urn business
of 30
profitable
profitable
farm
farms
farms
farms
Rate Earned
%
7,26/0
10,12
3.83
Labor & Management Wage
e
»
1904,
3462,
-974.
Size of Farm - Acres
232.5
240.4
204.5
Crop Yields - Corn - Bushels
46.8
49.2
45.1
Oats - Bushels
54.3
56.1
53.1
\^eat -Bushels
20.5
24.1
19.2
Percent of land area Tillable
/o
93,8;o
91.1
95.1
Percent of tillable land in legumes
%
12,5f»
12.6
14.7
Returns per $100, invested in all
productive livestock
0
$140,60
148.25
129.50
For $100 in Cattle
0
6 91.50
121,00
70.00
Swine
0
0198, 30
205.65
155.50
Poultry
0
$118.60
91.50
111.45
Percent of gross Income from Livestock
i
34. Of,
29.8
36.9
Man Labor Cost per Acre
$
0 5.37
5.01
5.76
Crop ncres per ^ian
88.7
101.5
77.4
Crop Acres per Horse (V/ith tractor)
27.5
28.2
26.0
(Without tractor)
18.6
18.9
14.8
Expense per OlOO. gross Incorae
0
0 40,6 5
32.15
60.17
Machinery Cost per j^cre
0
0 2.55
1.88
3.86
Building >^ Fencing cost per ^cre
0
$ .96
.92
1.17
Gross Receipts per ncre ^
$
0 31.39
35.03
25.28
Total Expenses per /icre
0
0 12.73
11.26
15.21
Net Receipts per ^cre
0
0 18,56
23.77
10.07
Tazov/oll, Lojan, Lacon, lilcLcai; Ccunticc,
Your
Avcrajje
10 bbst
10 lcas;t
farn.
of 30
profitable
profitable
farms
farms
farns
1.
2.
IJapital Inveotnont - Total
Land
t
59691
56 435
45745
53741
42300
V
48385
3.
Farr. Improvoments
V
4143
3688
4525
4.
Ivlachinery and 2quipnont
V
1673
1409
2028
5.
Feod and Supplies
V
306 5
3300
2741
6.
Livestock
2420
2285
2147
7.
Horses
c
791
720
746
8.
Cattle
y
747
557
574
9.
Sheep
V
61
23
1
10.
Swine
$
603
547
669
11.
Poultry
0
133
138
157
12.
13.
Receipts - Net Increases - Total
729C
4695
0421
5796
5170
3112
Feed and Grain
1
14.
Labor off Farn
71
16
123
15.
Miscellaneous
49
101
21
16.
Livestock - Total
V
2403
2500
1909
17.
Horses
0
•• — —
w — —
11
18.
Cattle
0
323
302
129
19.
Sheep
0
155
10
220
20.
Swine
0
1423
1245
1139
21.
Poultry
0
75
30
04
22.
Egg Sales
80
00
93
23.
Dairy Sales
^
419
745
233
24.
25.
ExTjenses - Net Decreases - Tot;:
.1$
2201
2^3
2042
221
2197
240
Farm Inprovenents
e
26.
Livestock
0
23
40
---
27.
Horses
St*
23
40
28.
Cattle
e
29.
Sheep
^
30.
Swine
V
31.
Poultry
\/
32.
Iiiiachinery and Equipment
0
593
452
790
33.
Feed and Supplies
e
— -
34.
Livestock Expense other than feed
52
36
94
35.
Crop Expense
V
203
320
255
36.
Labor hired
0
490
541
26 5
37.
Taxes, Insurance, etc.
\f
403
4O0
479
30.
Miscellaneous.
V
44
24
73
39.
Receipts less Expenses
e
5097
6379
2973
40.
Operator's and Unpaid Far.iily Labor
759
56 5
914
41.
Het Income fror. Investment
0
4330
5714
2059
42.
Farms v;ith Tractor - Percent
/.
56 . 3fo
30.0
70.0
43.
Value of land per xicre
e
200
190
207.
44.
Total Investment per Acre
0
257
235
26 3.
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■1-:
- 5 -
HOW TO STUDY YOUR FARI.l KiCORD
We shall endeavor in the following discussion to point out the importance
of certain factors in their influence on the farm profitsi Cost of production data
will frequently be referred to. The cost of producing farm products has been
studied during the past twelve years in different parts of Illinois. While your
record does not permit deteniiining the cost of producing separate products on your
farm, the information from your farm does enable you to learn whether the differ-
ent parts of your business correspond favorably with other farms in your community.
■^ study of a group of farm records from any community always impresses one with the
fact that each farmer can profit at some point from studying the results obtained
by his more efficient farmer neighbors.
Different factors which we wish to call to vour attention include the fol-
lowing;
1. Total Farm Earnings. These are shown first in terms of the rate earned
on the total farm investment, and second, in terms of the Labor and Management
wage. However, in studying the farm earnings you will be interested in noting the
last three items on page 2 v;hich shov/ the v;ide differences between the one-third most
profitable and the one-third least profitable farms in the gross receipts and the
total expenses per acre, and in the resul-;:ing difference in the net receipts per
acre. These wide differences in farm earnings call for an analysis of a number of
different factors which affect the farm earnings. These factors are included in
the follov/ing discussion in v/hich we endeavor to point out why these different fac-
tors are of special importance,
2. Crop Yields. Good crop yields are one essential requirement for good
incomes. Cost of production studies on 18 farms in one community showed that the
cost of producing a bushel of corn varied from 39;^ on one farm to 19^ per bushel on
another farm for the same year. Similar differences occurred on other crops. A
large part of the difference in cost is due to the difference in yield per acre.
It is not uncommon to find a difference of 250 a bushel in the cost of producing
corn which can be attributed directly to the difference in the yield per .acre since
most items of cost do not increase as the yield increases. When crop yields are
low one can well afford to study the practices of men who secure higher yields.
In order to determine what is responsible for those differences attention should
be given to the rotation of crops, quality and variety of seed, use of legumes and
manure, use of limestone and phosphate whore needed, preparation of seed bed, culti-
vation, protection from disease and insects, and drainage,
3. Returns from Livestock. One of the best measures of the efficiency of
livestock, in those records, is the returns per $100.00 invested. The returns per
?100.00 worth of feed fed any class of livestock, hov/ever, gives you more reliable
information as to whether the efficiency of that class of livestock may be improved.
You are urged, therefore, to keep the feed record on pages 38 and 39 of the farm
account book, at least for the livestock from which you receive considerable income.
As evidence of the wide variation in livestock efficiency on farms, cost accounts
aecured on 18 farms in the same community shov/ed a range in the cost of feed in pro-
ducing pork of $4.18 to §8.81 per 100 pounds gain in weight for the same year.
The per cent, of total receipts from livestock enables one to know how
large a factor livestock is in determining the farm income. On some farms where
livestock represented a considerable part of the income in 1924 the earnings were
reduced duo to the abnormal price situation, as compared v/ith the five-year aver-
age of farm prices from 1909 to 1914 the prices of meat animals in 1924 were only
9/i higher than for the five-year period, while the prices of grains were 29^o and
the prices of dairy products and eggs were Zl^/o higher. This means that farms v;hich
v;ere heavy producers of meat anim.als in 1924 did not fare so well as they m.ight
- 6 -
e^^ect to do on an average of a nunber of yoars when compared with either grain or
dairy farms. In spito of this fact the larger proportion of livestock returns on
the better farms indicate that good livestock properly handled paid even under
the adverse price situation.
Success with livestock, as v;ith crop production, depends upon a number of
factors among which the following should bo noted: Raising a largo per cent, of
young animals, sanitation, prevention of disease, ability in buying and selling
livestock, keeping animals of good quality, good feeding practices - especially the
grov/ing of sufficient legume forage to supply most of the protein requirements,
careful purchasing of additional protein and mineral supplements when needed, and
the economical use of roughage which is available on all farms.
Some men are more successful than others in handling livestock. It is not
tecommended that anyone quickly change his practice and suddenly go into extensive
feeding or breeding operations. It is better to v/ork gradually into the livestock
business, building up either breeding or feeding operations as ho finds that live-
stock is filling a place in his system of farming.
4. Use of Man and Horse Labor. One of the best measures of the use of
labor is the number of crop acres worked per man or per horse when the farms are of
the same general type. Vftien the cost of man labor and horse labor are noted it em-
phasizes at once the importance of watching these items of expense and arranging
the organization of the farm to make efficient use of labor.
Cost accounting data secured on 18 farms in the same community for the
same year show that the net cost of keeping a v/ork horse ranged from $63.75 to
$124.15; or an average of $93.08 per horse, Viihen it is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it means that
horse labor costs will range from $3.50 to over $5.00 per acre on different farms.
This wide range in the cost of horse labor is dependent not only on the number of
acres hai^.dled with one horse, but also upon the economy v/ith which the horse is fed
and whether or not other items of expense are kept at a low figure. The careful
planning of a rotation of crops is probably one of the best v/ays to reduce both man
and horse labor costs, .h. rotation should be chosen so that as uniform an amount of
man and horse labor is required from early spring until late fall as possible,
Frequently the size of certain enterprises within the farm business may be adjusted
to utilize the available family labor to advantage. Feeding down crops and keeping
enough livestock to utilize labor during the seasons when farm work is light are
other definite means of increasing the efficiency with v/hich labor is used. Re-
peated study of farm records over the state indicate that occasionally a man may
reduce the amount of both man labor and horse labor to a point where lower profits
are secured from both crop and livestock enterprises because of a lack cf well
directed labor. It is usually found, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per worker or
per horse.
5. Expense per ijlOO, Gross Income. This is a measure of thrift in all
parts of the farm business. It does not misrepresent a farm which has a large ex-
pense if the incom.e is correspondingly high. However, it is a wcll-knowi principle
in all business organization that expenses must bo kept low in proportion to income
if the business is to prove profitable. Cost accounts kept on 18 farms in the
same community showed that the annual building expense per acre varied from Ol.42
to ^.63 per acre; the annual expense for fences varied from v .32 to !k>2.36 per
acre, and machinery and equipment expenses varied from 0 "SS per acre to §2.46,
These data show how much more efficient some farmers are than others in keeping
expenses low.
- 7 -
Farnors who are most successful in keeping expenses low in proportion to
tho income plan their work ao as to nako the labor of thonsolvoe and nonibers of the
family as productive as possible. Enterprises are included in tho f arn business
that utilize available labor at all seasons of the year. "ihilc they secure good
varieties of seed, in so far as possible, they caiso and prepare their own seed.
Rainy days and off seasons are used to repair buildings, fences, machinery, and har-
ness. This prolongs the life of equipment, saves in the purchase of new equipment
and also saves paying out money for highly paid skilled labor. By having equipment
in shape they also save tho expense incident to delay in tho busy season caused by
broken machinery or fences, v;hich might have been prevented by timely repair.
6. Size of Farm. In most types of farming there is a limit to tho amount
of product which can bo profitably secured per acre. ViTnen one finds his farm is
smaller than the more profitable farms in his loceility and his income is low even
though he has good crop yields and good returns from livestock, a weakness is fre-
quently found in the small size of farm. This situation may be remedied by buying
or renting additional land or changing the type of farrrdng to a more highly inten-
sive or specialized typo which will bring a larger volume of production. It must
be recognized, hov/ever, that some men have more ability than others in handling a
large sized business. Some men may find their farm is considerably larger than the
best paying farms, but the income is low because of too large an area handled from
one point. Some farmers may find that they can secure a larger net profit by rent-
ing out some land and doing moro efficient work on a smaller acreage. It is a well-
known principle of farm management that a farm must be large enough to utilize
capital in tho form of buildings, machinery and other equipment, and labor iu an
economical way. Just how large tho farm should be, however, is a question which
depends upon the ability of the operator himself as a manager.
Balanced Farming Pays.
Each of the factors previously discussed plays a part in determining farm
profits. Full success in fan.iing requiiles that all parts of the farmer's business
be given attention. One may have good crop yields and make good use of livestock,
but receive a small net income because of inefficient use of labor. Or one may
work a large acreage per man and per horse, but fail because of low crop yields or
poor returns from livestock. A v/ell balanced farm vath a fair degree of efficiency
along all lines brings the operator returns which will enable him to maintain a
good standard of living for his fanily.
.-■^NNUAL FARM BUSINESS REPORT '
V/ABASH, EDWARDS, RICHLAi'ID, AI-JD LAWRENCE COUNTIES ** 1924;
Proparod by H.C.M. Caoo, M. L. Moohcr, K. . H. Myors"*
Tho 41 farnera in these countios who kept farm records in 1924 in the
book prepared by tho Extension Service earned a rate of 7.23% on an average in-
vsstnent of 1^0,085 after figuring their own tine at about v450.00 per year.
These farms averaged 174.3 acres in size. The Labor and iCanagonont wage v;hich
represents what a inaji has left as pay for his own work and nanaging ability after
paying all oxponsefi and allov/ing 5 percent interest on the total investment,
amounted to 0902.00 as an average for all farners. The value of the food products
furnished the hone and the use of the dvrelling house represent an income in addi-
tion to that shown. On 11 farms in Chanpaign and Piatt counties a careful record
was kept of these two items, the value of which anounted to v726.00 per farm at
farm prices.
A comparison with other farners in your community will help you to find
at what point you can strengthen your farm. The tables on pages 2 and 3 show the
average results of the 41 farms in comparison with those of more profitable and
less profitable farms. Tho 13 most profitable farms earned 13.96/i on the invest-
ment, v/hile the least profitable group made only 1.65/i,. Expressed as tho Labor
and Management wage, the better group made an average labor income of ^1940, while
the least profitable group lacked ,^249, of having anyt.iing left to pay the manager
for his own labor and management, a difference of 02189.00, In comparing the more
profitable farms with the least profitable it will be noted that the 13 more profit-
able farms averaged 35 acres smaller in size, a fact which should be noted in com-
paring the efficiency with which equipment, machinery and labor is used.
The records show that the more profitable group had larger crop yields
and a larger percentage of the tillable land in legume crops. The more profitable
farms received a much larger return for every $100,00 invested in productive
livestock and for each class of livestock. They received 62.8^o of their income
from livestock compared with 70,4/o on the least profitable farms, but duo to the
larger returns on the more profitable farms, they received a larger incone from
livestock. The more profitable farms then had larger crop yields, better live-
stock and a larger income from, livestock. The least profitable group handled
about 13 acres more crops v;ith each man but about 2.5 acres less with each horse
than did the most profitable t<>roup, a factor which v/as responsible for a slightly
higher man labor cost per acre on the most profitable group.
■ For every OlOO.OO taken in, the 13 most profitable farms had an expense
of $43.90 while the 18 least profitable farns had an expense of v81.80. Thigi may
be due to any one of a large number of items of cost. It may be due to low in-
come as well as to high operating expense, but low expense per vlOO»00 income is
essential to profitable farming. The more profitable farms received vl5.86 larger
gross returns per acre and their expenses were only $3.39 more per acre than on
the 13 least profitable farns, giving as a result the net receipts of $14.18 per
acre as compared with only $1.71 per acre on the 13 least profitable farms.
*F. A, Fisher, H. C. Gilkerson, W.B. Bunn, and H. C. VTheeler, farm advisers in
Wabash, Edwards, Richland and Lawrence counties, respectively, cooperated in
supervising and collecting the records used in this report.
-2-
A detailed statoncnt of the f j.rn oarr.int^s is ^ivon on page 3, whilo on page 4
you will find a chart on v;hich you nay plot the results from your own f arn which
will show at what points your farn showed strength or weakness.
Wabash, Edwards, Richland and Lawrence Countios.
Factors helping to
Your
Average
13 most
13 least
analyze
of 41
profitable
profitable
the farn business
farm
farms
farms
f arms
Rate Earned
i
7.23^
13.96/c
1.6 57^
Labor & Management Wage
$
$902.
1940.
-249.
Size of Farm - Acros
174.3
159.4
194.3
Crop Yields - Corn - Bushels
41.7
44.5
31.8
Oats - Bushels
35.5
34.3
33.9
Wheat- Bushels
12.3
12.6
9.9
Percent of land area Tillable
1"
80.5
72.7
78.6
Percent of tillable land in legumes
%
21.8
26.4
21.4
Returns per $100. invested in
all productive livestock
0
$157.10
241.40
95.60
For $100. in - Cattle
e
$107.70
228.55
53.05
- Swine
0
$247.15
268.00
208.60
- Poultry
$
$197.55
256.05
151.70
Percent of gross Income from Livestock
%
55.0/0
62.8 % ■
70.4
Man Labor Cost per Acre
$
$ 5.14
5.85
4.04
Crop Acres per Man
72.5
5 4.9
77.7
Crop Acres per Horse
21.4
2^.8
18.4
Expense per $100. gross Income
$
$ 54.25
43.90
81.80
Machinery Cost per Acre
$
$ 1.24
1.60
.88
Building & Fencing cost per Acre
e
$ .72
.61
.67
Gross Receipts per Acre
1
$ 18.23
25.29
9.43
Total Expenses per Acr«
e
$ 9.89
11.11
7.72
Net Receipts per Acre
1
$ 8.34
14.18
1.71
- 3
Wabash, Edwards, Richland, and Lawrence counties
1
Your
Average
13 most
13 least
1
i
of 41
profitable
profitable
1
farn
f arms
f arms
f arms
1
1.
Capital Investnont - Total
Land
§
02 008 5
14724
$16 202
11507
$20206
14612
i 2'
0
1 3.
Farn Improvomonts
$
1845
1602
1944
i 4.
Machinery and Equipnont
e
76 4
702
675
5.
Feed and Supplies
1218
1034
1070
6.
Livestock
e
1534
1357
1905
7.
Horses
0
443
413
473
8.
Cattle
e
626
494
950
9.
Sheep
e
23
21
10
10.
Swine
V
293
268
309
11.
Poultry
V
144
161
163
12.
13.
Receipts - Net Increases - Total
Feed and Grain
$
3177
1327
4032
1345
1832
450
$
14.
Labor off Farm
0
71
129
55
15.
Miscellaneous
$
31
24
28
16.
Livestock - Total
$
1748
2534
1299
17.
Horses
$
«■■>»
_-._
M— »
18.
Cattle
$
206
183
283
19.
Sheep
0
34
34
5
20.
Sv/ine
$
742
813
579
21.
Poultry
0
92
150
49
22.
Egg Sales
$
198
290
177
23.
Dairy Sales
$
476
106 4
206
24.
25.
Expenses - Not Decreases - Total
Farm Improvements
$
1036
126
1062
97
884
131
0
26.
Livestock
^
29
31
27
27.
Horses
t
29
31
27
28.
Cattle
0
29.
Sheep
$
30.
Swine
$
31.
Poultry
$
3t^t
Machinery and Equipment
$
217
255
172
33.
Feed and Supplies
$
34.
Livestock Expenses other than feed
$
20
23
18
35.
Crop Expense
0
167
162
124
36.
Labor hired
$
209
224
171
37.
Taxes, Insurance, etc.
$
238
234
218
38.
Miscellaneous
$
30
46
23
39.
40.
Receipts less Expenses
Operator's and Unpaid Family Labor
e
2141
" 687
2970
709
948
615
e
41.
Net Income from Investment
if
1454
2261
333
42.
Farms with Tractor - Percent
%
31.7
30.8
23.1
43.
Value of land per Acre
§
65.
72
75
44.
Total Investment per Acre
0
115
102
104
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- 5 -
HOW TO STUDY YOUR FARM RECORD
V/e shEill endeavor in the following discussion t6 point out the importance
of certain factors in their influence on the farm profits. Cost of production data
will frequently be referred to. The cost of producing farm products has been
studied during the past twelve years in different parts of Illinois. While your
record does not permit deterriiining the cost of producing separate products on your
farm, the information from your farm does enable you to learn whether the differ-
ent parts of your business correspond favorably with other farms in your communityi
^ study of a group of fsirm records from any community always impresses one with the
fact that each farmer can profit at some point from studying the results obtained
by his more efficient farmer neighbors.
lowing:
Different factors which we wish to csdl to your attention include the fol-
1. Total Farm Earnings, These are sho\7n first in terms of the rate earned
on the total farm investment, and second, in terms of the Labor and Management
wage. However, in studying the farm earnings you will be interested in noting the
last three items on page 2 v/hich show the wide differences between the one-third most
profitable and the one-third least profitable farms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These wide differences in farm earnings call for an analysis of a number of
different factors which affect the farm earnings. These factors are included in
the following discussion in v;hich v/e endeavor to point out why these different fac-
tors are of special importance.
2* Crop Yields, Good crop yields are one essential requirement for good
incomes. Cost of production studies on 18 farms in one community showed that the
cost of producing a bushel of corn varied from 39;^ on one farm to 79s?! per bushel on
another farm for the same year. Similar differences occurred on other crops. A
large part of the difference in cost is due to the difference in yield per acre.
It is not uncommon to find a difference of 25$;! a bushel in the cost of producing
corn which can be attributed directly to the difference in the yield per acre since
most items of cost dp not increase as the yield increases. When crop yields are
low one can well afford to study the practices of men \iho secure higher yields.
In order to determine what is responsible for those differences attention should
be given to the rotation of crops, quality and variety of seed, use of legumes and
manure, use of limestone and phosphate whore needed, preparation of seed bed, culti-
vation, protection from disease and insects, and drainage.
3. Returns from Livestock. One of the best measures of the efficiency of
livestock, in those records, is the returns per $100.00 invested. The returns per
$100.00 worth of feed fed any class of livestock, hov/ever, gives you more reliable
information as to whether the efficiency of that class of livestock may be improved.
You are urged, therefore, to keep the feed record on pages 38 and 39 of the farm
account book, at least for the livestock from which you receive considerable income.
As evidence of the wide variation in livestock efficiency on farms, cost accounts
aecured on 18 farms in the same community showed a range in the cost of feed in pro-
ducing pork of $4.18 to $8.81 per 100 pounds gain in weight for the same year.
The per cent, of total receipts from livestock enables one to know how
large a factor livestock is in determining the farm income. On some farms where
livestock represented a considerable part of the income in 1924 the earnings were
reduced duo to the abnormal price situation, as compared v;ith the five-year aver-
age of farm prices from 1909 to 1914 the prices of meat animals in 1924 were only
9% higher than for the five-year period, while the prices of grains were 29;^ and
the prices of dairy products and eggs were 377= higher. This moans that farms which
were heavy producers of meat animals in 1924 did not fare so well as they might
ejq)ect to do on an average of a nunbor of yours when compared with either grain or
dairy farms. In spite of this fact the larger proportion of livestock returns on
the better farms indic:\te that good livestock properly handled paid even under
the adverse price situ::-tion.
Success \7ith livestock, as with crop production, depends upon a number of
factors among which the follov/ing should bo noted: Raising a largo per cent, of
young animals, sanitation, prevention of disease, ability in buying and selling
livestock, keeping animals of good quality, good feeding practices - especially the
grov/ing of sufficient legume forage to supply most of the protein requirements,
careful purchasing of additional protein raid mineral supplements when needed, and
the economical use of roughage which is available on all farms.
Some men are more successful than others in handling livestock. It is not
tecommended that anyone quickly change his practice and suddenly go into extensive
feeding or breeding operations. It is better to work gradually into the livestock
business, building up cither breeding or feeding operations as ho finds that live-
stock is filling a place in his system of farming.
4. Use _of_ Man and Horse Labor. One of the best measures of the use of
labor is the number of crop acres wor>;ed per man or per horse v/hen the farms are of
the same general type. Vihen the cost of nan labor and horse labor are noted it em-
phasizes at once the importance of watching these item'? of expense and arranging
the organization of the f cj~m to make efficient use of labor.
Cost accounting data secured on 13 farms in the same community for the
same year show that the net cost of keeping a v/ork horse ranged from $63.76 to
$124.15; or an average of v93.08 per horse. Vi(hen it is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it means that
horse labor costs will range from $3.50 to over $6.00 per acre on different farms.
This wide range in the cost ^-f hcrse labor is dependent not only on the nuniber of
acres haiidled with one horse, but also upon the economy with which the horse is fed
and whether- or not other items of expense are kept at a low figure. The careful
planning of a rotation of crops is probably one of the best ways to reduce both m.an
and horse labor costs, a rotation should be chosen so that as uniform an am.ount of
man and horse labor is required from early spring until late fall as possible.
Frequently the size of certain enterprises within the farm business may be adjusted
to utilize the available family labor to advantage.^ Feeding down crops and keeping
enough livestock to utilize labor during the seasons v/hcn farm work is light are
other definite means of increasing the efficiency with vmich labor is used. Re-
peated study of farm records over the state indicate that occasionally a man may
reduce the amount of both man labor and horse labor to a point where lowor profits
are secured from both crop and livestock enterprises because of a lack d well
directed labor. It is usually found, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per v;orker or
per horse.
5. Expense per $100, ^toss Income^ This is a measure of thrift in all
parts of the farm business. It docs not !.J.srepresent a farm which has a largo ex-
pense if the incom.e is correspondingly high. However, it is a wcll-knowi principle
in all business organization that expenses must be kept low in proportion to income
if the business is to prove profitable. Cost accounts kept on 18 farm.s in the
same community showed that the annual building espense per acre varied from >il.42
to i|j6.63 per acre; the annual expense for fences varied from 0 '32 to ii?2,36 per
acre, and machinery and equipment expenses varied from 0 .SB per acre to §2.46.
These data show hov/ much more efficient some farmers are than others in keeping
expenses low.
FarnorG who are r.:ost successful in keeping expenses low in proportion to
the incone plan their vrork ao as to ruko the labor of tnousclvos and nonbors of the
fanily as productive as possible. Enterprises are included in the fare business
that utilize available labor at all soi^ons of the year, "hile they secure good
varieties of seed, in so far as possible, thc^ raise and prepare their own seed.
Rainy days and off seasons are used to repair buildings, fences, nachinery, and har-
ness. This prolongs the life of cquipnent, saves in the purchase of new equipment
and also saves paying out noncy for highly paid skilled labor. By having equipment
in shape they also save the expense incident to delay in the busy season caused by
broken nachinery or fences, which night have been prevented by tinoly repair,
6. Size of Farm, In most types of faming there is a limit to the amount
of product which can bo profitably secured per acre, wTien one finds his farm is
smaller than the more profitable farms in his locality and his income is low even
though he has good crop yields and good returns from livestock, a weakness is fre-
quently found in the snail size of farm. This situation nay be remedied by buying
or renting additional land or chajnging the type of farr;ing tc a more highly inten-
sive or specialized type which will bring a larger volume of production. It must
bo recognized, hov.'ever, that some ncn have more ability than others in handling a
large sized business. Some men may find their farm is considerably larger than the
best paying farms, but the income is low because of too large an area handled from
one point. 3ome farmers nay find that they can secure a larger net profit by rent-
ing out some land and doing more efficient work on a smaller acreage. It is a well-
knov/n principle of farm management that a farm must be largo enough to utilize
capital in the form of buildings, machinery and other cquipnent, and labor tu an
economical way. Just how large the farm should bo, however, is a question which
depends upon the ability of the operator himself as a n.anager.
balanced Farming Pa^-s.
Each of the factors previously discussed plays a part in detornining farm
profits. Full success in fari.iing requires that all p.irts of the farncr's business
be givai attention. One may have good crop yields and make good use of livestock,
but receive a smcJ.1 not incone because of inefficient use of labor. Or one may
work a large acreage per man and per horse, but fail because of low crop yields or
poor returns from livestock. A well balanced farm with a fair degree of efficiency
along all lines brings the operator returns vrfiich V7ili enable him to maintain a
good standard of living for his fanily.
SUl.'.lttEY OF FAR!,: BUSIZTESS RSCOEDS
Prepared by H.C.M.Case, M.L.Mosher , ".H.Mvers*
Tiie ])k farmers in yo\ir co-oxity who kept farr: records in 192^ in the hook
prepared hy the Extension Service earned a rate of 6,25/t on an average investment of
$U2",S07.00 after figuring their own time at $600.00 per year. These fams averaged
loS,2 acres in size. The Laoor and iManagcment --age which represents what a man has
left as pay for his own work and managing ability after paying all expenses and allo'.?-
ing 5 per cent, interest on the total investment, amo-anted to $1126.00 as an average
for all farmers. The value of the food products furnished the homo and the use of
the dwelli--:g house represent an incom.e in addition to th^at sho^vn. On 11 farrs in
Charipaign and Piatt counties a careful record was kept of these two items, the value
of which aviounted to $726.00 per farm at farm prices.
A comparison with other farmers in your coirtnvinity will help you to find
at what point you can strengthen your farm. The table on page 2 shows the average
results of the 3^ farms in comparison v/ith those of more profitable and less profit-
able farms. The 11 most profitable farms earned S.SU-'^o on the inx'cstment, while the
least profitable grour) made only 2.6l/b. Expresned as the Labor and Ivlanagcment wage,
the better group made an average labor income of $2739* while the least profitable
group lacked $4^2 . of having anything left to pav the manager for his ovm labor and
managenent, a difference of $^151.00. In comparing the more profitable farms with
the least profitable it will be noted thcit the 11 more, profitable farm.s averaged over
50 acres larger In size, maiclng it posniblo to vso oqu-ipment, machinery and labor to
greater advantage.
The records show that the more profitable group had larger crop yields
and a larger perccntr^c of the tillable land in legume crops. The more profitable
farms received over 35/^ larger roturns for every $100«00 invested in productive live-
stock and the same was true for each class of livestock. Also they received 57«S/i
of their income from livestock compared with only '^9>2^ on the least profitable farms.
The more profitable farms then had largor crop yields, better livestock and a larger
percentage of their return from livestock. Tiioy also handled about 9 acres more
crops with each man and 3 acres more crops with each horse than did the least profit-
able group, a factor which was responsible for a slightly lower labor cost per acre.
For every $100.00 token in, the 11 most profitable farms had an expense
of $Ul.30 while the 11 least profitable fanrs had an cx;icnse-of $71.70. This may be
due to any one of a large number of itom.s of cost, but ;-.s sho'.7n, the more profitable
farms kept the machinery expenses r.nd bu-ilding and fencing expenses as well as other
operating expenses at a lower figure per acre. Wliilc this may be due in part to the
size of the farm.s, usually, low errpenscs per $100 inco;:ie mean that no unnecessary
expenditures are made. The more profitable farms rcceiArcd $10.46 larger gross re-
turns per acre and their expenses were $1.SS less per acre tloan on the 11 least
profitable farms, giving as a resu.lt the net receipts of $19.78 per acre as compared
with only $6-UU per acre on the 11 lecst profitable I'lrr.-.s.
* J. F. Hedgcock and R. F. Olark, farm advisers in Will County, cooperated in super-
vising and collecting the records used in this report.
^ .. „.
'«• Vvi? " C '. 'j': .'•.'T '>■<'
r<c.=« »-^ fe r?.;;/t''
.V' "^/C.
:.)''>?«■
:!:t(.^C,
•i r?
2 -
A detailed statement of the farm earnings is given on page 3j while on page U you
will find a chart on v/hi ch you may plot the results from your o-rn. farm vhl ch vrill
shor: at v.hat points vour farm sho'.ved strength or weakness.
Factors helping to
analyze
the farm "business
Your
irarm
Average
of 3^
farms^
xi most
profi table
farms.
11 least
profi tatle j
faims .
Rate Earned
Labor & Management Wage
£^ize of Farm - Acres
Crop Yields - Corn - Bushels
Oats - Bushels
Wheat - Bushels
Percent of land area Tillable
Percent of tillable land in legumes
Returns per $100. invested in
all productive livestock
For $100. in
- Cattle
- S:;ine
- Poultry
Percent of gross Income from Livestock
Man Labor Cost per Acre
rop Acres per Man
rop Acres per Horsc(With tractor)
(V/ithout tractor)
Expense per $100.00 gross income
Iiiachinery Cost per Acre
Building & Fencing cost per Acre
G-ross Receipts per Acre
Total Expenses per Acre
i^Iet receipts per Acre
^
I"
io
6 ,26^0
$1126 .
i?S .2
;3.J
£9.7
95-6
15 a
120„S5
101.95
147 „ 50
169.00
52, S
6.lf7
S0o3
26 .,2
£3.^1
50,^3
2,S9
1A2
2S.74
i'4.50
lU.,2^
9.6U->
$2739.
223 „ 2
35 J
55=2
31.0
91. s
is<9
139.60
IPS c 90
1^^4,20
1 nil
.20
57.^
6
.18
S7
.1
31
.7
19
'1
i+0
.85
2
.85
1
.29
33
52
13
7^
19
.78
2.61^0
•452.
163,1
2U.S
51. 8
27ol
97.5
15.2
103.15
93.60
122o70
132.60
U9.2
6cU3
77.9
27.3
20„2
70„S3
3.10
1.59
22.06
15.62
6.UU
I ^'-^^-^ i
t
I
^:,ii^\
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t\
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B/:!iix
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.••i^' -l,y''0"'J
^Vk.^ =
- 3 -
vail County
1
Your
Averc?ge
11 moGt
11 least
of 3^
profitable
profita.ble
farm
farms.
farm s .
farm s .
1
1, Ca^^ital Investment - Total
$
$U2S07
$^5788
$141503
1
1
2. Land
$
31^59
33S69
30657
1
3. Farm Improvements
$
1*691
U37U
U731
U, Machinery and Equipment
$
19=^9
2211
190s
5. Feed and Supplies
$
1970
222U
1312
6. Livestock
$
273s
3110
2395
7. Horses
$
600
602
623
8. Cattle
$
1425
1637
1227
9 . Sheep
$
16
lU
13
10. Swine
$
539
725
3U8
11. Poultry
$
158
132
18U
12. Receipts - JTet Increases - Total
$
5-'.09
7^81
3709
13. Feed and Grain
$
2;79
3059
I76U
ik. Labor off Farm
$
SS
56
8k
15. Miscellaneous
$
So
66
37
16. Livestock - Total
$
2256
4300
I82U
17« Horses
$
— — —
h
■ '
18. Cattle
$
522
1237
17U
19. Sheep
$
59
15
13
20. Svzine
$
977
lU89
k28
21. Poultry
$
95
113
95
22. Egg Sales
$
172
ii+7
1U8
23, Dairy Sales
$
1031
1295
966
2U. Expenses - Net Decreases - Total
$
iQOb
2225
is6i
,25. Farm Improvements
$
26 s
288
267
26. Livestock
$
13
—
30
i
^27., Horses
$
13
»»
30
'28. Cattle
$
i2S. Sheep
$
'30. S\Tlne
$
131. Poultry
$
132. Machinery and Equipment
$
5U5
637
522
;33* Feed and Supplies
$
-
-
-
34. Livestock Expense other than feec
it?
97
108
102
135 • Crop Exroense
$
207
2U7
206
136. Lahor hired
>»
«
336
539
316
157 • Taxes, Ins^orance, etc.
$
315
370
303
53 , Mi sc el laneous
$
61
36
115
1
39. Receipts less Expenses
$
3503
5256
IS Us
^0, Operators and Unpaid F^jni ly Labor
$
S22
sUi
766
W, Net Income from Investment
$
260I
kki^
1082
^2. Farms vri th Tractor - Percent
f^
67.65^
72.7^
63.65^
^3» Value of land per Acre
$
167
152
182
^^. Total Investment per Acre
$
227
205
2kj
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- 5 -
H3I? TJ STUDY YDUH YARU REC3ED
I7e shall endeavor :n the following discussion tj p^int out the importance
of certain factors in their influence on the farr profits. Cost of production data
will frequently be referred to. Tac cost of producin^^ fanr. products ha.=; hecn studied
during the past twelve yearn in different parts of illinoir.. Tnile your record does
not permit determining the cost of producin.-g separotc products on your farm, the
information from your farm does enahle you to learn whether the different parts of
your husii'iCSP- correspond favorably with other farms in your coiiu'.'nuii ty. A study of
a group of farm records fram any community always i;-rprerj3cs one with the fact tliat
each farmer can profit at some point from studying the rcnults obtained by his more
efficient farmer neighbors.
Different factors which we wish to call to your attention include the
following:
1. Total Farr. Earnings. Those are sho'.vn first in terms of the rate earned
on the total farm inveatmcnt, and second, in terms of the Labor and Llanagemcnt wage.
However, in studying the farm earnings you will be interested in noting the last
three items on page 2 v/hich show the wide differences between the one- third most
profitable and the one-third least profitable farms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These wide differences in farm earnings call for an analyses of a number of
different factors which affect the farm earnings. Tliece factors are included in the
following discusciion in which we endecivor to point out why these different factors
arc of special importance.
2. Crop Yi elds. Good crop yields are one essential requirement for good
incomes. Cost of production studies on IS farms in one comiriuni ty showed that the
cost of producing a bushel of corn varied from 3S^ on one farm to 79(2^ pci" bushel on
another farm for the saruc year. Similar differencas occurred on other crops. A
large part of the difference in cost is due to the difference in yield per a,cre. It
is not Uiicomi'non to find a difference of 25rf a bushel in the cost of producing corn
which ca:i be a.ttributcd directly to the difference in the yield per acre since most
items of cost do not increase as the yield Increases. When crop yields are low one
can well afford to study the practices of men who secure higher yields. In order
to determine wha.t is responsible for these differences attention should be given to
the rotation of crops, qurdity and variety of seed, use of legumes -o^id m.anure, use
of limestone and phospha.tc where needed, preparation of seed bed, cultivation, pro-
tection from disease and insects, and drainage.
3. Re turn s from Livc^:-tock. One of the best measures of the efficiency of
livestock, in these records, is the returns per $100.00 invested. The returns per
$100,00 worth of feed fed any class of livestock, hovjcvcr, gives you more reliable
information a.s to v.hethcr the efficiency of that class of livestock may be improved.
You are urged, therefore, to keep the feed record on pages 3S and 39 of the far,m
account book, at least for the livestock from v.hi ch you receive considerable income.
As evidence of the wide variation in livestock efficiency on fa.rms, cost acco"J:its
secured on 18 farms in the same conrnunity shov/ed a ra:-.ge in the cost of feed in pro-
ducing pork of $U»18 to $S.S1 per 100 pounds gain in weight for the same year.
The per cent, of total receipts from livestock enables one to knov,' how large
a factor livestock is in determining the farm income. On some farms where livestock
represented a consi derabl-e part of the incom.e in 192U the earnings were reduced due
to the abnormal price situation. As compared v.-i th the five-yeax average of farm
prices from 1909 to 191^ the prices of meat animals in 152^+ were only S'io higher th^n
for the five-year period, while the prices of grains were 29^ and the prices of dairy
products and eggs were 37/° higher. This raeaiis that farms which were heavy producers
A
^ 6 -
of meat a::5ran,ls ir. 192^ did not faro so \7cll as they might expect to do on an
average of a moiaber of years '.Then compared '.vi th cither grain or dairy frrns. In
spite of this fact the larger proportion of livestock returns on the better fnrms
indicate that good livestock properly ha:".dled paid even iinder the adverse price
si tuation.
Success v:ith livestock, as with crop production, depends upon a number of
factors among v;hich the follo;7ing shoiild he noted: Raising a large per cent, of
young animals, sanitation, prevention of disease, ability in buying and selling live-
stock, keeping animals of good quality, good feeding practices - especially the gro\7-
ing of sufficient legume forage to supply most of the protein requirements, careful
purchasing of additional protein and mineral s'applements -.Then needed, and the eco-
nomical use of roughage which is available on all farms.
Some men are more successful than others in Imndling livestock, ■'■t is not
recommended that anyone quickly change his practice and suddenly go into extensive
feeding or breeding operations. It is better to v/ork gradually into the livestock
business, building up either breeding or feeding opera.tions as he finds that live-
stock is filling a place in his system of farming.
U. Use of Man and Horse Labor. One of the bent measures of the use of
labor is the number of crop acres '.vorked per man or per horse when the farms are of
the same general tj'pe. Wlien the cost of man labor and horse labor are noted it em-
phasizes at once the importance of v/atching these items of expense and arranging
the organization of the farm to make efficient use of labor.
Cost accounting data secured on IS farms in the same community for the
same year show that the net cost of keeping a work h^rse ranged from $63 '76 to
$12^.15; or an average of $53 'OS per horse. When it is considered that a horse
usually works about 20 acres of crops when a tractor is not employed, it means that
horse labor costs will range from $3.5^ to over $6.00 per acre on different farms.
This wide range in the cost of horse labor is dependent not only on the number of
acres handled with one horse, but also upon the economy with which the horse is fed
and whether or not other items of expense are kept at a low figure. The careful
planning of a rotation of crops is probably one of the best ways to reduce both man
and horse labor coats. A rotation should be chosen so tliat as uaiiform an amount of
man and horse labor is required from early spring until late fall as possible.
Frequently the size of certain enterprises within the farm business may be adjusted '
to utilize the available family labor to advantage. Feeding dovo crops and keeping
enough livestock to utilize labor during the seasons whcm farm work is light are
other definite means of increasing the efficiency with which labor is used. Re-
peated study of farm records over the state indicate tloat occasionally a man may
reduce the amount of both ma:': labor and horse labor to a point v/here lower profits
are secured from both crop ai:d livestock enterprises because of a lack of well
directed labor. It is usually found, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per worker or
per horse.
5. Expcn se per $100. Gross Income. This is a measure of thrift in all
parts of the farm business. It does not misrepresent a farm which has a large ex-
pense if the income is correspondingly high. However, it is a well-known principle
in all business organization that expenses must be kept low in proportion to income
if the business is to prove profitable. Cost accounts kept on IS farms in the
same community shov,'ed that the annual building expense per acre varied from $1.U2
to $6.63 per acre; the annual expense for fences varied from $ .32 to $2.36 per acre;
and machinery and equipment expenses varied from $ .33 per acre to $2,U6. These
data -show how much more efficient some farmers are than others in keeping expenses
low.
CJJ
t'jjd}i!i:!> 'J/' ;P'U'-^^'t
^ • .*.■
5,.' .j:.-:- ^.
^■•vv"r.i ;u.;../-;. ^nirT.-M-
. JVI ft ...
,. ,. ,-. . . ■■
- 7 -
Farncrs •.vho arc i.^Dst succjssful in keeping expenses lovr in proportion to
the incone plan their rork so as to nalrc the Ir.Toor of ther.selvos and neniers of the
fanily as productive as possible. Enterprises are included in the farn business
that utilize available labor at all seasons of the year. Wlii le they secure good
varieties of seed, in so far as possible, they raise and prepare their o\7n seed.
Rainy days and off seasons are used to repair buildings, fences, machinery, a.id har-
ness. This prolongs the life of equipr.ent, saves in the purchase of new equiprrient
and also saves paying out Doney for highly paid skilled labor. By having equipment
in shape they also save the expense incident to delay in the busy season caused by
broken nachinery or fences, vrhich might have been prevented by timely repair.
6. Size of ??rr.: , In most tj^pes of farming there 5s a limit to the ar;.ount
of product which cai". be profitably secured per acre. F/lien one finds his farm is
smaller than the more profitable farms in his locality and his income is lov: even
though he has good crop yields and good returns from livestock, a './ealaiess is fre-
quently found in the small size of farm. This situation may be remedied by buying
or renting additional land or changing the type of farming to a r.ore highly inten-
sive or specialized type which will bring a larger volu'ie of production. It must
be recognized, however, that some risn have more ability than others in handling a
large sized business. Some men may find their farm is considerably larger than the
best paying farms, but the income is low because of too large aia area handled from
one point. Some farmers may find that they can secure a larger net profit by rent-
ing out som.e land and doing more efficient work on a smaller acreage, it is a well-
known principle of farm management that a fa.rm mast be large enough to utilize
capital in the form of buildings, machinery and other eqaipm.ent , and labor in an
economical way. Just how large the farm should be, however, is a question •.vhich
depends upon the ability of the operator himself as a manager.
Balanced Farmi ng Pays ■
Each of the factors previously discussed plays a part in determ.ining farm
profits. Full success in farming requires th^t all parts of the farm.er's business
be given attention. One may have good crop yields and malce good use of livestock,
but receive a sm.all net income because of inefficient use of labor. Or one m.ay
work a large acreage per man and per horse, but fail because of low crop yields or
poor returns from, livestock. A well balanced farm with a fair degree of efficiency
along all lines brings the operator returns which will enable him to maintain a
good standard of living for his family.
MMJAL FARM BUSINESS REPORT
W3:DF3RD C3UNTY - I92U '
Prepared by H.C.^:.Case, M.L. kosher, X.H. Myers"
The 101 fanners in your county who kent farm records in I92U in the book
prepared by the Extension Service earned a rate of 7 >2.kjo on an average investnnent
of $52,565«C'0 after figuring their own time at ab^ut .tSOO.OO per year. Tliese farms
averaged 20S.1 acres in size. The Labor and i\knageir,ent wage w?iich represents what
a man has left as pay for his own work and managir.|.- ability after paying all expenses
and allowing 5 P^r cent, interest on the total investnnent, amounted to $1S90.00 as
an average for all farmers. The value of the food products furnished the home and
the use of the dwelling house represent an incom.e in addition to that shown. On 11
farms in Champaign and Piatt counties a careful record was kept of these two item.s,
the value of which amounted to $726.00 per f^rm at farm prices.
A comparison with other farmers in your community will help you to find at
what point you can strengthen your farm. The table on p?ge 2 shows the average re-
sults of the 101 farmis in comparison with those of more profitable and less profit-
able farms. The 3^^ most profitable farms earned 9«S3^ on the investment, while the
least profitable grout) made only U.36/0.. Expressed as the Labor and Ivlanagement wage,
the better group made an average labor income of $356'-t-- while the least profitable
group had an aver?ge of $20U.OO, a difference of $3360.00. In comparing the more
profitable farms with the least profitable it will be noted that the 3*+ more profit-
able farms averaged over 23 acres larger in size, making it possible to use equip-
ment, machinery and labor to greater advantage.
As shown on page 2, the more profitable group received larger crop yields
than did the least profit?ble group. They also had a larger percent of tillable
land on their farms and both groups of farms had considerable land in legume cropsi
They received a 25^ larger return for each $100. Invested in productive livestock,
but their livestock represented only 30«2^ of the total gross income compared to
kO.J'jli on the lower group. The more profitable farms then had "larger crop yields and
better livestock but a smaller percentage of their return from livestock. This
indicates that the more strictly grain farms with livestock well handled paid better
in I92U than the farms with more livestock. This is an abnormial condition, however,
and no interpretation should be given without reading the explanation of prices
given on page 5« They also handled about 12. 5 acres m.ore crops with each man and 3
acres more crops with each horse than did the least profitable group, a factor which
was responsible for a slightly lower labor cost per ^cre.
For every $100. taken in, the 3^^ most profitable farm.s had an expense pf
$30.13, while the 3^ least profitable farms had an expense of $50.^5* This may be
due to any one of a large number of items of cost, but as shown, the more profitable
farms kept the machinery expenses and building and fencing expenses as well as other
operating expenses at a lower figure per acre, iiinii le this may be due in part to the
size of the farms, usually, low expfcnses per $100. income mean that no unnecessary
expenditures are made. 'The more profitable farms received larger gross returns per
acre and their expenses were less per acre than on the 3^ least profitable farms,
giving as a result the net receipts of $27-61 per acre as compared with only $11.90
per acre on the 3^ least profitable farm.s.
* P. E. Johnston and L. J. Berry, farmi advisers in Woodford County, cooperated in
supervising and collecting the records used in this report.
A detailed statement of the f?rn: eprnlngs is given on pa^e 3> V7hi le on page k you
will find a chart on vrhich you mev plot the results fron: your own fanri vhich will
show at what points your farm sho^red strength or weakness.
Factors helping to
Yo^or
Average
3^+ most
3U least
analyze
of 101
profitable
profitable
the farm business
farm
farms
farnvs
farms
Rate Earned
%
7.2U^^
S.STp
U.36^ ■
Labor & Management Wage
$
$1890.
$356^.
$20U.
Si'zc of Farm - Acres
208.1
218.6
195.5
Crop Yields - Corn - Bushels
US.O
U9.S
UU.5
Dats - Bushels
50.8
51.1
U9.1
Wheat - Bushels
2U.U
28.3
23.7
Percent of land area Tillable
^
89-5
95. U
82.5
Percent of tillable land in legumes
^
11. u
9.U
13.1
Returns per $100. invested in
all productive livestock
$
119.30
129. SO
IOU.8O
For $100. in - Cattle
$
72.30
76.10
57.50
- Swine
$
169.25
183.00
152.70
- Poultry
$
166.66
169.25
163.30
Percent of gross Income from Livestock
^
33.9
30.2
U0.7
Man Labor C^st per Acre
$
5.82
5.68
5. SO
Crop Acres per Man
90.7
95.5
83.0
Crop Acres per Horse(With tractor)
2U.7
25.1
22.2
(Without tractor)
19.9
22.0
17.3
Expense per $100. gross Incoire
$
37.^^7
30.13
50.55
Machinery Cost per Acre
$
2.0I+
1.81
2.2U
Building cS: Fencing cost per Acre
$
.97
,88
1.00
Gross Receit)ts per Acre
$
32.5s
39.52
2U.07
Total Expenses vev Acre
$
12.21
11.91
12.17
Net Receipts per Acre
A
*
20.37
27.61
11.90
WJJDFOED COUNTY
3 -
Your
farm
Average
of 101
farms
3*^ most
prof i table
farms
3U least
profitable
farms
1.
2.
3.
k.
6.
7.
g.
9.
10.
11.
12.
13.
lU.
15-
16.
17.
18.
19.
20.
21.
22.
23.
2k.
25.
26.
27.
28.
29.
30.
31.
32.
33.
3^.
35.
36.
37.
3S.
39.
UO.
Ui.
Capi tal Investment - Total $ _
Land $
Farm Improvements $
Machinery and Equipment $
Feed and Supplies $
Livestock $
Horses $
Cattle $
Sheep i
Swine $
Poultry $
Receipts - Net Increases -Total $ _
Feed and Grain $
Labor off Farm $
Miscellaneous $
Livestock - Total $
Horses $
Cattle $
Sheep . ^ $
Swine $
Poultry $
Egg Sales $
Dairy Sales $
Expenses - Net Decreases -Total $
Farm Improvements. , $
Livestock $
Horses $
Cattle $
Sheep $
Swine $
Poultry $
Machinery and Equipment $
Feed and Supplies $
Livestock Expense other than foed
Crop Expense *
Labor hired $
Taxes, Insurance, etc. $
Miscellaneous $
Receipts less Expenses
Operators and Unpaid Family Labor $
Net Incom.e from Investment
U2. Farms with Tractor - Percent
U3. Value of land per Acre
\hk. Total Investment per Acre
$
1^
$53565
U753I
y.zk
1568
29S7
2655
SU2
910
65
697
lUi
6II5
^+399
26
5U
2300
2
UoU
75
1328
89
ikk
258
1762
203
U26
U6
191
^33
U32
31
5017
779 .,
■53.4^
289
$61370
5009U
3509
1500
3U72
2795
896
9S7
U8
73H
130
86U0
5959
37
3U
2610
2
U66
S3
1567
95
122
275
1820
193
395
i+2
218
U6O
US2
30
6820
783
6037
2g.J'
$533^0
U3286
3569
1631
23U7
2507
777
851
UO
693
ikS
U706
2703
17
68
1918
301
23
113s
77
166
213
1660
19^
6
U38
kk
166
kik
371
27
30U6
719
2327
5C.0?i
275
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- 5 -
HOW TO STUDY YOUR FARIjI RECORD
Vfe shall endeavor in the following discussion to point out the importance
of certain factors in their influence on the farm profits. Cost of production data
will frequently be referred to. The cost of producing farm products has been
studied during the past twelve years in different parts of Illinois^ liVhil e your
record does not permit deterirlning the cost of producing, separate products on your
farm, the information from your farm does enable you to learn whether the differ-
ent parts of your business correspond favorably with other farms in your community.
•^ study of a group of farm records from any community alr;ays impresses one with the
fact that each farmer can profit at some point from studying the results obtained
by his more efficient farmer neighbors.
lowing;
Different factors which we wish to call to your attention include the fol-
1. Total Farm Earnings. These are shown first in term-S of the rate earned
on the total farm investment, and second, in terms of the Labor and Managem.ent
wage. However, in studying the farm earnings you will be interested in noting the
last three items on page 2 vriiich show the wide differences between the one-third most
profitable and the one-third least profitable farms in the gross receipts and the
total expenses per acre, and in the resulting difference in the net receipts per
acre. These v;ide differences in farm earnings call for an analysis of a number of
different factors which affect the farm earnings. These factors are included in
the follov;ing discussion in which v;e endeavor to point out why these different fac-
tors are of special importance.
2. Crop Yields. Good crop yields are one essential requirement for good
incomes. Cost of production studies on 18 farms in one community showed that the
cost of producing a bushel of corn varied from SQqt on one farm to 79(2! per bushel on
another farm for the same year. Similar differences occurred on other crops. A
large part of the difference in cost is due to the difference in yield per acre.
It is not unconmion to find a difference of 250 a bushel in the cost of producing
corn wl-iich can be attributed directly to the difference in the yield per acre since
most items of cost do not increase as the yield incroases. When crop yields are
low one can v/ell afford to study the practices of men vmo secure higher yields.
In order to dotormine v;hat ic responsible for these differences attention should
be given to the rotation of crops, quality and variety of seed, use of legum:es and
manure, use of limestone and phosphate where needed, preparation of seed bed, culti-
vation, protection from disease and insects, and drainage,
3. Returns from Livestock. One of the best measures of the efficiency of
livestock, in these records, is the returns per $100.00 invested. The returns per
$100.00 worth of feed fed any class of livestock, however, gives you miore reliable
information as to whether the efficiency of that class of livestock may be improved.
You are urged, therefore, to keep the feed record on pages 38 and 39 of the farm
account book, at least for the livestock from which you receive considerable incom.e.
As evidence of the wide variation in livestock efficiency en farms, cost accounts
aecured on 18 farms in the same community showed a range in the cost of feed in pro-
ducing pork of $4.18 to $8.81 per 100 pounds gain in v/oight for the sam.e year.
The per cent, of total receipts from livestock enables one to know how
large a factor livestock is in determining the farm income. On some farms where
livestock represented a considerable part of the income in 1924 the earnings were
reduced due to the abnormal price situation, as compared v;ith the five-year aver-
age of farm prices from 1909 to 1914 the prices of meat animals in 1924 were only
9% higher than for the five-year period, while the prices of grains were 29^ and
the prices of dairy products and eggs were 37/^ higher. This means that farms v/nich
were heavy producers of meat animals in 1924 did not fare so well as they might
- fc) -
e;q)ect to do on an averat:;e of a nuriber of years when compared v/ith either grain or
dairy farms. In spite of tiis fact the larcer proportion of livestock returns on
the bettor farms indicate that ^ood livoctock properly handled paid even under
the adverse price situatioiio
Success with livc3-!-ock; as with crop production, depends upon a number of
factors among vridch the f jllcwin" should bo noted: Haising a large per cento of
young animals, sanitation, provcnxion of disease, ability in buying and selling
livestock, keeping animals of goo-' quality, good feeding practices - especially the
growing of sufficient legume forage to supply most of tiie protein requirements,
careful purchasing of additional protein a:-id mineral suppler.ents when nooded, and
the economical use of roughage which is available on all farms.
Some men are more successful than others in handling livestock. It is not
tecommended that anyone quickly change his pra.ctice and suddenly go into extensive
feeding or breeding operations. It is better to work gradually into the livestock
business, building up either breeding or feeding operations as ho finds that live-
stock is filling .a place in his system of farming,
4. Use of Man and Horse Lab c r . One of the best measures of the use of
labor is the number of crop acrjs v.i.-r-.cd per man or per horse v/hcn the farms are of
the same general type. \Aien the cost of man labor and horse labor are noted it em-
phasizes at once the impGrta:ice of watching tiiese itCTiS of expense and arranging
the organization of the farm to make efficient use of labor.
Cost accounting data secured on 18 farms in the same community for the
same year show that the net cost of keeping a v/ork horse rajnged from $63.76 to
$124.15; or an average of ^93.08 per horse. ^Jlion it is considered that a horse
usually ViTorks about 20 acres of crops when a tractor is not employed, it means that
horse labor costs v/ill range from fD.cO to over C'5.00 ncr acre on different farms.
This wide range in tiie cost of horse labor is dependent not only on the nurober of
acres handled with one horse., but ajno upon the eccnom.y with which the horse is fed
and whether or not othsr itcrrs of exp-ense are kept at a 1 ov/ figure. The careful
planning of a rotation of o-ops is probably one of the best ways to reduce both man
and horse labor costs, .-i rotirti'.n should be chosen so that as uniform an amount of
man and horse labor is requii-ed free early spring until late fall as possible.
Frequently the size of ce-rtr^-in enterprises within the farm business may be adjusted
to utilize the available faraly iabr.i- to advantage. Feeding down crops and keeping
enough livestock to utilize labo-" during the seasons vAcn farm work is light are
other definite means of increasing the efficiency v.'ith which labor is used. Re-
peated study of fann records over the state indicate that occasionally a man may
reduce the amount of both man labor and horse labor to a point v;here lowar profits
are secured from both crop and livestock enterprises because of a lack cf well
directed labor. It is usually fo'und, however, that the more profitable farms not
only secure larger yields per acre, but they handle a larger acreage per v;orker or
per horse.
5. Expense per glOO. Cross IncomOo This is a measure of thrift in all
parts of the farm business. It does not i-^^isrepresent a farm Virhich has a large ex-
pense if th© incom.e is correspondingly high. Ho'-vevor, it is a well-knowi principle
in all business organization that expenses must be kept lov: in proportion to incomi
if the business is to prove profitable. Cost accounts kept on 18 farms in the
same comraunity showed that the annual building expense per acre varied from $1.42
to iif6.63 per acre; the annual expense for fences varied from [} .32 to ^2c36 per
acre, and machinery and equipment expenses varied from. 0 •SS per acre to §2.46.
These data show ho\7 much i-aore efficient some farmers are than ethers in keeping
expenses low.
le
Farnero who cire most successful in keeping expenses lov; in proportion to
the incono plan their work ao as to nako the labor of thensclvos and menbers of the
fanily as productive as possible. Enterprises are included in the farn business
that utilize available labor at all seasons of the year, '"^'hilc they secure good
varieties of seed, in so far as possible, they raise and prepare their own seed.
Rainy days and off seasons are used to repair buildings, fences, machinery, and har-
ness. This prolongs the life of equipment, saves in the purchase of new equipment
and also saves paying out noney for highly paid skilled laocr. By having equipment
in shape they also save the expense incident to delay in the busy season caused by
broken machinery or fences, which might have been prevented by timely repair.
6. Size of Farm, In most types of farming there is a limit to the anount
of product v;hich can be profitably secured per acre, vVlien one finds his farm is
smaller than the more profitable farms in hie locality and Ids income is low oven
though he has good crop yields ajad good returns from livestock, a weakness is fre-
quently found in the snail size of farm. This situation m-ay be remedied by buying
or renting additional land or changing the type of farming to a more highly inten-
sive or specialized typo which will bring a larger volu:.:e of production. It must
be recognized, however, that some men have miOre ability than others in handling a
large sized business. Some men nay find their farm is considerably larger than the
best paying farms, but the income is low because of too large an area handled from
one point. oome farmers nay find that they can secure a larger net profit by rent-
ing out some land and doing more efficient work on a smaller acreage. It is a well-
knovm principle of farm nanagomont that a farm must be largo enough to utilize
capital in the form of buildings, ii:cchinory and other equipment, and labor in an
economical way. Just hov/ largo tho farm should bo, hov/evcr, is a question which
depends upon the ability of the operator hicisolf as a manager.
i^alanced Farming Pays.
-Each of the factors previously discussed plays a part in detorraning farm
profits. Full success in farr.d.ng requires that all parts of the farmer's business
be givai attention. One nay have good crop yields and make good use of livestock,
but receive a small net income because of inefficient use of labor. Or one may
work a large acreage per man and per horse, but fail because of low crop yields or
poor returns from livestock. A v/ell balanced farn with a fair degree of efficiency
along all lines brings the operator returns which v/ill enable him to maintain a
good standard of living for his family.
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SUT.n>ilARY 07 FAR!.; BUSIK^ESS RECORDS (l)
CLINTON COUNTY - 1923.
Twenty-one Clinton County farmers wlio kept farm business records in 1923 earned
an average rate of 4.54^ on an average capital investment of 020,302. Seven of the
twenty-one farmers received an average of 9.52?i on their investment, lAiiile seven
others lacked .3lfo of their investment, of paying their operating expenses, a dif-
ference of 9.83^ In terms of money, this means that the seven mors efficient of
these tv;enty-one farmers received an average net income of approximately v2,000
more than was received by the seven v;hose farms showed the lowest net incomes.
The following table v/ill help enable each Clinton County farmer who kept these
records to find some of the leaks in his farm business, if there have been such
leaks in his business.
Rate Earned, Labor and Management :
Ave«'age
Seven Most:
Seven Least
Wage and Factors in which Leaks are
Your
of 21
Profitable
Profitable
most likely to occur
^arm
Farms
Farms
Farms
Rate Earned on Investment
%
4. 54/o
9. 52/,
^
.3l/o
Labor and Management Wage
§
04C1.
01238.
A
sf
-571.
Lr.bp. Yields - Corn - Bushels
25.6
25.1
18.0
Oats - Bushels
38.4
41.5
33.4
IrVheat - Bushels
20.1
20.9
17.0
Returns per OlOO Invested (2) in
0157. 04
0 164,02
0
136.94
all Productive Live Stock
For OlOO in Horses
0- 7.00
0- 12.53
0-
10.43
For OlOO in Cattle
0
0151.44
$ 154.19
0
128.17
For OlOO in Sheep
0
0
■?>
0
For $100 in Swine
$
0115.87
01153.43
0
87.15
For $100 in Poultry
1
019O. 30
0 196.11
0
181,71
Percent of Income from. Livestock
f
/"
67. i%
6 4.8fo
76.5^0
Crop. Acres per Man
52.3
•• 47.7
53.3
Crop Acres per Horse
20.6
20.7
19.6
Expense per $100 Gross Income
$
0 68.17
0 52.11
0
102.94
Size of Farm - Acres
162.7
135.1
170,3
(1) Records secured and summarized by the Clinton Sounty Farm Bureau, Breese, Illi-
nois, and the Department of Farm Organization and Management, University of
Illinois, Urbana, Illinois Cooperating.
(2) The average investment at the beginning and end of the year was used in finding
these factors.
I -
VA.-5.;, » ■> il -
t -
yc'i^j.
-2-
Data from Clinton County Records - 1923 (Cont'd)
Your
Average
of 21
Farms
Seven I'o st
profitable
Fares
Seven Least
Profitable
Farrzs
1 Value of Land per /icre
2 Capital Investment - Total
3 Land
4 Buildings (l)
5 Machinery and Equipment
6 Feed and Supplies
7 Live stock - Total
8 Horses
9 Cattle
10 Sheep
11 Swine
12 Poultry
13 Receipts-Net Increases-Total
H Feed and Supplies
15 Miscellaneous
IS Live Stock - Total
17
18
19
20
21
22
23
24
Horses
Cattle
Dairy Products
Sheep
S'.vine
Poultry
Sggs
Miscellaneous
25 Expenses — Net Decreases — Total
25 Farn Ir^provenents
27 Machinery and Equipsent
23 Feed and Supplies
29 Cash Expenses
30 Receipts less Expenses
31 Operator and Fard.!/ Labor
32 Net Income from Investment
33 Investment per Acre
34 Gross Receipts per Acre
35 Total Expenses per Acre
36 Net Receipts per ^cre
37 Man Labor per Total Acres
38 Farms with Tractors - Percent
39 Acres of Land in all Crops
'^O Corn - Acres
41 Oats - Acres
42 'wheat - Acres
43 Legumes- Acres
98
20.302
16,187
1,323
1,059
2,679
474
855
3
129
255
V JO
§ 16 .654
3 13.235
% 2.867
3 7C9
$ 143
$ 1,953
§-
$ 150
$ 1,163
$ 4
146
142
3S3
13
957
183
293
477
§. 1.910
§ 983
$ 921
?
32 l§ -
3 - 97
-3 20,163
-S 137526
5 1,073
3 925
-? 1,543
^32 i
183 [}
233
515
2.331
755
1,585
123, 27
24.53
12.73
11.75
1.75
5.92
o.o;C
109.1
21.3
15.0
43.9
10.5
455
841
99
238
2.055
412
15
1,637
46
140
952
95
135
302
7
1.008
205
349
4 52
1.057
1,120
63
113.43
12.57
12,93
? - .35
7.04
14.3/.
17.0
55.0
11.7
vl) The investment in buildings, machinery and equipment, etc. at the beginning of
the year \yas used here.
-3-
Find Your Farm Leaks - (Clinton County - 1923)
The numbers just above the line across the middle of this page are ap-
proximately the averages for your county for the factors as named at the tops of
the columns. By drawing a line across each column at the point where the number
represents your efficiency for that factor, as given on page 1 of this report, you
can see where your efficiency is above the average and \:-here it is below the average.
1
\ ■
I
Expense 1
Bushels
per
t Returns per $100
! Crop Acres
per^lOO
Rate
Earned
Acre 0
f
J Invested in
' per
Gross
: Income :
Corn
Oats
; Wheat
Seattle Hogs Poultry
1 Man
Horse
9.75
r- 47- ■
59
41
: 255 T 325 400
r 94 ! 42
» 25
9.50
46
\ 58
! 40
: 250 ! 315 : 390
1 92 1 41
j 28 1
9.25
45
i ^'^
1 39
: 24 5 I 305 ; 330
I 90 40.
30 j
9.00
44
55
! 38
: 240 ! 295 1 370
1 88 . 39
I 32 1
1 8.75
443
55
37
i 235 1 285 1 360
! 85 ! 38
1 34 1
8.50
42
5i
36
230 i 275 : 350
i 84 i 37
35 !
1 8.25
41
53
35
225 1 2G5 i 340
i 82 ; 36
1 38 !
8.00
40
' 52
34
! 220 1 255 ; 330
1 80 ; 35
. 40
7.75
39
51
33
! 215 ; 24 5 1 320
i 78 1 34
42
7.50
38
50
32
1 210 \ 235 . 310
I 75
i 33
44
7.25
37
49
31
1 205 1 225 1 300
1 74
1 32
46
7.00
36
48
30
j 200 i 215 j 290
; 72
1 31
48
G.75
35
47
29
' 195 i 205 280
1 70
! 30
1 50
5.50
34
46
23
I 190 i 195 270
1 68
! 29
i 52 !
6.25
33
45
27
• 185 ! 185 5 250
i 66
! 28
1 51 1
6.00
32
44
26
i 180 I 175 / 250
1 64
27
55 1
5.75
31
43
25
1 175 : 165 i 240
1 62
26
58
5.50
30
42
24
1 170 1 155 j 230
1 60
1 25
60
5.25
29
^1 !
23
! 165 ; 145 220
! 58 1 24
62
5.00
28
40 i
23
! 150 ! 135 210
« 55 ! 23
64
4.75
27
39 j
21
'' 155 ! 125 200
! 54 1 22
1 55
4.50
25
,,,.35_ J
20
« 150
[ 115 I 190 ' 52
105~r ISO ! 50
i 21
68 1
4.25
25
37 1
19
I 145
!" 20
70 1
4.00
24
36 j
18
; 140 ; 95 170
1 48 19
72 !
3.75
23
35 1
17
! 135 ' 85 150
1 45 18
74
3.50
22
•34 1
15
! 130 75 5 150
; 44 1 17
75
3.25
21
33 5
15
; 125 65 i 140
; 42 i 15
78
3.00
20
32 j
14
' 120 55 ! 1130
40 15
30
2.75
19
31 I
13
115 45
120
38 14
82
2.50
18
30
12
110 1 35
110
! 36 13
84
2.25
17
29
11
105
25
100
34 12
85
2.00
16
28 1
10
100
15
90
1 32
11.
88
1.75
15
27
9
95
5
80
30
10
• 90
1.50
14
26 !
8
90
0
70
28
9
92
1.25
13
25
7
85
5
60
26
8
94
1.00
12
24
6
SO
-15
50
24
7
96
.75
11
23 ;
5
75
-25
40
22
6
98 (
.50
10
22 !
4
70
-35
30
20
5
100 i
.25
9
21.
3
65
-45
20
18
4
102 j
.-03
8
20
2
60
-55
10
16
3
lOi 1
- .25
7
19
1
55
-65
0
14
2
106 ;
- .50
6
18
-
50
-75
-10
12
1
108
- .75
5
17
-
45
-85
-20
10
-
110
* .
Factors VJhich Yierit Special Ittcntion
Rate Earned on Inver^tnen - The rate earned on the investment is an
excellent indication of the managing ability of the farm operator. This is particu-
larly true in regions where the average investment per farm is large. In regions
where the average investment is small, the Labor and l^Iia^emern.. \r^ge. is also an
excellent measure of managing ability. Anyone whose rate earned on the total farm
inv'»s-fcui=in-t oi v;ho<^i^ T.-'^>ioT- rmd t-Wagenent Uage is belov; the average for his locality
can well study the various factors which will indicate the source of a man's success
or failure. In this v/ay he may locate the source of his difficulty. The following
paragraphs discuss the rnore important factors influencing farm earnings.
Crop Yields - Good crop yields are among the m.ost definite of requirements
for good incomes. One whose crop yields are lov.' in comparison vri.th others working
land of equal natural veJ.ue can well study the practices of men v/ho secure higher
yields. Men who secure the best yields pay special attention to rotation of crops,
SGcd, drainage, use of legumes, use of manure, use of limestone and phosphate where
needed, preparation of seed beds, cultivation, and protection from diseases, and
insects.
Returns from QlQ^ Invested in Live Stock - V.'here any considerable part of
the incom^e of a farm is from, live stock, this item merits special attention. Vi/here
the returns are oelovi; the average a careful study of the practices on more successful
farms may assist the operator to locate places where he can improve his methods. The
difficulty may be in a low percentage of calves, pigs, lambs, etc. raised. It may be
in lack of attention to sanitary arrangements and protection from disease. In case
of pure bred stock, it m.ay be the inability to miarket the young stock at prices in
accord v^dth the value of the breeding stock. "^ In case of stock feeding
operations where feeders are purchased it may be in poor buying both as to time and
price. It may be in not producing the quality of stock v;hich the market demands.
The growing of sufficient legume forage to supply most of the protein requirements,
careful purchase and use of additional protein and mineral supplements, and the
utilization of roughage are among other important factors vAich make possible the
more economical production of live stock.
Per cent of Inconie from Live Stock - In a region where the best paying
farms receive a large proportion of their income from live stock, the less successful
farmers will do well to consider increasing their income from live stock. This may
be done by im.proving the quality of live stock, by better feeding, sanitary and
breeding methods or by increasing the amount of live stock kept. Ir order to im.prove
the quality of live stock it has not usually proven profitable for a man to invest in
a considerable numbor of high priced pure bred stock at one time. It is a rr^Dre safe
practice to grow the better stock by using good aires and occasionally picking up
good females, ^either is it usually \7i3e for a man v;ho has never handled much stock
to buy up a large breeding herd or go suddenly into extensive feeding operations.
In any case it is better to work gradually into the live stock business, building up
equipment, breeding herds and feeding operations slowly, as one learns to follow
successful methods.
The Use of Llan Labor and Ho^rse_Jliabo_r - About sixty to eighty per cent of
the cost of operating a farm, not including interest or rent charges, is for man
labor and horse labor. If a tractor is used the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs appro xinately ^jlOO per
year to keep one v;ork horse Vv^hen one includes present feed costs, depreciation,
interest on investment, barn room, harness co3ts, etc. If a man finds that he is
working fewer crop, acres per man or per horse than the average farmer working under
similar conditions, he can well study his situation with the idea of cutting dovm
this expense. The changing to a m.ore carefully planned rotation of crops is probably
the way in which most men can best reduce the man and horse labor costs, a rotation
Should be chosen, so as to avoid having a very large labor requirement at any one
time, so as to require a uniform amount of man and horse labor from early spring
until late fall, and so a5 to utilize the family labor to best advantage- The feed-
ing down of crops and use of enough live stock to utilize labor at seasons whon field
vrork is light are two other very definite means of increasing the efficiency in the
use of labor. \'3hile the working of a large number of crop acres per man and per horse
is desirable, a study of hundreds of records from over the state indicates that some
men have reduced the amount of both iran and horse labor to a point where crop yields
and returns from live stock are reduced because of lack of sufficient well directed
labor.
Expense per s?100 Gross Income - This is a measure of thrift in all parts
of thfj farm business. Farm records show that men '.vho keep expenses lov; in proportion
to their incomes are men who practice more or less of the follovifing things. They plan
their work so as to do as much as possible themselves or with family labor. After
getting a few good breeding females, they raise their ovm breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
own seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase of nuch new equipment, the paying out
of high vjciges for skilled labor for such repairs as they can readily do themselves
and also saves the expense incident to delay caused by broken machinery or fences
during the busy season.
Size of Farm. - V^Tien one finds that his farm is sm.aller than the most
profitable farms in his locality and his income is low even though he has good crop
yields and good returns from, liv stock, he may remedy the situation, by buying or
renting additional land, or by gradually adopting a more intensive or more specialized
type of farming. On the other hand, if he finds that his farm is larger than the
best farms and his income is low, he may profit by renting out land, or by planning
so as to do mrtre efficient work on his present acreage.
Closing Suggestions
1. Leaks in the farm, business are most likely to occur along the line
of these factors which have been discussed, namely:
a. Crop yields
b. Returns from investment in live stock
c. The proportion of returns from live stock
d. Use of m.a:i labor
e. Use of horse labor
f. Expenses in proportion to income
g. Size of farm
i
iF"
2, A careful comparison of a nan's farm business record beside those of
several other men farming under similar conditions will enable him to find the leaks
in his farm business.
3 . There can be no improvement without some change in practices used.
Carefully planned and slowly developed changes are more likely to result in increased
incomes than are impulsive and sudden changes of methods.
^' ik is, t^he vrell balanced farm that pays. One may have good crop yields
d make good use of live stock, but receive a small net income because of inefficient
use of labor. Or one may vrork a large acreage per man and per horse, but fail
because of low crop yields or poor returns from live stock, a well balanced farm
with a fair degree of efficiency aiding all lines brings the operator good
returns which enable him to maintain a high standard of living for his family.
J^il^^I Pl_ll^iJ,USINESS RECORDS (l )
FORD county' -"l923"
Nine Ford County faririars \7ho kept f£xrn; business records in 1923 earned an aver-
age rate of 4.06^ on an average capital investment of !s>60,152, Ti-iree of the nine
faraers received an average of 6.48^o on their investment, while three others received
only 2.33^0 of their investment, a difference of 4.15/0. In terms of money, this means
that the three more efficient cf these nine farmers received an average net incor^e
of appj^o ximat ely $2500 more than Vias received by the three v/hose farms showed the
lowest net incom.es.
The folloT/ving table will help enable each Ford County farr.er Vi*io kept these rec-
ords to find some of t}ie leaks in his farm business, if there have been such leaks
in his business.
Rate Earned, Labor and Llanagement
Y/age and Factors in •v7hich Leaks are
likely to occur
Rate Earned on Investment
Labor and Management ';!7age
Crop Yields - Corn - Bushels
Oats - Bushels
\^eat - Bushels
Returns per $100 Invested (2)
in all Productive Live-stock
For §100 in Horses
For llOO in Cattle
For t'lOO in Sheep
For C'lOO in Swine
For §100 in Poultry
Percent of Incoiae from Livestock
Crop Acres par jvlan
jCrop Acres per Horse
(Expense per $100 Gross Income
[Size of Farm - Acres
Your
Farm.
I
J *
Average ^ Three Most
of 9 I Profitable
Farms J Farms
§-
4.06;^
110.
47.9
41.5
23.0
Sj 88,35
.72
55.10
40.47
130.66
160.00
!
6.48/o
$1475.
50.4
44.4
15.8
i?; 111.67
$- 1.16
Xhree Lea.7
Profitable
Farms_
5-1576.
43.6
I 41.3
I 29.6
:$ 74.15
^
! 1?
50.2
99.5
23.2
50.10
231.4
88.93
49.21
129,45
176.86
124.0
27.0
40.18
_253.3_^
9.05
40.08
26.61_
126.40
173.57
84.0
91,6
20.3
62.60
267.7
Farm Bureau, Gibson City,
and Management, University of
(1) Records secured and summarised by the Ford County
Illinois, and the Department of Farm Organization
Illinois ,. Urbana, Illinois cooperating.
(2) The average investment at the beginning and end of the year was used in finding
the -3 3 factors.
-2-
Data from Ford County Records - 1923 (Cont'i)
5 Your
i: Farm
1 Value of Land psr Acre
2 Capital Investment - Total
3 Land
4 Buildings (l)
5 Machinery and Equipment
6 Feed and Supplies
7 Live Stock - Total
I Average
of 9
Farms
!$ 207
»$ 60.152
H 47,983
4,372
1,273
2,6:^3
3,371
$
: Three Mo st |
i Profitable 1
Fa-rms
t* -iJO
j§ 50,5^7
\$ 4,803
1,605
3,012
3,037
Three Least
Profitable
Farm?
A
;i:9
75j^--3^
58,6:.7
6,707
1,372
2,890
5,755
10
11
12
Horses
Cattle
Sheep
Swine
Poultry
13 Refceipts-Met Increases-Total
14 Feed and Supplies
15 Ivliscellaneous
16 Live Stock - Total
1$
960
1,266
92
886
166
4.392
2,318
28
2,545
\'4
'$
•I
793
909
187
931
216
3',92'9
10
2,919
{;
V
I
1,573
2,466
90
1 ,470
T55
^-31
683
58
3,959
17
18
19
20
21
22
23
24
Horses
Cattle
Dairy Products
Sheep
Swine
Poultry
Sggs
Miscellaneous
25 Expenses-Net Decreases-Total
26 Farm Improvements
27 Machinery a.nd Equipment
26 Feed and Supplies
29 Cash Expenses
§
$
.0
1$
736
157
34
:f 1,299
^ 137
141
34
1^939
-(08
328
If
H
9
1,023
143
78
1,178
23-1-
202
70
2_^1_39
237
491
1,303 i§ 1,411
139
1,060
199
25
2,229
132
143
32
2j454
435
343
1,675
^^ .S££Si2i£ le^gs Expenses
31 Operator and Family Labor
32 Net Income from Investment
33 Investment per Acre
34 ilross Receipts per Acre
35 Total Expenses per Acre
^^ Net Receipts per Acre
37 Man Labor per Total Acres fe
33 Farms with Tractors - Percent '■ '/
39 Acres of Land in all Crops j
40 Corn - Acres i
41 Oats - Acres
42 \?neat - Acres
43 Legumes- Acres j
(l) The investment in buildings, machinery
beginning of the year was used here.
511
2,442
250.
21.
8
12
u
h
> OOj $
.15f^
.401$
.75i^
4.29 $
175.0
46.0
25,9
3.3
I
I
249. 65J
27.09!
8.. &4!
18.4-5«
4.20
66.7;
206
110
68
24.0
4.0
7
3 I
3 !
and equipment, etc. at the
2.245
433
1,762
281.60
17.59
9.21
8« 3c
4.23
56. 7>
133.3
o3. 3
37.7
38.0
0.0
-3-
Zi?^ 12}^ £S£ii Leaks - (Ford County - 1,923)
The numbers just above the line across the udddle of this pa^e are approximately
the averages for your county for the factors as named at the tops of the columns. By
dravd.ng a line across each coluiim at the point v/here the number represents your ef-
ficiency for that factor as given on page 1 of this report, you can see where your
efficiency is above the average a^id where it is belov/ the average.
T
Rate
Bushels
Ac re of
per
! -
t Sarned >.
I 9.00 :
I 8.75
I 3.50
I 8.25
! 8.00
; 7.75
I 7.50
7.25
! 7.00
1 6.75
' 6.50
! 6,25
1 5.00
5.75
O.50 (
5.25 -
5.00 i
4.75 I
4.50 I
4.25 I
_.,4^00_j
3.50
3.00 I
2.75
! 2.50
2.00
! 1.75
; 1.50
; 1.25
! 1.00
I .75
' .50
Corn
38
85
84
82
80
78
76
74
72
70
68
66
64
62
60
53
55
54
52
50
48
i .00
I -.25
: -. 50
: -.75
■; -1.00
■ -1.35
; -1- 50
46
44
42
40
38
36
34
32
30
23
25
24
22
20
18
16
14
12
10
8
6
40
38
35
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
Return
. Inye
s per
i^lOO
n
Cats J I'Jlieat i Cattle j Hogs iPoultryi L'lan
Crop Acres
TRr
Expense:!
per^lOO I
Gro ss
Horce ! Income
82
43
30
42
73 1
41
76 !
40
74 :
39
72 {
38
70 i
37
68 1
36
66 ,
35
64
34
62
33
60 .
32
53 I
31
56
30
54
29
52
23
50 1
27
48 1
26
46 .
25
44 I
24
42 ,
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5.
4
3
2
1
4
Factors 'vJhich Merit Specie.! Mtention
Rate Earned on Investment - The rate earned on the inv-^ctment is an
excellent indication of the iranaging a^bility of the farra operator. This is particu-
larly true in regions v;here the averace investment per farm is large. In regioi^s
v/here the average investment is SKall, the Labq_r and i'fe.nageaent War.o is also an
e-t-^r^ivr-nt measure of icanaging ability. Anyone T/hose rate oarnsa on tho total fa.rni
investirient or \*ifvr;c-. Labor and "^anagernent VJage is belov; the average for his locality
can well study the various factors \vh.l.ch mil indicFite the source of a iran's success
or failure. In this \Tay he may locate the source of his difficulty. The follo'sing
paragraphs discuss the rxre important factors influenciiig farm earniiigs.
Crop Yields - Good crop yields are among the ir.ost definite of requirements
for good incomes. One 7;hose crop yields are lo\^' in conparison v.dth others \7orking
land of equal natural vc-due can well study the practices of men T7ho secure higher
yields. Men who secure the best yields pay special attention to rotation of crops,
seed, drainage, use of legumes, use of rianure, use of limestone and phosphate ■where
needed, preparation of seed beds, cultivation, and protection from diseases, and
insects.
Returns from »jlOO In'^ested in Live Stock - V.'here any considerable part of
the income of a farm is from live stock, this iter, merits special attention, "i^ere
the r.=3turns are below the average a careful study of the practices on more successful
farms r.ay assist the operator to locate places where he can improve his ..'iethoas. The
difficulty m.ay be in a low percentage of calves, pigs, lambs, etc. raised. .It may be
in lack of attention to sanitary arrangements a.nd protection from disease. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accord vdLth the value of the breeding stock, -kep^ In case of stock feeding
opera.tions where feeders are purciiased it may be in poor buying both as to time and
price. It may be ir.. not producing the quality of stock which the market dem.ands,
Tlie growing of sufficient legume forage to supply most of the protein requirements,
careful purchase and use of ad..lition.?.l protein and mineral supplements, and the
utilization of roughage are among other iaportcuit factors v.'iiich .'.ake possiblo the
more econordcal production of live stock.
5
Per cent of Income from Lj ye Stock - In a region vhere the best pa3''ing
fartTiS receive a largs proportion of their inco:v.e froir. li .'e otock, the less successful
farmers will do '-veil to consider increasing their incone fror- live c+.ock. This rtay
be done by improving the quality of live stock, by better feeding, sanitary and
breeding methods or by increasing the arrijunt of live stock kept. In order to improve
the quality of live stock it has not usually proven profitable for a riian to invest in
a considerable nudber of liigh priced pure bred stock at one tinie. It is a rrore safe
practice to grow the better stock by using good sires and occasionally picking up
good fecales. i'^sither i? it usually ".vise for a rr.an who has never handled much stock
to buy up a large breeding herd or go suddenly into extensive feeding operations.
In any case it is better to work gradually in'cothe live stock business, building up
equipment, breeding herds aiid feeding operations slowly, as one learns to lollov/
successful methods.
The Use of Man Labor and Hpr-gg Labor - About sixty to eighty per cent of
the cost of operating a farm, not including interest or rent charges, is for man
labor and horse labor. If a tractor is used the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs appro xirsately ylOO per
year to keep one -.vork horse v.rhen one includos present feed costs, depreciLition,
interest on investment, barn roorr., hc.rnoss costs, etc. If a man finds that he is
working fewer crop acres per man or per ?iorse than the a.verage farmer urirking under
similar conditions, he caii v;ell study his situation T/ith the idea of cutting dovm
this expense. The chstnging to a more carefully planned rotation of crops is probably
the way in which nest men can best reduce the man and horse labor costs. ^ rotation
should be chosen, sc as to avoid having a very large labor reyuirenent at any one
time, so as to require a uniiorm ai;',ount of iian and horse labor from early spring
until late fall, and so as to utilize the faraly labor tc best advantage. The feed-
ing down of crops and use of enough live stock to utilize labor at seasons when fi3ld
work is light are two other very definite means of increasing the efficiency in the
use of labor, 'vvhile the working of a large number of crop acres per man and per horse-
is desirable, a study of hundreds of records fror;. over the stite indicates that some
men have reduced the amount of both w.an and horse labor to a point vmcre crop yields
and returns from live stock are reduced because of lack of sufficient ■uvell directed
labor.
Expense per (?100 Gross Incouie - This is a measure of thi-ift in all parts
of the farm business. Farm records show that men -Ao keep expenses lov; in proportion
to their incomes are men who practice more or less of the following things. They plan
their work so as to do as much as possible themselves or with fairdly labor. After
getting a few good breeding females, they raise their own breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
own seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase of much new equipment, the paying out
of high vjages" for skilled labor for such repairs as they can readily do themselves
and also saves the expense incident to delay caused by broken machinery or fences
during the busy season.
Size of Farm - ViTien one finds that his farm is smaller than the most
profitable farms in his locality and his income is lov; even though he has good crop
yields and good returns from live stock, he may remedy the situation, by buying or
renting additional land, or by gradually adopting a more intensive or mors specialized
type of farmdng. On the other hand, if he finds that his farm is larger than the
best farms and his income is lov;, he m^ay profit by renting out land, or by planning
so as to do more efficient work on his present acreage.
Closing Suggestions
1. Leaks in the farm business are most likely to occur along the line
of these factors which have been discussed, namely:
a. Crop yields
b. Returns from investment in live stock
c. The proportion of returns from live stock
d. Use of m.an labor
e. Use of horse labor
f. Expenses in proportion to income
g. Size of farm
2. A careful coraparison of a rsin's farra business record beside those of
several other men farrcirig under similar conditions 7d.ll enable him to find the leaks
in his farra business.
3. There can be no iiai:?rov3!:r.&nt without some chan^ in practices used.
Carefully planned and slowly developed changes are core likely to result in incrcu-sed
incomes than are impulsive and sudden changes of methods.
4. It_ i£ the v/ell balanced _farr' that pays. One nay have good crop yields
and r-ake good use' of live stock, but receive a srall net income because 01 inefficient
use of labor. Or one may work a large acreage per r;an and per horse, but fail
because of lov7 crop yields or poor returns froE live stock. ^ v/ell balanced farin
vTith a fair degree of efficiency aldng all lines brings the operator good
returns v/hich enable hin to maintain a high standard of living for his faj:.ily.
SUM'lARY of JkTQ'i BUSI'.'JESS R3C0RI1S (l)
GALLaTIN county - 1923"
Eleven ijallatin County farmers who kept farm business records in 1923
earned an average rate of 1.55;'^ on an average capital investment of 'i?25,256.
Four of the eleven farmers received an average of 3.66fo on their investment, while
four others lacked .SO/o of their investment of paying their operating expenses, a
difference of 4. 4670. In terms of rconey, this means that the four r:;ore efficient
of these eleven farmers received an average net income of appro xiitately $1125
more than vra.s received by the four v;hose farms showed the lowest net incomes.
The following table will help enable each Gallatin County farmer who
kept these records to find som.e of the leaks in his farm business, if there have
been such leaks in his business.
Rate Earned, Labor and Fianagement
Your
Average
' Four Most
Four Least 1
Wage and Factors in which Leaks
Farm
of 11
Profitable
Profitable j
are most likely to occur
Farms
Fa?"rr:S
Farms
Rate Earned on Investment
1.65>
3,65yo
-.80f.
Labor and Management Vfege
§-375.
$ 626.
§-
•828.
Crop Yields - Corn - bushels
37.9
51.5
37.6
Oats - bushels
..<._
lilOieat- bushels
14.5
12,4
15.2
Returns per $100 invested in all
^ 132.14
■^ 131.32
103.17
Productive Live-stock (2)
Fof ^100 in Horses
0- 5.05
^- 5,07
A
V"
- 1.93
For 1^100 in Cattle
0 82.47
;? 49.32
St"
124. 90
For OlOO in Sheep
_-_--
For OlOO in Swine
$ 151.21
s? 199,61
•f
65. 55
For OlOO in Poultry
3 179.02
0 214.64
sP
128.76
Per cent of Income from Live Stock
51.47:
44.1;:
59.9%
Crop Acres per Man
63.7
1 55.9
52.8
Crop Acres per Horse
20.1
18.5
16.2
Expenie for ylOO Gross Income 1$ 79.14
$ 60. 56
176.0
§
112, 94
jSize of Farm - Acres f 196.3
207.5
(1) Records secured and sumimarized by the Gallatin County Farm Bureau, Ridgway,
Illinois, and the Department of Farm Organization and J-lanagement , University of
Illinois, Urbana, Illinois cooperating.
(2) The average investment at the beginning ahd end of the year was used in
finding these factors.
Data froE Gallatin County P.ecords - 1923 (Cont 'd)
Your
^arm
average
of 11
Farms
H-
:'OUr 1..0 S"C
Profitable
Farns
IF"
24,092
19,200
2,110
801
1,353
1,518
Four Least
Profitable
Farms
1- Value of Land per Acre
2 Capital Investment - Total
3 Land
4 Buildings (1^
5 Machinery and Squiprnent
6 Feed and Supplies
7 Live Stock - Total
8 Horses
9 Cattle
10 Sheep
11 Swine
12 Poultry
13 Receipts-Net Increases-Total
14 Feed and Supplies
15 Miscellaneous
16 Live Stock - Total
17 Horses
18 Cattle
19 Oairy Products
20 Sheep
21 Swine
22 Poultry
23 Eggs
24 Mscellaneous
25 Expenses-Net Decreases-Total
26 Farm Impravement s
27 Machinery and Equipment
28 Feed and Supplies
29 Cash Expenses
30 Receipts less Expenses
31 Operator and Family Labor
32 Net Incor:e fror.: Investment
33 Investment per Acre
34 Gross Receipts per Acre
35 Total Expenses per Acre
36 Net Receipts per Acre
37 I'jlan Labor per Total Acres
38 Farm \7ith Tractors
39 Acres of Land in all Crops
40 Corn - Acres
41 Oats - Acres
42 VJheat- Acres
43 Legumes - Acres
101
25 ,256
19,734
2,165
736
1,102
1,519
646
296
31
334
212
2.001
916
57
1,028
31
78
154
3
439
92
276
25
957
f^
103
200
^ 653
? 1,044
? 627
? 417
'j 128.68
? 10.20
f 8.07
? 2.13
} 4.04
4
131.7
43.3
4/. I 617^
20,9
568
125.0
34.2
oi.O
17.0
21,853
16,944
1,889
603
743
1,674
792
322
7
376
176
1.360
512
33
815
-14
62
326
2
205
74
148
13
806
81
147
§ 577
.) 544
I 730
0 - 175
■5 105.28
^ 6.55
S 7.40
§ 4.39
105. 5
40. 2
45. 9
16.8
(l) The investment in buildings, machinery and equipment, etc. at the
beginning of the year we.s used here.
Fir.d Your Farm LeL-'ks
The nuiiibers just above the line across the iiuddle of this page are
appro lirately the averages for your county for the factors as named at the tops of
the columns. By drawing a line across each coluran at the point where the number
represents your efficiency for that factor, as given on page 1 of this rv^port, you
can see where your efficiency is above the average and -jtiere it is belov; the average.
"' ' '' '"
'' ' '
~\
t
Expense i
Bushels per ;
Retui-ns per $100
Crop
jicres
per s^lOO
Rate
Earned
Acre of I
Invented in
per \
gross
income '
' Corn
Outs
" "vVheati
Cattle Hogs »• Poultry
210 400 ! 430
' :.ian
144
Hcrs'r'
8.00
"""90
40
45
r 30
7.75
88
39
205 390 \ 420
141
44
32
7.50
86
38
200 380 1 210
138
43
34
7.25
84
37
195
370 400
135
42
36
7.00
82
35
190
350 390
132
■^1
38
6.75
80
35
185
350 ; 380
123
40
40
6.50
78
34
180
340 : 370
126
39
42
6.25
76
33
175
330 360
123
38
44
6. DC
74
32
170
320 350
120
37
46 1
5.75
72 ;
31
16 5 310 : 340
117
36
48 1
5.50
70 i
30
160
300 : 330
114
35
50
5.25
58
29
155
290 : 320
111
34
52
5.00
66
23
150
280 • 310
103
33
54
4.75
64
27
145
270 ■ 300
105
32
56
4.50
52
25
140
250 '' 290
102
31
58 '
4.25
60 25
135
250 1 280
99
30
60
4. CO
58 24
130
240 I 270
96
29
62-
3.75
56
23
125
230 1 260
93
28
64
3.50
54
22
120 220 ! 250
90
27
66
o» wl)
52
21
115 210 j 240
87
26
58
3.00
50
20
110 200 230
84
25
70
2.75
48 19
105 190 220
81
24
72
2.50
45
18
100 180 210
78
23
74
2.25
44
17
95 170
200
75
76
2.00
42
IS
90
160
190
72
21
78
1.75
40 ,
15
85
150
180
69
20 _
80
1.50
38
14
80
140
170
65
19
oZ
1.25
35
13
75 1 130
160
63
18
84
1.00
34
12
70
120 150
60
17
86
.75
32
11
55
110 140
57
16
83
.50
30
10
50
100 130
54
15
90
.25
28
9
55
90 120
51
14
92
.00
26
8
50 80 I 110
43
13
94
- .25
24
7
45 70 j 100
45
12
95
- .50
22
6
40 60
90
42
11
98 j
- .75
20
5
35 - 50
80
39
10
100
-1.00
18
4
30 40
70
36
o
102
-1.25
16
3
25 30
60
33
8
104 J
-1.50
14
2
20 20
50
30
7
lOo 1
-1.75
12
j
1
15 i 10
40
27
6
103
-2.00
10
1 -
10 0
30
24
5
110
-2,25
8
-
5 -10
20
21
4
1 1 V
-2.50,
6
-
0 -20
10
18
3
114
' -2.75
1
A
-
- 5 S -30
i ^
15
0
115
4
Factors ■■Tni;!! 'Jerit Specie-1 iSttention
Rate Earned on Invastiaent - The rate eE-rned on the inv^r.+ mont is an
excellent indication of the managing ability of ths farm operator. This is particu-
larly true in regions v/here the avsi'ir.e investnient per farm is large. In rr-.ginj.s
where the average investnent is snail, Vur'. J^ihp_r an'] tfenagement ^'var.o is also an
p«'-'»n.r>nt measure of managing ability. Anyone whose rate earned on tho total farm
investment or \*ac'--: Labor and w^anagement '.".^ge is belov; the average for his locality
can well study the various factors v/hj-ch will indicate the source of a nan's success
or failure. In this v/ay he may locate the source of his difficulty. The follomng
paragraphs discuss the rr.oro important factors influencing farm earnings.
Crop Yields - Good crop yields are among the f-ost definite of requirements
for good incomes. One 'i/hnso crop yields are low in comparison -.vith ot?iers working
land of equal natural value can well study the practices of men v;ho secure higher
yields. Men v/hc secure the best yields pay special attention to rotation of crops,
seed, drainage, use of legumes, use of manure, use of limestone and phosphate where
needed, preparation of seed beds, cultivation, and protection from diseases, and
insects,
Returns from QlOO Invested in Live Stock - '"^ere any considerable part of
the income of a farm is from live stock, this it3m merits special attention. Vilhere
the r.^turns are below the average a careful study of the practices on more successful
farms nay assist the operator to locate places where he can improve his methods. The
difficulty m.ay be in a low percentage of calves, pigs, lambs, etc. raised. It may be
in lack, of attention to sa.nitary arrangements a.nd protection from, disease. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accoi'd with tho value of the breeding stock, kept. In case of stock feeding
operations where feeders are purchased it may be in poor buying both as to time and
price. It m^y be in not producing the quality of stock vjhich the market demands.
Tlie growing of sufficient legume forage to supply m.ost of the protein requirements,
careful purcha.se and use of additional protein and mineral supplements, and the
utilization of roughage are among otner important factors v/hich make possible the
more economical production of live stock.
5
Per cert of Incoiae from Liv3 Stock - In a rogion whero the best paying
farr.s receive a large proportion of their incorue frorr. li^?c■ atock, the less sucoessfu?.
farffiers v.dll do well to consider incroasinc thoir income fror, li\fo r.-.+.o-cV. T"r->-i s uyvy
be dons by improving the quality of live stock, by better feeding, sanitary o.nd
breeding methods or by increasing the anount of live stock kept. In order to iinjirova
the quality of live stock i+ has not usually proven jjrofitable for a nan to invest in
a considerable number of high priced pure bred stock at one tin-.e. It is a rr.ore safe
practice to grow the better stock by using good sires a-nd occasionally picking up
good ferales. ^'^"either is it usually v.'ice for a rr.an \'iho has never handled much stock
to buy up a large breeding here, or go suddenly into extensive feeding operations.
In any case it is better to Y;ork gradually into 'the live stock business, building up
equipment, breeding herds and feeding operations slov/ly, as one learns to lollov.'
successful methods.
The Use of Man Labor and -'^rse Labor - About sixty to ei;jhty per cent of
the cost of operating r. farm, net including interest or rent charges, is for man
labor and horse labor. If a tractor is usod the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs approximately ;^;100 per
year to keep one v/ork horse v.heu one includos present feed costs, depreciation,
interest on investment, barn rocr:., harness costs, etc. If a ina.n finds that he is
'.vorking fewer crop acres per man or per horse t?ian the average farmer working unier
similar conditions, he can well study his situation mth the idea of cutting dovm
tiiis expense. The changing to a more carefully planned rotation of crops is probably
the way in v;hich r.ost men can best reduce the man and horse labor costs. .-;. rotation
should be chosen, so as to avoid having a very large labor requirement at any one
time, so as to require a uniTorm amount of man and horse labor from early spring
until late fall, and so as to utilize the family labor to best advantage. The f'=-;ed-"
ing down of crops and use of enough live stock to utilize labor at se3.sons '■■'hjn field
worlc is light are two other very definite means of increasing, the efficiency in the
use of labor, \71iile tne vrorking of a large number of crop acres per man and per hors^
is desirable, a study of hundreds of records from ovei- the state indicates that some
pen have reduced the amount of both iran and lioroo labor to a point v.'hero crop yields
and returns from live stock are reduceu jscauso of lac'-, of sv.rfr cleat -.veil dii-octed
labor.
Expense per (^ICO Gross Income - Tliis is a pip,-'. r.urc o-f tin lit i-..n.iT p-jx-to
of t>ie farm business. Farm records show that men ".vlio keep expenses lov; in proportion
to their incomes are men v/ho practice niore or less of the following; things. They plan
their work so as to do as mucli as possible themselves or vjith facdly labor. Alter
getting a few good breeding females, they raise their ov.Ti breeding stock except for
the purchase of pure bred sires. Insofar as feasible they ra.i3e and prepare their
07m seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase. of Euch new equipment, the paying out
of high wages for skilled labor for such repairs as they can readily do themselves
and also saves the expense incidant to delay caused by broken machinery or fences
during the busy season.
I
^ Size of j-'arr. - \7hen one finds that his far:., is smaller than the most
profitable farms in his loccU.ity and his income is lov; even though he has good crop
yields and good returns from live stock, he may remedy the situation, by buying or
renting additiona.1 land, or by gradually adopting a more intensive or more specialized
type of farming. On the other hand, if he finds that Iiis farm is larger than the
best farms and his income is low, he r.ay profit by renting out land, or by planning
GO as to do m.ore efficient \"ork on his present acreage.
Closing Suggestions
1. Leaks in the farm, business are most likely to occur along the line
of these factors which have been discussed, namely:
a. Crop yields
b. Returns from, investment in live stock
c. The proportion of returns from live stock
d. Use of man labor
e. Use of horse labor
f. Expenses in proportion to income
g. Size of farm
2, A careful comparison of a man's farra businesj record beside those of
several other men farming under similar conditions will enable him to find the leaks
in his farm business.
3. There c^n be nc_ improv3ment without some chan^'^e in practices used.
Carefully planned and slo?/ly developed changes are more likely to result in increased
incomes than are impulsive and sudden changes of methods.
^' iL is. "^he well balanced farm that pays. One may have good crop yields
and make good use of live stock, but receive a small net income because of inefficient
use of labor. Or one may vrork a large acreage per man and per horse, but fail
because of lo^'i crop yields or poor returns from live stock, a well balanced farm
with a fair degree of efficiency aldng all lines brings the operator good .
returns v/hich enable him. to maintain a high standard of living for his family.
SUMaARY OF FARM BUSINESS RSCORDS (1)
JERSEY COUKTY -'iQgS
Eleven Jersey County fanners v;ho ::ept fc^rm business records in 1923
earned an average rate of 3.72,i on an average capital invtbti.-e-at of #21,294.
Four of the eleven fariuers received an average of 6.8&fo on their investment, while
four others lacked 1.08;.o of their investment of paying their operating expenses, a
difference of 7.94}^. In terms oi rr.oney, this means tnat the four more efficient
of these eleven farmers received an average net income of approximately §1690
more than was received by the four v/hose farms showed the lowest net incomes.
The follovri.ng table '.vill help enable each Jersey County farm.er who
kept these records to find some of the leaks in his farm business, if there have
been such leaks in his business.
Rate Earned, Labor txnd L^anagement
'
Average
Four Most
Four Least -.
Wage and Factors in which Leaks
Your
of 11
Proiita.ble
Profitable '
are most likel.y to occur
Farm
Fa.rms
Farms
Farms '■
Rate Earned on Investment
%
\
3. 72%
6.86f,
- 1.08fo 5
Labor and %nagement Wage
$
1
238.00
$1002.50
§-355.25
Crop Yields - Corn - Bushels
48.9(3^
46.4(4)
32.3(5) 1
Oats - Bushels
37.9(6]
40.2(7)
30.0(5) f
Wiea.± - Bushels
20.0(8)
16.3(7)
9.0(5) \
Returns per vlOO invested (2} in
S
•if
$
147. 92
$ 139.85
5 141.74 1
all Productive Live-stock
i
For ^jplOO in Horses
S
1-
■ 10.27
0- 2.81
C>- 14.79 !
For silOO in Cattle
$
$
123.21
0 135..11
$ 106.39 I
For olOO in Sheep
1
1
70.00
$ 63.24
^ 59.37 1
For ClOO in S-.7ine
$
1
185.28
§ 187.94
i» 212.54 •
For OlOO in Poultry
$
$
161.02
& 131.03
$ 135.42 \
Per cent of Income from Livestock
%
67.8/,
6ci. 7/0
1
68. 3'/o •
Crop Acres per Man
61.9(9)
58.6'
35.5(7) ■
Crop Acres per Horse
17.3(9)
i 16.7
12.7(7) '■
Expense per ^-.lOO Gross Incom.e
$
f
70.59
' 4 51.68
$ 108.56 •
Size of Farm - Acres
165.9
1 168.7
167.5 ;
(1) Records secured and sumj::arized by the Jersey County Farm Bureau, Jerseyvilxe,
Illinois, and the DeiDartmentof Farm Organization and Management, University of
Illinois cooperating.
(2) The average investment at the beginning and end of the year v^as used in
finding these factors.
(3) Seven farms. (4) Three farms. (5) One farm. (6) Five farms. (7) Two fai-ms.
(8) Six farms. (9) Nine farms.
Data fro:.. Jersey County Records - 1923 (Cont'd)
I
1 Value of Land per Acre
2 Capita.1 InvbstKent - Total
3 Land
4 Buildings (l)
5 Machinery and Equipment
6 Feed and Supplies
7 Live Stock - Total
8 Horses
9 Cattle
10 Sheep
11 S'lVine
12 Poultry
13 Receipts-Net Increases-Total
14- Feed and Supplies
15 Miscellaneous
IS LivesStock - Total
17
18
19
20
21
22
23
24
I
Horses
Cattle
Dairy Pro duut s
Sheep
Sv/ine
Poultry
Eggs
Miscellaneous
2 5 Expense s-Ket Decreases-Total
26 Farm Inprovsaents
27 Machinery and 3quipinent
28 Feed and Supplies
29 Cash Expenses
3 0 Receipts less Sjcpenses
31 Operator and Family Labor
32 Net Incor.9 fro::; Investmant
33 Investments per Acre
34 Gross Receipts per Acre
35 Total Expenses per Acre
36 Net Receipts per Acre
37
38
39
40
41
42
43
44
Man Labor per Total Acres
Farms vd.th Tractors - Per cent
Acres of Land in all Crops
Corn - Acres
Oats - Acres
Iheat - Acres
Lepiuines- Acres
Your
Farm
Ave rug e
of 11
Farms
$
$-
98
21.294
16,212
1,505
731
1,036
1,310
503
552
175
477
102
2.683
835
19
1,829
45
145
421
135
Four J.bst
Profitable
Farms
^"1
A
952
0
91
'4
70
§
60
A
1.187
s?
141
$
204
u
9
b42
1.496
704
792
128.35
16.24
11.47
4.77
5.91
18. 2/,
96.2(2
45.5(4)
10.4r3)
38.3(8)
10.8(2)
121
24,375
20,367
1,325
759
576
1,847
341
404
387
627
57
(l) The investm.ent in buildiiigs, machinery and equipment, ate
Four Least
Profitaolo
Farms
3.531 i-l
1.238 \$
23 |§
2,250 p
10 U-
I/O s?
339 j§
277 1$
1,383
44
32
6
151
178
781
147.45
20.93
10.32
10.11
6.32
25.0"o
114.7
59.0(5)
15.0(6)
29.0(3)
15.5 i
l.?7(
1.217
79
174
964
513
707
154
85.33
10.76
11.68
5.53
25.0;^
.'1.5(3)
io.o(:j
6.0(7)
15.0(7)
1.0(3}
of the year v<as used here.
(2) Nine farms. (3) T^wTo farms,
(7) One farm. (8) Six Farms.
(4) Eight Far:_s. (5) Three
. at the beginning
farms. (6) Five farmc
-3-
^ind Your Farm Leaks - (jersey County 1923)
The numbers just above the line across the iidddle of this page are
approximately the averages for your county for the factors as named at the tops oi'
the coluiTjns. By dravdng a line across each column at the point where the number
represents your efficiency for that factor, as given on page 1 of this report, you
can see where your efficiency is above the average and vjhere it is below the averags
1
)
'
Expense "
1
Bushels per
Returns per $100
Crop Acres
periJjlOO
1 Rate
Acre of
Invested in
per
Gross
Incone
' Earned
Corn
• Oats
V, "lie at
Cattle
Hogs
Poultrv
!:an
Horse
j 9.00
91
80
41
230
395
370
125
38
28
1 8.75
89
78
40
225
385
360
122
37
30
; 3.50
37
76
39
220
375 350
119
35
32
I 8-25
85
74
38
215
365
340
116
35
34 !
1 8.00
83
72
37
210
355
330
113
34
35
7.75
81
70
36
205
345
320
110
33
38
7.50
79
68
35
200
335
310
107
32
40
7.25
77
56
34
195
325
300
104
31
42
7.00
75
64
33
190
315
290
101 ;
30
44
' 6.75
73
62
32
185
305 280
93
29
46
6.50
71
60 1
31
180
295
270
:95 i
28
48
6.25
69
58
30
175
285
260
92
27
50
5.00
57
56
29
I'.O
275
250
89 :
26
52
5.75
65
54
28
165
265 1 240
86
25
54
5.50
63
52
27
160
255 i 230
83
24
56
5.25
61
50
26
155
245 ! 220
80
23
58
5.00
59
43
25
150 j 235 • 210
77
22
60
4.75
57
46
24
145 225 i 200
74
21
62
4.50
55
44
23
140 215 i 190
71
20
64
4.25
53
42
22
135 1 205 I 180
58
19
&t
! 4.00
51
40
21
130
195 I 170
65
18
68
i 3.75
49
38 .
20
125
135 \ 160
62
17
70
1 3.50
47
36
19
120 1 175 150
59
16 1
72
3.25
45
34 ,
18
115 ; 165 1 140
56
15
74
3.00
43
32
17
110 j 155 ; 130
53
14
76
2.75
41
30
16
105 j 145
120
50
13
78
2.50
39
28
15
100
135
110
47
12
80
2.25
3'
26
14
95
125
100
44
11
32
2.00
35
24
13
90
115
90
41
10
84 i
1.75
33
22
12
! 35
105
80
38
9
86 \
1.50
31
20
11
1 80
95
70
35
3
83
1.25
29
13
10
75 1 85
60
32 .
7
90
1.00
27
16
9
70 ; 75
50
29
6
92
.75
25
14
8
1 55 j 65
40
26
5
94
1
.50
23
12
7
60 j 5-5
30
23
4
96
.25
21
10
5
55 1 45
20
20
3
98
,.00
19
8
5
50 1 35
10
17
2
100
- .25
17
6
4
45 J 25
0
14
1
102
- .50
15
4
q
40 f 15
-10
11
-
104
- .75
13
2
2
35 j 5
-20
8
106
-1.00
i 1-
1 _
1
1
30 j 0
-30
5
-
108
-1.25
1 9
1 -.
L-,™
25 1 - 5
-40
3
- ..
110
Factors VJhich 'ferit Special lttenti:)n
Rate Earned on Invjstrr.ent - The rate ee.rned on the invactment is an
excellent indication of the managing ability of the farm operator. This is particu-
larly true in regions '^rhere the average investment per farm is large. In regions
v/horft the average investment is small, the Labor and i'fenacement War.e is also an
ov.'-^ii.ftnt measure of managing ability. Ai:iyone whose rate earned on the total farm
investment or vtm;---. Ii-ibr-r and i«ianagement T&ge is belov; the average for his locality
can well study the various factors which v;ill indicate the source of a man's success
or failure. In this v/ay he may locate the source of his difficulty. The follovvdiig
paragraphs discuss the rore important factors influencing farm earnings.
Crop Yields - '5ood crop yields are among the m,ost definite of requirements
for good incomes. One whose crop yields are lov: in comparison with others working
land of equal natural vaj.ue can well study the practices of m.en who secure higher
yields. Men who secure the best yields pay special attention to rotation of crops,
seed, drainage, use of legumes, use of manure, use of limestone and phosphate where
needed, preparation of seed beds, cultivation, and protection from diseases, and
insects.
JH Returns from QlOO Invested in Live Stock - v.'here any considerable part of
the income of a farm is from, live stock, this item, merits special attention. Vyhere
the returns are oelov; the average a careful study of the pr^ictices on more successful
farms may assist the operator to locate places where he can improve his methods. The
difficulty nay be in a low percentage of calves, pigs, lambs, etc. raised. It may be
in lack of attention to sanita.ry arrangements and protection from, disease. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accord v.-ith the value of the br3eding stock, ke^.t. In case of stock feeding
operations where feeders are purchased it may be in poor buying both as to tim^e and
price. It may be i:i .lot producing the quality of stock which the market demands.
The growing of sufficient legum.e forage to supply most of the protein requirements,
careful purchase and use of additional protein and mineral supplements, and the
utilization of roughage are among other imiportant factors \7hich make possible the
more economical production of live stock.
5
Per cent of Inco-e fror.i ^ive Stock - In a region where the host pairing
farir.s receive a large proportion of their inco:..e fro-.-, live r.tock, the less successful
farmers mil do v;ell to consider iacreaaing thoi- Incorr.o fro-^ \i-. ^:+.ocV. TKi g r.-^.y
be done by irr^roving the quality of live stoci:, by better feodinf;, sanitary ^nd
breeding methods or oy increasing the ar::ount of live stock kept. In order to i, ..^•■^^.
the quality of live stock it nas not usually proven profitable for a rr^n to invest in
a considerable nui.ber of high priced pure bred stock at one tirr.e. It is a n.ore safe
practice to grow the better stock by usir^ good sires and occasionally picking up
good females. Neither is it usually v;iso for a man who has never handled mch stock
to buy up a large breeding herd or go suddenly into extensive feeding operations.
In any case it is better to work gradually into the live stock business, building up
equipment, breeding herds and feeding operations slowly, as one leai%is to lollo.v
successful methods.
The Use of Ifen Labojr ^.nj jjoj.se.j^abpx - ^^bout sixty to eighty per cent oi
the cost of operating a farm, not including interest or rent charges, is for man
labor and horse labor. If a tractor is used the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs appro ximtoly ^100 per
year to keep one v;ork horse when one includes present feed costs, depreciation,
interest on investment, barn roon, harness costs, etc. If a iran finds xnat he is
wrking fewer crop acres per man or per horse than the average farmer working under
similar conditions, he can well study his situation v/ith the idea of cutting aown
this e;:pense. The changing to a n^re carefully planned rotation of crops is proDably
the way in -.vhich rrost men can best reduce the rnan and horse labor costs, a rotation
should be chosen, so as to avoid having a very large labor requirenent at any one
time, so as to require a uniform amount of man and horse labor from early spring
until late fall, and so as to utilize the family labor to best advanta|ie. The fee-
ing down of crops and use of enough live stock to utilize labor at seasons whan fiel.
work is light are two other very definite r.eans of increasing the efficiency m tne
use of labor. V;hile the wrking of a large number of crop acres per m.an and per norL-
is desirable, a study of hundreds of records fro-n over the stats indicates that sore
men have reduced the amount of both r:.an and horse labor to a point v;here crop yields
and returns from live stock are reduced because of lack of sufficient well dirocted
labor.
Expense per $100 Gross Inccme - Tl-iis is a measure of thi'ift iu all pn.rtT-
of t}ie farm business. Farn records show that men "/ho keep expenses lev; in proportion
to their incomes are raen viho practice nx>re or less of the followint^ things. They plan
their work so as to do as much as possible themselves or with faivaly labor. After
getting a fe\7 good breeding females, tney raise their ov.t. breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
OT-r. seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase of Euch new eqalvment, the paying out
I
of high wages for skilled labor for such repairs as they can readily do themselves
and also saves the expense incident to delay caused by broken machinery or fences
during the busy season.
Size of Farm - VJhen one finds that his farr.^ is smaller thaai the most
profitable farms in his locality and his income is lov; even though he has good crop
yields and good returns from live stock, he may remedy the situation, by buying or
renting additional land, or by gradually adopting a more intensive or mora specialized
type of farming. On the other hand, if he finds that his farm is larger than the
best farm.s and his incom.e is low, he m.ay profit by renting out land, or by planning
so as to do mx>re efficient work on his piresent acreage.
Closing Suggestions
1. Leaks in the farm business are most likely to occur along the line
of these factors which have been discussed, namely:
I a. Crop yields
i b. Returns from investment in live stock
1 c. The proportion of returns from, live stock
I d. Use of nan labor
e. Use of horse labor
f. Expenses in proportion to income
g. Size of farm
2. A careful comparison o'l a iran's farn business record Leside tho&e of
several other men fanning under siinilar conditionD vri.ll enable him to find tha leaks
in his farm business.
3. There can be no_ iKiProvsraent •'JTithout some change in £ractice_s used.
Carefully planned and slov/ly developed changes are nore likely to result in incro^f^od
incomes than are irapulsive and sudden changes of methods.
4. It _is t'he well balanced ^arrn that pays. One nay have good crop yields
and make good use of live stock, but receive a saall net income- because of inefficient
use of labor. Or one may v/ork a large acreage per inan aiid per horse, but fail
because of lov/ crop yields or poor returns froni live stock, a. well balanced farm
with a fair degree of efficiency aldng all lines brings the opei-ator good .
rp*urr-s which enable hin to maintain a high standard of living for his family.
I
SUMvL'.RY OF TtI'M 3USIMESS nECORDS (1 )
JO DAVIE S3 GuUNTY - 1J23
Eleven Jo Daviess County farmers who kept farm business records ir. 19^L
earned an average rate of 3.4yt on an average capital investment of $25,291. xjur
of the eleven farmers received an average of 8. 3/o on their investment, while fovr
others received only .Sjl, a difference of 7.7/o. In terms of money, this means
that the four more efficient of tliesa elsren farmers received an average net income
of approximately -51950 more than was received hy the four \*ose farm.s showed the
lowest net incomes.
The follou-ing table will help enable each Jo Daviess County farmer who
kept these records to fir.d some of tiie leaks in his farm business, if there have
been such leaks in his business.
Rate Earned; Labor and lianagement
and Factors in which lee^ks are
most likel" to occur.
F=^"
Rats Earned on Investment
Labor and Management '.Vage
Crop Yields - Corn - Bushels
Oats - Bushels
■^eat - Bushels
Returns per §100 invested (2) in
All Productive Live-Stock
(
?or 1100 xn .-iorses
For §100 in Cattle
*100 in S
.^cr tlOO m b.-eep
For IIOC in Sv.;ine
For |;10G in Poultry
Per cent of Income f rom Livesto ci
jCrop Acres per Man
iOrop rtcres per Horse
c-':-pense per §100 Gross Income
Size of Fai-m ~ -icres
Average
of 11
Farms
f Fou
Lost fFour Lei'^x J
73.
48.0
37.5
$ 105.45
•^ 2. 87
5 rro on
e 6.94
$ 174.24
I 156.33
93.1
49.3
16.3
65,23
172,1
[profitable ; Prof i-iso? e I
_FarDS j Farms ^
8, o%
$1070.
51.3
31.6
0 142.32
^- ,94
$ 124.54
.$- 39,01
$ 181,90
0 1!^8.11
86.9
6C.2
17.7
A 50. 46
121. 1-
,6%
i
$-1009. I
47.1 \
42.1 I
76. :36 \
i
^ 5T i
46.9:^- \
140. 06 \
140,25 •
150.37
99.7
69.8 !
19.2
89.72
Of)' J I
. h'il.^L^ 4
(1) Records secured and suniviarized by the Jo Daviess County Farm Bureau,
Elizabeth, Illinois and the Department of Farm Organization and lianage-
ment , Univei'sity of Illinois, ^"rbana, Illinois cooperating.
(2) Tiie avei-age investment at the beginning and end of th(
used in finding these factors.
Lng<
le year was
Data from Jc Daviess Count'- Records - 1923 (Cont'd)
Your
Farm
1 Value of Land per Acre
2 Capital Investment - Total
3 Land
4 Buildings (l)
5 llachincry and Equipnient
6 Feed and Supplies
7 Live Stock - Total
8 Horses
9 Cattle
10 Sheep
11 Sv/ine
12 Poultry-
IB Receipts-Net Increases-Total
14 Feed and Supplies
15 i'iscellaneouG
15 Live Stock - Total
17
18
19
20
W&2
23
24
25
2u
27
23
29
Ho r s 3 s
Cattle
Dairy Products
Sheep
Svane
Poultry
Esgs
Miscellaneous
Expensss-I'et Decreaseb-Total
Farm Improvements
luachiiiery and Equipment
Feed and Supplies
Cash Expenses
30 Receipts less Expenses
31 Operator and Fa.n,ily Labor
32 Let Income from' Investment
32 Investment per Acre
3'x Gross Receipts per Acre
'35 Total Expenses per Acre
35 Nat Receipts per Acre
37 Man Labor per Total Acres
38 farms vdth Tractors - Per cent
39
An
Acres of Land in all Crops
Corn - Acres
Oats - Acres
Vsneat - A.cres
Legumes - iicres
h
0
ft
I \
'$
^
Average
of 11
Farms
., Four Most
Profitable
Farms
V
V
100
85»291
17,134
3,212
897
1,339
2,660
424
1,414
49
623
149
2.327
29
2,298
353
799
3
864
124
146
12
796
142
184
65
404
1.531
674
857
il'rour Least
Profitiihle
Farms
u
^ir
17.943
11,077
2,538
714
1,252
2,362
444
962
109
687
160
2,782
113
53
2,611
4
378
907
31
1,020
73"
242
25
645
107
175
362
2.137
6 50
1,487
14u..95|sf
14.32|^
9,34|4f
i
4.35U'
27.2 '
71.0
21.3
15.1
3,0
7.0
s?
^
§
•■#
147.80 i ;;?
24.73 ( ^
12.47
12.26
5.41
25.0
75.2
20.5
22.5
1.5
1.2
1(j7
33,795
24,3'75
3,512
1,112
1,587
3,109
395
1,839
26
703
141
1.959
4
1,955
27
395
478
38
765
189
107
9
1,135
204
176
254
492
823
522
201
148.58
8.61
7.73
.88
3.39
25.0
95.0
32.0
15-5
5. 5
17.0
(l) The investment in buildings, .Tiachii.ery and equipment, etc. at the
beginning of the year vras used here.
Find Your Fari-n Leaks - (Jo Daviess County - 1923)
The numbers just above the line across the niiddle of this page are
approximately the averages for your county Tor the factors as named at the tops
of the columns. 3y draT,7ing a line across each column at the point v.^ere the iiur.-iJC"
represents your efficienty for that factor, as given on page 1 of this report, ycv
can see v;here your efficiency is above the aT^erage and v/here it is below the avera'jfj
'
1'
1
I
Expense !
B
ashels per Retu
rns per $100
Crop Acres
|per ^lOCJ
Kate.
Earned
Acre of I
.ivested in
pe-
r _JGross
Corn
I Cats
J V;h3at j Cattle
\ Hogs , fpoultry
' Man
' Kor£.e
llncorie j
1-22-'-
9.00
QO
J 82
i 190
\ 390 1 390
. 114
35
8.75
i 90
i 80
1 185
; 380 1 380
; 111
37
1 24 i
8.50
1 88
! 78
180
I 370 370
108
36
I 26 i
3.25
85
i 75 :
175
! 350 ! 350
. 105
35
i 23 ;
! 3.00
84
! 74 i
170
! 350 1 350
102
34
i 30 !
j 7.75
82
; 72 i
165
! 340 1 340
99
33
• on
! 3-.
1 7.50
80
1 70 j
160
; 330 \ 330
95
32
; 34
1 7,25
78
1 68 1 155
1 320 1 320
93
31
1 35
I 7. 00
75
! 55 j 150
I 310 1 310
90
30
\ 38
5.75
74
; 64 ; 1 145
1 300
300
87
29
; 40
: 5. 50
72
J 52 i 1 140
1 290
290
84
28
42
; 5.25
70
1 60 !
135
' 280
280
81
27
44 i
I 6,00
58
1 58 ;
130
270
270
78
25
46 :
; 5.7 5
65
1 55- j
125
260
260
75
25
48
■ 5.50
54
1 54 1
120
250
250
72
24
50
5.25
62
! 52 ;
115
240
240
69
23
52
5.00
60
! 50 ;
110
220 i 230
65
22
54 \
4.75
58
; 45 :
105
220 j 220
53
21
56
■ 4.50
56
i 46 i
100
210 j 310
60
20
\ 58
1 4.25
54
' 44 i
95
200 ; 200
57
19
60
■ 4.00
1 ^2 1
90
190 190
54
18
62
3.75
50
40 j 85
180 1 130
51
17
64 1
' 3.50
46
38 : : 80
170 * 170
48
15
65 «
: 3,25
46
36 1 1 75
150 \ 150 '
45
15
68
' 3.00
44
34 ! ! 70
150 \ 150
42
14
70
, 2.75 ;
42
32 i i o5
140 1 140
39
13
72
, 2.50
40
30 j ! 60
120 ! 130
36
12
74
2.25 \
35
23 i 1 55
120 120
33
11
76
2.00 1
36
25 j 50
110 110
30
10
78
1.75 1
34
24
45
100 \ 100
37
9
SO
1,50
32
22
40
90 1 90
24
a
82
. 1.25
30
20
35
80 i 80
21
7
84
l.OC
. 28
IS
30
70 ! 70
IS
6
86
.75
26
16
25
50 60
15
5
88
.50
24
;^4
20
50
50
1 o
4
9C
.25
22
12
15
40
40
9
3
92
.00
20
IC
10
30 30
6
2
94
-.25
16
£
5
20 20
3
1
95
-.50
-1 r
6
1 0
10 10
.
-
98
-.75 i
14
4
! - 5
0 i 0
-
-
100
Factors ".Vi-iicu 'aerit Spec.ie.l Jittention
Rate Earned on Iny 3Bt_:;':Pr-t - Ths rate ecrned on the inv.^stment is an
excellent indication of the mr^nasing abi.ljty of ths farn operator. Tr.xG is particu-
larly true in regio'AS Wiere the aYe± ase investxent per fcirra is larre. In r'-'^i'-r..-
where the average invsstr.ient is cniall , th^i T^abor and !'fe.na,rerient Wane is also an
p-A.-><=.l1-(^nt measure of iiianaging ability. -Aiiyorie T/hoGe rate earned on the total farm
investment or ■'^Ama'^-: Lnbor and ^^lagament Vvage is belov; the average for his locality
can v;ell study the various factors wh^ch v.'ill indicate the source of a iTi^.n'r, succecs
or failure. In this \Tay he way loca.> the Source of his difficulty. The follomng
paragraphs discuss the riore i;v.portant factors influencing farm earnings.
Crop Yields^ - Good crop yields»are among the r:".ost definite of requirements
for good incomes. One -whose crop yields are lov: in comparison vn.th others working
land of equal natural value can well study the practices of men 77ho secure higher
yields. Men who secure the bast yields pay special a.ttention to rotation of crops,
seed, drainage, use of legumes, use of manure, use of limestone and phosphate where
needed, preparation of seed beds, cultivation, and protection from diseases, and
insects,
F'eturns from y'lOO In'-^ested in Live Stock - YSiere any considerable part of
the income of a farm is from live stock, this itam merits special attention. 'iTnere
the returns a.re below the average a careful study of the practices on more successful
farms m_ay assist ths operator to locate places v/here he can improve his methods. The
difficulty may be in a lov,- percentage of calves, pigs, lambs, etc. raised. It may be
in lack of attention to sa.nitary arrangements and protection from; disease. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accord with the value of ths breeding stock. kop4. In case of stock feeding
operations v/here feeders are purchased it may be in poor buying both as to time and
price. It may be in not producing the quality of stock v;hich the market der.ands.
Tlie growing of sufficient legume forage to supply most of the protein requirements,
careful purchase and use of additional protein and mineral Gup;-.lements, and the
utilization of roughage are among otner importiuit factors which m^aks posaiblo the
more econordcal tiroduction of live stock.
Per cent of Income frop ■^ive Stock - In a region where tha bsst- paying
fsLrr;S receive a large proportion of tVieir incor.ie frorr; li/e a-tock, the less successfu].
farmers '.vill do 'jell to consider increasing their incoue iro::i livo t:+.ocV. This •■i^'-T
be done by improving the quality of live stock, by better feeding, sanitary and
breeding methods or by increasing the acount of live stock kept. In order to iraprove
the quality of live stock it has not usually proven profitable for a r.an to invest in
a considerable number of high priced pure bred stock at one tirr.e. It is a more safe
practice to grow the better stock by using good sires and occasionally picking up
good females. Neither is it usually v/ioe for a man xiho has never handled much stock
to buy up a large breeding herC or go suddenly into extensive feeding operations.
In any case it is better to work gradually into ' the live stock business, building up
equipment, breeding herds and feeding operations slov.iy, as one learns to lollov.'
successful methods.
I^ie Use of Man Labor and -'^orse Labor - About sixty to eirrhty per cent of
the cost of operating a farm, not including interest or rent charges, is for man
labor and horse labor. If a tractor is used the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs approximately ^3100 per
year to keep one ^^rk horse v.hen one includes present feed costs, depreciation,
interest on investment, barn room, harnsss costs, etc. If a man finds that he is
working fewer crop acres per man or per horse than the average farmer u-orking under
similar conditions, he can well study his situation Vidth the idea of cutting dovm
this e-xpense. The changing to a more carefully planned rotation of crops is probably
the way in which most men can best reduce the man and horse labor costs, .-i rotation
should be chosen, so as to avoid having a very large labor requirement at any one
tim.e, so as to require a uniform amount of man and horse labor from early spring
until late fall, and so as to utilize the family labor to best advantage. The feed-
ing down of crops and use of enough live stock to utilize labor at seasons '■.vhsn field
work is light are two other very definite means of increasing, the efficiency in the
use of labor. 'liSiile the -rorking of a large nur±i3r of crop acres per man and per horsr,
is desirable, a study of hundreds of records fror. over the st^te indicates that some
men have reduced the amount of both :ran and horse labor to a point where crop yields
and returns from live stock are reduced because of lack of sufficient well directed
labor.
Expense per (^ICQ Gross Inccrr,e - T>iis is a measure of thrift xvi all pa-rts
of the farm business. Farm records show that rnen '.vho keep expenses low in proportion
to their incomes are nen who practice more or less of the following, things. They plan
their work so as to do as i.'iuch as possible themselves or with faivAly labor. After
getting a few good breeding females, they raise their own breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
Ovvn seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase of irxich aexi equipment, the paying out
of high wages for skilled labor for such repairs as they can readily do theaselves
and also saves the expense incident to delay caused by broken machinery or fences
during the busy season.
Size of Farm - Yihen one finds that his farr.i is sr.aller than the most
profitable farms in his locality and his income is lov; even though he has good crop
yields and good returns from live st'ock. he may remedy the situation, by buying or
renting additional land, or by gradually adopting a more intensive or more specialized
type of farm.ing. On the other hand, if he finds that his farm is larger than the
best farm.s and his incom.e is low, he may profit by renting out la^id, or by planning
so as to do m.ore efficient v;ork on his present acreage.
Clo sing Su"^ge st ions
1. Leaks in the farm business are most likely to occur along the line
of these factors which have been discussed, namely:
a. Crop yields
b. Returns from investment in live stock
c. The proportion of returns from live stock
d. Use of man laVrr
e. Use of horse labor
f. Expenses in proportion to income
g. Size of farm
2. A careful comparison of a nan's farm business record beside those of
several other men fanning under similar conditions v/ill enable hira to find the leaks
in his farn business.
3. Tliere can be no irsorovenent '.vithout some chan.^e in practices used.
Carefully planned and slo^ily developed changes are cjore likely to result in incroriced
incomes than are impulsive and sudden changes of methods.
^' ik is "^^"'6 well balanced X.arm that pays. One nay have good crop yields
and make good use of live stock, but receive a small net incoTr.3 because of inefficient
use of labor. Or one may work a large acreage per r.aii and per horse, but fail
because of lov; crop yields or poor returns fros live stock. A v;ell balanced larm
with a fair degree of efficiency along all lines brings the operator good
returns v^hich enable hini to maintain a high standard of living for his fanrdly.
i
I
i
I
SUMivIARY OF FARM BUGIIJESS RECORD? (l)
KAI'iE COUNTY - 1923
Nine Kane County farmers who kept farn businoss'records in 1923 earnid
an average rate of ^.6% on Sii average capital investnent of $40,220. Three of
the nine farmers received an average of S.QJi on their investment, while three ■
others received only l.ifo of their investisent, a difference of 5. 5;L In terms
of Ecney, this means that the three cctq efficient of these nine farmers re-
ceived an average net incorriG of appro xi;:;at el y $2200 more than v;as received by the
three '.vhose farms showed the lov/est net incomes.
The icllov/ing table mil help enable each Kane County farmer v/ho kept
these records to find sone of the leaks in his farr. business, if there have been
such leaks in his business.
Rate 5a.rned, Labor and Management * !^ Average
and Factors in which leaks are ' Your j of 9
1 ikfilv to occur I Farm ! Farms
Rats Earned on Investment
! Labor and Ifenagement "Wage
i Crop Yields - Corn - Bushels
1 Oats - Bushels
Wneax - Bushels
Returns per ,|)100 Invested .(2) in
all Productive Live-stock
For i^iCO in Horses
For -rt>100 in Cattle
For vice in oheep
For v^lGC in Swine
For sJlOO in Poultry
Per cent of Incoiae from Livestock
Crop iicres per Man
Crop -h-cres per •'"iorse
Sr.pense per -^IGO Uross Income
Size of Farin"- Acres
s' Three i^Cost
Profitable
Farns
Dhree ijcasv j
i^rof itabl3
k
io
_i
4.6fo
I S 577,
37.8
46,7
21.9
0 146.65
0- 7. 11
0 147,41
^ 115.93
§ 152.78
94.3
55.5
20.8
0 63.77
141.2
I 5.9^
I §1558.
[(3) 39.4
43.4
32.4
0 145.44
! a- 7.83
I V- 149.52
0 38.84
G 141.55
.89.4
5c. 6
24. 1
51.71
152.7
1.4%
$-641.
42.6
54.3 !
30. 0 \
$ 117.68 !
6- 3.33 I
$ 119.34 1
$ 94.14
$ 213.75
95.5
81.1
27.9
0 86.84
125, 5
(1) Records secured and surni^iarized by the Kane County, Farm Bureau, Geneve.,
Illinois, and the Department of Farm Orgsmization and Mana.gement , Universit-y
of Illinois, Urba^.a, Illinois, cooperating.
(2) The average investsiant at the beginning and end of the year was used in
finding these factors.
(3) Average corn yields on t?;o farms only.
Data from Kane County Records - 1^23 (Cont'd)
Your
Average
of 9
Three Most
Profitable
Three Lf^az"
Profitabl^^
Farm
Farms
Farms
Farmc-
''' ...
196 i
40.220
27,523
5,781
1,379
1,681
3,751
.5 188
s? 43,879
:,; 30,567
0 5.392
0 1.489
0 2,105
$ 4,325
215
40.200
0
2Y,3L.O
5,356
1,612
1,565
3.8:3
0
0
545
2,668
353
179
$ 453
$ 3,393
0 180
'^ 299
f
s?
s?
528
2,382
778
130
e
4,968
171
4,797
(f 5.950
0 317
vJ 5 ,633
0
si
4^324
195
4,129
V
A
s?
0
$
0
A
V
38
219
3,856
46
i^ - 39
■i? 412
0 4,586
17
202
2,884
0
402
101
182
29
$ 67
s? 133
0 315
0 58
761
102
177
22
$
V
0
y
2,127
248
323
405
1,146
^ 1,807
V 313
i. 290
a 80
i 1.113
>*>
2^682
5
199*
517
684
1,282
s^
s;>
2.841
999
1,841
•; 4,143
,; l,x02
;„. 3,042
•S'
1^642
1,07 3
569
0
284, 84
36,00
22,96
13.04
10.79
44.4
0 259.69
* 38,71
;. 20.01
1^ 18.70
$ 10,82
66,7
v
Si*
317.78
34.18
29,68
4„^0
11.58
33.3
108.8
45.2
21.1
7.0
11.8
(2)136,5
(2) 70,0
(2) 28.0
8.0
12,6
148.5
29,0
13.3
1,2
10.2
J.
o
3
4
5
6
7
8
9
10
j-i.
12
Value of Land per Acres
Capital Investment - Total
Land
Buildings (l)
'uachinery and Equipment
Feed and Supplies
Live Stock - Total
Horses
Cattle
Sheep
Swine
Poultry
-Net Increases-Total
13 Receipt I
14 Feed and Supplies
15 i'liscellanaous
15 Ldve Stock - Total
17
18
19
20
21
22
33
24
Horses
Cattis
Dairy Products
Sheep
Poultry
Eggs
Miscellaneous
25 Cxpenses-Het Decreases-Total
i;7
29
Farm Improvements
riachinery and Equipment
Feed and Supplies
Cash Expenses
30 r\eceiT:ts less Expenses
31 operator and Family Labor
32 Net Income from Investment
33 Investment per Acre
34 Cross Receipts per Acre
35 Total Expenses per Acre
36 :Jet Receipts r ar Acre
37 ivlan Labor per Total Acres
38 Farms vath Tractors - Per cent
39 -^cres ef Land in ail Crops
-0 Corn - Acres
•xl Oats - /-cres
42 ".v^lieat - Acres
43 Legur:6S - ..ores
(l) The investment in buildings, machinery and equipment, etc, at the
beginning of the year was used here,
f'y. 1 avpi"s,?es of two farms only.
Find Your Farm Leaks - (Kane County - 1923)
The numbers just above the line across the middle of this page are approxi-
mately the averages for your county for the factors as named at the tops of the ccl-
unns. By drav/ing a line across each column at the point where the nur.ber repi"ss-^n':3
your efficiency for that factor, as given on page 1 of this report, you can see :vh;-/fc
your efficiency is abo ve the average and v;here it is belov/ the average.
1
(
:
*
S.cpsa^e;.
Bl
ishGls pe
r
Returns per $100
Crop Acres
per$;i.00 ;
Rate
Acre of
Invested ir
per
Crl'-O ss I
Earned
Corn :|
Oats :
Fneat } Cattle;
K.'-^s i
Pcul-^.ry
J'!an
Hrrse
Ticome j
10.00
82
92
44
255-1
335
370
121
43
9.75
80
90
43
250
325
360
lis
^2
22 '
9.50
78
88
42
245
315
350
115
41
24 i
9.25
76
86
41
240
305
340
112
40
25 <
9.00
74
34
40
235
295
330
109
39
23
3.75
72
82
39
230
285
320
106
3S
30
8,50
70
80
38
225
275
310
103
37
32
8.25
68
73
37
220
265
300
100
36
34
8.00
56
76
36
215
255
290
97
35
35
7.75
64
74
35
210
245
280
94
34
38
7»50
62
72
34
205 235
270
91
33
40
7.25
60
70
33
200
225
260
88
32
42
7.00
58
68
32
195
215
250
85
31
44
6.75
56
66
31
190
205
240
82
30
45
5.. 50
54
54
30
135
195
230
79
29
48
5.r;5
52
52
29
130
135
220
76
28
50
6,00
50
60
28
175
175
210
73
27
52
5. 75
48
58
27
170
165
200
70
25
54
5.50
46
56.
26
165
155
190
67
25
56
5.25
44
54
25
3 50
145
180
64
24
58
5.00
42
52
24
155
135
170
61
23
60
4.75
40
50
23
150
125
.150
53
22
62
4„f:o
38
48
22
__..ii2.„
115
-'-^. _.
_5_5
21
54
"~¥.~40
36
~"46
PA
140
"105
140
'^ ■?
— -——
66
4.00
34
44
20
135
95
]30
49
19
68
3.75
32
42
19
130
85
120
45
18
70
3.50
30
^0
18
125
75
110
43
17
72
3.25
28
38
17
120
55
100
40
16
74
3.00
26
M
16
115
55
90
37
15
76
2.75
24
34
15
110
45
80
34
14
78
2.50
22
32
14
105
35
70
31
13
80
2.25
20
30
13
100
25
60
v28
12
32
2.00
18
28
10
95
15
50
25
11
84
1-75
16
26
11
90
5
40
22
10
85
1,50
14
24
. 10
85
0
30
19
9
83
1 25.
12
22
9
80
- 5
20
16
8
90
1.00
10
20
8
75
-15
10
13
7
&2
,75
8
18
7
70
-25
0
10
6
94
.^0
6
15 ■
6
5 5
-35
-10
7
&
95
.25
4
14
! 5
50
-45
-20
4
4
98
.CO
2
"! 2
i 4
55
-55
-30
1
3
100
- 25
-
10
3
50
-65
-40
-
2
102
I
4
Factors V.'hich Merit Specie.! Mtenti?n
Rate Sarned on Invsst^iient - The rate e?.riied on the investment is an
excellent indication oi' the r!a.naging ability of the farn operator. This is p-articu-
larly true in regions viYiere the average investment per farrn is large. In region::
where the average investiiient is small, the Labor and ifenapement ^Vare is also an
e<-.i'?j:>T i_ftnt measure of managing ability. Anyone whose rate earned on the total farm
investiTiftnt ox viin.;-<r-. Labor and i^ianagecent VJage is belov; the average for his locality
can well study the various factors v/h...ch mil indicate the source of a iran's success
or failure. In this v.-ay he may locate the source of his difficulty. The folloYdng
paragraphs discuss the rcore iriiportant factors influencing farm earnings.
Crop Yields - &ood crop yields are among the most definite of requirements
for good incomes. 0:iq whose crop yields are low in comparison v.dth others working
land of equal natural vidue can well study the practices of men who secure higher '
yields. Men who secure the best yields pay special attention to rotation of crops,
seed, drainage, use of legumes, use of manure, use of limestone and phosphate where
needed, preparation of seed beds, cultivation, and protection from diseases, and
insects.
Returns from ^100 Invested in Live Stock - 'iilhere any considerable part of
the income of a farm is from live stock, this item merits special attention. \Ihere
the returns are below the average a careful study of the rjractices on more successful
farms m.ay assist the operator to locate places where he can improve his methods. The
difficulty mr.y be in a low percentage of calves, pigs, lambs, etc. raised. It may be
in lack of attention to sanitary arrangements- and protection fi-om disease. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accord with the value of the breeding stock. k-ep^K In case of stock feeding •
opera.tions where feeders are purchased it may be in poor buying both as to tir^e and
price. It :Tfl.y be in not producing the quality of stock which the mar'ket dem.and6.
The growing of sufficient legur.e forage to supply most of the protein requirements,
careful purchase and use of additional protein and mineral supplements, and the
utilization of roughage are among other important factors which make posoiblo the
more eco no rdcal production of live stock.
5
Per cert of -ncor-'B frorr: Live Stock - Ir. a region vjhere th.3 best pajring
farins receive a large proportion of their incoiue froiri li^e ^-toc-:, the less successful
faraers '.vill do v;ell to consider incroasinj;^ thoii- incor.'ie fror;. li^t. ;;+.oc.V:. This •.'S'.y
be done by improving the quality of live stoci:, by better feeding, sanitary and
breeding raethois or by increasing the amount of live stoclc kept. In order to it..i)ruvo
the quality of live stock i+ has not usually proven profitable for a iran to invest in
a considerable nuicber of high priced pure bred stock at one time. It is a n.ore safe
practice to grow the better stock by using good sires and occasionally picking up
good females. ^either is it usually -.vise for a ];an vho has never handled much stock
TO buy up a large breeding here or go suddenly into -extensive feeding operations.
In any case it is better to v;ork gradually into ' the live stock business, building up
equipment, breeding herds and feeding operations slov/ly, as one learns to follov,'
successful methods.
The Use of I.'an Labor and -"^r-se Labor - About sixt-y to ei'_;hty per cent of
the cost of operating a farrr;, net including interest or rent charges, is for ir.an
labor and horse labor. If a tractor i;:- usod the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs approximately :jlOO per
year to keep one v/ork horse T.^en one includes present feed costs, depreciation,
interest on investment, barn roor., harness costs, etc. If s. i:i?-n finds that he is
■.vorking fewer crop acres per n:an or per horse than the average farmer -^A'crking under
similar conditions, he can v/ell study his situation Td.th the idea of cutting dcvm
this expense. The changing to a rore carefully planned rotation of crops is probably
the v/ay in which r.ost men can best reduce the man and horse labor costs, .-i rotation
should be chosen, sc as to avoid having a very large labor rcquirer-ent at any one
tine, so as to require a uniror:.; ainount of rcan and horse labor from early spring
until late fall, and so a.3 to utilize the far.ily labor tc best advantage. The i-^:a:>-
ing doTiTn of crops and use of enough live stock to utilize labor at seasons vhen field
T;ork is light are t-:7o other very definite means of increasing the efficiency in the
use of labor. v^-iile tne 'vTorking of a large nuraber of crop acres per man and per horse
is desirable, a study of hundreds of records fro:c over the state indicates that some
pen have reduced the amount of both r.aii and horse labor to a point where crop yields
and returns from live stock are reduced because of lack of sufficient -iyoll directed
labor.
Expense per $100 Gross Income - This is a raeasure of thrift in all parts
of the farm business. FarK records show that Kien who keep e>:penscs lov; in proportion
to their incomes are rrien v/ho practice nore or less of the following things. They plan
their work so as to do as iriuck as possible themselves or with faraily labor. After
getting a few good breeding females, they raise their ov;n breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
07Jn seeds. They utilize rainy days and off seasons to repair buildings, fences,
nachinery and harness. This saves the purchase of inuch iiev/ equipment, the paying out-
of high wages for skilled labor for such repairs as they can readily do themselves
and also saves the expense incident to delay caused by broken rcachinsry or fences
during the busy season.
■ ■ Size of Farm - Y-Tien one finds that his farr.. is smaller thaji the jrost
profitable fams in his locality and his incoae is lo"v even though he has good crop
yields and good returns fron live stock, he may remedy the situation, by buying or
renting additional land, or by gradually adopting a ~ore intensive or icors specialized
type of farming. On the other hand, if he finds that his farn; is larger than the
best farns and his income is low, he may profit by renting out la^id, or by planning
so as to do more efficient work on hiis present acreage.
Closing Su;7gestions
1. Leaks in the farm business are irost likely to occur along the line
of these factors Y;hich have been discussed, na::iely:
a. Crop yields
b. r^eturns from investment in live stock
c- The proportion of returns from live stock
d. Use of man labor
e. Use of horse labor
f. Expenses in proportion to income
g. Size of farm
2. A careful comparicon of a man's farrr. business record beside thoo© of
several other men fanning under similar conditions mil enable him to find the leaks
in his farm business.
3. There can be no improvement without some chanr^e in practices used.
Carefully planned and slowly developed changes are more likely to result in increased
incomes than are impulsive and sudden changes of methods.
^' ii i£ "^'^Q ¥jell balanced farm that pays. One may have good crop yields
and "make good use of live stock, but receive a small net incoms because of inefficient
use of labor. Or one may v/ork a large acreage per ma^i and per horse, but fail
because of lo-:: crop yields or poor returns from live Dtocli. a v/ell balanced farm
with a fair degree of efficiency aldng all lines brings the operator good .
returns which enable him to maintain a hir,h standard of living for his larrdly.
I
I
SUMMARY 07 F-^j^'.c susi:-^sss R3G0R:)3 (1)
MCDONOUGH COUNTY - 1923
Eighteen McDonough County farmers whc kept fa.r-.;. businesG r'-ioords in
1923 earned an average rate of 2.7'i on an average capital investnent of '4i5,'^70-
Six of the eighteen farmers received an average of 5.0S;,o on their investment, ¥/hile
six others received orily .23/0 of their investiiient , a difference of 5. 85;1. In terms
of .money, this means thc.t the six rr^re efficient of these eighteen farmers received
an average net income of approximately v2675 more than -^ib.2 received by the six
whose farm.s shov/ed the lowest net incomes.
e.a.ch
The following table will help enable/i.cDonough' County farmer who kept
these records to find scm.e of the leaks in his farm business, if there have been
such leaks in his business.
Rate Earned, Labor ana Management 1
Average
Six l\5ost
7-
Six Least j
V/age and Factors in which Leaks
Your
of 18
Profitable
Pro fit able \
are most likely to occur
Farm
Farms
Farm3_
Farm.s f
Rate Earned on Investment
^
>
5.08/.
Labor and Management Wage
%
$-506.89
$ 963.67
•.-
•1754.00
Crop Yields - Corn - Bushels
H
1
56.3
61.6
49.5
Oats - bushels
1
43,9
45»8
42.9
l^Theat - Bushels
1
25.5
26.9
24.4
3
Returns per $100 Invented (2) in
*
0 117.95
V 133.47
■^
102.25
all Productive Live-stock
•
For i'lOO in Horses
{
;;- , 24
V- 4.64
i- 11.41 \
For ^ilOO in Cattle
^> 85. 72
v 61.02
4
72.62 1
For OlOO in Sheep
5
;: 48. 08
:. 39. 33
^
44. 34 \
For ;^^100 in Sv/ine
1^
C 137.46
■; 156.92
V-
129.44
For :,?100 in Poultry
1
0 207.74
,: 195.83
^
134.45
Per cent of Income from Livestock
6 9-8/;
50,9,;
63.4<
Crop Acres per Man
!
71.6
83.5
64.5
Crop Acres per Horse
16.5
IS. 4
22.3
Expense per i^lOO Cross Income
,
0 69.10
% 43.95
95.85
I 3i::e of Farm - Acres
ll.. _ .-
„._-201--3
175,8
232.3
(1) Records secured and sumrr-arizad by the McDonough County Farm Bureau, Macomb,
Illinois, and the Department ofFarm Organization and Managem-ent , University of
Illinois, Urbana, Illinois cooperating.
(2) The average investment at the beginning and end of the year i-;ag used in-
finding these factors.
-2-
Data from HcDonour.h County Records - 1923 (Cont'd)
Your
?am
Average
of 18
Far;ns
Six Ivb st J
Profitable
Farms !
Six Least
Profitable
Farms
1 Value of Land per Acre
2 Capital Investr-eat - Total
3 Land
4 Buildings (l)
5 Machinery and Equipment
6 Feed and Supplies
7 Live Stock - Total
8 Horses
9 Cattle
10 Sheep
11 Svdne
12 Poultry
13 Receipts-Net Increases-Total
14 Feed and Supplies
15 Miscellaneous
16 Live Stock - Total
17 Horses
18 Cattle
19 2airy Products
20 Sh§§p
21 Swine
22 Poultry
23 D'ggs
24 IJiscellaneous
2 5 Expenses-Net Decreases-Total
26 Farm Improvements
27 Machinery and Equipment
28 Feed and Supplies
29 Cash Expenses
30 Receipts less SxTpenses
31 Operator and Family Labor
32 Net Income fron Invsst:aent
33 Investnent per Acre
34 Gross Receipts per Acre
35 Total Expenses per ^cre
36 riet Receipts per Acre
0
0
0
0
0
5
o
■3
967
I ^
192
42,802
34,033
2,882
1,345
1,851
2.580
10
h
652 I f#
403 I
18 i§
1.471 !;^
136 !$
I'
4,497 ;§
1,792 '$
337 le
2,368 !$
14 0
1.335 \'4
173
48.530
• 40 ,131
3,714
969
■ 1,658
2,048
655
744
66
459
124
2.619
719
174
1,726
73
509
149
25
893
67
124
30
1.549
192
253
1,204
970
857
113
208.91
11.71
11.23
.48
37
38
39
40
41
42
43
Man Labor per Total Acres
Farms mth Tractors
x^er csnt;
Acres of Land in all Crops
Corn - Acres
Oats - Acres
Yilheat- Acres
Legume s-Jicres
I
H?
N
(l) The investment in buildings, machinery and equipment, etc.
beginning of the year was used here.
5.61
33. 3'/o
141. 5
65. 5
14.3
39.7
15.0
at the
f . ■ . .
-3-
yind Your Farn Leaks - (McDonough County 1923)
The nuabers just above the line acioss the middle of this page
are appro xinat-^ly the averages for your county for the factors as named at
the tops of the colunms. By dravriin^ a line across each colurji at the point
where the nurber represents your efficiency for that factor, as given on page 1
of this report, you can see "Ji/here your efficiency is above the e.verage and where
it is belov/ the average.
i
t
►Expense '
Bushels per
returns per v
jioo
Crop Acres
;per§100
Rate
S^arned
Acre of
Invested ii
1
per
'Gross i
Corn
0-ts
vifheat
Cattle Ho^s
'•Poultry
Man
Horse
; Income ■
Ou i^'D
iOO
88
47
195 360
430
133
39
: ^6 :
8„00
98
85
46
190 ! 350
420
135
38
1 28 1
7.75
96
84
45
135 ; 340
410
132
37
i 30 ;
7.50
94
82
44
180 ; 330
4C0
129
36
32 !
7.25
92
80
43
175 ! 320
390
126
35
34
7.00
90
78
42
170 ; 310
380
123
34
36
6,75
83
76
41
165 I 300
370
120
33
38
6.50
86
74
40
160 290
360
117
32
40
6.25
84
72
39
155 280
350
114
31
42
6.00
82
.^
38
150 1 270
340
111
30
44
5.75
80
68
37
145 1 260
330
108
29
46
5.50
78
56
36 1
140 ; 250
320
105
"^P,
^o
48 1
5.25
76
64
35 j
135 1 240
310
102
27
50 ;
5.00
74
62
34
130 i 230
300
99
26
52 1
4.75
72
60
33
125 i 220
290
96
25
54 ;
4.50
70
58
32
120 i 210
280
93
24
55 ;
4.25
68
56
31 !
115 i 200
270
90
23
58 !
-4.00-
66. _
54-
.- 30 _
. 110 ;_._I90
. 260 ,
9i
22
60 j
3.75
64
52 !
29 :
105 1 180
250
84
21
62 !
3.50
62
50
28 j
100 170
240
81
20
64 i
3.25
60
48
27 !
95 150
230
78
19
65
3,00
58
45 '
26
90 150
75
18
68
2.75
^■^
44
25
. 85 ! 140
210
72
17
70
2.50
t-i~^
42
24
80 130
200
69
16
72 ]
*oa <C 3
52
40
23
75 120
190
66
15
74 !
2.00
50
33
22
70 ; 110
180
63
14
76 ''
1.75
48
36
21
65 100
170
60
13
78 ;
1.50
45
34
20
60 . 90
150
57
12
80 \
1.25
44
32
19
55 80
150
54
11
82 i
1.00
42
30
18
50 70
140
51
10
84 ;
.75
40
28
17
45 1 60
130
is
s
86
..50
38
26
15
40
50
120
45
8
SB i
.25
36
1 24
15
35
40
110
42
7
90 I
.00
34
22
14
30
30
100
39
6
92 \
- .25
32
20
13
25
20
90
36
5
94 j
- .50
30
18
12
20
10
80
33
9C '
1- .75
28
16
11
15
0
70
30
-5
9S [
-1.00
26
14
10
10
-10
60
27
0
100 ;
-1.25
24
12
9
5 -20
50
24
1
10-, 1
-1.50
22
10
8
0 -30.
40
21
-
104 1
-1.75
20
8
7
- 5 -40,^
30
18
_
106 1
-2.00
18
6
6 J
-10 -5G"
20
15 -
-
103 1
i
4
Factors rJViich 'ferit Specie.l attention
Rate Earned on Invastrnpnt - The rate ec.rned on the inv..r.+ mont is an
excellent indication of the inr.nagin;^ ability of ths farra operator. Thin is particu-
larly true in regions v;here the ave^ate investment per farm is large. In rrigionr,
where the average investi.ient is su.all, tho Labor and ^'fenaperaent Vvkno is also an
e.-^^-^n-ant measure of managing ability. Anyone whose rate earned on the total farm
investciftnt or ^j*ace J^nhor and i'^anagement Wage is belov; the average for his locality
can well study the various factors \vhj.ch will indicate the source of a iran's success
or failure. In this v/ay he may loca-.e the source of his difficulty. The follo^ving
paragraphs discuss the rr.or2 important factors influenciiig fare; earnings.
Crop Yields - Good crop yields are an;ong the rr.0 3t definite of requirements
for good incomes. One ^jhnso crop yields are lov; in co.aparison v;ith others workir-g
land of equal natural vjj.ue can v/ell s+.udy the practices of men v;ho secure higher
yields. Men who secure the best yields pay special attention to rotation of crops,
.seed, drainage, use of legumes, use of manure, use of limestone and phosphate where
needed, preparation of seed beds, cultivation, and protection from diseases, and
insects.
Returns from s?100 In^-^ested in Live Stock - '/."here a.ny considerable part of
the income of a farm is from live stock, this itam :.ierits special attention. "iVhere
the returns are below the average a. careful study of the practices on more successful
farnis may assist the operator to locate places v/here he can improve his methods. The
difficulty may be in a lov; percentage of calves, pigs, lambs, etc. raised. It may be
in lack of attention to sa.nitary arrangements a.nd protection from, disease. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accord with the value of the breeding stock, kopt. In case of stock feeding
opera.tions where feeders are purchased it may be in poor buying both as to tim;e and
price. It may be in not producing the quality of stock which the market der.ands.
The growing of sufficient legume forage to supply m.ost of the protein requirements,
careful purcha.se and use of additional protein and mineral supplements, and the
utilization of roughage are among other import-ait factors which miake possible the
more economical production of live <Gtock«
5
Per cent of Incoae fron Ljve Stock - In a region where the cost pairing
farms receive a large proportion of their inco;.ie froir. li->:c atock, the less successful
fanners Y/ill do vrell to consider incrGasinrr tltoir inco7;.o fron Lx'jo ^^-i-.-.nk. This ;i:;s.y
be done by improving the quality of live stoci:, by better feeding, sanitary j?nd
breeding methods or by increasing the ar.o"ant of live stock kept. In order to i.i.i,->->.'-.fi
the quality of live stock it has not usually proven jjrofitable for a nan to invest in
a considerable nurrter of high priced pure bred stock at one tin.e. It is a rr.ore safe
practice to grow the better stock by using good sires and occasionally picking up
& good females, -^either is it usually v/ise for a !2an who has never handled much stock
to buy up a large breeding herd or go suddenly into extensive feeding operations.
In any case it is better to work gradually into ' tfie live stock business, building up
equipment, breeding herds and feeding operations slov/ly, as one learns to lollov;
successful nietijods.
The Use of Man Labor and Hprse Labox- - Jibout si>rty to eighty per cent of
the cost of operating a farrri, not including interest or rent charges, is for iian
labor and horse labor. If a tractor is used the labor is usually reduced, but the
machinery expense is incre£.sed about in proportion. It costs approximately ^lOC per
year to keep one work horse v.'hen one includes present feed costs, depreciation,
interest on investment, barn roor.i, harness costs, etc. If a wB.n finds that he is
vigrking fewer crop acres per man or per horse than the average farmer Y.'crking under
similar conditions, he can well study his situation mth the idea of cutting do-;vn
this expense. The changing to a more carefully planned rotation of crops is probably
the way in v.'hich most men can best reduce the man and horse labor costs, a rotation
should be chosen, so as to avoid having a very large labor requirement at any one
time, so as to require a uniform amount of man and horse labor from early spring
until late fall, and so as to utilize the family labor to best adv.?.ntage. The f sit-
ing down of crops a.nd use of enough live stock to utilize labor at seasons when ficlr"
v.'ork is light are two other very definite rieeais of increasing, the efficiency in the
use of labor, \7nile the working of a large nurnber of crop acres per mian and per hors-:
is desirable, a study of hundreds of records fro-:- over the state indicates that some
men have reduced the amount of both n;a.n and horse labor to a point v;hcro crop yields
and returns from live stock are reduced because of lack of suf ^'^cif.l■^t v/oll directed
labor.
Expense per $100 Gross InccEe - Tliis is a measure cf thriit ir. nil I'virtc^
of t>ie farm business. Farm records shov; that men '.vho keep expenses low in proportion
to their inconies are men who practice more or lens of the following things. They plan
their work so as to do as much as possible themselves or v,i.th faroily labor. After
getting a fe\7 good breeding females, they raise their own breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
oim. seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase of much nexi equipment, the paying out
of high wages for skilled labor for such repairs as they csm readily do themselves
and also saves the expense incident to delay caused by broken machinery or fences
during the busy season.
Size of Farm - \7hen one finds that his farm is smaller than the most
profitable farms in his locality and his income is lov; even though he has good crop
yields and good returns from live stock, he m;ay remedy the situation, by buying or
renting additional land, or by gradually adopting a more intensive or more specialized
type of farming. On the other hand, if he finds that liis farm is larger than the
best farms and his income is low, he m.ay profit by renting out IcLid, or by planning
so as to do m.ore efficient ':rork on his present acreage.
Closing Sug:gestions
1. Leaks in the fan:: business are ;r.ost likely to occur along the line
of these factors v/hich have beei'i discussed, namely:
a. Crop yields
b. Returns from investment in live stock
c. The proportion cf returns frori live stock
d. Use of .lan labor
e. Use of horse labor
f. Si'cpenses in proportion to income
g. Size of farm
2, A careful Comparison of a man's farra business record beside thosie of
peveral other Een farrfiirxg under siinilar cnditions v.dll ona;;le him to find tha leaks
in his farm business.
f3. There can be, nc iraDroveraent ?;ithout some .chary^e in jjractices used,
arefully planned and slowly developed changes are rr.ore likely to result in incronr.ed
incomes than are impulsive and sudden chaneej of iTiethods.
14. It is the -well balanced farm that pays. One nay have good crop yields
and make good use of live stock, but receive t^ smali net incoHiS because of inefficient
.e of labor. Or one may '.vork a large acreage per man and per horse, but fail
because of lo".'.' crop yields or poor returns frorri live stock, a v/ell balanced i<^rin
with a fair degree of efficiency aldng all lines brings the operator good .
returns which enable hi;:i to maintain a high standard of living icr his far:ily.
SUI^ARY OF FARI-.: BU3I03S RSCORDS (1)
Nine Monroe County f3.riners who kept farm business records in 1923 earned
an average rate of 3=35^ on an average capital investment of .$25,462. Three of
the nine farmers received an average of 5.05/'i, on their investment, while three
others received only 1.03/i of their investment, a difference of 4.03/i. In terms
of money, this means that the three more efficient of these nine farmers received
an average net income of approximately §1025 m.ore than \vas received by the three
whose farms showed- the lowest net incomes.
The following table ?all help enable each Monroe County farmer viiio kept
these records to find some of the leaks in hie- farm business, if there have been
such leaks in his business.
Rate Jiarned, Labor Pnj ii/ianagoment
Yifage and Factor.-- in which Leaks
are likely to oc cu r^.
Rate Earned on Investment
Labor and Management Wage
Crop Yields - Corn - Bushels
Oats - L^shels
IT/heat - Bushels
Returns per $3 00 Invested (2) in
all Productive Live-stock
For $100 in Horses
For $100 in Cattle
For $100 in Sheep
For ^'100 in Sv;ine
For OlOO in Poultry
Per cent c- Income from Livestock
&rop Acres per Man
Crop Acres per HoEse
Expense per 'ilOO ^ross Income
5i2e of Farm - Acres
Your
Farm
Average
of 9
Farms
Three Most | Three Least
Profitable Profitable
Farms | Farms
7°
3,3j:^
%- 2.-44
\ 4?,.-, 1
I 26,2
j 18.2
i % 151.20
11.83
171,14
99.53
201.73
38. 8f,
69.5
26.6
73.65
192.5
5,C6/=
|- 371.33
4J., 6
27.2
19.3
% 153.31
11.68
139.81
121.21
250.85
29. 4-:^
75.2
33. 2
66.84
249.6
I..O3/0
%- 124,00
28.2
20.7
14.2
% 152.15
%
9,78
221.34
83.13
134. 02
48. 5<
38.9
19.5
89.04
150.3
(1) Records secured and summarized by the Monroe County, Farm Bureau, Waterloo,
Illinois, and the Department of Farm Organization and Management, University of
Illinois, Urbana, Illinois cooperating.
(2) The average investment at the beginning and end of the year was used in
finding these factors
Data froc Monroe County Records - 1923 (Con'^d)
f 1
Average |
Th
ree Most
Three Least
Your ]
of 9 \
Profitable ;
Profitable
Farm ;
Farms [
Farras
Farms
88 I
25,462 ;
16.954 I
3,084 ;
2,722 ■
1.376
1,326
99 :i
4,037 ;$
4,604 3 0
2.647 $
1,630 1
74
15.222
10, b3?
2,088
783
680
804
1
501
270
7
.342
205
Sr
565
407
495
213
1
373
162
144
1^ =
$
$
$
e
1
$
1
^
1
1^233
1,561 1
315 i
1,255
1
$
$
$
5_^60
3,.L"7
838
1,694
1,436
716
24
696
1
1
1.
- 55
64
415
5 !
1
- 63
85
505
j
1
34
63
304
1 ■
$
$
$
$
1
355
147
305
20
•V
i
617
136
403
11
1
!
140
48
149
28
$
1,710
1^2
805
733
1
1
1
3 ,040
126
1,641
1,273
1
735
§
^
1
1
180
194
351
§
f
$
$
lj_523
672
852
$
$
$
810
1,909
1
701
$
$
544
157
1
$
1
1
132.26
16„79
12.37
4.42
1
151.22
23.07
15.42
7.65
1
101.27
9.55
8.51
1.04
$
4.99
$
5.37
100. O/o
$
4, 31
33.3=i
128.3 .
28.6
7.7
72.8
14.6
188.2
46.6
9.0
116.0
7.7
87,7
11.0
9.0
52. >
9.S
1 Value of Land per Acre
2 Capital Investment - Total
3 Land
4 Buildings (l)
5 Machinery and Equipment
6 Feed and Supplies
7 Live Stock - Total
8 Horses and Mules
9 Cattle
10 Sheep
11 Svidne
12 Poultry
13 Receipts-Net Increases-Total
14 Feed and Supplies
15 Miscellaneous
15 Live Stock - Total
17
18
19
20
21
22
23
24
Horses
Cattle
Dairy Products
Sheep
Swine
Poultry
Eggs
Miscellaneous
25 Expenses-Net Decreases-Total
25 Farm Improvements
27 Machinery and Equipment
28 Feed and Supplies
29 Cash Expenses
30 Receipts l_es_s Exnpnf^ftP
31 Operator a.ii Family Labor
32 Net Income from Investment
33 Investment per Acre
34 Gross Receipbs per Acre
35 Total Expenses per Acre
35 N_3_t Receipts per Acre
37 Man Labor per Total Acres
38 Farms with Tractors - Per cent
39 Acres of Land in all Crops
40 Corn - Acres
41 Oats - Acres
42 Iheat- Acres
43 Legumes-Acres
(l) The investment in buildings, machinery and equipment, etc. at the
beginning of the year was used here.
-3-
Fjnd Yt.ur ^arrn Lea.k6 (konroe County - 1923)
The nunbars just abovo tlie lin3 across the middl3 of this page aro
approximately the averages for your county for the factors as naned at the tops
of the columns. By drav,fing a line across each column at the point v/here the
nuniber represents your efficiency for that factor, as given on page 1 of this
report, you can see where your efficiency is above the average and \7here it is
below the avcrase.
Factora '.VhiJi. -ierit S-jeci&Jt Attention
Hats Earned on Invsstrr.ent - The rate ee-rned on the invastment is an
excellent indication of the managing ability of ths farm operator. This is particu-
Inrly true in regions v/hiere the average investnient per fam is large. In regions
where the average investnent is srcall , the Labor and ifenacement V>''aF;e is also an
ev."c>-!ient measure of nanaging ability. Anyone whose rate earned on the total farm
investment or v-tio.-^^-^ Labor and I'^anageffient ".7a§e is belov; the average for his locality
can v/ell study the various factors v;hich will indicate the source of a nan's success
or failure. In this vray he ' may locate the source of his difficulty. The follo'silng
paragraphs discuss the core i,-.:portant factors influencing fare; earnings.
Crop Yields - 'Sood crop yields are among the most definite of requirements
for good incoir.es. Ons v/ho se crop yields are lov; in cor;:pari3on with others vrorlcing
land of equal natural veaue C£-i v--ell studj- the practices of men v-'ho secure higher
yields. Men v/ho secure the best yields pay special attention to rotation o.f crops,
seed, drainage, use of" legunes, use of rranure, use of limestone and phosphate where
needed, preparation of seed beds, cultivation, and protection iron diseases, and
insects.
Returns from QlOO Invested in Live Stock - V.^.ere any considerable part of
the income of a larra is fror: live stock, this item merits special attention. Ifhere
the returns are below the average a careful study of the practices on more successful
farms may assist the operator to locate places v;here he can improve his ...ethods. The
difficult^'- may be in a lov; percentage of calves, pigs, lambs, etc. raised. It may be
in lack of attention to sanitary arrangements and protection from disease. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accord T-i-th the value of the breeding stock, kejrir. In case of stock feeding
operations "/here feeders are purchased it may be in poor buying both as to time ai^d
price. It may be In not producing the quality of stock which the market demands.
The growing of sufficient legum.3 forage to supply most of the protein requirements,
careful purchase and use of additional protein and mineral supplements, and the
utilization of roughage are among other importaiit factors which make possible the
more economdcai production of live stock.
I
Per cent of -ncoae fro:.: -live 3"^ock - Ir. a region vmerc ths best paying
farr;s receive a large proportion of their inco;..Q frotn live stock, the less successful
farifiers v.dll do well to consider incroasing thoi- ir.coT-.c fror; li\<o i:-!-.oi-k. TKi g -.i^'-y
be done by improving the quality of live stoch, by better foe-iinp-, sanitary and
breeding methois or by increasing the amount of live stock kept. In order to ir.i.--....^
the quality of live stock it has not usually proven profitable for a rri\n to invest in
a considerable nurriber of high priced pure bred stock at one tif!;e. It is a rr.ore saxe
practice to grow the better stock by using good sires and occasionally picking up;
good females. Neither is it usually v/ise for a rnan \ino has never handled much stock
to buy up a large breeding herd or go suddenly into extensive feeding operations.
In any case it is better to work gradually into ' the live stock business, buil-iing up
equipment, breeding herds and feeding operations slowly, as one learns to follov,'
successful raethods.
The Use of Imn Labor ani Hprse Labor - Ji.bout sixx-y to eighty per cent of
the cost of operating a farm, not including interest or rent charges, is for man
labor and horse labor. If a tractor is used the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs approximately :;;10C per
year to keep one \vork horse xJhG.i ona includes present feed costs, depreciation,
interest on investment, barn roor., harness costs, etc. If a rKin finds that he is
working fewer crop acres per man or per horse than the average farmer working under
sirdlar conditions, he can well study his situation with the idea of cuttinr do\;,'n
this e::pense. The changing to a core carefully planned rotation of crops is probably
the VJB.-J in which rrost men can best reduce the naji and horse labor costs, a rotation
should be chosen, so as to avoid having a very large labor rnquirenent at any one
tine, so as to require a uniforni anount of man and horse labor fro"! early spring
until late fall, and so as to utilize the fa:niiy labor to best adv.antage. The feec".-
iag down of crops and use of enough live stock to utilize labor at seasons ••vhsn ficl.
v.'ork is light are two other very definite neans of increasing the efficiency in the
use of labor. V/hile the working of a l-jirge nuiobcjr of crop acres per man and per hori.-
is desirable, a study of hundreds of records froc. o/ei" the state indicates that sore
men have reduced the amount of both wsui and horse labor to a point where crop yields
and returns from live stock are reduced because of lack of sufficient ■v?ell directed
labo r.
Expense per SlCG Gross Income - This is a measure of thrift in all parts
of the farm business. Farm records show that men ".vho keep expenses lov; in proportion
to their incomes are men v/ho practice more or less of the following things. They plan
their work so as to do as rriuch as possible themselves or Vifith fanily labor. After
getting a fev; good breeding females, tney raise their o?m breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
o"wn seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase of nuch nev; equipment, the paying out
of high v/ages for skilled labor for such repairs as they can readily do themselves
and also saves the expense incident to delay caused by broken machinery or fences
during the busy season.
Size of Farm - \7hen one finds that his farr.i is sr.aller than the cost
profitable farns in his locality and his inccme is lev even though he has good crop
yields and good returns from live stock, he may remedy the situation, by buying or
renting additional land, or by gradually' adopting a rr>re intensive or rcore specialized
type of farming. On the other hand, if he finds that his farir; is larger than the
best farms and his incone is low, he may profit by renting out land, or by planning
so as to do more efficient v"ork on his present acreage.
Closing Su;~.6;estions
1. Leaks in the fare business are most likely to occur along the line
of these factors which have been discussed, namely;
a. Crop yields
b. Returns from investment in live stock
c. The proportion of returns from live stock
d. Use of man la^cr
e. Use of horse l?"3or
f. Expenses in proportion to income
g. Size of farm
2. A careful conparison of a raa's farm business record 1 eside those of
several other men farxdng under similar conditions will ona'.^le hii;i to find the leaks
in his farm business.
3. There can be nc^ irr.orovenent \?ithout soes .char^ in practices used.
Carefully planned and slov/ly developed changes are ir.ore likely to result in incronred
incomes than are impulsive a.nd sudden changes of sethods.
4. It_ i_3 t^he well balanced farm that pays. One rr.ay have good crop yields
and make good use of live stock, but receive a snail net income because of inefficient
use of labor. Or one may v/ork a large acreage per man aiid per horse, but fail
because of low crop yields or poor returns froni live stock. A v/ell balanced fc.rin
with a fair degree of efficiency along all lines brings the operator good .
retnrr.s which enable hin to maintain a high standard of living for his fairdly.
SUi'.'iH^iARY OF FaPJI BUSH'S S3 RECORDS (l)
\?A3ASH COUNTY - 19^3
Tvrenty-four '.Tkaash County farners -.vho kept farm business records in
1923 earned an average rate of 3. 5^^ on an average capital investment of ^22,595.
Eight of the twenty-four fa.rmers received an average of 6,9^; on their investment,
while eight others received only .2}^, a difference of 6.7/o. In terms of money,
this means that the eight more efficient of these twenty-four farmers received an
average net incom.e of approximately ^1500 more than vias received by the average of
the eight whose farms showed the lowest net income.
The follov/ing table will help enable each "wabash County farmer -who kept
these records to find some of the leaks in nis farmx business, if there have been
such leaks in his business.
Rate Earned, Labor and Management!
Average
Eight Mo st ■
Eight Least!
I7age and Factors in \vhich Leaks
Your
of 24
Profitable
Profitable
are ro st likely to occur
Farm
FarCiS
Farms
Farms
Rate Earned on Investment
3. 5%
5c9fo
^ _j
Labor and Management Wage
0
$ 149,
$
965.
^-461.
Crop Yields - Corn - bushels
47.4
54.5
41.7
Oats - bushels
10.1
25.3
19.4 1
VJheat - bushels
17-7
19.3
16.4
Returns per $100 invested in all
A
§ 104.39
1
123.97
$ 134.56
Productive Live-stock (2y
For $100 in Horses
$
§- 11. ?8
$■
- 11.45
$- 17.33
For olOO in Cattle
§
$ 65,98
1
74,97
e 121.20
For v'lOO in Sheep
$
§ 94.45
120.31
ii 28. 46
For tflOO in Swine
$
§ 147.55
1
147. 96
§ 149.44
For |100 in Poultry
?
$ 192.90
257.03
5 134.69 j
1
Fer cent of Incom.e from Live Stock
Crop Acres per Man
Crop .i.cr3s per Horse
Expense per yiOO Gross Income
Size of Farra - Acres
50.5
65.4
18.7
63.62
163-0
40.3
65.2
23,6
54.27
155.6
64.4
64,1
15.7
. 0 97,45
! 145. 9
-i
(1) Records secured and summarized by the We.bash County Farra Bureau,
Mt. Carmel, Illinois, and the Department of Farm Organization and Manage-
ment, University of Illinois, Urbana, Illinois cooperating.
(2) Zae average investment at the beginning and end of the year was
used in finding these factors.
Bata from Wabash County Recordc: - 1923 ( Co nt ' d )
1
2
3
4
5
6
7
9
10
11
12
ValU3 of Land per Acre
Capitr.l Investnent - Total
Land
Buildings (l)
Machinery and Equipment
Feed and Supplies
Live Stock - Total
Horses
Cattle
Sheep
Svdne
Poultry
13 Receipt s-Net Increases-Total
14r Feed and Supplies
15 Miscellaneous
16 Live Stock - Total
17
18
19
20
21
22
23
24
Horses
Cattle
Dairy Products
Sheep
Svjine
Poultry
Eggs
Kiscellaneous
25 Expans_s5J^Iet Decreases-Total
26 Faria Improvements
27 I/Iachinery and Equipment
28 Feed and Supplies
29 Cash Expenses
30 Recaipts less Exnenses
31 Operator and Family Labor
32 Net Income from Investment
33 Investment per Acre
34 Gross Recsipts per Acre
35 Total Expensesper Acre
'36 Net Receipts per Acre
37 Man Labor per Total Acres
|3£ Farms with Tractors - Per cent
39
iO
il
i2
13
.icres of Land in all Crops
Corn - Acres
Oitc - Acres
uheat - Acres
Legumes - Acres
iour
Farm
$
I
6
Average
of 24
Farms
4 103
(f 22.595
§ 16,769
^ 2,086
§ 784
s? 1,045
^ 1,911
$
' 0
559
784
36
371
161
2.510
1,122
120
1,268
I Eight Most
! Profitable
Farms
T
-£(W
1.440
6 52
788
138.65
15.40
10.57
4.83
5.12
61.6
107.9
34.5
15.3
38,6
9,8
* 22.890
^ 16,516
Oe 2,448
$ 1,115
s? 1,173
e 1,637
y 1,374
Sr"
552
Eight Least
Profitable
Farms
* 2.345
if Tib
$ 1,570
0 147.07
V 22. 06
0 11,97
:^ 10.09
7.1
6.08
62.5
120.7
32.1
6.8
S?
iO].
19^543
14, 6 'Is"
l',929
695
775
1,'461
$
$
133.97
12.16
11.84
.32
5. 26
37.5
97.4
32.3
8.9
32.6
14.1
(l) The investment in buildings, machinery and equipment, etc. at the
beginning of the year v/as used here.
Find Your Farm Leaks - (ViJabash County - 1923)
The numbers just above the line across the middle of this page are
approximately the averages for your county for the factors as named at the
tops of the columns. By drav/ing a line across each column at the point v/here
the number represents your efficiency for that factor, as given on page 1 of
this report, you can see where your efficiency is 'above the average and where
it is belov; the average.
^
r \
Crop '
Expense
Bushels pe
Reti
arns psr
;$ioo
•Vcros
pcr^lOC
Rate
Herned
[
A
:re of
*
Invested :
m
per
Gross
Income
Con-
}
Oats
Wheat 1
Cattle
^ Ho.°;s
Fault ry
Kan
' Horse
9. CO
C2
54
40
175
370
410
132
41
24
8.75
90
52
39
170
360
400
129
40
26
3.50
88
50
38
165
350
390
125
39
28
8.25
86
48
37
160
340
380
123
33
30
8.00
84
46
36
155
330
370
120
37
32
7.75
82
44
35
150
320
360
117
36
34
7.50
80
42
34
145
310
350
114
35
36
: 7.25
78
40
33
140
300
340
111
34
38
: 7,00
76
i
38
32
135
290
: 330
108
33
40 5
6.75
74
«
36
31
130
280
320
105
32
42
6.50
72
1
34
30
125
270
310
102
31
44
5.25
70
1
32
29
120
260
300
99
30
46
5.00
68
30
28
115
250
290
96
29
48 I
5, 75
55
1
28
27
110
240
280
93
28
50 \
, 5.50
64
26
25 i
105
230
270
90
27
52
5. 25
52
24
25 !
100
220
260
87
26
54
5.00
60
22
24 \
95
210
250 1
84
25
56
4.75
■ 53
20
23
90
200
240 ;
81 !
24
58
ic50
55
IS
22
85
190
230
78
23
60
4,25
54
15
21
80
180
220
75
22
62
1 4,00
52
14
20 I
75
170
210
72
21
54
i 3,75
50
'i
12
19 :
70
150
4,00
59
20
66
i__3.50
48
1
L.
10
18 ;
55
150
190
66
1 "
68
; 3o 25
45
1
1
8
17 \
50
140
180
63
18 '
70
3".. 00
44
i
1
6
16 j
55
130
170
60
17 j
72
2,75
42
!
4
15 I
50
120
160
57
16
74
2.50
40
1
2
14 ■
13
45
110
150
54
15 ;
75
1 2.25
38
-
40
100
140
51 i
14 ^
73
2.00
35
j
-
12 i
35
90
130
48 !
12 i
80
1 1-75
34
_
11 1
30
80
120
45
12
82
1: 50
32
_
10 !
25
70
110
42
11
84
1 25
30
-
9
20
50
100 1
39
10
86
I 1.00
28
-
8
15
50
90
35
9
88
.75
26
■>
7
10
,40
' SO
:,3
8 1
90
- ,50
24
_
6
5
30
70
so
7 ,
92
^:z5
22
\
-
5 !
0
20
60
27
5 !
94
cCO
20
1
-
■^ i
- 5 .
10
50
24
^ !
95
-.25
13
.
3
-10
0
40
21
4
98
^.50
16
_
2
-15
-10
30
18
•3
100
1 ',75
14
-
T^
-20
-20
20
15
102
i "i.OO
12
-
1
«25
-30
10
12
1 :
104
|.^1.25
10
i
««•
1
-30
-40
9
105
L-i-^_
8
!
-
-
-35
-50
-10
f.
- 1
108
« * **
I
4
Factors 'viTnich Merit Special JfJttention
Rate Earned on _Inv3st;nent - The rate earned on the invuatmont is an
excellent indication of the Tn:~-nac,in2 ability of ths fam operator. Tnis is particu-
larly true in regions v;here the ave^af^e investT.ent per farm is large. In roginj.n
where the average investnent is sr.^ail , tho Lahor an-'l '■/.ana.rer.ent Vvar.G is also an
p-A.-c.li_r\nt measure of managing ability. Anyone whoce ra.te earned on t-io total farm
investaent or \fy,ar.r-: T.abor and i'^anagement VJage is belov; the average for his locality
can well study the various factors wh^-Ch T.'ill indicate the source of a rran's success
or failure. In this v/ay he may locate the source of his difficulty. Ths follomng
paragraphs discuss the r^ore iraportant factors influencing farm earnings.
Crop Yields - &ood crop yields are among the n.ost definite of requirements
for good incomes. One w'jioso crop yields are lov: in conparison v/ith others working
land of equal natural \'-^j_ije c=-^ well study the practices of men T;ho secure higher
yields. Men who secure the test yiel^.is pay special attention to rotation of crops,
seed, drainage, use of legumes, use of ranure, use of limestone and phosphate vmere
needed, preparation of seed heis, cultivation, and protection from diseases, and
insects.
F^eturns from SlOO Invested in Live Stock - ^i'.'here a.ny considerable part of
the income of a farm is from live stock, this iter, merits special attention. Vi/here
the returns a.re below the average a careful study of the practices "on more successful
farms may assist the operator to locate places \7here he can improve his methods. The
difficulty m::.y be in a lov; percentage of calves, pigs, lambs, etc. raised. It may be
in lack of attention to sanitary arrangements and protection from, disease. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accord Vidth the value of the breeding stock, kopt. In case of stock feeding
opera.tions •i^'here feeders are purchased it may be in poor buying both as to time and
price. It may be in .xt producing the quality of stock v;hich the market demands.
The growing of sufficient legume forage to supply most of the protein requirements,
careful purchase and use of additional protein and mineral supplements, and the
utilization of roughage are among other importiuit factors v/hich make possible the
m.or9 economical production of live stock.
5
Per cept of ^nc&ine fro:?. Iijve Stock - In a region \7h9re tha bast pairing
farms receive a large proportion of their incorue frorn live otock, the less successfu.l
farmers v,/ill do vrell to consider increasing their income iroiv: livo r'-+.ock. VKi g vj-y
be done by improving the quality of live stock, by better feeding, sanitary a,ncl
breeding methods or by increasing the arrount of live stock kept. In order to improve
the quality of live stock it has not usually proven profitable for a ran to invest in
a considerable nurrier of high priced pu^^e bred stock at one time. It is a rr.ore safe
practice to grow the better stock by using good sires and occasionally picking up
good females, i'^either ir it usually v/ice for a man xfao h.as never handled much stock
to buy up a large breeding heru or go suddenly into extensive feeding operations.
In Einy case it is better to v;ork gradually into ' the live stock business, building up
equipment, breeding herds and feeding operations slo^/ly, as one learns to folloviT
successful methods.
Tjqe Use of Man Labor and Hpr^e Le.bor - About sixty to eighty per cent of
the cost of operating a farm, net including interest or rent charges, is for man
labor and horse labor. If a tractor is used the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs approximately ylOO per
year to keep one v;ork horse xfhGii one includes present ieei costs, depreciation,
interest on investment, barn room, harness costs, etc. If a msun finds that he is
working fewer crop acres per man or per horse than the average farmer working under
simdlar conditions, he can well study his situation v/ith the idea of cutting dovm
this expense. The changing to a more carefully planned rotation of crops is probably
the way in which most men can best reduce the man and horse labor coots. a rotation
should be chosen, sc as to avoid having a very large labor requirement at suiy one
time, so as to require a uniform amount of man and horse labor from early spring
until late fall, and so as to utilize the family labor to best advantage. The feed-
ing do'Wii of crops and use of enough live stock to utilize labor at seasons when field
work is light are two other very definite means of increasing the efficiency in the
use of labor. ITliile the working of a large number of crop acres per miar. and per horsr,
is desirable, a study of hundreds of records froc' ove:- the stite indicates that some
I
men have reduced the amount of both ;ran and horae labor to a point where crop yields
and returns from live stock are reduceu becauGS of lac!-, of suff^.cicnt woll dii-octed
labor.
_ Expense per $100 Gross Income - TJiis is v. niHrir-urc -f Vmiit i-. mi. p-^x'+.n
of the farm business. Farm records show that men "dio keep expenses lov; in proportion
to their inconies are men who practice more or less of the follo'^'inj; things. They plan
their work so as to do as miuch as possible themselves or with family labor. After
getting a few good breeding females, they raise their o\7n breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
o?m seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase of much new equipmient, the paying out
of high wages" for skilled labor for such repairs as they can readily do themselves
and also saves the expense incident to delay caused by broken machinery or fences
duririg the busy season.
Size of Farm - VJhen one finds that his farrA is smaller than the most
profitable farms in his locality and his income is lov; even though he has good crop
yields and good returns from live stock, he ma.y remedy the situation, by buying or
renting additional land, or by gradually adopting a more intensive or more specialized
type of farmdng. On the other hand, if he finds that his farm is larger than the
best farms and his income is low, he m.ay profit by renting out land, or by planjiing
so as to do m-ore efficient vrork on his present acreage.
Closir^s Suggestions
1. Leaks in the farm business are most likely to occur along the line
of these factors v/hich have been discussed, namely:
a. Crop yields
b. Returns from investment in live stock
c. The proportion of returns from live stock
d. Use of man labor
e. Use of horse labor
f. Expenses in proportion to income
g. Size cf farm
2, A careful comparison of a iran's farxa business record ueside thoiie of
several other men farming under similar conditions mil enable him to find the leaks
in his farm business.
3. There can be no_ improvsnent v;ithout some change in J3iiactic^e_s used.
Carefully planned and slov/ly developed changes are more likely to result in incro-ir.ed
incomes than are impulsive and sudden changes of methods.
^' ii is t^he well balanced Xarm that pays. One may have good crop yields
and make good use of live stock, but receive a small net incoms because of inefficient
use of labor. Or one may work a large acreage per man and per horse, but fail
because of lo^^ crop yields or poor returns from live stoc?.. a v/ell balanced farm
with a fair degree of efficiency aldng all lines brings the operator good .
returns which enable him to maintain a hij;,h standard of living for his fajr.xly.
I
SUMMARY OF FARM BUSINESS RECORDS (l)
WOODFORD COUNTY - 1923
Ninety-five Woodford County farmers who kept farm business records in
1923 earned an average rate of 3.15^ on an average capital investment of $55,411,
Thirty-two of the ninety-five farmers received an average of ^.ZQ% on their invest-
ment, while thirty-two others received only l.OSfo of their investment, a difference
of 4.20/i. In terms of money, this means that the thirty-tvto more efficient of these
ninety-five farmers received an average net income of approximately $2325 more than
was received by the thirty-two whose farms
showed the lowest net incomes.
The following table will help
enable each Woodj'ord Co
unty farmer
who kept
these records to find some of the 'leaks
in
his farm
business, i
f there have
been
,such leaks in his business.
1
(Rate Earned, Labor and Management
\
Average
32 Ivbst
32 Least
{Wage and Factors in which Leaks
Your
of 95
Profitable
Profitable;
'are most likely to occur
Farm
Farms
Farms
Farms !
iRate Earned on Investment
Labor and Management V/age
Crop Yields - Corn - Bushels
Oats - Bushels
%
3.15fo
$-447.
48.6
48.3
5. 28fo
$734.
50.1
49.7
1.08f=i
$-1511, ■
49.6
49,0 ■
¥neat - Bushels
24,5
26.7
24.0
Returns per §100 Invested (2) in
$
$ 101.63
$119.63
$ 85. 13
all Productive Live-stock
For $100 In Horses
For $100 in Cattle
\ For OlOO in Sheep
For $100 in SvTine
1 For $100 in Poultry
A
$
$
$
0- 2.53
$ 7£.07
$ 4:-. 05
$ 121.07
$ 156.64
$- 4,66
$109.77
$ 37,72
$136 „ 17
$166.90
$' 1.65
$ ZA; 59
§ 26,26
$ 10?. ■■■0
$ 154, 04
Percent of Income from Livestock
Crop Acres per Man
Crop Acres per Horse
ZxToense per $100 Gross Income
oize of Farm - Acres
$
%
43.5fo
86.7
21-5
$ 60,24
204.2
48. 0%
90,0
22,9
$ 46,53
207.3
44.4/=
83.3
19,8
$ 82.41
195. S }
(1) Records secured and summarized by the Woodford County Farm Bureau, Eureka,
Illinois, and the Department of Farm Organization and Management, University
of Illinois, Urbana, Illinois cooperating,
(2) The average investment at the beginning and end of the year was used in find-
ing these factors.
-J-
Data frop Woodford County Records - 1925 (Cont'd)
Value of Larid per Acre
Ca-ojtal. InvfS"r.r-ent - Toi
al
Land
Buildings (l)
Machinery E.nd Equipment
Feed and Sapplias
Live Stock - Total
Your
' ::.rm
: Average
of 95
J Farrr.s
0 4<rayi
3,P76
0 1.504
0 2;S30
0 2,863
32 I/icst
Profitable
?ariT!S
0 44:J=i7
$ 3,.-?^4
0 l/<35
^ 2,?G3
$ 3,119
0
32 Least
Profitable
Farnfj, „,
21 5
S3^,^l
4 , 305
].,7?8
2,769
2,712
8
9
10
11
12
Horses
Cattle
Sheep
Sr/ine
Poultry
0
0
0
889
853
3.20
£48
148
849
924
26 5
933
146
'J
§
870
827
48
814
152
13 Receipts-Net_ _Incr eases- Total
14 Feed and Supolles
15 Miscellaneous
16 Live Stock - Total
0
•^ ±^??1
e ■ 79
$ 1,902
0
5^487
2-':;5
83
2,649
3,250
1,725
63
1,462
17
Horses
18
Cattle
19
Dairy Products
20
Sheep
21 '
Swine
22
Poultry
23
Eggs
24
Ivliscellaneous
$
0
A
9
$
0
0
22
491
196
41
948
84
140
23
39
826
264
63
^ 1,280
e 101
15
$-
0
$
0
14
342
110
13
783
6?
124
37
25 Bxpenses-Net D_e c_r eases- Total
26 Farm k.nprov3menb3
27 Machinery and Equipment
28 Feed and Supplies
29 Cash Expenses
•s
*?
$ 244 .
$ 453
$ --
•5 1,226
0
e
ft
V
^
ijS51
206
392
1,253
0
0
0
0
_2^005
27].
530
1,205
30 Roc3ipts less Expenses
31 Operator and Family Labor
32 Net Income from Invastmeni
§
4
S
V
2,431
6c&
1,744
$ 3,636
$ 687
0 2,949
e
■a
1,245
652
583
33 Investment per Acre
34 Gross Receipts per Acre
35 Total Expenses per acre
36 net Recsipts per Acre
37 Man Labor per Total Acres
38 Farms with Tractors - Percent
§
0
271.36 0
21.43 i.
8., ?4
5.42 $
56.4^
269.28 0
26.60 §
12.33 0
]^-..22 $
5,58 0
40.6^
39 Acres oi Land in all
40 Corn - Acres
41 Oats - Acres
42 Y.Tieat - Acres
43 Legumes-Acres -
^rops
164.9
84.0
51.4
11.2
10.. 1
171.0
83. 6
50.5
13,-6
11.6
152.4
77.2
47.6
7.2
(l) The investment in buildings, machinery and equipment, etc. at the beginning
of the year vra.s used here.
4
Find Your Fare Leaks (Woodford County -"1.1923)
The numbers just above the line across the middle of this page are approxi-
mately the averages for your county for the factors as named at the tops of the
columns. By drawing a line across each column at the point where the number repre-
sents your efficiency for that factor as given on page 1 of this report, you caj.i see
where your efficiency is above the average and where it is below the average.
jjLyper.se
Rate
Bushels p
er
Returns per $100
Crop
Aci es
Iper §100
Earned
Acre of
Invested in
P
er
' C-ro ss
■*-
I Tn'^ome •
Corn
\ 0:.'ts
: Uneat
Cr.thls
J ncry i: Poult ry
Kan
: Horse
8.50
90
90
45
18^ _
330
oVO
150
1 ''^
lo
8.25
88
88
44
180
320
360
147
42
20
8,00
86
86
43
175 310
350
144
1 41
22
7.75
84
84
42
170
300
340
141
40
24
7.30
82
82
41
16 5
290
330
138
39
26 ]
7,25
80
80
40
160
280 320
135
38
23 ]
7.00
78
78
39
155
270 310
132
37
30
6.75
76
76
38
150
250 300
129
< 36
32
6.50
74
74
37
145
250 290
125
35
34
6.25
72
1 72
36
140 j 240 1 280
123
34
36
6.00
70
70
35
135 230 1 270
120
33
38
5.75
63
68
34
130 ! 220 i 260
117
32
40
5.50
66
66
33
125 I 210 1 250
114
42
5.25
64
64
32
120 200
240
111
30
i ^-
: 5,00
62
62
31
:'15 ].90
230
IDS
29
46
: 4.75
1
60
50
30 !
110 180 t 220
105
28
48
1 4.5C
58
EiT
23 i
105 170
210
102
27
I 50
; 4.25
55
56
28 ;
100
150
'200
99
26
52
! 4.00
54
54
27 1
95
150
190
96
25
54
! 3.75
52
52
26 j
90
140
ir;o
93
24
56
3.50
50
50
25 •
85
130
170
90
23
58
,
3.25
43
43
24 !
80
12 J ]63
L_ 51_
22
60
3o00
f*."^
^ 4o
2F7
7 b
ilO 150
21
52
2.75
44
44
22
70
100
140
81
20
64
2.50
42
42
21
65
90
130
78
19
66
2.25
40
40
20
60
80
120
75
18
68
2.00
38
38
19
55
70
110
72
17
70
1.75
36
36
18
50
60
100
69
16
72
1.50
34
34
17
45
50
90
66
15
74
1.25
32
aa
1 "
40
40
80
63
14
76
1.00
30
30
15
35
30
70
60
13
78
.75
28
28
14
30
20
50
57
12
80
.50
26
26
13
25
10
50
kJ -
11
82
.25
24
24
12
20
0
40
51
10
84
.00
22
22
11
15
-10
30
48
9
86
-.25
20
20
10
10
-20
20
45
8
83
-.50
18
18
9
5
-30
10
42
7
90
-.75
16
16
8
0
-40
0
39
6
92
-1.00
14
14
7
-5
-50
-10
36
5
94
-1.25
12
12
6
-1'3.
-60
-20
33
4
95
-1.50
10
10
5
-15
-70
-30
30
3
93
-1,75
8
8
"^l
-20
-80
-40
27
2
100
-
-2.00
6
6
3 i
-25 -90 !
-50
24
1
102
. 4
Factors \^?hich Merit Special Ittontion
Rate Earned on Investrnsn - The rate earned on the investment is an
excellent indication of the managing ability of the farm operator. This is particu-
larly true in regions where the average investment per farm is large. In regions
where the average investment is small, the Labor and Managerr.enx Va^o is also an
excellent measure of managing ability. Anyone v/hose rate earned on the total farm
investment or 'jy}-,on.-. J^h^r nnd Management VJage is belov/ the average for his locality
can well study the various factors which virill indicate the source of a man's success
or failure. In this way he may locate the source of his difficulty- The follovdng
paragraphs discuss the rcore important factors influencing farm earnings.
Crop Yields - Good crop yields are among the most definite of requirements
for good incomes. One whose crop yields are low in comparison vn.th others working
land of equal natural value can well study the practices of men who secure higher
yields. Men v/ho secure the best yields pay special attention to rotation of crops,
seed, drainage, use of legumes, use of manure, use of limestone and phosphate where
needed, preparation of seed beds, cultivation, and protection from diseases, and
insects.
Returns from $100 Invested in Live Stock - 'Jlihere any considerable part of
the incomis of a farm is from live stock, this item merits special attention. vlhere
the returns are below the average a careful study of the practices on more successful
farms may assist the operator to locate places where he can improve his ;.iethods. The
difficulty may be in a low percentage of calves, pigs, lambs, etc. raised. It may be
in lack of attention to sanitary arrangements and protection from disease. In case
?f pure bred stock, it may be the inability to market the young stock at prices in
iccord with the value of the breeding stock. ' In case of stock feeding
)perations v/here feeders are purchased it may be in poor buying both as to time and
price. It ma.y be in not producing the quality of stock which the market demands.
Che growing of sufficient legume forage to supply most of the protein requirements,
jjiaroful purchase and use of additional protein and mineral supplements, and the
itilization of roughage are among other important factors which make possible the
ajre economical production of live stock,
i
Per cent of Incom^^^^^^toc^-^r^^^gi^r^he^^i^ffypi!^!^^^^
farms receive a large proportion of their income from live stock, the less successful
farmers vriull do vrell to consider increasing their income fro 1:1 live stock. This may
be done by improving the quality of live stock, by better feeding, sanitary and
breeding methods or by increasing the a-nunt of live stock kept. In order to improve
the quality of live stock it has not usually proven profitable for a man to invest in
a considerable number of high priced pure bred stock at one time. It is a more safe
practice to grow the better stock by using good sires and occasionally picking up
Sf^d foi'ialfis. Neither is it usually xjIdb for a iran ¥/ho has never handled much stock
to buy up a l.irge breeding herd or go suddenly into extensive feeding operations.
In any case it is better to work gradually into ' the live stock business, building up
equipment, breeding herds and feeding operations slowly, as one learns to follow
successful methods.
The Use of Man Labor and Hprse Labpx - About sixty to eighty per cent of
the cost of operating a farm, not including interest or rent charges, is for m.an
labor and horse labor. If a tractor is used the labor is usually reduced, but the
machinery expense is increased about in proportion. It costs approximately g^lOO per
year to keep one work horse xihen one includes present feed costs, depreciation,
interest on investment, barn room, harness costs, etc. If a man finds that he is
working fewer crop, acres per man or per horse than the average farmer working under
similar conditions, he can well study his situation with the idea of cutting dovm
this expense. The changing to a more carefully planned rotation of crops is probably
the way in which most men can best reduce the man and horse labor costs, a rotation
snould be chosen, so as to avoid having a very large labor requirement at any oTiQ
time, so as to require a uniform amount of man and horse labor from early spring
until late fall, and so as to utilize the family labor to best advantage- The feed-
ing down of crops and use of enough live stock to utilize labor at seasons v;hen field
work is light are two other very definite means of increasing the efficiency in the
use of labor. viftiile the \rorking of a large number of crop acres per man and per horso
is desirable, a study of hundreds of records fro.r. over the state indicates that some
* #
men have reduced the amount of both rcan and horse labor to a point where crop yields
and returns from live stock are reduced because of lack of sufficient well directed
labor.
Expense per (?10Q Gross Income - This is a measure of thrift in all parts
of the farn business. Farm records show that men v/ho keep expenses low in proportion
to their incomes are men who practice more or less of the following things. They plan
their work so as to do as much as possible themselves or with fardly labor. After
getting a few good breeding females, they raise their ovm breeding stock except for
the purchase of pure bred sires. Insofar as feasible they raise and prepare their
own seeds. They utilize rainy days and off seasons to repair buildings, fences,
machinery and harness. This saves the purchase of much nev; equipment, the paying out
of high Tifages for skilled labor for such repairs as they can readily do themselves
and also saves the expense incident to delay caused by broken machinery or fences
during the busy season.
Size of Farm. - Viihen one finds that his farn is sm;aller than the most
profitable farms in his locality and his income is low even though he has good crop
yields and good returns from, liv stock, he may remedy the situation, by buying or
renting additional land, or by gradually adopting a. more intensive or more specialized
type of farming. On the other hand, if he finds that his farm is larger than the
best farms and his income is low, he m.ay profit by renting out land, or by planning
so as to do more efficient work on his present acreage.
Closin.';; Suggestions
1. Leaks in the farm, business are most likely to occur along the line
lof these factors which have been discussed, namely:
1
a. Crop yields
b. Returns from, investment in live stock
c. The proportion of returns from live stock
d. Use of man labor
e. Use of horse labor
f. Expenses in proportion to income
g. Size of farm
■P 2, A careful comparison of a nan's farm business record beside those of
several other men farming under similar conditions vd.ll enable him to find the leaks
in his farm business.
P 3 . There can be no improvement without some change in practices used.
Carefully planned and slowly developed changes are more likely to result in increased
incomes than are impulsive and sudden changes of methods.
4. It _is t'he well balanced farm that pays. One may have good crop yields
and make good use of live stock, but receive a small net income because of inefficient
use of labor. Or one m.ay work a large acreage per man and per horse, but fail
because of low crop yields or poor returns from live stock, h well balanced farm
with a fair degree of efficiency along all lines brings the operator good
returns which enable him to maintain a high standard of living for his famdly.
1
SUMMARY OF TJ'ffiNTY-FIVE FATO? BUSINESS RECORDS
CLINTON COUNTY - 19 22
Records secured and summarized by the Clinton
County Farm Bureau, Breese, Illinois, and the
Department of Farm organization and Management,
University of Illinois, Urbana, Illinois,
co-operating.
Twenty-five Clinton County fai-raers earned an average interest rate of
1.7% on an average capital investment per faxTn of $19,367 in 1922. Six of these
farmers received an average of b.6% interest on their investment while six others
lacked an average of 2.0^ of earning any interest.
"Hie following table gives rather complete data for the twenty-five farms,
for the six farms which earned the highest interest rates and for the six farms which
earned the lowest rates. A blank column has been left in order that those who kept
the books may write in the records of their own farms in order to compare their
work with others who kept similar records.
1. Size of Farm
2. Value of Land per Acre
3. Capital Investment - Total
4 &.5. Land and Buildings
6« Machinery and Equipment
7. Feed and Supplies
8.
Livestock - Total
9.
Horses
10.
Cattle
11.
Sheep
12.
Swine
;13.
Poultry
14. Receipts - Net Increases-Tot.
15. Feed and Supplies
16. Miscellaneous
CLINTON COUNTY SUMfJIARY
19 2 2
Your
Farm
Average
of 25
Farms
6 High.
est
Farms
6 Lowest
Farms
163.9
$ 98
419367
151.2
$ 80
$15899
161.0
0 102
$17075
01 5402
i 1306
0 827
$12054
$ 910
$ 857
$13745
$ 1048
$ 731
.
0
0
0
1332
589
89 2
$
$
$
2073
651
1053
$
A
■if
$
1551
510
758
0
0
0
2
83
266
0
0
49
3*^
$
$
0
91
192
Si*
$
0
2212
597
116
$
$
$
2855
652
49
$
$
$
1424
552
73
Ci
,.:ii:iiz . .
t, v'-'t-'O^ rrti-":'
■ >'3Tii"";-
■Ji. •^g--'-
■^ '-yh.
l<- i^b^-v:'.-"!
-2-
Your
Farm
17.
Livestock - Total
18,
Horses
19.
Cattle
20.
Sheep
21.
Swine
22.
Poultry-
23.
Miscellaneous
Average of
25 Farms
0 1499
0
0
^•25
Q.34
0 114
$ 504
0 3
6 Highest
Farms
0 2164
0 12
0 131V
0
0
$
0
00
164
670
i
6 Lowest
Farms
0 789
0 -92
0 438
0 0
0 78
§ 358
$ 7
S4. Expenses-Net Decreases-Total
25. Farm Improvements
26. Machinery and Equipment
27. Feed and Supplies
28. Cash Expenses
0
$
$
0
9 79
163
272
25
514
0 884
$ 19 2
$
234
34
424
$ 1050
0 190
0 245
0 0
$ 615
29. Receipts less Expenses
30. Operators and Unpaid Family
Labor
31. Net Income from Investment
32. Rate of Interest Earned
33. Labor and Management Wage
3
34. Investment per Acre
35. Gross Receipts per Acre
36. Total Expense per Acre
37. Net Receipts per Acre
0 1233
$ 906
$ 327
% 141
% 123
k 13.49
% 11.50
% 1.99
0 1981
0 1085
$ 89 6
5.6^
% 656
$ 105
$ 18.94
% 13.02
0 5.92
0 374
k 723
§ -349
- 2.0f„
§ -765
0 127
$ 8.84
% 11.01
2.17
38. Man Labor Cost per Total Acre
39. Crop Acres per Man
40. Crop Acres per Horse
41. Percent of Farms with Tractor
42. Percent of Land in Crops
43. Com - Acres
44. Yield
45. Oats - Acres
46. Yield
47. YJheat-Acres
48. Yield
49. Legumes - Acres
6,40
57.0
19.3
4.0/,
78.7^
29.4
15.4
46.1
20,8
7.69
48,7
14,3
16.6^
72.5^
30.8
9*8
37.0
24.3
6.45
61.8
17.8
0.0/^
84.45^
22.8
15.8
45,0
9.5
50. Percent of P.eceipts from L.S.
51. Returns for OlOO Invested in L»S.
52.
53.
54.
55.
56.
in Horses
" Cattle
" Sheep
" Swine
" Po'Jltry
0
120.81
-4.55
104,30
18.75
110.20
174.30
75. 5f.
0 146.00
% 2c00
% 128.20
. 0
'4 217.20
0 180,70
3 D * <3 jo
% 87.93
$-19.75
74.? 5
0
§ 75.20
$194=00
■■.;. r
.iiviTcT - -lock-H'^-'v.' .-7 J
I
'.>>{.
nri
.-.j;^?.
■*?:'
»/''"■
32 i
VIC
1' E yr
■■■■r'-Vcft^ir'"''"-'"
Ti-r?.-."
-«Vt( "!•
."I-
.. V
■ ••^ir-.'- ^^
« ti
1
3.
FACTORS Vfl^ICH I.SRIT SPECIAL ATTENTION
Intarest Earned (Line 32) - The rate of interest earned is aii excellent indi-
cation of the managing ability of the farm operator. This is particularly true in
regions v/here the average investment per farm is large. Anyone \fjhose rate of inuc.r-
est earned on the total farm investment is below the average for his locality can
%vell study the various factors which will indicate the source of a man's success or
failure. In this way he may locate the source of his difficulty. The follov/ing
paragraphs discuss the more importajit factors influencing farm earnings.
Crop Yields (Line 43 to 43) ~ Good crop yields are among the most definite of
requirements for good incomes. One v;hose crop yields are low in comparison with
others working land of equal natural value can well study the practices of men who
secure higher yields. Men who secure the best yields pay special attention to rota-
tion of crops, seed, drainage, use of clover, use of manure, use of limestone and
phosphate where needed, preparation of seed beds, cultivation, and protection fron
diseases, and insects.
Returns from $100 Invested in Livestock (Line 51 to 56) - \'Jhere any consider-
able part of the income of a farm is from livestock, this item merits special atten-
tion. \7here the returns are below the average a careful study of the practices on
more successful farms may assist the operator to locate places where he can improve
his methods. The difficulty may be in a low percentage of calves, pigs, lambs, etc.
raised. It may be in lack of attention to sanitary arrangements and protection
from disease. In case of pure bred stock, it may be the inability to market the
young stock at prices in accord v/ith the value of the breeding stock kept. In case
of pure bred stock, it may be the inability to matket the young stock at prices in
accord v/ith the value of the breeding stock kept. In case of stock feeding opera-
tions where feeders are purchased it may be in poor buying both as to time and price.
It nay be in not producing the quality of stock v;hich the market demands. The grov-
ing of sufficient legume forage to supply most of the protein requirements, careful
purchase and use of additional protein and mineral supplements, and the utilization
of roughage are among other important factors which make possible the more economi-
cal production of livestock.
Per cent of Income from Livestock (Line 50) - In a region where the best pay-
ing farms receive a large proportion of their incomiS from livestock, the less suc-
cessful farms will do well to consider increasing their income from livestock, TMs
may be done by improving the quality of livestock, by better feeding, sanitary :<ni
breeding methods or by increasing the amount of livestock kept. In order to dmpr.-vf;
the quality of livestock it has not usually proven profitable for a man to invvct
in a considerable number of high priced pure bred stock at one time. It is a more
safe practice to grow the better stock by using gccd sires and occasionally picking
up good females. Neither is it'. ngually .wise..for a:nian who has never handled m'lc-h
stock to buy up a large breeding herd or go suddenly into extensive feeding opera-
tions. In any case it is better to work gradually into the livestock business,
building up equipment, breeding herds and feeding operations slowly, as one learns
to follov.' successful methods.
The Use of Man Labor and Horse Labor (Lines 39 and 40) - About sixty to eirhty
per cent of the cost of operating a farm, not including interest or rent charge^.,
is for man labor and horse labor. If a tra.ctor is used the labor is usually
reduced, but the machinery expense is increased about in proportion. At present
values of feed it costs approximately OlOO per year to keep one work horse. If a
man finds thp^t he is working fewer crop acres per man or per horse than the aver-
age farmer working under similar conditions, he can well study his situation care
fully -^Tith the idea of cutting dovm this expense. The changing to a more
c iref ully planned rotation of crops is probably the way in v/hich most men can best
4.
•-■educe the man and horse labor costs. Such a rotation should be chosen so as to
•/.void having a very large labor requirement at any one time, and so as to require a
vjniform anount of man and horse later from early spring until late fall. The feed-
inss; dou-n of crops and use of e-nough livestock to utilize labor at seasons when field
:,i..--C is ligtit are t-.7o aLher very definite means of increasing the efficiency in -"he
use of labor. VJhile the worliing of a large number of crop acres per man and per
hcrse is desirable, a study of hxmdreds of records from, over the state indicates that
some men have reduced the amoujit of both man and horse labor to a point where crop
yields and returns from livestock are reduced because of lack of sufficient well
directed labor.
Si "6 of Farm (Line 1)- When one finds that his farm is smaller than the most
profitable farms in his locality and his income is low he may remedy the situation,
by buying or renting .additional land, or by gradually adopting a more intensive
or more specialized type of farming, on the other hand, if he finds that his farm
is larger than the best farms and his income is low, he may profit by renting out
Innd, or by planning so as to do more efficient work on his present acreage.
Conclusion
1. Every farm operator can *ell afford to study his own farm business in the light
of these factors which have been discussed.
A. Crop yields, including the rotation of crops
B. Returns on the investment in livestock
C. The prcr-o^ion of returns from livestock
D. Use of Man Labor
E. Use of Horse Labor
F. Size of Farm.
2. There can be no improvement in farm management without some change in practices
used. Carefully planne-i and slov/ly developed changes are more likely to result
in increased incomes than are impulsive and sudden changes of methods.
3. It is the well balanced farm that pays. One may have good crop yields and
make good use of livestock, but receive a small net income because of inefficient
use of labor. Or one may work a large acreage per man and per horse, but fail
because of low crop j^ields or poor returns from livestock. A well balanced farm
Tith a fair degree of efficiency along all lines brirgs the operator good
returns which enable him to maintain a high standard of li-/ing for his family.
SUMMARYOF r-,r.Wi: COT.l^G COTTTJTY FkRIJ rUSINESS RECORDS
COLES COtlTJTY'- 1922
Records secured and surimafized by the Coles Co'Jinty
Farm Bureau. Charleston, Illinoie, and the Department
of Rarm Organization and Management ^ University of
Illinois, Urbana^ Illinois, co-operating.
Seven Coles County Fanners earned an average interest rate of
4.7^ on an average capital investment per farm of $42917 in 1922. Ihe following
table gives rather complete data for the seven farms. A blank column has been
left in order that those who kept the books may write in the records of their own
farms in order to compare their work with others who kept similar records.
COLES COUI^ITY SUIvMARY
1922
Average of
7 Farms
Your
Farm
1.
2.
3.
4.
5.
6.
7.
Size of Farm
Value of Land per Acre
Capital Investment - Total
Land
Building
Machinery and Equipment
Feed and Supplies
L'ivej;tock - Total
Horses
10. Cattle
11. Sheep
12. Swine
13. Poultry
14. Receipts - Net Increases Total
15. Feed and Supplies
16. Miscellemeous
17.
Livestock - Total
18,
Horses
19.
Cattle
20.
Sheep
21.
Swine
22.
Poultry
23.
Miscellaneous
24. Expenses - Net Decreases - Total
25. Farm Improvements
26. Machinery and Equipment
27,. Feed and Supplies
28. Cash Expenses
29. Receipts less expenses
174.3
§ 194
§42917
§33809
& 4216
^
1341
$ 1240
i
m
$
966
$
65
0
486
$
117
$ 4299
$ 1666
$
60
0
3573
$
1
$
999
$
46
0
1369
0
142
§
16
0
1682
0
301
$
417
$
29
0
935
$
2617
ri -, ,■> :
■ f ''. ; .. • 'jir-
o'Jr :.ipei'ator and Unpaid f'amily Laror
31.. N?t income from Investnent
32.. Rate of Interes^j earned
33. Labor and Manc-.geTient Wage
34. InvestmsMt per a.Rre
35. Gross receiut-s per acre
36. Tctal expense per cv.re
37* I'iet receipts per acre
Average of
7 Farms
0 2023
594
0
279
$ 246
0 24.66
$ 13.05
5 11.61
Your
Farm
38 t Man labor cost per total acre
39. Crop aa-es per man
40. ^rop acres per hcrse
41. Percent of farms with tractors
42. Percent of land in crops
0 5.73
18.4
28.5fo
73.4^
43. "^ora
- acres
44.
Yield
45- Oats
- Acres
45.
Yield
47. 'Jffheat - Acres
48. Yield
49 . Legumes - Acres
50. Receipts from livestock
ci'/ Return for $100 invested in L.S.
52. Return for ylOO in Horses
53. " " " " cattle
54. " " " " Sheep
55. II • " II II sv/inw
56. " " " " Poultry
56.4
53.3
20.3
26.4
20,8
24.7
29.1
59. Bi
0
141.00
0
_ - -
c
90.50
0
65.50
$
258.00
§
120.00
V-'
3.
FACTORS VJHICH TgRIT SPECIAL ATTENTION
Interest Earned (Line 32) - The rate of interest earned is an excellent indi-
cation cf the managing ability of the farm operator. This is particularly true in
regiouo v/here the average investment per farm is large- Anyone whose rate of inter-
est earned on the total farm investment is below the average for his locality can
well study the various factors v;hich V7ill indicate the source of a man's success or
failure. In this way he may locate the source of his difficulty. The following
paragraphs discuss the more important factors influencing farm earnings.
Crop Yields (Line_j^3_t.o_j^)- Good crop yields are among the most definite of
requirements for good incomes. One whose crop yields are low in comiparison with
others working land of equal natural value can well study the practices of men who
secure higher yields. I'en who secure the best yields pay special attention to rota-
tjcn of crops, seed, drainage, use of clover, use of manure, use of limestone and
phosphate where needed, preparation of seed beds, cultivation, and protection from
\-F3ases, axid insects.
Returns from QlOO Invested in Livestock (Line 51 to 56) - ITJhere any consider-
able part of the income of a farm is from livestock, this item merits special atten-
tion. Where the returns are below the average a careful study of the practices on
more successful farms may assist the operator to locate places where he can improve
his methods. The difficulty may be in a low percentage of calves, pigs, lambs, etc.
riised. It may be in lack of attention to sanitary arrangements and protection
from disease. In case of pure bred stock, it may be the inability to matket the
young stock at prices in accord with the value of the breeding stock kept. In case
of pure bred stock, it may be the inability to mafcket the young stock at prices in
accord v/ith the value of the breeding stock kept. In case of stock feeding opera-
tions where feeders are purchased it may be in poor buying both as to time and price.
It may be in not producing the quality of stock which the market demands. The grow-
ing of sufficient legume forage to supply most of the protein requirements, careful
purchase and use of additional protein and mineral supplements, and the utilization
of roughage are among other important factors which make possible the m^ore economi-
cal production of livestock.
Per cent of Income from. Livestock (Line 50) - In a region where the best pay-
ing farms receive a large proportion of their income from livestock, the less suc-
cessful farms will do v/ell to consider increasing their income from livestock. This
may be done by improving the quality of livestock, by better feeding, sanitary eni
breeding methods or by increasing the am.ount of livestock kept. In order to improv-
the quality of livestock it has not usually proven profitable for a man to invest
in a considerable number of high priced pure bred stock at one time. It is a more
safe practice to grow the better stock by using good sires and occasionally picking
up good feffiales. Neither is ii: ngually .wise.. for a: man who has never handled murh
stock to buy up a large breeding herd or go suddenly into extensive feeding opera-
tions. In any case it is better to work gradually into the livestock business,
Duilding up equipment, breeding herds and feeding operations slowly, as one lea:
to follow successful miethcds.
The Use of Ue.n Labor and Horse Labor (Lines 39 and 40) - About sixty to eighty
per cent of the cost of operating a farm, not including interest or rent charges,
is for man labor and horse labor. If a tractor is used the labor is usually
reduced, but the machinery expense is increased about in proportion. At present
values of feed it costs approximately OlOO per year to keep one work horse. If a
man finds that he is working fewer crop acres per man or per horse than the aver-
age farmer v.'orking under similar conditions, he can v/ell study his situation care-»
fully with the idea of cutting dov/n this expense. The changing to a more
c jefully planned rotation of crops is probably the way in which most men can best
♦ 4.
i-9duce the man and horse labor costs. Such a rotation should be chosen so as to
avoid having a very large labor requirement at any one time, and so as to require a
\xiform amount of man and horse labor from early spring until late fall. The feed-
ing dox-m of crops and use of enough livestock to utilize labor at seasons when field
work is light are tv;o other very definite means of increasing the efficiency in the
use of labor, \fcile the working of a large number of crop acres per man and per
horse is desirable, a study of hundreds of records from over the state indicates that
some men have reduced the amoujit of both man and horse labor to a point where crop
yields and returns from livestock are reduced because of lack of sufficient well
directed labor.
Si"_e of Farm (Line 1)- When one finds that his farm is smaller than the most
profitable farms in his locality and his income is lov/ he may remedy the situation,
by buying or renting .additional land, or by gradually adopting a more intensive
or more specialized type of farming, on the other hand, if he finds that his farn;
is larger than the best farms and his income is low, he may profit by renting cut
Innd, or by planning so as to do more efficient v/ork on his present acreage.
Conclusion
1- Every farm operator can *ell afford to study his own farm business in the light
of these factors which have been discussed.
A. Crop yields, including the rotation of crops
B. Returns on the investment in livestock
C. The prcrpttion of returns from livestock
D. Use of Man Labor
E» Use of Horse Labor
F. Size of Farm.
2. There can be no improvement in farm management without some change in practices
used. Carefully planned and slowly developed changes are more likely to result
in increased incomes than are impiilsive and sudden changes of methods.
3, It is the well balanced farm that pays. One may have good crop yields and
make good use of, livestock, but receive a small net income because of inefficient
use of labor. Or one may work a large acreage per man and per horse, but fail
because of low crop yields or poor returns from livestock. A well balanced farm
vi'ith a fair degree of efficiency along all lines brings the operator good
returns v;hich enable him to maintain a high standard of li\-ing for his family.
SUMARY dP EIGH^ FARI.I BUSINESS RECORDS
JQ DAVIESS COJi-ITY - IS 22
Records secured and suimrn.rized by the Jo Da-'-iess
Coxinty Farm Bureau, Eli-.c.oeth, Illinois, and the
Derarti.ient of Farn Organization and Llanagenent,
University of Illinois, Urbana, Illinois, co-
operating.
Eight Jo Daviess Counter fairraers earned an average interest
rate of 5,0^ on an average capital investnent per farm of sp30,103
in 1922, Two of these farmers received an average of 7.9/S interest
on their investment v/hile two others earned an average of 2,4^o int-
erest.
The following table gives rather complete data for the eight
farms, for the two farms which earned the highest interest rates and
for the tv/o farms which earned the lowest rates, A blahic column has
been left in order that those who kept the books may write in the
records of their own farms in order to compare their work with
others who kept similar records,
J0_ DAV:.£S£ COUi^TY SUTvfl.IARY
1922
Your Average of Two Best Tv/o Poor-
Farm 3 Farms Farms est Farms
1, Size of Farm
2. Value of Land per Acre
^- Capital Investment - Total
4, Land
5, Buildings
6, Machinery and Equipment
7, Feed and Supplies
8, Livestock - Totr-l
9i Horses
10, Cattle
11.
12.
13.
Sheep
Swine
Poultry
14, Receipts "Ilet Increases-Total
15, Peed and Supplies
16. Miscellaneous
^ 170
I 141
$50103
sp2C9So
$ 4559
I 1131
^ 1040
c| 2350
J 661
■^ 11S9
1
18
343
t,
139
i
2345
9S4
'4
98
5 150
$ 95
#25705
155
'^ 864
^S 2085
5p 450
^5 1238
"1? ^
$ 279
ip '-113
f 3591
f 995
^ 223
9
$ 122
i 25468
$ 19000
I 2580
1
^' 1267
$ 1377
S 330
s?
858
§ 375
^ 2259
I
i
222
Your Average of Two 3est iVo Poor-
Pann 8 Farias Fa'rms est Farms
17. Livestock - Total
18. Horses
19. Cattle
2283
10
890
I
as
2373
15
915
196'.
909
20,
21.
22.
23.
Sheep
Sv/ine
Poultry
Mi s c ellanoou.s
36
1047
267
33
I
7
1152
284
$ 102S
I
24. Expenses -Net Decreases-Total
25.
26.
27.
28.
Parra Inproveinents
Machinery and Equipment
Feed and Supplies
Cash Expenses
29. Receipts less Expenses
30. Operators and Unpaid Family
Labor
31. Net Income from Investment
32. Rate of Interest Earned
33. Lahor and ITanagement V/age
34. Investment per Acre
35. Gross Receipts per- Acre
35. Total Expense per Acre
37. Net Receipts per Acre
1117
236
214
22
645
2223
714
15^4
48f
5,0^
^
^
?
s*
$
I
177 :'3
19.67 J
10.77 I
8.90 i
1154
231
267
566
2427
540
1887
7.9^
1191
158
23.94
11.36
12.58
^
I
1110
254
162
90
604
1149
517
632
2.4 ;
-154
16#-
14. 57
10.50
4.07
38', Man Labor Cost per Total Acre
39. Crop Acres per Ilan
40. Crop Acre'j per Horse
41. Percent of Farms with Tractors
in Crops
42.
Percent of Land
43 i
Corn - Acres
44.
Yield
45,
Oats - Acres
46.
Yield
47.
Wheat - Acres
48.
Yield
49.
Legumes - Acres
5.98 ^^
49,00
15,3
25,0^
54, 7,^^
30.0
56.4
13,0
36.5
4.0
16.2
15.0
4.49
58.2
17,4
50.0^
37.0
45,0
10.0
34,9
2,0
26.0
23,0
5.01
35.0
13.5
0.0/^
3'i.8/3
16,0
65.0
17.0
39,5
10.0
17,3
11.0
50. Percent of receipts from
Livestock
51, Return for
52, Returns
53. "
54.
55.
56.
li
it
It
I or
;t
n
II
m
100 invested in
LiverstOck
iorses
at tie
Sheep
Sv/ine
Poultry
f^lOO
It
(t
:i
:!
»
U
MP
68, 2|
#111.00
2.00
69.00
205.00
182.00
154.00
66.0^
$110.00
§ 3.00
$148,00
^230.00
i'?159.0C
C;i63.oo
.-/
86.9?
^|96.00
f-16.00
i 65.00
f 174, 00
I 68.00
3.
FACTORS WHICH MERIT SPECIAL ATTENTION
Interest Earned (Line 32) - The rate of interest earned is an excellent indi-
cation of the managing ability of the farm operator. This is particularly true in
regions where the average investment per farm is large. Anyone whose rate of inter-
est earned on the total farm investment is below the average for his locality can
well study the various factors which will indicate the source of a man's success or
failure. In this way he may locate the source of his difficulty. The follov^ing
paragraphs discuss the more important factors influencing farm earnings.
Crop Yields (Line 43 to 43 )- Good crop yields are among the most definite of
requirements for good incomes. One whose crop yields are low in comparison with
others working land of equal natural value can well study the practices of men who
secure higher yields. Men who secure the best yields pay special attention to rota-
tion of crops, seed, drainage, use of clover, use of manure, use of limestone and
phosphate where needed, preparation of seed beds, cultivation, and protection from
diseases, and insects.
Returns from QlOO Invested in Livestock (Line 51 to 56) - ViTiere any consider-
able part of the income of a farm is from livestock, this item merits special atten-
tion. Where the returns are below the average a careful study of the practices on
more successful farms may assist the operator to locate places where he can improve
his methods. The difficulty may be in a low percentage of calves, pigs, lambs, etc.
raised. It may be in lack of attention to sanitary arrangements and protection
from disease. In case of pure bred stock, it may be the inability to market the
young stock at prices in accord with the value of the breeding stock kept. In case
Oi pure bred stock, it may be the inability to mafcket the young stock at prices :.r
accord vn.th the value of the breeding stock kept. In case of stock feeding opera-
tions where feeders are purchased it may be in poor buying both as to time and price,
It may be in not producing the quality of stock which the market demands. The grow-
ing of sufficient legume forage to supply most of the protein requirements, careful
purchase and use of additional protein and mineral supplements, and the utilization
of roughage are among other important facto&s wrhich make possible the more economi-
cal production of livestock.
Per cent of Income from Livestock (Line 50) - In a region where the best pay-
ing farms receive a large proportion of their income from livestock, the less suc-
cessful farms will do well to consider increasing their income from livestock. This
may be done by improving the quality of livestock, by better feeding, sanitary and
breeding methods or by increasing the amount of livestock kept. In order to improve
the quality of livestock it has not usually proven profitable for a man to invest
in a considerable number of high priced pure bred stock at one time. It is a more
safe practice to grow the better stock by using good sires and occasionally picking
up good females. Neither is i±. i^guaily. wise.. for a. man who has never handled much
stock to buy up a large breeding herd or go suddenly into extensive feeding opera-
tions. In any case it is better to v/ork gradually into the livestock business,
building up equipment, breeding herds and feeding operations slowly, as one learns
to follow successful methods.
The Use of Man Labor and Horse Labor (Lines 39 and 40) - About sixty to eighty,
per cent of the cost of operating a farm, not including interest or rent charges,
is for man labor and horse labor. If a tractor is used the labor is usually
reduced, but the machinery expense is increased about in proportion. At present
values of feed it costs approximately $100 per year to keep one work horse. If a
man finds that he is working fewer crop acres per man or per horse than the aver-
" "-e farmer working under similar conditions, he can well study his situation care-'
fully with the idea of cutting down this expense. The changing to a more
c ireful ly planned rotation of crops is probably the way in which most men can best
4.
■jsdnce the man and korse labor costs. Such a rotation should be chosen so as to •• ■
"void having a very large labor requirement at any one time, and so as to require a
•■•jiifonn amount of nan and horse labor from early spring until late fall. The feed-
ing dov/n of crops and use of enough livestock to utilize labor at seasons v;hgn field
v/ork is light are two ether very definite means of increasing the efficiency in the
use of labor. YJhile the working of a large number of crop acres per man and per
horse is desirable, a study of hundreds of records from over the state indicates thai
some men have reduced the amount of both man and horse labor to a point where crop
yields and returns from livestock are reduced because of lack of sufficient well
d:'..'octed labor.
.Si^e .of .Farm (Line 1)- YiJhen one finds that his farm is smaller than the most
profitable farms in his locality and his income is low he may remedy the situation,
by buying or renting .additional land, or by gradually adopting a more intensive
or more specialized type of farming, on the other hand, if he finds that his farm
is larger than the best farms and his income is low, he may profit by renting out
iTnd, or by planning so as to do more efficient work on his present acreage.
Conclusion
1. Every farm operator can *ell afford to study his own farm business in the light
of these factors which have been discussed.
A. Crop yields, including the rotation of crops
B. Returns on the investment in livestock
C. The prcTp«;ion of returns from livestock
D. Use of Man Labor
E. Use of Horse Labor
F. Size of Farm.
2. There can be no improvement in farm management without some change in practices
used. Carefully planned and slov/ly developed changes are more likely to result
in increased incomes than are impulsive and sudden changes of methods.
3. It is the well balanced farm that pays. One may have good crop yields and
make good use of livestock, but receive a small net income because of inefficient
use of labor. Or one may work a large acreage per man and per horse, but fail
because of low crop yields or poor returns from livestock. A well balanced farm
with a fair degree of efficiency along all lines brings the operator good
returns which enable him to maintain a high standard of livinj; for his family.
I
3U]\2.IAnY OF THIRTEEN FAPM JuSIi'4::j:SS i^iJuiDS
lUNE COUNTY - -L9'^2
Records sacured arn-. summarized by the Kane
County Farm Bureau, Geneva, Illinois, and
the Department of Farm Organization and
Hanagemeht, University of Illinois, Urbana,
Illinois, co-operating.
Thirteen Kane County farmers earned an average interest rate of
3,2^ on an average capital investment per farm of $45,356 in 1922,
Four of these farmers received an average of 5,3^ interest on their
investment while four others earned an average of 0,4^ interest.
The following table gives rather complete data for the thirteen
farms, for the four farms v/hich earned the highest interest rates and
for the four farr.is which earned the lowest rates. A blank column
has been left in order that those who kept the books maj/" v/rite in the
records of their own farms in order to compare their v/ork with others
who kept similar records,
KANE CQUl^'TY S'UIMAHY
19 2 2
Your . --^rage of Four Best Sour Poor-
Farm ^3 Farms Farms est Parm.s
1. Size of Farm
2. Value of Land per Acre
3. Capital Investment-Total
164
f 205
$45356
165
it) 223
i#50208
<1;
142
3 188
b5771
4,
Lajid
5, Buildings
6, Machinery and Equipment
7, Feed and Supplies
8, Livestock - Total
9, Horses
.0, Cattle
.1,
Sheep
.2,
Swine
.3.
Poultry
14. Recei]pts -Net Increr.se-^Tot.
5, Feed and Supplies
6, Miscellaneous
^33685
.7=4752
f 1593
'4 14S4
3862
614
S 344
&5 159
3 4563
$ 531
$ 273
S37750
Tp 4831
f 1524
;^ 1600
Jp 4453
$ 537
S 3006
^ 73G
qi) 1"^3
'S 5705
^ 403
§ 219
$26901
cp oxlo
^ 1302
^p 1386
J 3069
sp 613
$ 2208
f 150
^ 98
^ ^o 1,-.
-a o34cy
$ 20 C
2.
Youp Average of Four Best Pour Poor*
Parra 13 Parms Farms est Farms
17. Livestock - Total
18. Horses
19. Cattle
20. Sheep
21. Swine
22. Poultry
23. Miscellaneous
24. Expenses-Net Decreases-Total
25. Farm Improvements
25. Machinery and Equipment
27, Cash Expenses
2 3. P3 3d --nd Supplies
29, Receipts less Expenses
30, Operators and Unpaid Family
Labor
31, Net Income from Investment
32, Rate of Interest Earned
33, Labor and Management IVaga
54. Investment per Acre
35. Gross Receipts per Acre
36. Total Expenses per Acre
37. Net Receipts per Acre
38, Man Labor Cost per Tot, Acre
39. Crop Acres per Man
40, Crop Acres per Horse
41, Percent of Farms with Tractor
42, Percent of Land in Cpops
43.
Corn - Acres
44.
Yield
45.
Oats - Acres
45,
Yield
47.
VJheat - Acres
48,
Yield
49.
Legumes
50, % Receipts from Livestock
51, Returns for $100 Invested in
Livestock
52, Returns for ilOO in Horses
" " " Cattle
'' '' " Sheep
■•' " ■■' Ssyjme
" '' " Poultry
53.
II
54,
>i
55.
It
56,
It
% 3964
^! -35
% 2961
% 116
% 444
f 256
% 22
2268
430
445
1256
4 13 7
% 2300
$ 857
% 1443
3,2^
% -333
f 277
5 27.85
f 19.05
% 8.80
% 7.95
55,5
21.9
38.4^
73.1^
41,0
56.9
19,0
55,7
8.0
29,6
16,0
82.4,<
.J 115,20
S; -5.98
% 105.70
f 132,70
% 158,30
\^ 5083
$ - 25
$ 4001
$746
I 3554
- 15
% 2630
I
s,'
% 377
% 419
i ^^?
f 2993
% 797
S 385
% 1521
i 290
f 856
$ 1091 % 700
% 2675 % 156
5,3^ 0,4^
% 565 $-1123
302
%
251
34.57
6
:.27.10
18,36
%
26.00
16,21
%
1.10
9.12
$
9.48
49.6
48.5
20.7
21.7
25,0^
0.0^
72,1^
80,0^
46,0
40.0
60.5
51.5
20,0
16.0
62,3
43,7
7,5
4.0
24,0
30.0
29,0
9.0
89.9$^
92,3^
122.30
1
141.90
-4.6fl^7
if
-2.45
120.60
H?
117,80
109,20
1
226 c6P
195,00
147. .or
iv;
re—
■ .- I
;.f •
<^\L
3.
FACTOR? VJT-'ICH ^gRIT SPECIAL ATTENTION
In tar e st ^Earn e d (L:lno_.Vp) - The rate of interest earned is an excellent indi-
catrcn c- ths managing sbiliiy of the farm operator. This is particularly true in
regions v/here the average investnent per farm is large. Anyone whose rate of inter-
est earned on the total farm investment is below the average for his locality can
well study the various factors v/hich will indicate the source of a man's success or
failure. In this way he may locate the source of his difficulty. The following
paragraphs discuss the more important factors influencing farm earnings.
Crop yields (L^ne 43 to 43)- Good crop yields are among the most definite of
requirements for good incomes. One whose crop yields are low in comparison with
others working land of equal natural value can well study the practices of men \7\i0
secure higier yields. Men who secure the best yields pay special attention to rota-
tion of crops, seed, drainage, use of clover, use of manure, use of limestone and
phosphate where needed, preparation of seed beds, cultivation, and protection from
diseases, and insects.
Returns from QlOOJnyested in Livestock (Line 51 to 56) - Where any consider-
able part of the ir.come of a farm is from livestock, this item merits special atten-
tion. Where the returns are below the average a careful study of the practices on
more successful farms may assist the operator to locate places where he can improve
his methods. The difficulty may be in a low percentage of calves, pigs, lambs, etc.
raised. It may be in lack of attention to sanitary arrangements and protection
from disease. In case of pure bred stock, it may be the inability to market the
young stock at prices in accord with the value of the breeding stock kept. In case
of pure bred stock, it may be the inability to mafeket the young stock at prices in
accord with the vcilue of the breeding stock kept. In case of stock feeding opera-
tions where feeders are purchased it may be in poor buying both as to time and price.
It may be in not producing the quality of stock which the market demands. The grow-
ing of sufficient legume forage to supply most of the protein requirements, careful
purchase and use of additional protein and mineral supplements, and the utilization
of roughage are among other important facto&s which make possible the more economi-
cal production of livestock.
per cent of Income from Livestock (Line 50) - In a region where the best pay-
ing farms receive a large proportion of their income from livestock, the less suc-
cessful farms will do well to consider increasing their income from livestock. This
may be done by improving the quality of livestock, by better feeding, sanitary and
breeding methods or by increasing the ajnount of livestock kept. In order to improve
the quality of livestock it has not usually proven profitable for a man to invest
in a considerable niomber of high priced pure bred stock at one time. It is a mo^e
safe practice to grow the better stock by using good sires and occasionally picking
up good females. Neither is it', r^gually _Ti6e..for a. man who has never handled mvch
stock to buy up a large breeding herd or go suddenly into extensive feeding opera-
tions. In any case it is better to work gradually into the livestock business,
building up equipment, breeding herds and feeding operations slowly, as one learns
to follow successful methods.
The Use of Man Labor and Horse Labor (Lines 39 and 40) - About sixty to eighty
per cent of the cost of operating a farm,, not including interest or rent charges,
is for man labor and horse labor. If a tractor is used the labor is usually
reduced, but the machinery expense is increased about in proportion. At present
values of feed it costs approximately OlOO per year to keep one work horse. If a
man finds that he is working fewer crop acres per man or per horse than the aver-
age farmer working under similar conditions, he can well study his situation care-
f illy with the idea of cutting dovm this expense. The changing to a more
carefully planned rotation of crops is probably the way in which most men can best
4«
.od.ce the man and horse labor costs. Such a rotation should be chosen so as to -• •
?'-vo?.Q having a very Ir.rge labor requirement at any one time, and so as to require a
vxii orn ar.iouiit of man and horss later from early spring until late fall. The feed-
ii-'g dov.Ti of crops and v.7.b of enough livestock to utilize labor at seasons v/hen field
v/orK is light are tv;o ot.her ver-/ definite means of increasing the efficiency in the
use of labor. V^iile the viorYAr.g of a large number of crop acres per man and per
horse is desirable, a study of hundreds of records from over the state indicates that
some men have reauced the amoJ^a'c of both man and horse labor to a point where croj-
73 elds and returns from livestock are reduced because of lack of sufficient well
directed labor.
Size_of Farm (Linel)- VJhen one finds that his farm is smaller than the most
profitable farms in his locality and his income is low he may remedy the situation,
by buying or renting .additional land, or by gradually adopting a more intensive
or more specialized type of farming. 0" the other hand, if he finds that his farm
is larger than the best farms and his income is low, he may profit by renting out
Irnd, or by planning so as to do more efficient work on his present acreage.
Conclusion
1. Every farm operator can *ell afford to study his own farm business in the light
of these factors which have been discussed.
A» Crop yields, including the rotation of crops
B. Returns on the investment in livestock
C. The prc^tion of returns from livestock
D. Use of Man Labor
E. Use of Horse Labor
F. Size of Farm.
2. There can be no improvement in farm management without some change in practices
used. Carefully planned and slowly developed changes are more likely to result
in increased incomes than are impulsive and sudden changes of methods.
3. It is the well balanced farm that pays. One may have good crop yields and
make good use of livestock, but receive a small net income because of inefficient
use of labor. Or one may work a large acreage per man and per horse, but fail
because of low crop yields or poor returns from livestock. A well balanced farm
with a fair degree of efficiency along all lines brings the operator good
returns which enable him to maintain a high standard of living for his family.
SUiallARY OF ELgVSJM_ FAlu/i 3USIHga3 K^CqigS
'LOREMCE county" 1922
Records secured and surm-aarized 'oj the
Lawrence County Farm Bureau, Lav/renceville
Illinois, and the Department of Fann
Organisation and Hanagerasnt, Univeroity of
Illinois, Urbana, Illinois, co-operating.
Eleven Lav/rence County famers earned an average interest rate
of 1,4% on an average capital investment per farra of $249'x8 in 1922.
Three of these farmers received an average of 4.2/b interest on their
investment while three others earned an average of 0,02% interest.
The folloY/ing table gives rather ' .laplete data for the eleven
farms, for the three farras v/hich earned the highest interest rates aiid
for the three farms v/hich earned the lowest rates. A blank column
has been left in order that those who kept the books may v\n?ite in
the records of their own farms in order to compare their v/ork with
others who kept similar records,
•LAV/FJilIIGE COJNTY SmuixARY
19 2 2
Your Average of Three Three Poor-
Farm 11 Farms Best Farms est Farms
1. Size of Farm
2. Value of Land per Acre
3. Capital Investm.ent - Total
4 • Land
5. Buildings
6. Machinery and Equipm^ent
7. Feed and Supplies
3. Livestock - Total
9. Horses
le. Cattle
11. Sheep
1 2. Swine
i 3. Poultry
14. Receipts-Net Increase
15, Peed and Supplies
15, Miscellaneous
- Total
I
186
f 108
$24948
$20047
'*■ 1950
811
'4 735
$ 1405
J 554
% 568
47
292
144
1889
706
44
115
^1 53
$tT702
f 7817
^ 1520
$ 327
$ 661
Jp 1377
f 535
$ 392
t
i
72
233
145
to 1555
I 485
s? 12
178
$ 145
$32220
•5 2648
f 862
$ 858
^- 2159
989
583
100
'S 270
'4 197
5i 1607
j| 547
•IV 11
Your Average of
Farn 11 .Farms
Three
Best
Farms
Three
Poorest
Farms
^^ • Livestock - Total
10. Horses
19. Cattle
$1139,
$ 193
$1058.
^ -76
$ 263
Si 249 .
} 21.
J 296.
20.
§1.
22.
23.
Sheep
Swine
Poultry
Miscellaneous
$ 12
* 57
(Jo 530
$ 263
I 21
^ 57
t
I
602
250
23
24. Expenses -Net Decreases
-Total
25. Farm Improvements
26. Machinery and Equip-
nent
27. Feed and Supplies
28. Cash Expenses
29. Receipts less Expenses
30. Operators and Unpaid
Family Labor
31. Net Income from
Investment
32. Rate of Interest Earned
33. Labor and Management
Wage
% 995
$ 178
$ 215
$ 502
$ 894
$ 539
$ 355
1.4^
$-428
$ 618
J 141
78
$ 399.
$:'938
SP
' 441
$ 497
4.;
$ 323
$1001
$
^^ 167
$ 234
$ 60Q
$ 605
$ 600
$
6
0.02^
$-1059
34. Investment per Acre
35, Gross Receipts per Acre
36. Total Expenses per Acre
37, Net Receipts per Acre
^-^ 134
I 10.15
I
3.25
1.90
i
102
15,53
9.21
4.32
HP
Sj>
181
9.02
8,99
0,03
38. Man Labor per Total Acres
39. Crop Acres per Man
40, Crop Acres per Horse
41, Farms with Tractors, Per-
cent
81.2
20.0
27.2^
4.46
70,8
12,0
00.0^
$ 4.55
67,7
15,1
33,3^
42, Percent of Land in Crops
I- 43. Corn - Acres
44. Yield
i 45, Oats - Acres
' 46, Yield
47, V'iheat - Acres
I 48. Yield
' 49. Legumes - Acres
69.4^
41.0
36.0
9.0
4.0
43.0
12.6
16.0
70.0^
17,0
38.9
27.0
10.7
29.0
54.0^
.■i2.0
38.9
11.0
3.0
23,0
5,2
15,0
50. Receipts from Livestock
51. Returns for $100 Invested
in Livestock
52. Returns for $100 in Horses
53. " '' " " Cattle
54. " '-' " " SheeD
55. " " " ■' Sv;ine
56. " " " " Poultry
60.2^
/"
$137.00
s? -3.00
$ 53.00
$ 67.00
$222.00
$194,000
67.9%
$128.00
$ -2.00
I 67.00
$ 8©, 00
$19€>.00
$180,00
11,1%
$ 105,00
$ 2.00
$ ^.00
$ 58.00
$ 215.00
$ 132.00
I
I^CZQRPj:J]f_ICH MFRIT SPECIAL ATTENTION
In t are 3 1 ^Ear n e d (Lino_3_t) - The rate of interest earned is an excellent indi-
>i&i'.*.u .:■ the mcui&giiig f^billiy of the farm operator. This is particiiLarly true ir.
regions where the average investment per farm is large. Anyone whose rate of intei'-
©gt earned on the total farm investment is below the average for his locality can
•"ell study the various factors v;hich will indicate the source of a man*s success or
failure. In this way he may locate the source of his difficulty. The following
paragraphs discuss the m.ore important factors influencing farm earnings.
Crop Yields (T^ine 43 to 43)- Good crop yields are among the most definite of
requirements for good incomes. One whose crop yields are low in comparison with
others working land of equal natural value can well study the practices of men who
secure higher yields. Men who secure the best yields pay special attention to rota-
tion of crops, seed, drainage, use of clover, use of manure, use of limestone and
'-jsyhate where needed, preparation of seed beds, cultivation, and protection fron
diseases, and insects.
Returns from QlOO Invested in Livestock (Line 51 to 56) - Where any consider-
able part of the income of a farm is from livestock, this item merits special atten-
tion. VJhere the returns are below the average a careful study of the practices on
more successful farms may assist the operator to locate places where he can improve
his methods. The difficulty may be in a low percentage of calves, pigs, lambs, etc,
raised. It may be in lack of attention to sanitary arrangements and protection
from disease. In case of pure bred stock, it may be the inability to market the
young stock at prices in accord with the value of the breeding stock kept. In case
of pure bred stock, it may be the inability to mafeket the young stock at prices in
accord with the value of the breeding stock kept. In case of stock feeding opera-
tions where feeders are purchased it may be in poor buying both as to time and price.
It may be in not producing the quality of stock which the market demands. The grow-
ing of sufficient legume forage to supply most of the protein requirements, careful
purchase and use of additional protein and mineral supplements, and the utilization
of roughage are among other important facto&s which make possible the more economi-
cal production of livestock.
Per cent of Income from Livestock (Line 50) - In a region where the best pay-
ing farms receive a large proportion of their income from livestock, the less suc-
cessful farms will do v/ell to consider increasing their income from livestock. This
may be done by improving the quality of livestock, by better feeding, sanitary and
breeding methods or by increasing the amount of livestock kept. In order to improve
the quality of livestock it has not usually proven profitable for a man to invest
in a considerable number of high priced pure bred stock at one time. It is a more
safe practice to grow the better stock by using good sires and occasionally picking
up good females. Neither is it. neually .■a?i5e.,for a.tnan who has never handled much
stock to buy up a large breeding herd or go suddenly into extensive feeding opera-
tions. In any case it is better to v;ork gradually into the livestock business,
building up equipment, breeding herds and feeding operations slowly, as one learns
to follow successful methods.
The Use of Man Labor and Horse Labor (Lines 39 and 40) - About sixty to eighty
per cent of the cost of operating a farm, not including interest or rent charges,
is for man labor and horse labor. If a tractor is used the labor is usually
reduced, but the machinery expense is increased about in proportion. At present
values of feed it costs approximately OlOO per year to keep one work horse. If a
man finds that he is working fewer crop acres per man or per horse than the aver-
age farmer working under similar conditions, he can well study his situation care"
fully with the idea of cutting down this expense. The changing to a more
carefully planned rotation of crops is probably the way in which most men can best
1
4.
reduce the man and horse labor costs. Such a rotation should be chosen so as to •
•"•rrd having a very large labor requirement at any one time, and so as to require a
•■Jiiiorm anount of man and horse labor from early spring until late fall. The feed-
ing eo'.Tn of crops and use of enough livestock to utilize labor at seasons v/hen fie?
v/crk is light are tv;o crther very definite means of increasing the efficiency in the
use of labor. \¥hile the working of a large number of crop acres per man and per
horse is desirable, a study of hundreds of records from over the state indicates tha-
seme men have reduced the amovrnt of both man and horse labor to a point where crop
yields and returns from livestock are reduced because of lack of sufficient well
directed labor.
Size of Farm (Line 1)- TJhen one finds that his farm is smaller than the most
profitable farms in his locality and his income is lova he may remedy the situation,
by buying or renting .additional land, or by gradually adopting a more intensive
or more specialized type of farming. 0" the other hand, if he finds that his farm
is larger than the best farms and his income is low, he may profit by renting cut
Irjnd, or by planning so as to do more efficient work on his present acreage.
Conclusion
1. Every farm operator can *ell afford to study his own farm business in the li^it
of these factors which have been discussed.
A. Crop yields, including the rotation of crops
B. Returns on the investment in livestock
0. The prc.733.tion of returns from livestock
D. Use of Man Labor
E» Use of Korse Labor
F. Size of Farm.
2. There can be no improvement in farm management without some change in practices
used. Carefully planned and slowly developed changes are more likely to result
in increased incomes than are impulsive and sudden changes of methods.
3. It is the well balanced farm that pays. One may have good crop yields and
make good use of livestock, but receive a small net income because of inefficient
use of labor. Or one may work a large acreage per man and per horse, but fail
because of low crop yields or poor returns from livestock. A well balanced farm
with a fair degree of efficiency along all lines brings the operator good
returns v/hich enable him to maintain a high standard of living for his family.
SUMI^!ARY OF FIFTEEI'I FARM EUSIi'ESS RECORDS
LEE COUMTir - 1922
Records secured and suramarized by the Lee County
Farm Bureau, Amboy, Illinois, and the Department
of Farm Orgaj^ization and Management, University
of Illinois, Urbana, Illinois, co-operating.
Fifteen Lee County farmers earned an average interest rate of 4.97, o" ^"^
average capital investment per farm of 060,529 in 19 22. Five of these fanners
received an average of 8.1^ interest on their investment while five others earned
an average of 2.0^.
The follov/ing table gives rather complete data for the fifteen farms, for
the five farms which received the highest interest rates, and for the five farms
v/hich earned the lov/est rates. A blank column has been left in order that those '.vho
kept the books may write in the records of their ovm farms in order to compare their
work 7/ith others who kept similar recordso
LEE com-iTY smmmY
19 2 2
Your Average of 5 Highest 5 Lowest
Farm 15 Farms Farms Farmj
1. Size of Farm
2. Value of Land per Acre
3. Capital Investment - To'^a"'
254.6
213
$60529
267.6
215
064549
273.8
209
064322
4tz%- Band and Buildinea
6. Machinery and Equ^-pment
7. Feed and Supplies
054124
0 1636
0 1735
057542
0 1791
0 1792
057223
0 1?05
0 2138
8.
Livestock - Total
9.
Horses
10.
Catxl8
11.
Sheen
12.
Swine
13.
Poultry
14. Receipts-Net Jncnaases
15. Feed and Supplies
16. Miscellaneous
0 945
0 1238
66
0
0 6<4
0 141
0 5732
0 2j98
0 ei
0 3434
0 1139
0 1082
0 132
0 843
0 168
0 8315
0 3786
V 1
0 3258
0 752
0 1740
0 35
'•■ 521
'^ 107
0
0 4507
0 1551
0 40
I
^.rv-*tv
'.T>\
'•fi'.na A' .'.■--.•'
__^.y ,^ /•ijt/lr.v^
*<c»*
17. Livestock - Total
18. Horses
19. Cattle
20. Sheep
21. Swine
22. Poultry
234 Miscellaneous
24* Expenses-Net Decreases-Total
2fei Farm Improvements
36. Machinery and Equipment
37, Feed and Supplies
28, Cash Expenses
29. Receipts less Expenses
30". Operators and Unpaid Family
Labor
31c Net Income from Investment
32. Rate of Interest Earned
33. Labor and Management Wage
34. Investment per Acre
35. Gross Receipts per Acre
36. Total Expense per Acre
37. Net Receipts per Acre
38. Man Labor Cost per Total Acre
39. Crop Acres per Man
40. Crop Acres per Horse
41- Per cent of FarcE v/ith Tractors
42. Per cenl; ox l,a:i'-l in C":,ps
43. Corn - Acre.-
44. yisld
45.. Oats - Acres
46. Y5e?d
47. TMieat - Pr.-es
48. Y-iijA
49. Legumes —Acres
50- % Receipts from Livsctook
51. Returns for .;)100
In •yo'.bu i
52.
in H'.-.-Leg
53. "
" O-x-y^-lj
54. " "
" P.h.3''j
35. "
" EJ.L'-.a
55.
" poultrj;-
L->5v
Your
Average of
5 Highest
5 Lov/est
?"arm
15
Forms
Far
ms
Farms
0
3053
0
4528
0
2916
$
-75 •
e
O02
s
-62
e
1223
A
16!:4
0
1523
0
264
0
6€4
0
33
§
1379
0
1936
0
1261
$
227
§
:-:33
0
137
0
35
A
V>
33
A
£4
0
2077
A
2319
A
24: 1
0
^542
0
264
A
D48
0
509
0
424
0
69 6
3
$
(J
10
0
1323
A
V
1631
$
1460
A
V
3655
$0
599 6
A
2093
0
579
0
727
A
760
0
2976
4.9/,
0
5259
•s.i/
$
1333
2,0/
0
480
^
2542
§-
■1343
$
238
0
341
A
234
$
2e-iii
A
31,07
$
16.46
0
10.82
A
11.37
0
]i.r?
0
11.69
A
19.70
4.B7
$
4,r,6
80<3
22.5
20.0/
V2„5/
53.6
54,1
47,3
•:.,8
25.5
53 r.2%
0
5.14
77."
24.0
20, U
79.0^
99.6
56,8
69.0
53»7
^.4
25.0
3c8
54 „ 4/
$
4,82
B2.8
25 o 7
71,4/
8 A. 8
53,7
50.8
44.1
13,0
20,1
11.4
64.7/
$
lO-Je.-V/
A
160.1?
$
9 6.54
Si-
-B.40
§
-^-F\,89
^
■8.92
§
79.5-5
0
113.37
■,?
7C .49
s
252. n
A
316,40
$
58,51
$
18? -,81
0
17V- .14
^
165.71
$
j.61.73
A
216.37
5
131.34
I
"C
FACTORS VJPXCH MERIT SPECIAL ATTCNTTON"
Interest Earned (Line 32) - The rate of interest earned is an excellent indi«
cation of the managing ability of the farm operator. This is particularly true ii^
regions v;here the average investment per farm is large. Anyone whose rate of iii':.'.r-
est earned on the total farm investment is below the average for his locality can
ell study the various factors which will indicate the source of a man's success or
failure. In this way he may locate the source of his difficulty. The following
paragraphs discuss the more important factors influencing farm earnings.
Crop Yields (Line 43 to 43)- Good crop yields are among the most definite of
requirements for good incomes. One whose crop yields are low in comparison with
c'-hers working land of equal natural value can well study the practices of men wl^o
secure hi^er yields. Men who secure the best yields pay special attention to rota-
tica of crops, seed, drainage, use of clover, use of manure, use of limestone and
phosphate where needed, preparation of seed beds, cultivation, and protection from
diseases, and insects.
Returns from $100 Invested in Livestock (Line 51 to 56) - Where any consider-
able part of the income of a farm is from livestock, this item merits special atten-
tion. VJhere the returns are below the average a careful study of the practices on
more successful farms may assist the operator to locate places where he can improve
his methods. The difficulty may be in a low percentage of calves, pigs, lambs, etc,
raised. It may be in lack of attention to sanitary arrangements and protection
from disease. In case of pure bred stock, it may be the inability to market the
young stock at prices in accord v;ith the value of the breeding stock kept. In case
of pure bred stock, it may be the inability to matket the young stock at prices in
cccord with the value of the breeding stock kept. In case of stock feeding opera-
tions where feeders are purchased it may be in poor buying both as to time and price.
It may be in not producing the quality of stock which the market demands. The grow-
ing of sufficient legume forage to supply most of the protein requirements, careful
purchase and use of additional protein and mineral supplements, and the utilization
of roughage are among other important factofes which make possible the more economi"
cal production of livestock.
Per cent of Income from Livestock (Line 50) - In a region where the best pay-
ing farms receive a large proportion of their income from livestock, the less suc-
cessful farms will do well to consider increasing their income from livestock. This
may be done by improving the quality of livestock, by better feeding, sanitary and
breeding methods or by increasing the amount of livestock kept. In order to improve
the quality of livestock it has not usually proven profitable for a man to invest
in a considerable number of high priced pure bred stock at one time. It is a more
safe practice to grow the better stock by using good sires and occasionally picV-n;
up good females. Neither is It. rjguaily .wise..for a.aan who has never handled much
stock to buy up a large breeding herd or go suddenly into extensive feeding opera-
tions. In any case it is better to work gradually into the livestock business,
building up equipment, breeding herds and feeding operations slowly, as one learns
to follow successful methods.
The Use of Man Labor and Horse Labor (Lines 39 and 40) - About sixty to eighty
per cent of the cost of operating a farm, not including interest or rent charges,
is for man labor and horse labor. If a tro-ctor is used the labor is usually
reduced, but the machinery expense is increased about in proportion. At present
valuas of feed it costs approximately $100 per year to keep one work horse. If a
man finds that he is working fewer crop acres per man or per horse than the aver-
age farmer working under similar conditions, he can well study his situation care-
fully with the idea of cutting down this expense. The changing to a more
carefully planned rotation of crops is probably the way in which most men can besl-
■ 4.
reduce the man and horse labor costs. Such a rotation should be chosen so as to
?-void having a very large labor requirement at any one time, ajid so as to require a
imiform amount of man and horse later from early spring until late fall. The feed-
ing down of crops and use of enough livestock to utilize labor at seasons ^en field
\vork is light are two ccther very definite means of increasing the efficiency in the
use cf labor. While the Y/orking of a large nxunber of crop acres per man and per
horse is desirable, a study of hundreds of records from over the state indicates that
some men have reduced the aimou-nt of both man and horse labor to a point where crop
yields and returns from livestock are reduced because of lack of sufficient well
directed labor.
Size of Farm (Line 1)- When one finds that his farm is smaller than the most
profitable farms in his locality and his income is low he may remedy the situation,
by buying or renting .additional land, or by gradually adopting a more intensive
or :nore specialized type of farming. 0^^ the other hand, if he finds that his farm
is larger than the best farms and his income is low, he may profit by renting out
l^rnd, or by planning so as to do more efficient v/ork on his present acreage.
Conclusion
1. Every farm operator can *ell afford to study his own farm business in the liglit
of these factors which have been discussed.
A. Crop yields, including the rotation of crops
B. Returns on the investment in livestock
C. The prcjprfcion of returns from livestock
D. Use of Man Labor
E. Use of Horse Labor
F. Size of Farm.
2. There can be no improvement in fann management without some change in practices
used. Carefully planned and slowly developed changes are more likely to result
in increased incomes than are impulsive and sudden changes of methods.
3. It is the well balanced farm that pays. One may have good crop yields and
make good use of livestock, but receive a small net income because of inefficient
use of labor. Or one may work a large acreage per man and per horse, but fail
because of low crop yields or poor returns from livestock. A well balanced farm
with a fair degree of efficiency along all lines brings the operator good
returns v/hich enable him to maintain a high standard of li'<ring for his family.
SUI.'HIARy OF TEN FARI'd BUSIrlSSS RECORDS
M0!^i-(OE COUil'i'Y - i'd'^
Records secured and suimiiarized by the Monroe
County Farra Bureau, Waterloo, Illinois, and the
Department of Farra Organization m d Management,
University of Illinois, Urbana, Illinois,
co-operating.
Ten Monroe County Farmers earned an average interest rate of 3.7^
on an average capital investment per farm of s?23,320 in 1922. Three of
these fanners received an average of 6,9/^ interest on their investment
while three others lacked an average of 0,9^ of earning any interest.
The follov/ing table gives rather complete data for the ten
farms, for the three farms which earned the highest interest rates aid
for the three farms v/hich earned the lov/est rates, A blanlc coluraSi has
been left in order that those who kept the books may v/rite in the
records of their own farms in order to compare their work with others
who kept similar records,
MONROE GOUIJTY SUMMARY
1922
Your Average of
Farm 10 Farms
Three Best
Farms
Three Poor'
est Farms
1, Size of Farm
2, Value of Land per Acre
3, Capital Investment - Total
4, Land
5, Buildings
6, Machinery and Eqiipment
J7, Feed and Supplies
8, Livestock - Total
9.
r
'11.
,12,
13.
Horses
Cattle
Sheep
Swine
Poultry
:l'i. Receipts -Net Increases -Tota!
15. Feed and Supplies
16, Miscellaneous
191
f 83
§23320
|15889
S 2S6^i
$ 237^:
^ 1047
1146
555
251
8
200
132
■ 2999
& 1602
^ 267
184:'*'
f 104
$30471
^20989
$ 3134
$ 3029
(^ 1759
f 1560
$ 592
$ 444
S 323
i 201
$ 4760
i\ 2554
9 326
168
63
1^15546
|10650
I 1825
if 1335
P 829
906
481
178
^ 25
^ 112
110
^1609
788
to 94
Your
Farn
Average
of 10
Farms
Three
Best
Farns
Three
Poorest
Pams
17,
Livestock - Total
18.
Horses
19.
Cattle
20.
Sheep
21.
Sv;lne
22.
Poultry
23.
Miscellaneous
24.
Expenses -Net Decreases
Total -
■r
25.
Farn
Inprovenents
25.
Machinery and Equip-
raent
27.
Peed
and Supplies
28.
Cash
Expenses
20. Receipts less Expenses
30, Operators and Unpaid Far.iily
Labor
31, Wet Incone fron Investnent
32, Rate of Interest Earned
55. Labor and Manager.ient IVage
34, Investr.ient per Acre
35* Gross Receipts per Acre
36. Total Expense per Acre
37, Net Receipts per Acre
JiA150 .
f -72
$ 327
t
^ 454
ffi 595
i;^ 23
;i|l424
:# 152
§ 502
^ 770
i^l575
$13G0
|-150
$ 621
t
714
636
iil754
$ 274
$793
g 687
$3006
'4 705 ;tp 693
iff 870 $2113
3.7^ 6.9^0
iff 129 $1049
i)p 122 tjs 151
4 15,73 -^ 25.56
f 11.17 iff 13.10
^ 4.d§" $ 10.46
727
-34
$ 177
1?
o
2G4
274
18
$1148
i 160
'4 726
$ 461
$ 609
$-143
-O.S
0-463
92
9.57
10.45'
-0.83
38. Man Labor Cost per
Total Acre
39. Crop Acres per Man
40. Crop Acres per Horse
41. Per cent of Farns v/ith
Tractors
42. Percent of Land in Crops
43. Corn - Acres
44. Yield
45. Oats - Acres
46. Yield
47. ViJheat - Acres
48.
Yield
49. Legunes - Acres
50.
51.
Percent Receipts fron
Livestock
Return for $100 invested
in Livestock
52.
Returns
for $100 in
Horses
53.
II
It It It
Cattle
54.
11
11 11 It
Sheep
55.
It
ts ir n
Swine
56.
tr
!I 11 li
Poultry
0
h>2i 0
62.7
23.7
64.8$
30.9
42,8
18.2
59.0
13.3
26.0
5.33
76.1
26.2
A
40.0^ 33.5^
11,1%
48.0
45.4
2.0
25.0
76.0
12.8
29.0
5.38
57.4
23,5
0.0^
65.3^
19.0
44.6
7.0
17,1
54.0
12.4
27.0
37.7>t 39.5^ 45.1^
$180.00 $191.00 $157.00
iL-14.00 ^j-28.00 $ -5.00
$131.50 $138.00 $109.00
$ 35.70 iff $ 36.00
$130.67 $137.00 $166,00
$246.00 ;p302.00 $215,00
FACTORP V;;-'ICH TJFRIT SPECIAL ATTENTION
In_+..3rest Earned (Lipo_3r,) - The rate of interest earned is an excellent indi-
catrcn o: the Karisgir.g sbillty of the farm operator. This is partictdarly true in
regions v;here the average investr.ent per farm is large- Anyone whose rate of inter-
est earned on the- total farm investment is below the average for his locality can
well study the various factors v/hich will indicate the source of a man*s success or
failure. In this way he may locate the source of his difficvilty. The following
paragraphs discuss the more importajit factors influencing farm earnings.
Cr^opjyields (Line 43 to 43)- Good crop yields are among the most definite of
requirements for good incomes. One whose crop yields are low in comparison with
others working land of equal natural value can well study the practices of men who
secure higher yields. Men who secure the best yields pay special attention to rota-
u.'on of crops, seed, drainage, use of clover, use of manure, use of limestone and
phosphate where needed, preparation of seed beds, cultivation, and protection from
diseases, and insects.
Returns from $100 Invested in Livestock (Line 51 to 56) - Where any consider-
able pai-t of the ir.come of a farm is from livestock, this item merits special atten-
tion. liVliere the returns are below the average a careful study of the practices on
more successful farms may assist the operator to locate places where he can improve
his methods. The difficulty may be in a low percentage of calves, pigs, lambs, etc.
raised. It may be in lack of attention to sanitary arrangements and protection
from disease. In case of pure bred stock, it may be the inability to macfcet the
young stock at prices in accord with the value of the breeding stock kept. In case
of pure bred stock, it may be the inability to matket the young stock at prices in
accord vd.th the value of the breeding stock kept. In case of stock feeding opera-
tions where feeders are purchased it may be in poor buying both as to time and price.
It may be in not producing the quality of stock which the market demands. The grow-
ing of sufficient legume forage to supply most of the protein requirements, careful
purchase and use of additional protein and mineral supplements, and the utilization
of roughage are among other important factors which make possible the more economi-
cal production of livestock.
Per cent of Income from Livestock (Line 50) - In a region where the best pay-
ing farms receive a large proportion of their income from livestock, the less suc-
cessful farms will do well to consider increasing their income from livestock. This
may be done by improving the quality of livestock, by better feeding, sanitary and
breeding methods or by increasing the am-ount of livestock kept. In order to improve
the quality of livestock it has not usually proven profitable for a man to invest
in a considerable number of high priced pure bred stock at one time. It is a more
safe practice to grow the better stock by using good sires and occasionally picking
uo good fem.ales. Neither is it. usually ,Tiae.. for a. man who has never handled much
stock to buy up a large breeding herd or go suddenly into extensive feeding opera-
tions. In any case it is better to v;ork gradually into the livestock business,
building up equipment, breeding herds and feeding operations slowly, as one learns
to follow successful methods.
The Use of Man Labor and Horse Labor (Lines 39 and 40) - About sixty to eighty
per cent of the cost of operating a farm, not including interest or rent charges,
is for man labor and horse labor. If a tractor is used the labor is usually
reduced, but the machinery expense is increased about in proportion. At present
values of feed it costs approximately OlOO per year to keep one work horse. If a
man finds that he is working fewer crop acres per man or per horse than the aver-
age farmer working under similar conditions, he can v;ell study his situation care-
fully with the idea of cutting down this expense. The changing to a more
carefully planned rotation of crops is probably the way in which most men can best
i
4.
reduce the man and horse labor costs. Such a rotation should be chosen so as to
■■vcy.Q. having a very large labor requirement at any one time, and so as to require a
'•iTi-orm anount of man and horse labor from early spring until late fall. The feed-
ing i-ov.n of crops and utie of enough livestock to utilize labor at seasons when field
v/orK is light are tv;o ether very definite means of increasing the efficiency in the
use of labor. vfl-.He the v/orklng of a large number of crop acres per man and per
horse is desirable, a study of hundreds of records from over the state indicates that
sc-Lj men have reauced the acr.c'Xii of both man and horse labor to a point where crop
yields and returns from livestock are reduced because of lack of sufficient well
directed labor.
.SJL±.Q -Q.^-. Farm (Line!) - TJhen one finds that his farm is smaller than the most
profitable farms in his locality and his income is low he may remedy the situation,
by buying or renting .additional land, or by gradually adopting a more intensive
or inore specialized type of farming, on the other hand, if he finds that his farm
is larger than the best farms and his income is low, he may profit by renting out
Irjid, or by planning so as to do more efficient work on his present acreage.
Conclusion
1. Every farm operator can *ell afford to study his own farm business in the light
of these factors which have been discussed.
A. Crop yields, including the rotation of crops
B. Returns on the investment in livestock
C. The prcirCktion of returns from livestock
D. Use of Man Labor
E. Use of Korse Labor
F. Size of Farm.
2. There can be no improvement in fann management v.dthout some change in practices
used. Carefully planned and slowly developed changes are more likely to result
in increased incomes than are impiilsive and sudden changes of methods.
3. It is the well balanced farm that pays. One may have good crop yields and
make good use of livostock, but receive a small net income because of inefficient
use of Is-bor. Or on3 may work a large acreage per man and per horse, but fail
because of low crop yields or poor returns from livestock. A well balanced farm
with a fair degree of efficiency along all lines brings the operator good
returns which enable him to maintain a high stemdard of living for his family.
Sm-JIiARY OF KliteTY-HIIJE ^ARi:_^US TNES S RECORDS
•^'^OOJFORD COUNTY -^IgsS
Records secured and suniriarized 'bj the v7oodford
County Fami Sureau, Eurel:a, Illinois, and the
Departr.ient of Fari-n OrgAni/.ation and Licsnar^ement,
University of Illinois, Urbojia, Illinois,
co-operating.
Einety-nine Woodford Coionty farners earned an average
interest rate of o.lyt on an average capit:i.l inv-'strr.snt per farm.
of ;[i565,870 in 1922. Ten of these farners received an average
of 7:3 interest on t.u.eir investuient while ten others lacked an
average of .1/i of earning any interest.
The following table gives rather cor.iplete data for. the
ninety-nine f arris, for "che ten farms v/hich earned the highest
im:erest rates and for the ten far/ds v/hich earned the lowest rates,
A hlanic column has been left in ord.er that those v/ho kept the
books hiay r/rite in the i»ecord.s of their ov.ii farms in order to
coBioare their v/ork v;ith others v/ho kept sinilar records ,
WOODFORD COUNTY SUMDARY
1S22
Your
Farm
Average of
99 Farns
1. Size of Fairm
2. Value of Land per Acre
3. C_apital Invest.nent ~ Total
4. Land
5. Buildings
6. liachmery and Equipment
7. Feed and Supplies
8r Lil^estcck -
9. Horses
10. Cattle
11.
11.
12.
13,
^otal
oheep
S\7ine
Poultr'y
14.
15.
16.
Recei"ots -Net Incf ias as -Total
Feed and Supplies
j'iiseellaneous
233
235
^^^658 70
p5097
404S
1735
](^ 2182
lb 2758
I ■-
944
872
85
715
141
4827
$ 25S7
162
Ten Best Ten
Farms 'Poorest
•Farms
184
I 245
;p55149
$45248
3 5101
0 1715
'6 1897
•' 219
:!]; 288
s'75462
$ 1867
$ 2056
$ 3189 t 2253
$ 680 f^ 833
$ 895 $ G54
'4 483 t
Q> 1007 h
125 fc
18
556
s? S2S3 f:> 2956
& 2225 j;« 2156
i? 293 h 40
Yov.r rjAverage of Ten Bes
Pai'in 'i 99 Fa" ns ; Fams
t
17, Livestock •
IS. Horses
19, Cattle
Total
20. Sheep
211 . Swine
22. Poultry
23. Miscellaneous
24. Expenses -Net Decreases -
TFg'al
25. PaxTin Iraprovements
23. Machinery and Equipment
27. Peed and Supplies
28. Cash Expenses
29. Receipts less Expenses
30. Operator and Unpaid
Fanily Lahor
31. i^et Income frovi Invest.
32. Rate of Interest learned
33. Labor and Management v/qge
34. Investment per Acre
35. Gross Receipts per Acre
33. Total Expenses per Acre
37. Net Recaipts pe.' ..ere
38
38. Ilan Labor per Total Acres
39. Crop Acres per ilan
40. Crop Acres per Horse
41. Farms with Tractors
42. Per cent of Land in Crops
43. Corn - Acred
44. Yi3ld
45. Oats - Acres
45. Yield
47. 'Vheat - Acres
48. Yield
49. Legumes - Acres
50. Receipts from Livestock
51. Return for '|100 Invested
in Livestocic
52. For :>100 in Horses
53. " " ■'' Cattle
54. '' " Sheep
55. ■ '' '" Swine
56. ■' '' '' Poultry
>;;j12098
:fp -18
!.-^ 531
I
I
It ^^
;^?1237
245
28
;^2149
>;s 272
(p 503
'* s
$1368
$2578
0 585
02O93
;o-G75
r? 232
5 20.72
$ 11.74
VP
S.9S
4.10
85.9
21.8
50.5
e/
58 . 5/3
70.0
55.0
53,2
42,7
7.3
26.8
19 . 3
43,4;y
f 107. 30
:)- 1.93
(^ 50.27
.'p 75.00
S147.40
OlSl.OO
"'?3764
-32
;;,? 728
;32365
V
280
13
J 21.18
'-> 4.98
86,4
24c7
30.0>J
84.7)t
78.0
59.1
51.0
45 . 2
11.0
28.8
9.0
59.9>L
gil9.30
$ 69,60
S 71,^30
Sl57.50^
^>187.65
Ten Poor-
est Farms
n 770
i -46
? 88
iS1761
'4 205
IQ, 346
I Ip — -
i;?l2io
i;H522
[§3890
1G1538
$ 300
^ 34.20 ;
13.02
■.^ 4
- 589
$ 112
23
f2348
;? 443
? 511
^?1394
i^ 518
0 703
(^ -35
- .1%
f5-3324
I
344
13-52
13.92
-.40
4.45
91.5
21.4
50. Of^
80.4??
71,0
48 .5
35.0
57.4
211
23.8
20.0
25.9,^
^$53.87
sii- o.oO
U 14.38
0 2c. 05
t 3^.94
(t)103,22
f -.-■•:
FACTORS 'miCU MERIT SPECIAL. ATTENTION
Interest Earned (Line 32) - The rate of interest earned is an excellent indi-
cation of the managing ability of the farm operator. This is particularly "true in
regions v;here the average investment per farm is large. Anyone whose rate of inter-
est earned on the total farm inveatiuent ia beloMif the averac^o for hip Icoality can
well study the various factors which will indicate the source of a man's success or
failure. In this way he may locate the source of his difficulty. The following
paragraphs discuss the more important factors influencing farm earnings.
^I12£ JCi^l^XyL"!®.!! jto_4B_) - Good crop yields are among the most definite of
requirements for good incomes. One whose crop yields are low in comparison with
others working land of equal natural value can 7/ell study the practices of aen who
secure higher yields. Ken who secure the best yields pay special attention to rota-
tion of crops, Deed, drainage, use of clover, use of manure, use of limestone and
phosphate where needed, preparation of seed beds, cultivation, and protection from
diseases, and insects.
Returns from QlOO Invested in Livestock (Line 51 to 55) - YJhere any consider-
able part of the income of a farm is from livestock, this item merits special atten-
tion. l;7here the returns are belov/ the average a careful study of the practices on
more successful farms may assist the operator to locate places where he can improve
his methods. The difficulty may be in a low percentage of calves, pigs, lambs, etc.
raised. It may be in lack of attention to sanitary arrangements and protection
from disease. In case of pure bred stock, it may be the inability to market the
young stock at prices in accord with the value of the breeding stock kept. In case
of pure bred stock, it may be the inability to market the young stock at prices in
accord v/ith the value of the breeding stock kept. In case of stock feeding opera-
tions where feeders are purchased it may be in poor buying both as to time and price.
It may be in not producing the quality of stock which the market demands. The grow-
ing of sufficient legvune forage to supply most of the protein requirements, careful
purchase and use of additional protein and mineral supplements, and the utilization
of roughage are among other important factocs which make possible the more economi-
cal production of livestock.
Per cent of Income from Livestock (Line 50) - In a region where the best pay-
ing farms receive a large proportion of their income from livestock, the less suc-
cessful farms will do v/ell to consider increasing their income from livestock. T^is
may be done by improving the quality of livestock, by better feeding, sanitary and
breeding m.ethods or by increasing the amount of livestock kept. In order to improve
the quality of livestock it has not usually proven profitable for a man to invest
in a considerable number of high priced pure bred stock at one time. It is a more
safe practice to grow the better stock by using good sires and occasionally picking
up good fem.ales. Neither is it; usually ^wise.. for a. man who has never handled much
stock to buy up a large breeding herd or go suddenly into extensive feeding opera-
tions. In any case it is better to work gradually into the livestock business,
building up equipment, breeding herds aiid feeding operations slowly, as one learns
to follov/ successful methods.
The Use of Man Labor and Horse Labor (Lines 39 and 40) - About sixty to eighty
per cent of the cost of operating a farm^ not including interest or rent charges,
is for man labor and horse labor. If a tro-ctor is used the labor is usually
reduced, but the machinery expense is increased about in proportion. At present
values of feed it costs approximately ClOO per year to keep one work horse. If a
man finds that he is working fewer crop acres per man or per horse than the aver-
age farmer v/orking under similar conditions, he can well study his situation care-
fully with the idea of cutting dov/n this expense. The changing to a more
carefully planned rotation of crops is probably the v/ay in v/hich most men can best
■•**
Sif .►."
. -1— '
.-J:-0.-
4.
reduce the man and horse la'bor costs. Such a rotation should he c'noceo co as to
avcid having a very large labor requirement at any one time, and so as to require a
uniform amount of roan and horse laljor from early spring until late fall. The feed-
ing dovm of crops and use of enough livestock to utilize labor at seasons v;hen field
T'ork is light a.ro two o-t'ier very definite means of increasing the efficiency in the
use of labor. Vi/hile the vjorking of a xcL^-go nii,"-.her of crop acres per man and per
horse is desirable, a study of hundreds of recorat. from over the state indicates thai
some men have reduced the amount of both man and horse lator tc a point where crop
yields and returns from livestock are reduced because of lack of sufficient v.'q11
directed labor.
Size of Farm (Line 1)- '5/hen one finds that his farm is smaller than the most
profitable farms in his locality and his income is lov; he may remedy the situation,
by buying or renting .additional land, or by gradually adopting a more intensive
or more specialized type of farming. On the other hand, if he finds that his farm
is larger than the best farms and his income is low, he may profit by renting out
land, or by planning so as to do more efficient work on his present acreage.
Conclusion
1. Every farm operator can *ell afford to study his ovm farm business in the light
of these factors which have been discussed.
A. Crop yields, including the rotation of crops
B. Returns on the investment in livestock
C. The prc.jpjtion of returns from livestock
D. Use of I'an Labor
E. Use of Horse Labor
F. Size of Farm.
( 2. There can be no improvement in farm management v/ithout some change in practices
used. Carefully planned and slowly developed changes are more likely to result
in increased incomes than are impulsive and sudden changes of methods.
3. It is the well balanced farm that pays. One may have good crop yields and
make good use of livestock, but receive a small net income because of inefficient
use of labor. Or one may v;ork a large acreage per mari and per horse, but fail
because of low crop yields or poor returns from livestock. A 'well balanced farm
with a fair degree of efficiency along all lines brings the operator good
returns which enable him to maintain a high standard of living for his family.
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