Historic, archived document Do not assume content reflects current scientific knowledge, policies, or practices. UNITED STATES DEPARTMENT OF AGRICULTURE BULLETIN No. 482 OFFICE OF THE SECRETARY Contribution from the Office of Farm Management W. J. Spillman, Chief Washington, D.C. | Vv February 19, 1917 FARMING IN THE BLUEGRASS REGION. A Study of the Organization and Management of 178 Farms in Central Kentucky. By J. H. ARNOLD, Agriculturist, and FRANK MontcomEry, Scientific Assistant. CONTENTS. Page. Page. HnNGroduchion 2s 2 kon se Se 1 PAROS cote sho oe ee eee 18 MeLhodmoL Studya = a | a Se 2 | Relation of type of farm to efii- General description of region______ 3 GIT Cay te hl ae 19 History of bluegrass farm enter- Relation of type of farm to utiliza- . DEUS CS cine Bi) a IMIR aE PE 5 LOnsOLepastuTre==—— se = ees 20 FOtALLON TOL CROP Sas cane te 7 | Relation of type of farm to crop PSOE Pe ee eo Dieser SSO ae ean SR 7 N/A. 0 a a ee eS 21 Ghimai ese Rea ein) Sa 8 Relation of diversity to profitable Seasonal distribution of operations_ 9 Pepa ene a as Sins Ta ee 24 Labor and power units required___ 105), Cost 108 production] =>==— "220. e=. 25 Crope yields ton.tOls. 2 eee ae 12 | The prime factors in profitable farm- Land tenure and cropper labor____ 14 ings oS oe ee Fee Oe 27 Importance of size of farm________ 15 INTRODUCTION. The purpose of this bulletin is to present a general description of the farm-management practices followed on farms in the bluegrass region of Kentucky and to determine from analyses of the operations on about two hundred such farms the relative efficiency of the dif- ferent types of farming in vogue and the factors which seem to have the greatest influence on farm profits in that locality. It was found that specialized farms, those of the tobacco, stock, or dairy type, moderately diversified, are the most efficient in this region and that the general mixed farms, more highly diversified, are the least efficient. Thus, while diversity has « vital_relation to profits here as elsewhere, it would appear that in the bluegrass region these speialized farms have found in moderate diversity the right degree for maximum profit. Of the factors which determine profit, size of business was found to have the greatest weight, with utilization of pasture and yield of 64453°—Bull. 482171 2 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. field crops per acre important secondary factors. Size of farm has here no direct bearing upon labor income. It does, however, deter- mine the character of the farm organization, the small farms natu- rally turning more to the cultivation of tobacco and the large farms to grazing. METHOD OF STUDY. The farms selected to furnish the basis of study are located in three counties—Mason, Scott, and Madison. These counties are typical cf the different parts of the region. They are widely separated. Mason hes on the Ohio River, Scott is near the center of the region, while Madison lies at the foot of the mountains and is representative of the more distinctly stock type of farming. Tobacco and live stock are important enterprises in all the counties studied. These two enter- prises furnish the bases of all the types of farming found, with the exception of 10 distinctly dairy farms, which have not been included in the general analysis. : KENTUCKY SCALE -STATUTE MULES Sas on2»x» # # Fic. 1.—Map of Kentucky with bluegrass area outlined and the three counties in which farm records were taken shaded. The farms visited were those named by various men in the com- munity as being operated on a business basis. It was thought ad- visable also to select such farmers as were both willing and competent to give a record of a year’s business, March 1, 1913, to March 1, 1914. Many of the farms were visited twice and many three times. In a preliminary survey about 25 complete records of each enterprise in the county were taken in order to determine the average seasons in which various operations were carried on and the amount of labor and horse work required for each. At the same time, farmers’ esti- mates were secured as to the number of days available for field work in each month of the year. In the general survey that followed, each farmer furnished a year’s record of his business and such other FARMING IN THE BLUEGRASS REGION. 3 data as would be necessary in making a complete analysis of the business organization of the farm.* GENERAL DESCRIPTION OF REGION. The bluegrass region borders on the Ohio River and occupies a somewhat circular area about 100 miles in diameter. (See fig. 1.) It is bounded by a rim of low mountains and the Ohio River. Lex- ington, a city of about 40,000, is southeast of the center. Richmond, Winchester, Paris, Georgetown, Versailles, and Nicholasville are the county seats of adjoining counties. All of these, except Richmond and Winchester, are connected with Lexington by trolley. Frank- fort, the capital of the State, 22 miles west, is also connected with Lexington by trolley. All towns of. importance throughout the region are connected by steam railways. Throughout the region connecting the main towns and villages are macadamized roads, many of them kept in excellent repair. Three main railway systems center at Lexington, connecting with the main large market centers of the interior and with all large seaboard cities on the Atlantic and the Gulf of Mexico. The Kentucky River rises in the mountains of the southeastern part of the State and takes a winding course through the central portion of the area. Small steamers and rafts ply this river through- out.its course in this region. Fic. Dee oross rection of Kentucky ioniameene bluegrass region, indicating Ge topog- raphy and the elevations above sea level. The topography in most parts, except in the vicinity of streams, is gently rolling. (See fig. 2.) The area is largely cleared of forest trees and 85 to 90 per cent is tillable. Farms vary in size from 40 to 1,000 acres or more. The country generally looks prosperous. Most farms are well kept up and many farmsteads have luxurious appointments and surroundings. (See fig. 3.) Formerly, the plan- tation type of farm prevailed and the work was almost entirely done by slaves. There is now a tendency toward subdivision into smaller farms. However, many are still large and are run on the plantation plan, with hired laborers or share tenants, mostly colored, who live on the farm in cottages and are provided with gardens and a few other perquisites. 1 Acknowledgment is due Messrs. B. F. Creech, Will D. Click, William Ballinger, L. C. Caldwell, and A. B. Thomas for collecting data for this bulletin ; also to Prof. J. S. Pullen, of the Hastern Kentucky Normal School, who assisted in collecting data in Madison County and gave valuable help in other ways. The cordial interest of the farmers who gave the records is much appreciated, and thanks are due them for the time given to this work. 4 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. Many of the people who settled in this region brought with them from Virginia, and a few from the Carolinas, the fine traditions of the country house and the gentleman farmer. They had the’same interests in the breeding of high quality of live stock which has long characterized the English farmers. Many dwellings were built in a substantial manner, often of brick. (See fig. 4.) Most of these still stand and give the country an atmosphere of ease, comfort, and sometimes luxury. A great many of the farms are still owned and operated by those who inherited them from the original owners. There is reason to believe that the present owners are farming in the same spirit as their ancestors and with as good success. Fic. 3.—A typical bluegrass farmstead. A few tracts have been bought up and are operated on a showy and expensive scale, with probably very little, if any, profit to the owners. Tobacco culture enables the small-sized farm to carry a compara- tively large business, so that there are many prosperous farms 40 to 100 acres in size. In traveling through the country for the first time one is impressed by the large proportion of farm area in bluegrass pasture. Over the fields are scattered fine forest trees, providing shade for stock. These large areas in pasture and scattered trees suggest that the farmers devote their attention largely to live stock. The bluegrass FARMING IN THE BLUEGRASS REGION. 5 farmer is prejudiced in favor of live-stock farming and will cling to it as a type as long as he can. Next to live stock in importance is the white Burley tobacco, a crop well adapted to the region, so that these two enterprises characterize this section agriculturally and are at present the main sources of income. HISTORY OF BLUEGRASS FARM ENTERPRISES. It is a well-known fact that the acreage of crops varies from year to year because of the variation in prices. The amount of live stock kept on farms varies also for the same reason. Prices for a product im one section are, as a rule, made permanently lower than the cost of production if the same can be produced in another section at a Wic. 4.—Type of the large modern farm house. lower cost and in adequate quantities. Again, by experience or through discovery, a more profitable enterprise may be substituted for another. Any of these causes or a combination of them will result in relatively permanent changes in the agriculture of a region. Tables I and II give a history of the several enterprises developed in this region from 1840 to 1910 according to figures of the United States census. These figures show that the agricultural resources here were well developed as early as 1840 and that their total pro- duction was not far behind that of 1910. Changes in the relative importance of the several enterprises, however, have occurred. Swine, for instance, were much more important prior to 1860 than at 6 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. any time since. Before this time large droves of hogs were taken across the mountains into those sections of Georgia and the Carolinas which were devoted to raising cotton. This fact no doubt largely ac- counts for the comparatively large number of swine at that time. The development of railways and the opening up of the rich corn States farther west and north has also had an influence in changing the status of this enterprise. About the same amount of corn is raised as formerly, but most of it is fed to beef cattle and compara- tively little to hogs. TABLE I.—Live-stock enterprises in the bluegrass region of Kentucky, 1840-1910 (Madison, Mason, and Scott Counties). Year. | Horses. | Sheep. | Swine. sl otat Milch | Other | Working cows. cattle. oxen.1 SAG) peso Es are ae eee ee ee |= 2 23, 704 59, 926 116, 244 33, 41 Oe es eee: See ae |e eee i Bos!) poe area eta ee ere ah |. 17,292 58,327 | 115,122 38, 836 11,568 27, 268 3, 288 SOQ eres ey are hae a Se | 22°160 37, 916 103, 553 40,385 12, 585 27, 800 4,156 TBST 0 etsy oe ed NS Oo, oe Sateen ee | 14,817 25,179 65, 095 35, 761 10, 504 25, 257 2, 624 QR) eee Seats ne ee Ee ciel ee 16,528 | 3 45,753 75, 980 40, 207 11, 495 28, 712 1, 598 SOO meee ties a es ee Se ee Pee 20, 074 67,439 75, 662 45,810 12, 266 33, 544 1,374 if ODD Berean oe ea Seas Ss 18, 721 87, 77 62, 476 59,989 | 4 12. 215 AUS TAG | ascenne = tats OT Orta es ot Se re ee 19, 193 88,177 63, 969 47,591 | 413,054 34, 537 a 1 Included under ‘‘Other ecattle.”’ 3 Exclusive of lambs. 2 Includes mules. 4 Dairy cows. TasLE II.—Field crop enterprises in the bluegrass region of Kentucky, 1840- 1910 (Madison, Mason, and Scott Counties). Year. Corn. Wheat. | Rye. | Barley. Oats. Hay. Hemp. | Tobacco. Bushels. Bushels. | Bushels. | Bushels. | Bushels. Tons. | Pounds. | Pounds. 1st) See 2, 230,880 | 367,668 | 178,092 8,000 | 347,941 9, 670 2,356 | 1, 248, 032 TRHQEEE eos sare 3,492,435 | 135,125] 35,759| 71,827 | 383,004 9, 121 3,471 | 2,553,333 ih aa eee ae 3,536,996 | 541,304} 99,094 | 77,291] 388,390 9, 639 528 | 1, 804, 593 (S70 ee 2, 453,681 | 174,469 | 130,495 | 43,364 | 209,394 9, 794 1,549 | 1,642) 656 LSRQ PSs oes 3,123,212 | 837,172] 71,454| 81,663| 98,014 7, 980 348 | 6, 452,093 1800S eae 3,593,338 | 708,740 | 43,648] 15,745] 225,102] 287762 853 | 7, 185,519 LOO eats te 2,754,770 | 702,240} 17,100 728 | 66,730 | 133,315 | 283,090 | 16,794,630 I) eseesaane ----| 3,475,775 | 332,181 21) 941 2,710 63, 058 41,821 | 342,450 | 23,688, 291 1 Hay and forage. Rye has declined in importance sharply since about 1870. This crop is no longer profitable, except for early spring pasture and to turn under. Barley also has declined in importance since about 1880, many farmers having forgotten that it was ever raised here. Only about one-sixth as much oats is now raised as during the period before 1860. This crop also is unprofitable because it is pro- duced in the States north and west at a very much lower cost per bushel than here. Most of the oats is now either cut and fed to horses in the bundle or is made into hay. Tobacco has steadily increased in importance since about 1870 and is to-day one of the major enterprises. This is a crop that utilizes family labor to great advantage, and, as has been pointed out, 1s peculiarly adapted to the climate and soil. FARMING IN THE BLUEGRASS REGION. 7 Satisfactory historical figures on beef cattle and saddle horses can not be gleaned from census records, since cattle have been classified differently in the various census years. Beef cattle, though still numerous, are less important than formerly. About 1890 there was a dropping off not only in the number of beef cattle, but also in the number of all cattle. The saddle and driving horses of the bluegrass region have long been noted, but economic changes have occurred to make them less profitable. Mules, however, have largely filled up the ranks, so that to-day there are about the same number of animals of the horse kind as formerly. It is interesting to notice the gradual decline in the number of working oxen. Horses and mules have almost entirely taken the place of cattle as work stock. ROTATION OF CROPS. No well-defined system of crop rotation prevails in the bluegrass region. The common custom, however, is to plant corn or tobacco on sod land. Much of the best tobacco land is obtained by breaking up old bluegrass sod or new land. ‘Two crops of tobacco are very seldom grown in succession on the same land, while two successive crops of corn are grown on from one-fourth to one-half of the corn area, the rest of the corn and tobacco being followed by a small-grain crop, usually wheat. Generally clover and timothy and occasionally bluegrass are sown with cereal crops. Hay is then cut usually 1 or 2 years. The great irregularities in rotation are caused by the length of time the land remains seeded down. Occasionally a field will be sown to clover and turned again at the end of the year. If timothy or other grass seeds be sown the land may remain in grass several years, and if a good bluegrass sod develops it may remain in pasture 30 to 40 years. The more common practice, however, is to leave rota- tion crop land seeded down from 2 to 5 years. The type of farming practiced seems to influence the crop rotation to some extent.- On the tobacco farms corn follows corn least fre- quently, and the land seldom remains in grass more than 3 years. As the farms increase in size through the various types to the large stock farms with no tobacco, two crops of corn in succession will be raised on about 50 per cent of the corn land, and the time the land remains seeded down lengthens to from 3 to 6 years and frequently longer. The rotation period for the stock farms, therefore, gener- ally ranges from 5 years to 9 or more years. SOIL. The soil of the bluegrass country is derived from limestone which is comparatively rich in lime phosphate. The typical bluegrass soil is reddish-brown or chocolate color. According to the United States 8 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. Bureau of Soils, it belongs to the series known as Hagerstown clay loam. It is of the same general type found in the Nashville Basin, East Tennessee Valley, and the Valley of Virginia. Except in the hilly parts along the rivers, rock is only occasionally seen on the surface. Generally it les 2 to 20 feet below the surface, offering little obstruction to plows and other machinery. The subsoil in most places is a sticky red clay, highly retentive of moisture. While to the ordinary observer the soil seems quite uniform in fertility, the analyses by soil chemists show a good deal of variation, even in the most fertile sections.* . The farmers who have grown up in the region and have had expe- rience with soils recognize many degrees of fertility. They distin- guish the quality of tobacco soils especially by native trees that grow on the land. For instance, white oak, beech, walnut, maple, and hickory clearings have been favored for the production of the best quality of tobacco.? , CLIMATE. The organization of crop enterprises is greatly influenced by cli- mate. Figure 5 is a diagram showing the main facts about the climate of this section. The rainy season is during the winter, the a la Bl ad ad ohee IN ee ES = = Sam Haas ee cencG ai a OR Sy er| Fic. 5.—Diagram showing average climatic he ee highest average rainfall occurring in March. During the hot period of summer the average rainfall is sufficient on this type of soil to keep tilled crops growing vigorously, but if it were not for the fact of a deep, heavy clay loam, rich in phosphorus, the region undoubt- edly would not be famous for bluegrass, since a relatively low rain- fall during the summer and fall is in itself injurious to bluegrass pasture. The farmers here expect frequent dry spells, when there is a shortage of pasture and water, and have adapted their farm practice and systems of farming to these conditions. Tobacco is one of the best drought-resistant plants known. For stock water farmers 1See Kentucky Station Bulletin 162. 2See Kentucky Station Bulletin 139. FARMING IN THE BLUEGRASS REGION. 9 depend mostly on ponds in which the surface water collects. These are usually natural depressions on the land surface, which are tramped nearly water-tight by the hoofs of animals. Wells are not reliable in this region as a source of water supply. aa paar JAN | FEB. MAY | JUNE | JULY . sept | oct | Nov | DEC wens ere 10 SSNS: NORMAL Hp Meda rr RAINFALL 1913 ----- iauacanseeeea Fic. 6.—Diagram me ae comparison of the actual rainfall in 1913 with normal. SEASONAL DISTRIBUTION OF OPERATIONS. CROPS. The farm enterprises! found in any well-developed agricultural region are mainly those which the experience of farmers has shown to be profitable. In the process of selecting such enterprises the soil and climate are fundamental factors. Additional limiting fac- tors are a profitable market and the availability of the right kind of labor. Still another factor not so evident as either of these is the way the various enterprises fit in with each other so as to interfere as little as possible. Each crop not only has its peculiar method of cultivation, but also its own peculiar seasons for the various opera- tions required. Not only must a certain amount of labor be given, but this labor usually must be apphed within definite seasons. Hence 1 Definitions: Certain special terms used in this bulletin are defined below: Farm enterprise—Any crop or live-stock undertaking on the farm, such as corn, tobacco, beef cattle, or swine. Labor income.—The amount the farmer receives for his labor and management besides the house rent, food, and other perquisites the farm may furnish. It is found by sub- tracting current expenses and interest on the total investment in the farm business from receipts. Animal unit.—The equivalent of a mature farm animal, as a horse, cow, or steer; 7 sheep, 14 lambs, 5 hogs, 10 pigs, 100 poultry, 2 head of young cattle or colts are equiva- Ient to an animal unit. Labor wnit.—A man-day’s work of 10 hours. Power unit.—One day’s work of a mule, horse, or the equivalent of this work done by an engine. Crop index.—A figure that measures the yield of all crops on a farm as compared with the average yield of the community. One hundred is taken as the standard measure of the farm yield of the community. Diversity index.—A factor derived by reducing all the enterprises of the farm to their equivalent represented by a number of enterprises equal in value. It measures the degree of diversification of enterprises on the farm. 64453°—Bull. 482—17——2 10 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. the organization of these enterprises must take into account economy in the distribution of labor. Even though an enterprise like tobacco, for instance, may yield a very large profit per acre, the amount that can be handled profitably on a given farm is limited not only by the amount of good tobacco soil, but by such a relation of the tobacco crop to other established enterprises as will bring about the most advantageous distribution of available labor as well as other advantages of diversity. Figures 7 and 8 show the seasonal distribu- tion of operations required by the crops grown here, and _ illus- trate how the operations are limited as to seasons and are distributed through the year. These diagrams are based on the practice of about 75 farmers for each crop. The black lines indicate the limits of the average of the estimates given and the dotted lines show the limits of the range of these estimates. LIVE STOCK. In a manner somewhat similar to crops, live-stock enterprises re- quire special attention at limited seasons of the year, so that in any system of general farming the operations required by them have an important influence in the organization of the farm. In figures 9 and 10 there are shown the principal operations and events occurring in the life of animals on the farm. TABLE II].—Labor units and power units required by various enterprises (based on average of about 75 records for each enterprise). | Lahor | Power °} Labor Power Enterprise. units.1| units.? Enterprise. units.t units.? Per Perel Pe a leeee acre acre. | acre. | acre. PODACCO. Sos. Sees se eee Soe - 38.8 GE Meadow ay. 22-2 cree fot 0.7 Corn: Cowpeas and soy beans.........-- 1.8 | 3.0 Shocked and put into crib-.--- 4.6 4.4 iHocved dowit ss - S=2 See 2.4 Sao Per Per Wheat Seen oe Ce ee ee 2 1.6 animal | animal : unit. unit. PhraSheG os: oe eee ee 3 2.0 | Ordinary milch cows on farm....- 12.3 1.5 Cut and fed as hay. .........-. 9 1.3 | Dairy cows, including marketing iPastured: . 23ts-25- iS 2 560) anlk- 33 See ee 18.3 6.2 Oats | Beef cattle or general stock cattle: - 1.0 .9 EhTASHOd = oe Se ees 2 1.4 Heepe. Sse. Se eee eee 2.3 - 05 Hed mibundles==s°=- > S552: 12 2:07) SWine 2 2S hse ee eee AeA - 02 1 Labor unit: A man-day’s work of 10 hours. : 2 Power unit: One day’s work by a mule, horse, or the equivalent of this work done by an engine. LABOR AND POWER UNITS REQUIRED. The average number of labor units and power units required for each crop and stock enterprise is shown in Table III. These are based on about 25 records obtained in each of the counties studied as pre- viously explained. The farmers’ practice relative to the amount of work put upon the crops and live stock is quite uniform throughout the region. The variations that occur are due mainly to weather con- = rr FARMING IN THE BLUEGRASS REGION. 11 ditions and conditions of the soil rather than to the individual prac- tice of each farmer. It is believed that the estimate of 50 to 75 farmers will give a very close average for the practice here. ProntHs [van] Fee. Man] apn.[ may [June [uty | Aus. [seer [oct [wow | occ pete] o [oo [en [oof fn foo [oo |e [on Tos | ce i Saco pip hlae| far eee ne HARROW DRAG, L ae Sle i tess OATS ae = SaAEEE a ecpesee | BREAK . = TOBACCO AY Pp SPR TO = SUCKER Ui eenas Fig. 7.—Diagram showing the seasonal distribution of labor on intertilled and cereal crops. (Biack lines indicate average, dotted lines extreme range.) The average farm of this region (about 300 acres) furnishes about 900 productive labor units and about 450 productive power units." 1 By the terms “ productive labor’ and ‘ productive power’ is meant the labor or power applied directly to an enterprise which produces an income, such as a crop or a group of animals, or work which increases the value of the farm, such as building new fences, making new drains, etc. Repair work or mowing down weeds, etc., although neces- sary, is not regarded as “ productive.” 12 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. CROP YIELDS FOR 1913. The yields of important crops are given in Table IV. All except corn are above the figures given for the same locality in the census TABLE I1V.—Average crop yields in Mason, Madison, and Scott Counties for 1913, compared with census figures of 1910. 178 178 Census Census Crops. records, | y Crops. records y poise | otOle: FEE oh lle: *Corn ™ receipts | receipts | receipts | Diversity py ies ook aera nie from | from irom index. a - | crops. jlivestock.| tobacco. LOD Ce ee ee ere ae eee eee nee 31 80 2 PLODACCO SOCK a6 oo. 5 cos occ en eee 61 5D 3.4 Generalmaxed 222 2< o2c < 2 bo a see 36 68 4.6 SROKA WAtl SOBACCO == 028s = oo ose es ee eee ene 31 37 4.1 SLock with no tobaccd._-.---<:-....----7_+.--.=--.-- 18 18.3 2.8 TEDL PSs fh re ange pe i een ie ned ee Se eS 10 2.0 | Diversity is closely related to the size of farm. In the bluegrass region it would not be profitable even on the larger and cheaper farms to have all of the farm area in bluegrass, neither would it be profitable on small, high-priced farms to cultivate the entire area in tobacco. Through long experience the farmers have arrived at a distribution which, on the whole, has proved profitable under the conditions prevailing. (See Table VII.) The degree of diversity varies on different types of farms, as shown in Table XIX. Here it will be observed that the tobacco type and the stock type have the lowest diversity, while the intermediate types have the highest diversity. The tobacco and the stock type each emphasizes a single enterprise. The typical tobacco farm is rela- tively small in size, and in order to have a business of adequate mag- nitude the percentage of crop area in tobacco must be relatively large and the pasture area relatively small. A small area of pasture tends to decrease the receipts from stock. On the other hand, the dis- tinctly stock farm is relatively large in size, has a poorer quality of soil, and is cheaper in price per acre than farms of other types. Usually the topography is quite rolling and sometimes it is stony, a condition which is a handicap in tillage. In such cases it is more advantageous to leave a large proportion of the area in pasture and to till only the more level and more productive land. FARMING IN THE BLUEGRASS REGION. 95 Table XX shows the diversity that corresponds to highest effi- ciency on each type of farm. It is evident from this table that there could be no general increase in efficiency through increase in diversity, since the diversity which gives highest efficiency is about equal to the average for each type. There is as much liability to lose through overdiversity as through underdiversity. The average farm of each type has no doubt about the diversity it should have. TABLE XX.—Showing the diversity index that corresponds to maximum effi- ciency on various types of farms. a | Diversity umber . index corre- P Type. Of 1s, pueigt sponding to verse records. | : highest VASE efficiency. Acres. ROW ACCO Prete iatehcts ets ee Stee Aa aid Sree ia ee Pe ne ic tne fe na aes | 31 | 174 2.4 D8 AMLODACCOS LOC Kes tea io ete eee ee Se pee Ae cee Be 61 | 344 4.6 3.4 (GIN LE am 2K Lae e ce cae ere elas Wy A cme Ln Ree Ana ect eM 36 256 3.8 4.6 Stockawilithacob accom aet eee ae eee eee et 31 | 316 3.6 4.1 StockswaltlyemOlto bacco mane aera ee eee 18 | 683 2.0 OAS} COST OF PRODUCTION. In Table XXI are shown the average unit value and cost of production for several important enterprises. In arriving at these figures every item of expense, including the cost of operator’s labor and management and of rent has been counted. Values have been de- termined by current market prices. TABLE XXI.—Unit cost and value for several important enterprises on the different types of farms for the year 1918. Productive Corn, per | Tobacco, per| Wheat, per| Rye, per | Meadowhay,| live stock, Num-| bushel. | pound. bushel. bushel. per ton. | animal unit Type of farm. | ber of basis. records. Cost.| Value.| Cost. |Value. |Cost.| Value.|Cost.| Value.| Cost. | Value.) Cost. | Value Tobacco.-..-.... 31/$0. 76} $0. 76)$0. 113} $0. 118)$0. 73} $0. 98/$1. 33) $0. 84 $16. 67) $16. 06/$48. 51) $42. 40 Tobacco stock. . 61) 71 eO|f eee23 119) .88 - 98} 1. 04 . 84; 16.00} 16.06) 39.75} 47. 66 General mixed.. BO 568 Ol LOO eel6|) vendo - 98} 1.01 . 84) 15.27) 16.06) 47.92) 47.73 Stock with to- ACCOR eee 31] .65 - 76] 120; 127) .84 - 98} 1.01 .84| 18.94) 16.06) 44.86) 54.93 Stock with no tobacco......- 18} .64 SV00|Csecis Seeks -98 . 98] 1. 22 . 84) 22.50} 16.06) 41.96} 53. 49 ID ainyee eyes 10; .81 Ol eel 2 anon OF tO OS Bema . 84] 18.16} 16.06} 66. 24} 100. 88 Av. ofall... 187} .68 SAG epeelZidlinn eels eee SO . 98) 1.05 .84| 17.75| 16.06) 44.41) 52.55 The enterprises are usually so dependent on each other, and their place in the farm organization so related to the utilization of labor and to other factors, that the distribution of costs is a difficult mat- ter. In fact, no system has as yet been devised which can be said to make this distribution in any but an approximately correct man- 26 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. ner... The reader must keep in mind the fact that the figures given in the table apply only to the average farm of each type, and that while some farmers are selling the crop at below the cost of produc- tion, others get much more than the cost. Farming may be said to be profitable when the operating costs, rightly interpreted, about equal the returns, since the costs include pay for the farmer’s labor and services as manager, allowance for family labor, current rate of interest on working capital, and rent for his land, if he is an owner. Then, too, he is insured employment for himself and family, and a fair rate of interest on a secure investment. Also, if the farm is rightly organized and its fertility well maintained, it will tend to increase in value. A comparison of the cost and value per pound of tobacco on the average of 187 farms ilustrates these facts. Included in the cost of one acre of this crop are $92.69 for labor and management, $11.36 for horse labor, $1.05 for fertilizer, $2.38 for miscellaneous costs, and $34.73 for rent. This value for rent is the average estimated cash amount which the landlord should get for the use of the land for tobacco. The average cost per pound, on this basis, is shown to be slightly above the average price received. The crop, nevertheless, may be regarded as a profitable one for the reason that it employs labor almost continuously throughout the year and it may be depended on for a reliable income. - It gives the owner a high rent for his land rather than the relatively low rent which he would have to accept for its use for other crops. The values of all crop enterprises, except wheat and tobacco, are based on prices of imported products. Oats, corn, hay, and rye are consumed by stock, and during parts of the year these products are shipped in to supply deficiency. The cost of hay and of all other products includes the hauling to market. Live stock does not seem to be profitable on the tobacco or the mixed type of farms. These types emphasize crops, especially to- bacco, and evidently neglect live stock. In general it is the aim of farmers in this region to raise Just enough hay to supply the needs for live stock. It is not a profitable IC Ri ae SIAR ee Mp oe ern eS 1 The costs as shown in Table XXI were distributed to each enterprise in the following manner : Labor costs were distributed in proportion to the number of labor units Tequired by each enterprise (see Table IV). ‘‘ Cash to run farm” was distributed in the same way. Power costs were distributed in proportion to the power units required by each enter- prise (see Table IV). Machinery costs were distributed in the same way. Rent charges included interest on fixed capital, such as buildings, fences, etc. The renting value of land on the averdge farm was about $5 per acre. Land used for general crops, such as corn, wheat, rye, pasture, including bluegrass pasture, was shown to have a uniform renting value on each farm, ranging from $2.25 to $6 per acre. The average rent for pasture land was $3.50 per acre; for general crop land, about $3.60. Renting value given for tobacco land ranged between $25 and $75 per acre, the average being about $35. ie Live stock was charged for feed, including pasture, at firma, prices. Six dollars and fifty cents was credited to each animal unit for manure and the same amount charged to field crops in proportion to acreage. Six per cent interest was charged on investment in live stock and an allowance made for depreciation. FARMING IN THE BLUEGRASS REGION. yal crop to market. On the basis of present yields it would probably not pay to market corn. The growing popularity of the practice of “ hogging-down ” wheat illustrates how the farmer aims at the organization of enterprises in such a way as to obtain maximum profit. If hogs can be turned into the wheat field there is saved the harvesting, thrashing, and hauling of wheat to market. The labor saved may be utilized in other ways. Then, if the gains on hogs are adequate, it is often pos- sible to get more out of the wheat crop than by harvesting and thrashing it, as is usually done. Winter cover crops, such as wheat and rye, may be judiciously pastured in fall, winter, or spring, and may thus add to the profits of the farm. Bluegrass pastures are often stripped for the seed, and in this way profits from pasture land Fic, 13.—Bluegrass seed in process of curing. are increased. (See fig. 13.) It was noticeable that the most suc- cessful group of farms had a relatively large percentage of such forage crops as sorghums, peas, and beans, which were substituted, for a part of the area devoted to hay, which is shown to be an un- profitable crop. as On the whole, the average farmer of the region seems to be rais- ing the various crops in about the right proportion for a profitable business. THE PRIME FACTORS IN PROFITABLE FARMING. The factors that stand out as important in profitable farming in the localities surveyed are (1) size of business, (2) utilization of pasture area, (3) crop yields, (4) type of farm. 98 BULLETIN 482, U. S. DEPARTMENT OF AGRICULTURE. Underlying and closely related to size of business and type of farm are the factors of diversity, utilization of man and horse labor, dis- tribution of crops and live stock from the standpoint of the advan- tageous utilization of field crops and pasture area, and the distribu- tion of capital. The farmer may increase the size of business either by buying or renting more land or by increasing the acreage of tobacco, an in- tensive crop. There are many farms 300 to 500 acres in size which do not show as large a business as many other farms 100 to 200 acres in size which have a relatively large percentage of area in tobacco and a relatively small percentage of area in bluegrass. The tobacco crop furnishes work for a large number of laborers and the returns per acre are correspondingly large. The type of farm that does not seem to pay here is the general mixed type. Only 34 per cent of the farms of this type could be counted as distinctly successful, while the stock-with-tobacco type had about 58 per cent successful. The dairy type, of which there ~were only 10, showed 70 per cent successful, with a higher average labor income and higher efficiency than any other type. Of the other three types, about 50 per cent of the farms were successful. The general mixed type is evidently organized on the wrong basis to be profitable. It has about the same proportion of its receipts from tobacco as the stock-with-tobacco type, but the percentage area in tobacco is very much smaller, only about 4.4 per cent, while the stock-with-tobacco type has an average of about 8 per cent of its area in tobacco. With the exception of tobacco, there seems to have been a failure to dispose of the crops raised, either by marketing them profitably or by utilizing them to advantage through live stock. Many with large farms and large capital seem to have been satisfied with bare interest on their investment, which was adequate for a comfortable living. These men made no effort to make the farm a business success. The tobacco area and much of the area of other crops on such farms was in most cases cultivated by cropper labor, which relieves the owner of much responsibility. Profitable farming here hinges primarily upon keeping a proper balance between field crops and bluegrass, which is especially adapted to the soil and is a great factor in keeping up its fertility and put- ting it into a favorable condition for other crops, especially tobacco. The soil of the bluegrass region is a heavy clay loam with a sticky clay subsoil. It should not be worked when in a wet condition, and during the naturally dry summers and fall it is difficult to plow. To emphasize field-crop farming it would be necessary to plant and work the soil more or less during the whole of the growing season. In the areas of the black loamy soils of the Middle West this usually FARMING IN THE BLUEGRASS REGION. 29 can be done with little difficulty, but in this region the nature of the soil would be a serious handicap in such a practice and would put the district at an economic disadvantage if it were not that it is so well adapted to a crop like bluegrass (which loosens up a heavy clay soil) and to an intensive crop like tobacco, which yields a compara- tively large income per acre. The hilly, less productive, and cheaper lands can be organized more profitably as distinctly stock farms, with little or no tobacco. Asa rule, however, the farmer must raise some tobacco to meet the requirements of labor. The farmer who can command but a small area of land should, in order to make his farm most profitable, specialize in tobacco or, where market conditions permit, in dairying. On farms of from 260 to 360 acres in size the best results can be obtained by organizing on the basis of the stock-with-tobacco type, which emphasizes live stock but cultivates an area in tobacco large enough to utilize labor resources to advantage and to secure the advantage of diversity. WASHINGTON : GOVERNMENT PRINTING OFFICE : 1917 ase FP st ela? Oa ae alee a i a 4g : if <4 + eal ee ¥,. 6S < Je ~ =; “ADDITIONAL COPIES: OF THIS PUBLICATION MAY BE PROCURED FROM THE SUPERINTENDENT OF DOCUMENTS GOVERNMENT PRINTING OFFICE WASHINGTON, D. C. AT 5 CENTS PER COPY