; 211 8 P6 py 1 arm Profits and Factors Influencing Farm Profits on 370 Potato Farms in Monmouth County, New Jersey A THESIS PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL OF CORNELL UNIVERSITY FOR THE DEGREE OF DOCTOR OF PHILOSOPHY BY FRANK APP Reprinted from New Jersey Agricultural Elxperiment Station Bulletin 294 New Brunswick, N. J.. September 20. 1916 Farm Profits and Factors Influencing Farm Profits on 370 Potato Farms in Monmouth County, New Jersey A THESIS PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL OF CORNELL UNIVERSITY FOR THE DEGREE OF DOCTOR OF PHILOSOPHY BY FRANK AFP Reprinted fi'om New Jersey Agricultural Experiment Station Bulletin 294 New Brunswick, N. J., September 20, 1916 \ , I ' /9 Farm Profits and Factors Influencing Profits on 370 Potato Farms in Monmouth County, New Jersey. BY Frank App, Agronomist. INTRODUCTION The problem of measuring farm; efficiency is commanding increased attention as the value of land increases. It is essential that some method be found to modify farming operations in order that they may be adapted to our modern conditions. The increased value of farm lands and other equipment requires a much greater amount of capital, which, too, is an important factor in demanding more efficient use of land and equipment. A generation ago, when land was cheap and could be obtained by settling upon a tract and improving it for farming purposes, there was no incentive to economize in the use of land. Today land values have increased to such an extent that in restricted areas some types of farming are prohibited because of the heavy land rental. In short, nothing but intensive cropping is profit- able, because large receipts per acre are necessary to return a profit for the cost of labor, fertilzer and rental. To a large extent this change of conditions is followed by a corresponding change of crops, but the proper adjustment, to be obtained accurately, must be found by careful and painstaking investiga- Prepared April 20, 1916. (3) tioii. This is a repetition of history in old civiHzed countries. As population increases, greater production is needed, and land values rise with the increased value of products obtained from the land. A continuous change of land values always affects the adjustment and proper organization of the farm. Still another factor, labor, has influenced farm operations. Throughout most farming regions the supply of labor is an im- portant factor. That it is becoming more so each year is evi- denced by the increased investment in labor-saving machinery. With these twd factors changing, namely, land values and labor, both of which influence the profits of the farm to a great degree, the problems of farm organization, farm efficiency, the proper type of farming, the proper relation of live stock to the farm, and the proper relation of land, labor and capital, entail many difficulties in clearly isolating measurable factors which bear directly on farm profits. Through this great lack of so- called efficiency on farms, and through lack of means of meas- uring efficiency factors by agricultural educators, the business of farming and the people interested in farming have been severely criticised by men in other professions. However, conditions are not as bad as Avould appear to the man in another profession. His business is largely controlled through his own initiative, while the farmer is to a large extent dependent upon nature. Losses may result through causes wholly beyond the control of the farmer. In short, there are many more factors entering into the proper manipulation of the agricultural industry than in manufacturing enterprises. Until recently we have not ap- preciated the need of methods by which to- measure farm effi- ciency or to ascertain carefully what these factors are. How- ever, with the readjustment of farming conditions, and the in- creased attention attracted by farming, this need is severely felt. Efficiency engineers have reorganized many manufacturing establishments with very productive results. So, too, has the farmer reorganized his farm business by introducing new ma- chinery and other labor-saving devices, and in some instances by increasing or decreasing the farm area or changing the type of farming to meet the current conditions. Moreover, many of these changes have come about by force of circumstances rather than through measurement of results to be obtained from such changes, or through the careful estimation of the need of them. This may have been no fault of the farm operator, for there was no definite information to guide him in making changes in his farming operations. The object of this bulletin is not to present a general treatise on farm management or farming conditions, but it is to deter- mine important factors which affect success and failure in- potato farming of Monmouth County, New Jersey. To a certain de- gree, the writer has attempted to determine the efficiency and measures of efficiency of a specialized type of farming, where potatoes are the principal crop. The conclusions reached should to a large extent be applicable to similar regions where potatoes are a specialized staple crop. METHOD OF OBTAINING DATA AND INFORMATION In gathering the data for this survey, each farmer was visited by a man who obtained the necessary information from him di- rectly by personal interview. Far a type of farming consisting largely of potato growing, this is not as difficult as for a more diversified type. The major portion O'f receipts and expenses is in lump sums, a condition which simplifies tO' a large degree the work of taking the record. Each man was detailed to a defimite territory, and required to visit every farm, whether good or bad, prosperous or otherwise. The traveling was done by bicycles, which appear to furnish the most -efficient means where good roads pirevail. While a horse and buggy is commonly used in this work, it is not as efficient in covering distance and saving time as the bicycle. All records were recopied on an office blank and checked sev- eral times to discover any possible errors and make the proper corrections. It is essential that men who take records be quick to think, knoAv how to approach a farmer, and be familiar with farming conditions in the neighborhood. Occasionally it is necessary for a man to go back tp a farm and check over his record or correct some oversight.. Thus the accuracy of survey work and survey records depends in no small degree on the men who do the work. DEVELOPMENT OF THE POTATO INDUSTRY IN MONMOUTH COUNTY AND ITS RELATION TO THE DEVELOPMENT OF OTHER AGRICULTURAL PRODUCTIONS Monmouth County is considered among the most prosperous counties in the United States. Since the early history of its agriculture it was always regarded as a prosperous and flourish- ing farming region. According to the United State Census Re- ports, we find the development of the potato industry from 1840 up to the present time as given in Table I. Table I. — Production of Potatoes, Rye and Corn in Monmouth County, New Jersey, 1840-1910. Potatoes. Rye, Com. Year. bu. bu. bu. 1840, 273,280 39,368 493,554 18.50 773,272 82,833 841,072 1860 1.051,525 97,224 859,877 1870 1,263,403 46,567 760,479 1880 796,388 133,560 1,048,940 1890 914,286 158,443 875,847 190O 926,035 126,700 1,029,560 . 1910 1,893,523 162,323 1,099,656 For the entire period potatoes have been crowding the other crops. Hence the only two staple cash crops that have increased in quantity to any appreciable extent through this whole period are rye and corn. The production of wheat has increased from the 1840 period, but appreciably decreased from the 1850 period. Between 1840 and 1850 potatoes made a remarkable increase. The same is again shown between 1900 and 1910. The yield for 19 10, as given by the census, is 128 bushels per acre, which, if compared to- our survey results, is quite low. The average yield by the survey was 83 barrels, or 228 bushels, per acre, almost double that shown by the 1910 census report. This is in all probability due tO' the climatic conditions of the year of 1909 for potato production. The season was hot and dry, cir- cumstances which depressed the potato^ yield for the State very markedly. Therefore, the census does not show the representa- tive potato production for the county, since the year 1909 fur- nished abnormal climatic conditions with respect to potato growing. The total production of potatoes from these 370 potato farms alone, 'in 1914, was 2,207,375 bushels, or 802.682 barrels. Therefore, it would be a conservative estimate to place the pres- ent production of the county at 4,000,000 bushels. Around the Freehold district, potatoes are by far the dominating crop for most of the farmers, and other crops and stock are sacrificed to devote most of the energies and time to potatoes. In the eastern 7 part of the county trucking and dairying are quite prominent, but the potato still remains important as a cash crop, though no longer the major source of income. In the western part of the county potatoes are combined with more farm stock, including hogs and dairy cows. This necessitates larger areas of corn, rye and hay. Here the soils become too heavy for the most profitable production. The heavy soil conditions increase the cost of tillage, as well as decrease the acre yields. In the early history of the county cows, hogs and sheep were prominent in the farmers' business, but now this live stock has been sacrificed in many cases for the potato. The census of 1840 reports 19,592 head of cattle and 23,241 hogs. In 1910, 9,256 dairy cows and 14,132 hogs "are reported; sheep have decreased in number from 13,696 in 1850 to 1,333 in 1910, while during the survey of 1914 less than 100 sheep were found. In short, we find that in this county's earlier history potatoes were grown rather freely, but the greatest and most rapid development has come about within the last fifteen years. From 1900 to 1910 we find an increase from 926,035 bushels to 1,893,523 bushels, and 1914 and 191 5 to approximately 4,000,000 bushels. The area devoted to potato growing increased in 1900 to 19 10 from 8,910 to 14,784 acres, VN^hile in 1914 there were 9,671 acres of potatoes on 370 potato farms alone. Evidently, the industry has not yet reached its highest limit, for this is approximately one-third of the total crop acres on the farms, and later data will throw further light on the efiect of increasing this acreage to 50 or 75 per cent, of the farm crop area. Whether potatoes will in the near future give way to another crop is doubtful, since when raised on the intensive scale, they can successfull^^ compete with other staple truck crops. If land is selected which is best adapted to potato culture, nothing short of disease or ex- treme market fluctuation is likely to decrease the importance of this crop in the county. LOCATION AND DESCRIPTION OF MONMOUTH COUNTY POTATO AREA The Freehold area, which is the center of the potato region in the county, is 42 miles from New York City, 30 miles from Trenton and 70 miles from Philadelphia. From Freehold as a center, the area in which potatoes predominate reaches north about six miles tO' Robertsville, thence the boundary extends- northeast, passing within one mile south of Morganville, and' continuing northeast to about one mile north of Crawford's Corners. Tlie eastern boimdary extends east almost to Lincroft, Tinton Falls, Scobe3rville and Colts Neck. The southern bound- ary lies about three miles south of Freehold and extends from the headwaters of the M'anasquan River, west through Smith- burg, and thence northwest to Bergen's Mills. The line from this point runs approximately northeast to Robertsville, including Englishtown and Tennent in the area. MONMOUTH COUJJTY Oil J/ Jr^ I- ^^^^^ - rmmtmp urn ' .^■ / Fig. 1. — IViap of Monmouth County, New Jersey, Showing Potato Area Included by this Survey. This whole area is largely overlaid with Collington, Sassafras and Colts Neck soils. The topography is level to gently rolling, with good drainage. The section is well equipped with railroad shipping stations, facilities which help to make this industry possible. The Freehold branch of the Central Railroad of New Jersey leads from Freehold north through Morganville. Farm- ers in the eastern section of this area can reach the Red Bank branch of the New Jersey Central, while the northeastern por- tion is within reach of the New York and Long Branch Railroad. The Pennsylvania Railroad enters Freehold from the southeast and continues in a northwesterly direction through Tennent. With the exception of a small section around Colts Neck, most of this area is within four miles or less of a railroad. This is important for an industry requiring- such a large amount of hauling in a comparatively short time. The roads of this area, some of which are macadam, are usually good. This enables the potato growers to haul heavy loads, and thus economize in marketing their product. The area is thus with a com- bination of soils, railroad facilities, and improved dirt and ma- cadam roads, which fits it admirably to intensive and extensive potato culture. Other parts of the county have one or two of these requirements, such a^-railroads and dirt roads, or soils and good dirt roads, but the third factor is missing. The other types of soil are not so well adapted to the production of the crop, and where they prevail, either trucking, dairying or more general farming is substituted for this industry. SOILS The soils of this potato area, as mapped by the Geological Survey oi New Jersey and the U. S. Department of Agriculture,^ consist of unconsolidated and nearly horizontal beds of green- sand marl, clay, sandy clay, and gravel. This material has been modified by the elements, forming soils that are easily tilled and light in texture, with the light loams, sandy loams, and loamy sands predominating. The Sassafras series has a light brown to yellowish color, with sub-soil of bright yellow to reddish yellow color. The upper sub-soil may be heavier than the surface soils, but the lower surface soils are usually lighter, grading into sand or gTavel. This usually helps to insure good drainage. The Colli.ngton soils have a brown to a reddish brown surface, and a yellowish brown-yellow or greenish yellow upper sub- soil, changing to a dark green or olive green sub-soil of the heavier members. These soils are derived from' greensand deposits made along the Coastal Plain Province. The Colts Neck series shows a brownish red to dark red colored surface soil and a deep or bright red colored sub-soil. The sub- soil is light in texture. O'f the three series, Colts Neck is not so well adapted to potato production as are the Sassafras and Collington. Its soils are inclined to be more droughty, and are better adapted to the early truck crops, while the high con- tent of iron makes a rough potato skin. All these soils are easily tilled, and lend themselves well to successive growing of *U. S. Dept. Agr. Bur. Soils, Advance Sheets, Field Operations, 1913. 10 a cultivated crop, such as potatoes, as long as the organic matter is maintained through the use of cover crops. In fact, some of these soils are so light that it is necessary to have a growing crop upon them in the form of a cover crop to prevent their blowing during the winter. Again, their physical character allows them to be worked early in the spring and very shortly after a rain. They thus afford a more regular and better dis- tribution of labor than would be possible on a heavier soil. The farmer need not wait such a long period of time after a rain until he can resume his tillage, and again he can get upon his soil early in the spring, as well as do part of the plowing during the winter months in some seasons. This is an important item for a crop which requires or is given intensive culture such as the potato in this region. Most farms have more than one soil type upon the place, and usually the soils or soil types best adapted to the potato crop are given over to this industry. The remaining portion of the farm is devoted to other crops, which usually comprise hay, corn and rye. In spite of the fact that land values are high in this area, there remains a relatively large proportion of uncropped acreage per farm! For the owner farms this amounts tO' 25.8 per cent, of the total farm area, and for the tenant farms 30 per cent. Some of this land is used for roads, lanes and buildings, and the remainder is a waste land temporarily uncropped, with a very small area of woods and pasture. However, the amount of uncropped area is surprisingly large, when we consider the high value of this land. But, due to the fact that these soils are easily tilled, dry off quickly after a rain, are naturally fertile, are suitable for successive cropping of a cultivated crop so long as the organic matter is maintained in the soil, they lend themselves admirably to specialization, and intensive as well as extensive culture of the potato. (See Figs. 2 and 3, following page 16.) CROPS No definite system of rotation is followed on these potato farms. Wherever some system is practiced, the rotation may consist of potatoes one or more years, hay one or two years, and com one year. Another system which is quite largely used consists of potatoes .one or more years, rye or wheat one year, hay one or two years, and com one year. Again, others attempt no rotation at all, and crop potatoes on the same area for an (indefinite period. In such a case, corn, rye or wheat, and hay, may be rotated on other fields. However, the custom of raising II potatoes continuously on the same area appears to be growing, and this practice restricts the potato area from the rotated por- tion of the farm. This is comparable to the use of alfalfa on most O'f the farms in other regions. The area, for the time it is occupied by the crop, is thrown out of the rotation as long a,s the crop is successful. It is not uncommon to find a portion of the farm growing potatoes continuously, while in another part potatoes are used in a tentative rotation with corn, rye or wheat and hay. That the farmers of this section are able to grow potatoes continuously on the same area is due to their systematic use of cover crops and heavy fertilization. While this system appears to militate' against all rotation principles, both from the standpoint of agronomy and' farm juanagement, yet these farms are very successful in maintaining their potato yields and in handling their labor economically. Thus it is a system peculiar in itself, but apparently adapted to the conditions as described in this area. On these 370 potato farms there were 29,156 crop acres. The areas devoted to each crop are shown in Table II : Table II. — Acreage of Crops on 370 Potato Farms in Monmouth County, New Jersey. Potatoes. Owners 5,151 Tenants, 4;650 Part Owners, 624 Total, 10,425 Wheat. Owners, . . . . 534^^ Tenants 651 Part Owners, . . . 69% Total, 1,255 2,451 '2,306 2741/2 5,031.1/2 Apples. 616 6S6y2 70 Hay. 2,913 2,914 389 6,216 Peaches and Pears. 146i/o 100 23 1,3721/3, 26914 Rye. 1.543% 1,516% 140 3,200 675 334 38 Ya, 1,047% Alfalfa. 128% 187% 19% 335% Total. 14.1.59 13,349 1,648 29.156 Of the total crop acreage, over one-third is in potatoes. Hay follows v/ith about one-fifth, while corn is third with one-sixth of the area. Rye ranks fourth with a little over one-tenth, folr lowed by apples and wheat, each with about one twenty-fifth of the area. Alfalfa and peaches each occupy about one per cent, of the total crop acres. One twenty-fifth is devoted to truck, comprising asparagus and various other crops. The proportion of these different crops does not vary materially among the farms of the owners, part owners, and tenants. How- ever, the tenants have a smaller proportion in potatoes and a larger proportion in hay and small grains. This is not surprising v/hen it is recognized that the potato corp requires a large cash Tenants. Owners. Average, 29.9 31.3 28.2 18.7 19.5 16.8 14.8 13.7 13.6 9.S 7.0 8.7 4.2 3.5 3.7 4.2 3.5 3.4 1.1 1.0 0.9 0.7 1.0 0.7 2.1 1.9 2.8 12 surplus upon which to do business and is a more risky crop. Hence, unless the landlord finances the tenant, he is frec^uently unable to make the necessary heavy investment for seed and fertilizer. Table III. — Area of Various Crops per Farm on 370 Potato Farms in Mon- moutli County, New Jersey. Crop, Owners. Potatoes, 26.5 nay 15.0 Corn 12.6 Rye 8.0 Apples 3.2 Wheat, . .' 2.6 Alfalfa, 0.8 PcacUes, 0.8 Truck, 3.5 Total 73.0 85.5 82.4 78.8 Though we find most of the staple crops grown on these potato farms, the majority produce sufficient only to supply feed for their work stock, a few ccws, hogs and chickens. The corn and hay are fed almost entirely to the stock, while the wheat and rye are used for feed and cover crop seed. A larger proportion of rye is sold than of any other staple crop with the exception of potatoes. Some faimers practice selling rye in the bundle at a fixed price per ton, including straw and grain. Other thresh the crop, sell the straw separate or use it for bedding, keep sufficient grain for their cover crop and dis- pose of the remainder. Although the average farm acreage devoted to orchards is comparatively large, the majority of the orchards are only for fa:mily use. A limited number maintain commercial orchards, but not as a main source of their income. This has increased the average so that it appears rather high. For the year in which the survey was taken most of the orchards showed little or no profit. Many of those who were making an effort to diversify- with fruit were becoming discouraged with the markets and the returns received from fruit. Evidently, potatoes were proving more profitable than fruit, and less risk appears to be entailed in potato farming. A number of farms produce some truck on the lighter soils. This chiefly comprises asparagus, sweet corn, tomatoes and a few peppers, carrots and turnips. For some farms this furnishes considerable revenue, but it appears to be limited to the soils too light for profitable potato production in the majority of cases. 13 Thus the truck growing is regulated to a large extent by the soils and soil types. The area of alfalfa is quite small on these farms, averaging less than one acre per farm. Of this the owners have a slightly smaller area per farm than the tenants and part owners. How- ever, the merits of alfalfa are just becoming known among these farmers, and they are only recently learning to handle the crop successfully. As soon as the proper handling" of alfalfa is better understood by all the farmers, it may come into far greater prominence in this area. By the more common use of alfalfa the acreage needed to grow sufficient hay to feed the work stock can be decreased, leaving^a larger. area for potatoes and corn or rye. Again on these liglit soils, timothy and other grasses are not highly productive, so that a good substitute for fc^rage obtained from the grasses would be alfalfa. Furthermore, alfalfa is well adapted to succeed potatoes, since the destruction of weeds by the thorough cultivation such as potatoes ordinarily receive, prepares the seed-bed well for the alfalfa seeding. After the potatoes are dug, without further plowing, the area can be limed, harrowed and seeded with a minumum amount of labor and expense.-^ Thus this crop should become far more important in the future on these farms. FARM PRACTICE The farm practice oi these farms is unique, as we would expect in such a type of farming. In many respects individual practices differ, but the method of handling the potato crop is rather uniform. The basis and means of maintaining such an intensive industry depend to^ a large extent on the universal use of cover crops. There is no area in the State where cover crops are given such careful attention as on these potato farms. It is only through this practice that the farmers are able to maintain soil fertility. In many instances the fertility and acre production appear tO' be increasing rather than decreasing where the cover crops are skill- ^ Furthermore, the season's tillage given the potatoes tends to form an ideal seed-bed for the succeeding alfalfa. This thorough cultivation given the potato crop makes a fine loose surface soil to a depth of two or three inches and leaves the lower soil compact and firm a^ is desirable for a good alfalfa seed-bed. Thus we have a fine loose mulch on the surface, free of weed seeds, overlving a firm compact soil underneath. This compactness establishes the capillarity, making the upper surface inches of soil more moist and affords surer germination and more vigorous autumn growth, than is ordinarily obtained when the seed-bed is prepared from rye or wheat stubble. fully handled. Wheat, rye and crimson clover are the most com-' mon cover crops. But some crimson clover is seeded alone, at the rate of a peck or a half of a bushel to the acre. Others use i>4 to 2' bushels of rye, while many use wheat. A large number combine crimson clover with rye or wheat, using 4 to 8 quarts of crimson clover with i to i>^ bushels of either rye or wheat. This makes a better cover crop because of greater growth of the wheat or rye, combined with the value of the clover in adding nitrogen. Furthermore, the rye or wheat protects the clover so that it will live through the winter more successfully than if seeded alone. Some of the larger growers who do^ not finish digging until quite late, omit the clover and use only rye or wheat, since the late season allows for little development of the former. Therefore, to some extent the time of digging influ- ences the nature of the cover crop used. For the latest seedings rye is more commonly used since it is more hardy than wheat and will give a more satis factor}^ cover when seeded late. Wheat appears to be more popular for the earlier seedings. It makes a more leafy growth, and if the spring plowing is delayed it does not make such a rapid gTOwth in the spring. Some of the fields will not grow crimson clover successfully, probably because of need of lime. Though this clover will stand a certain amount of acidity, it will eventually be driven out of acid soils. Thus at a cost of $1 to $3 per acre for cover crop seed, to- gether with the use of chemical fertilizer, it appears possible to maintain the organic content of these soils and keep them pro- ductive for continuous cultivation of potatoes. This system is independent of the use of live stock which is almost universally looked upon as necessary in maintaining fer- tility. Neither do these potato growers, as a rule, buy or apply manure as is frequently the custom among truckers. When potato ground is seeded to rye or wheat it is not neces- sary to replow but merely to prepare by harrowing and to seed the crop. This makes it economical in the use of labor as well as in the use of fertilizer. Unless the potato ground is quite light, sufficient residual fertilizer will be left after the potatoes are dug to grow the rye or wheat without additional application of fertilizers. Sometimes grass for the next year's hay is seeded after potatoes, without plowing, but by preparing with the har- row only, in the same manner as for the seeding of alfalfa. On some of the lighter sandy land, cowpeas are seeded, plowed under and the area seeded to rye. Yields on such areas are low, yet considerable straw is produced. Hay is ordinarily left, in 15 the rotation one year only. On these Hght soils it is not profitable to allow a field to remain in grass after the clovers have died out. (See Figs. 4 to i8, following page i6.) FERTILIZERS The potatoes are given the major portion of all the commercial fertilizers purchased. This is an important charge against the crop for the application is heavy. The usual amount is 1,200 to 1,800 pounds per acre. This is applied in the row at the time of planting the potatoes. In this way labor is saved over the separate application as followed in some potato-growing regions. The rye is lightly fertilized when it does not follow potatoes. On the lighter soils fertilizer is used at the rate of 200 to 400 pounds per acre for rye. Corn is frequently fertilized at the rate of 300 to 400 pounds of commercial fertilizer per acre. On the corn much of the manure obtained from the stock is applied. The igrade of fertilizers most commonly used is one showing an analysis of 4-8r-io, i. e., 4 per cent, of nitrogen, 8 per cent, of phosphoric acid and 10 per cent of potash. As a potato fertilizer it is of a higher grade than that used in the Maine potato region where a 5-8^7 grade is used. The Maine growers have increased their nitrogen i per cent, over the New Jersey growers, but cut the potash down 3 per cent. It would be expected that the Maine growers need more nitrogen in their fertilizer since they do not grow cover crops to plow under, but use a rotation of potatoes, oats and clover, each one year. The clover is harvested for hay, leaving a clover sod to plow under for potatoes. Evidently, this sod will not furnish as much nitrogen under conditions in Maine as the cover crop of the Monmouth County farmer does under conditions in New Jersey. Whether the high -application of potash is needed for New Jersey condi- tions is a debatable question. Since this survey was made, the influence of war on the cost and supply of potash has necessitated a much smaller application of' potash with apparently good re- sults. Recent work done by the Monmouth County Farm Bureau indicates an excessive use of potash when applied in the propor- tion of 4-8-10. Further work is needed to determine this matter definitely. The fertilizer used for the corn is usually a 2-8-10 or some potato fertilizer, and the same is used for rye. A very limited amount of top-dressing for hay is practiced, nitrate of soda being used frequently for the purpose. i6 MONMOUTH COUNTY FARMERS' EXCHANGE The development of this great potato industry has given rise to a very successful and well-known org'anization, the Monmouth County Farmers' Exchange, composed of potato producing farmers. So phenomenal has been its success that it is known all over the eastern states and cited as an example of a successful farmers' organization for buying and selling the farm products of its meniibers. These potato farmers have solved their own market problem in a very efficient and expedient manner. This publication would not be complete without a brief description of this well-known farmers' exchange. Unlike many potato growers, the Monmouth County potato farmers sell practically all of their crop direct from the held. This throws on the market a large amount of potatoes from a small area in a short space of time. Consequently, unless the marketing of such a product is handled systematically, there is sure to be great fluctuation in price. Such were the existing con- ditions in the countv several years ago. The price of potatoes is said to have varied as much as 40 cents a bushel in a single day. Quite frequently the prices changed three or four times a day and dropped to 25 cents a bushel during the day. At that time each loading station had a buyer representing chiefly New York and Philadelphia firms, who bought on commission for about 10 cents a barrel. With the increased production of potatoes, conditions con- tinued to gTow- worse and the marketing of the potato crop was very unsatisfactory. At a meeting of the Pomona Grange held at Keansburg in 1907, a committee was appointed tO' investigate the markets. In the fall of 1907 a committee was sent to visit the Produce Exchange of the Eastern Shore of Virginia. The committee brought back a very promising account of the Eastern Shore of Virginia Produce Exchange. They persuaded the man- ager to come to Freehold, and address the Monmouth County farmers in the Court House that winter. Through these efforts an organization was formed in March, 1908, under the corpora- tion laws of New Jersey, with an authorized capital stock of $100,000. Shares were issued at $5.00 a share with a 20-share lim.it. A paid-in capital of $7,000 was obtained the first year. Officers including a president, secretary, treasurer, manager and eleven directors were elected. Each director represented one of the principal loading stations in the county. The first year the total business amounted to $454,414.11. mjE ^t— ^ &»■■ Fig. 2. — A Typical Group of Farm Buildings in Monmouth County, New Jersey. ^-.. .^% m ft* Fig. 3. — View of a Monmouth County Farm, Showing the Good Dirt Road, Typical of the Region. - ^^'^Tf J Fig. 4. — A Monmouth County Farmhouse. ■^ Fig. 5. — View of Outbuildings on a IVIonmouth County Farm. *«*«»' Fig. 6. — Rye Stacks on a IVIonmouth County Farm. When there is Not Room to Store All the Grain in Buildings, it is Commonly Stacked in the Fields. Fig. 7. — Putting on the Finishing Touch in the Preparation of the Soil for Potato Planting, Using a Meeker Smoothing Harrow. Fig. 8. — Potato Planting Time on a Monmouth County Farm. Thorough Preparation of the Soil, Generous Use of Chemical Fertilizers, and Constant Cultivation Resulted in a Yield from this Field of 370 Bushels per Acre, with 5 Per Cent, of Potash in the Fertilizer. '. ' ,ii . ■ i ,, ■•'■ ^ ••J Fig. 9. — A Well-prepared Field, Showing the Ridge Thrown Over the Rows to Protect from Frost and Freezing, as Well as to Indicate the Row. Fig. 10. -The First Cultivation, Showing the Cultivator Teeth Reaching to the Bottom of the Plowed Layer. ^ Fig. 11. — Levelling the Ridges, After the First Cultivation, with the Meeker Smoothing Harrow. The Potatoes Are Not Yet Up. Fig. 12. — Eight Weeks After Planting; Plants About 6 Inches High. This Field Yielded over 400 Bushels to the Acre with only 2 Per Cent, of Potash in the Fertilizer. ^f^^' L. -« • -*«*#ifc V • . - - • *ftx Fig. 13. — Cultivation with the One-horse Cultivator When the Plants Are 6 Inches High. Fig. 14. — Dusting with Paris Green and Cultivating with a Two-horse Riding Cultivator. Careful Cultivation Keeps Down Weeds and Should IVlal , Tenants > , Pad Owners. — Capital Invested No. of I.aljor No. of Labor No. of Labor Per Farm. Farms. Income, Farms. Income. Farms. Income $1,000 or less 4 $470 1,001 to 2.000, ... 18 447 i $2,162 2,001 to 3.000. ... 38 567 3,001 to 4.000, ... 5 $65 43 886 4.001 to 5,000, ... 5 118 34 853 5.001 to 7,000, ... 11 320 12 1,079 7,001 to 10,000, ... 21 374 3 lis 10,001 to 15,000, ... 46 607 8 916 15,001 to 20,000, . . . 43 856 4 1,736 20,001 to 30.000, ... 43 1,774 4 919 30,001 and over, . . . 20 1,250 32 On most of these potato fanns the opportunity of making- a satisfactory labor income with less than $10,000 would appear small. None of the tenants have an investment over $7,000, yet these tenants who have between $5,000 and $7,oookmake an aver- age of $1,079 labor income, while the owners with the same in- vestment make a labor income of only $320, a difference of $759 in favor of the tenants. Over one-hfth of all the owners have too little capital upon which to do efficient business. Apparently, there is a tendency for some men to change from tenants to owners too quickly. They might better remain tenants until they are able to command a larger capital with which to do business. The tenants' capital is likewise important, and it would appear that a tenant should have about $2,500 before he starts as a share or cash tenant and still better $5,000 to $7,000. A young man starting out tO' earn a farm in this region had best start as a labor-share tenant, then change to cash or share tenant, and last to owner. Usually tenants can obtain some borrowed capital upon which to start, so that these conditions are not as severe on a young man just starting out to farm, as the figures would indicate. Again, many of these tenants are sons or relatives of the landlord, who is ready to furnish capital to such a tenant. A young man reputed for integrity and thrift, can usually obtain credit when the money is wanted for a worthy investment. If we compare the tenants' capital on these potato farms with that of the tenants in Chester County, Pennsylvania,^ a reg-ion O'f dairy and general farming, or with that of the tenants in Iowa, Illinois and Indiana,^ a region of live stock and general farming, we find the Monmouth County potato tenants' capital consider- ably higher. When we consider that these farms have a large investment of working capital, and that most of this working capital is in the form of v\^ork horses, machinery and cash to carry on the farm, business, it would appear that they are quite efficiently equipped. That the landlords are the source of much of the capital needed by tenants is shown by the average capital of share and cash tenants. The share tenants have an aver- age investment of $3,409, while the cash tenants have only $3,0'5O. This is contrary to what is found in most areas, for usually the cash tenants require and have a greater amount of capital than the share tenants. In the potato region this may be influenced by several factors. First, the landlords of the cash tenants would not be as much inclined to finance their tenants. Second, the amounts of equipment, stock and machinery for cash and 'U. S. Dept. Agr. Bui. 341. 'U. S. Dept. Agr. Bui. 41. 33 for share tenants are not very different. In many localities the share tenant owns only half of the cows and pigs, but here the tenants usually own all the stock and ecjuipment, as in the case of the cash tenants. These are influencing" factors which would have a tendency to equalize more nearly the tenants' investment on the cash and share-rented farms. Table XII. — Relation of Tenants' and Landlords' Capital on 149 Potato Farms Operated by Tenants in Monmoutin County, New Jersey, and the Tenants' Labor Income. Landlords' Tenants' Per Cent. Tenants' Landlords' and Ten- Average Capital Tenants' Average Average ants' Total No. of Labor Furnished Capital. per Farm, per Farm. jier Farm. Farms. Income. iby Landlord, $1,000 or less, . . $785 $5,S25 $6,710 4 $470 86.8 1,001 to 2,000,.. 1,624 9,498 11,122 IS 447 So. 3 2,001 to 3,000,.. 2,583 14,353 16,936 38 567 84.7 3,001 to 4,000,.. 3,416 20,901 24,317 43 886 85.9 4,001 to 5,000,.. 4,442 21,250 25,692 34 853 82.7 ^,001 to 7,000, . . Average, 5,764 23,828 29,593 12 1,121 80.5 3,340 17,767 21,107 149 753 84.2 The landlords' capital does not increase as uniformly with that of the tenants, as might be expected. It would appear that the capital of the tenants and that of the landlords do not always have the proper relation, as the relative amount of capital fur- nished by each varies. If the tenants' farms were grouped accord- ing to the landlords' capital rather than that of the tenants , a more uniform labor income increase could be obtained. A very ^oticeable break in the tenants' labor income is observed in the class of $4,442 compared with that of the $3,416 class. The tenants of the former class, with a $i,0'26 increase in capital, make $33 less labor income than those of the latter class. By comparing the capital furnished by the landlord on these two classes of farms, we find an increase in farm value of $349 only, of the former over the latter. From this it would appear that these tenants whO' have an investment of $4,442 do not farmi a larger farm than those in the preceding class, or their increased operating capital is not met by a corresponding increase on the part of the landlords. This may account for the decrease rather than an increase in their labor income, above that of the $3,416 class. The next class with an average investment of $5,719 make an increase of $584 above the $4,442 men. But their cor- responding- landlords have an increase in capital of $1,514 or a total farm increase of $2,791. This then brings the tenant a marked return, for the landlord helps to furnish this increase in capital. 3 ^x 34 The averag-e per cent, of capital furnished by the landlord is 84.2. The landlords on the lower capitalized farms furnish a somewhat greater proportion of the capital than those on the hig'hly capitalized farms. However, the difference is not great. Probably the difference which does exist is due tO' the higher farm acre values of the lower capitalized farms. Comparing' the aver- ag-e total capital used on the tenant farms with the total on the owner farms, we find it to be $3,434 greater on the tenant farms. In other words, the value of the real estate on the tenant farms is almost as great as the real estate and working' capital of the owners. Thus the tenant farms have almost one-fifth more capital invested per farm than the owner farms. Table XIII. — Relation of Capital to a Given Labor Income on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. f Lato? Income, ^%m $1 $401 S701 $1,001 $1,501 $2,001 Total No. of Less to to to to to to an^ Capital. Farms. than $1. $400. $700. $1,000, $1,500. $2,000. $2,500. Over, >30,001 and over, . , 20 3 3 2 2 3 2 1 4 20,001 to 30,000, . , 43 6 4 4 2 9 1 4 13 15.001 to 20,000, . 43 7 3 S 6 11 3 3 2 10,001 to 15,000,.. 46 9 14 5 4 4 7 1 2 7,001 to 10,000,., 21 3 7 4 5 2 5,001 to 7,000,., 11 3 2 3 2 1 4,001 to 5,000,., 5 2 2 1 4,000 or less, . . , 5 3 1 i Percent, of Potato Owner Farms Making a Given Income with a Specified Capital. $1 Libor Income. $401 $701 $1,001 $1,501 $2,001 $2,50^ Total No. of Less to to to to to to and Capital. Farms. than $1. $400. $700. $1,000, $1,500. $2,000. $2,500. Over. $30,001 and over, . 20 15.0 15.0 10.0 10.0 15.0 10.0 5.0 20.0 20,001 to30,0CO,.. . 43 13.9 9.S 9.3 4.6 20.0 2.3 9.8 30.3 15.001 to 20,000,.. . 43 16.2 6.9 IS. 6 13.9 25.5 61.9 6.9 4.6 10,001 to 15,000,.. 46 19.5 31.7 10.6 s.e S.6 15.2 2.1 4.1 7,001 to 10.000,.. 21 14.2 33.2 19.1 23.4 9.6 5,001 to 7,000,.. 11 27.2 IS.l 27.2 IS.l 9.1 4,001 to 5,000, . . 5 40.0 40.0 20.0 4,000 or less 5 60.0 20.0 20.0 ... This shows a marked relation between capital and the possi- bility of making a given labor income. Oi the five farmers whO' had a capital of $3,000 to $4,000, one made a labor income as high as $551. O'f the five who had $4,000 to $5,000, one ma,de $762 by selling his crop in Asbury Park, while four made less than $400 labor income on these potato farms. Of the 21 farm- ers who had a capital of $7,000 to $10,000, two got a return of a little over $1,000 labor income, seven got over $700 labor income, while 1 1 got over $400' or more than the hired men receive. Thus these data indicate that an owner who has between $7,000 and 35 $io,ooo capital has about one chance out of two' in making- more than $400 in this region and two chances out of twenty- one to make over $1,000. The groupi of farmers who have the largest number and proportion of their number making hig-h labor incomes we find in the class O'f those with a capital between $20,000 and $30,000. Out of a total of 43^ farms, 13 or almost one-third make a labor income over $2,500, while three out of five make over $1,000 labor income. This appears to be the most efficiently capitalized farm. A coirimunity of farms, all of which are as efficiently equipped as these, would certainly need no rural uplift movement. Such a locality would have good roads, schools, churches, libraries, and modern homes. There would be nO' farm labor problem, and the farmer's son and daughter would gladly stay on the farm. Such conditions are approaching the ideal, and only a few can hope to reach them. However, they serve as a guide toward development of the farm and the amount of capital that is moiSt profitable tO' invest. Just how this capital should be invested, whether in land, build- ings or stock, will be shown la.ter. A farm owner should have at least $10,000 to invest, and should he be just starting, he had far better borrow $10,0001 more and invest $20,000. From these results a $10,000 mortgage would be far easier to pay off on a $20,000 farm than a $5,000 mortgage on a $10,0001 farm. To anyone who' is considering the purchase of a farm this is of much importance. Above $30,0001 capital, the average labor income as well as the opportunity of making a high labor income de- creases. These twenty farms it is quite evident are too highly capitalized. While these farms are conducted for profit, the same as those in the class of $20,000 to $30,000 capital, they are equipped with costly dwellings, barns and improvements which bring no return. However, they are not owned by so-called gentlemen farmers, but by men who raise productive crops. It is merely the investment in improvements that brings no farm income, such as a $7,000 house and others of like nature. 36 $300 $4001 $5001 • $7001 $10001 $15001 $20001 $30001 to to to to to to to and 4000 5000 7000 10000 15000 20000 30000 over CAPIT.'J. IirVESTED F3R FARtI Fig. 19. — Relation of Capital to Labor Income on 194 Farms Operated by Owners in Monmouth County, New Jersey. Z7 Table XIV. — Relation of Capital to a Given Labor Income on 149 Potato Farms Operated by Tenants in IVIonmouth County, New Jersey. i.fol $1 $401 $701 $1,001 $1,501 $2,001 J2;4a«- Tenants' No. of Less to to to to to to and Capital. Farms. than $1. $400. $700. $1,000. $1,500. $2,000. $2,500. Over. $1,000 or less, . . . 4 2 1 1 1,001 to 2,0, . 18 2 6 4 4 1 i 2,001 to 3,000, . 38 2 11 15 3 4 3 3,001 to 4,000, . 43 4 11 5 5 S 4 6 4,001 to 5,000, . 34 3 6 7 e 7 2 2 i 5,001 to 7,000, . 12 1 3 1 2 1 1 2 1 Per Cent, of Tenant Potato Farms Making a Given Income with a fied Capital. Speci- $1 $401 $701 $1,001 $1,501 $2,001 ^m- Tenants' No. of Less to_ to to to to to and Capital. Farms. than $1. $400. $700. $1,000. $1,500. $2,000. $2,500. Over. :$1,000 or less, . .. 4 50.0 25.0 25.0 1,001 to 2,000, . . . 18 il.l 33.3 22.2 22.2 5.5 '5'. 5 2,001 to 3,000, . . . 38 5.2 28.9 39.4 7.S 10.5 7.8 3,001 to 4,000, . . . 43 9.3 25.5 11.5 11.5 18.0 9.3 13.9 4,001 to 5,000, . . . 34 8.8 17.6 20.6 17.6 20.6 5.8 5.8 2^9 5,001 to 7,000, . . . 12 8.3 25.0 8.5 16.6 S.3 8.4 16.6 8.4 This shows the same relation for distribution of lal3or incomes to a given amount of capital as in the case of the owners. As long" as the tenant does not have sufficient capital to operate a fair-sized business, he had better rent as a labor-share tenant v/here the landlord furnishes all the capital, or work as a hired man. From these data it appears that the tenant should not have less than $2,000 before he can hope to do much better than the hired man. Five to seven thousand dollars is far more desirable, and would appear to give a tenant a good opportunity of making a good labor income for his 3^ear's work. While this is a large amount of capital for a tenant to invest, the returns fully war- rant the investment. If the tenant is of good character and a good farmer he usually can get considerable capital from the landlord to finance his business. When the tenants as a class make an average of $753 labor income, they have prosperous conditions and an opportunity tO' save money with which to pur- chase a farm later. The twelve tenants who have a capital be- tween $5,000 and $7,000 made an average labor income of $1,079, while five of the twelve made over $1,000. Over one- third of those who had a capital between $4,000 and $5,oo0' made a labor income of $1 ,000 or more. Thus a tenant farmer should have not less than $2,ooO' capital, and much better $5,000 to S7,ooo capital invested in his business. This class would compare favorably with the owner who' has between $20,000 and $30,000 invested. 38 Table XV. — Return for Each $1,000 Capital invested on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. Return Labor Income Per Cent. No. of per $1,000 per $1,000 Returned on Capital. Farms. Investment. Investment. Investment. Loss, $3,000 to .$4,000 5 .$33 $17 3.3 Gain. 4,001 to .5,000, 5 76 26 7.6 .=5,001 to 7, , Increase > Locality. 1900. 1910. Amount. Per Cent. United States $19.81 $39.60 $19.79 100.0 New Jersey 57.2.3 84.36 27. la 47.-0 Monmouth County 73.93 122.53 49.40 65.0 This is a factor which is not to be overlooked. Farm values in the State are increasing rapidly so that the landlords realize a fair per cent, on their investment if they get no cash return from their farms. While this is not true in every individual case, for the State as a whole it is applicable. RELATION OF CAPITAL TO RETURN ON THE INVESTMENT Table XIX. — Return for Each $1,000 Capital Invested on 184 Potato Farms in Monmouth County, New Jersey, Operated by Owners, When Increases of Land Values are included. No. of Capital. Farms. .$3,C0O to $4,000 5 4,001 to 5,000, 5 5,001 to 7,000, 11 7,001 to 10,000, 21 10.001 to 15,000, 46 15,001 to 20,000 43 20,001 to 30,000, 43 30,001 and over, 20 This makes a very high return to the owners, but the correct amount of increase for the individual farm is very difficult to obtain, and such data can be handled only collectively. This would make an average return to the owners of 16.17 per cent, if we estimate their increase of farm acre value to be the same as that in Monmouth County between 1900-19 10. Since 19 10 the rate of increase has, apparently, not been lowered; so 6.5 per cent, a year would not be too high. Increase in Cash Farm Value Total Returns Return for Countv or Per Cent, on Per Cent. 1900 to 1910, Investment. 3.3 6.5 9.8 7.6 6.5 14.1 10.3 6.5 16.8 9.4 6.5 15.9 9.8 6.0 16.3 9.9 6.5 16.4 12.1 6.5 18.6 8.5 6.5 15.0 42 Table XX. — Return to the Landlord on Farms Occupied by Tenant When Increase of Land Values is Added to bi'f Cash Return. Per Cent. Cash Per Cent. " Tenants' Return to Increase of Per Cent. Labor Landlord on Land Values. Total Return Tenure. Income. Investment. 1900 to 1910. for Landlord. Share Tonant, $739 8.3 6.5 14.8 Cash Tenant 93S 3.0 6..5 8.5 Labor-Share Tenant 726 9.5 6.5 16.0 The landlord and owner alone share in the increase of land values. This is a factor which the tenant must recognize. As soon as possible it is well for a tenant to purchase in a region where land values are increasing in order to get the benefit of this increase. It, too, makes a far more attractive investment for the landlord. Even though these landlords get no cash return from their tenant farms, they get over 6 per cent, for their investment on increase of land values alone. Such condi- tions cannot continue indefinitely and therefore should not be considered as a positive return for an indefinite period. However, present indications do show a very prosperous condition in this community. Evident^, the farmer is at last getting his share of prosperity. Localities such as this, where tenants make an average labor income of $753, and owners $917, where landlords get 7.8 per cent, cash return on their money invested, and where land values are increasing at the rate of 6^ per cent, a year, are not frequently encountered in the United States. SIZE OF BUSINESS The average-sized farm in New Jersey is 76.9 acres, that of Monmouth County 70.3 acres, while the average size of the potato-owners' farms, included in this survey, is 98.3 acres, of which 73 acres are actually in crops. The tenant farms have a total of 123.6 acres per farm, of which 86.7 are crop acres. The 370 potato farms, taken as a group, have an average of 109.4 total acreage per farm, O'f which 79.2 were in actual crops. RELATION OF SIZE TO LABOR INCOME Since the major portion of receipts from these farms is derived directly from the crops grown, the number of acres in the farm is a good measure of the size of a farmer's business. Practically all farms have a certain part of the area which is either per- manently or temiporarily not cropped. Therefore, a more true measure is the crop acreage rather than the farm acreage. A 43 man may have a farm area of 150 acres but crop only 100, while his neighbor may have no acres and crop 100. Some farms have a large proportion in waste, snch as roads, banks, cuts and fences. Though the amount is fairly uniform in some localities, it was found to vary considerably on these potato farms, due probably to the great variation in soil types. Throughout this publication, the size of fann is, therefore, measured in terms of labor - Income f-^, #2600 . 2400 X 2200 ^ 2000 1800 1600 O'TOTERS ^^ 1400 ^^ ^.--^^ 1200 / TEITAIITS ^^-^ 1000 / y^ 800 / y^^^ 600 y^,"-'''^^''^^ 400 __-,^ ^y^^^^^ ■■soo ^-^ 170 20 50 80 110 140 CROP ACHES PER FAHM Fig. 20. — Relation of Labor Income to Number of Crop Acres per Farm on 343 Potato Farms in iVlonmoutln County, New Jersey. crop acres. For any who are considering the purchase of a farm in such a locality, the number of crop acres is more important than the total farm area. In a dairy or live stock region, this would not necessarily be true. Again, in a region of live stock and grain farming, the size or amount of the farm business depends also upon the amount of live stock kept. Average Per Cent. of Number of Labor Total NumTjer Crop Acres. Income. 10 22.6 $163 IS 41.5 329 28 64.7 702 27 S6.8 1,239 14 118.4 1,567 3 176.0 2,611 44 Table XXI. — Relation of Size of Farm to Labor Income on 194 Potato Farms Operated by Owners in IVIonmouth County, New Jersey. No. of Crop Acres. Farms. 50 or less 20 31 to 50 35 51 to 75, 54 76 to 100 52 101 to 150, 27 151 and over, 6 The average return per farm, or labor income, increases tiniformily with the increase in number of crop acres. It is quite apparent that a farm of less than 50 crop acres is too small for a satisfactory business on these farms. Out of the total number of 194 owners' farms, 55, or over one-fourth, have too small an area to allow a profitable business. An owner's farm of less than 30 acres is entirely too small. Men on these farms had better work as hired men or as tenants on a larger farm.. On farms having between 76 to 100 crop acres, a very satisfactory return is obtained, while on farms having over 151 crop acres, with an average of 176 per farm, the highest return of all the groups is obtained. The average size of these owners' farms is 73 crop acres, or 98.3 farm acres. This is a large area, if compared with that of other regions, when we consider that potato growing is an intensive type of farming which requires m.uch labor per acre. These farmers are thus afforded an opportunity to make a good labor income. To a large extent, this is a very important factor in the success of these farms. In other words, they afford these farmers a larger business than is furnished for the average farmer in the Middle Atlantic States. When these farms were first settled, general farming, including stock raising, was the common practice. But as the potato industry developed, general farming and stock raising were replaced by potato growing. The potato crop requires more labor and returns greater receipts per acre. The farmers increased their business by adopting a more intensive type of farming. This is a very good illustration of a farm community increasing the amount of farm business, through a more intensive as well as a more profitable type of farming, by increasing the potato acreage. Taken as a class, not •only are these farms sufficiently large to make a living for the operator, but he is able to save some money after he has provided for his family. 45 Table XXII. — Relation of Size of Farm to Labor Income on 149 Potato Farms Operated by Tenants in iVlonmouth County, New Jersey. Owners' Per Cent. Labor Income No. of of Total Average Labor on Same Crop Acres. Farms. Number. Crop Acres. Income. Sized Farms. 30 or less, 4 2.7 21.8 $346 .$1G3 31 to .50 12 8.1 41.1 462 329 51 to 75 33 22.1 63.9 555 702 76 to 100 62 41.7 87.9 698 1,239 101 to 150, .■ 33 22.1 118.1 1,099 1,567 151 and over 5 3.3 176.6 1,478 2,611 The same relation is shoAvn between size of farm and labor income on the tenant farms as on the owner farms. However, the extremes are not as great, as on the latter. The tenants on small farms make more, while on large farms they make less, than owners on areas of the same size. One reason for the difference between the labor income of tenants and that of owners on the small farms is that a few retired owners live on small areas which they farm, but are not entirely dependent on them for their living. Again, tenants on small farms do' more work off the place in order to be more fully occupied. More- over, there are not nearly as large a proportion of the tenants who rent small farms as owners who live on- small farms. A larger percentage of the tenants rent large farms. This fact is another argument that the tenant realizes the value of getting a good-sized acreage in order to obtain a good-sized business. Table XXIII Relation of Size of Farm to Distribution of Labor Incomes on 194 Potato Farms Operated by Owners in IVlonmoutli County, New Jersey. I ■ Labor Income, » $1 $401 $701 $1,001 $1,501 $8,001 $2,501 No. of Less to to to to to to and Crop Acres. Farms, than $1. $400. $700. $1,000. $1,500. $3,000. $2,500. Over. .30 or less 20 8 4 4 3 1 31 to 50 35 10 10 5 4 "2 2 1 1 51 to 75, 54 9 13 8 6 7 7 1 3 76 to 100 52 S 3 5 5 15 3 5 8 101 to 150, 27 4 2 3 3 5 2 2 6 151 and over, 6 1 1 .. 1 ■• ■• 3 The Opportunities for making a good labor income are quite limited on a small crop area. One man who had 30 crop acres, and a labor income between $1,000 and $1,500, retailed his potatoes, receiving $2.25 to $3.00 per barrel for his whole crop. The three men who had less than thirty acres and made between $700 to $1,000 likewise retailed their crop and got a high price so as to give them a high return per acre and at the same time give them a larger business. However, 8. or two-fifths, of these men who had 30 acres or less lost money. It is quite noticea1)le 46 that the proportion of men losing money decreases rapidly with the increase on the size of the farms. This itself argues well for the larger farms. The most desirable size appears to be 100 or more crop acres. However, a large size does not guaran- tee a large labor income. But it does provide one very im- portant factor usually necessary for making a good labor income. Of the six men who had an average of 176.6 crop acres, 3, or one-half, made labor incomes of over $2,500. Of the 27 who had an average of 118 acres per farm, 15, or over one-half, made labor incomes of $1,000 or more, while 8, or almost one- third, made over $2,000. In this same group 4 men lost money. Thus we see that while large size does not guarantee large re- turns, it makes the possibilities far greater for obtaining them. Table XXIV. — Relation of Size of Farms to Distribution of Labor Inconnes on 149 Potato Farms Operated by Tenants in Monmouth County, New Jersey. ,. Labor Income, , $1 $401 $701 $1,001 $1,501 $2,001 $2,501 No. of Less to to to to to to and Crop Acres. Farms, than $1. $400. $700. $1,000, $1,500. $2,000. $2,500. Over. 30 or less -t . . o 1 .•31 to 50, 12 . . 7 2 1 1 1 51 to 7.5 33 4 9 9 5 5 1 76 to lOO 62 5 IS 15 6 9 4 5 101 to 150, 33 3 4 6 6 4 4 4 2 151 and over, .... 5 .. .. .. 1 2 1 1 In distribution, the tenant incomes are more bunched than are those of the owners. There .is a smaller proportion losing money as well as making large incomes. M'oreover, the num- ber making large labor incomes increases as the area per farm increases. The tenants who farm an average of 118.1 crop acres have 14, or almost one-half, making labor incomes over $1,000. Those with 176.6 crop acres have 4 out of 5 making labor incomes of over $1,000, while those with 30 acres or less have none making over $700. Tenants with 63.9 crop acres have 6 out of 33, or one-fifth, while those with 87.9 crop acres have 18 out of 62, or about one-third, who make $1,000 or more. Farming differs from manufacturing industries in that much space is required in order to carry on a satisfactory business. Though the size of business can be increased by adopting a more intensive type of farming or by increasing production, yet there is a narrow limit to which this is applicable. These farmers, as a class, have increased their farm business by increasing^ the potato acreage and by increasing their potato production. Still there are a considerable number who have too small areas for carrying on a profitable business. 47 RELATION OF SIZE OF FARM TO EFFICIENCY IN FARM OPERATIONS. The fact that large farms are more profitable than smaller ones, is not due entirely to the magnitude or amount of business, but there are other factors which enter into the operation of the large farm that make it more profitable. The larger potato grower does not only grow more potatoes from which he makes a profit, but he very frecjuently grows them at less cost per bushel than the small grower. There are a number of reasons why this is true, one or all of which have a direct bearing upon more economical production on the large farm. Table XXV. — Relation of Number of Crop Acres to Labor Efficiency of Men, Horses, and Machinery on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. Crop Acres per $100 Worth of Work Units Work TTnits Crop Acres Machinery, per Man. per Horse, per Farm. 6.7 161.1 65.4 22.6 6.5 175.5 73.4 41.5 8.0 218.6 86.0 64.7 8.5 221.7 87.8 86.8 11.1 227.6 94.8 118.4 12.0 292.7 102.0 176.0 As the size of the farnii increases, more productive work is accomplished by man, horse and machinery labor. On the larger farms one man cares for 2.4 crop acres to i acre on the smaller farms. This means that the larger farms raise their crops at a smaller acre cost or bushel cost than do the small farms. The number of crop acres per horse on the small farms is 9.1, while on the largest farms it is one horse for 17.2 crop acres. On the large farms a horse will cultivate and care for almost twice as many crop 'acres as on the small farms. The machinery likewise is used more economically on the large farms, since $100 worth of machinery wall care for 12 crop acres while on the small farms it cares for 6.7 crop acres only. By measuring this efficiency in the use of man, horse and machinery labor in terms of man work units, which is a better and more true measure, we find that a man actually accomplishes or raises 1.81 timies, or about twice, as many acres of potatoes and other crops than does a man on a small farm. If a man on a large farm can produce 181 bushels of potatoes for every 100 bushels he could produce on the small farm by working the same number of days, it is quite evident that the large farms are far more economical in the use of man labor. The large farms afford more steady and Crop Crop No, of Acres Acres Crop Acres. Farms. per Man, per Horse 30 or less, . 20 17. S 9.1 31 to 50. ... 35 19.8 10.7 51 to 75, ... 54 25.4 12.9 76 to 100, .. 52 27.7 14.7 101 to 150, . 27 32.6 16.3 151 and over. 6 42.2 17.2 48 uniform work for their men employed, and at the same time men can accomphsh more for the time spent at work. CROP ACRES CROP ACR^vS PDR MAN 80 110 CROP ACRES PER FAKA 140 170 Fig 21.— Relation of Number of Crop Acres to Labor Efficiency of Men, Horses and iVlachinery on 194 Farms Operated by Owners in iVIonmouth County, New Jersey. When measuring the efficiency of horses by work units per horse we find the same relation as for man labor ^hough the differ- ence is not quite so great. For each acre of potatoes or other crops produced by a horse on the small farm, 1.56 or i>4 times as many acres, are produced on the larger farms. 49 Table XXVI. — Relation of Crop Acres to Labor Efficiency of Man, Horse and Machinery Labor on 149 Potato Farms Operated by Ten- ants in Monmouth County, New Jersey. Crop Acres Crop Crop per $100 No. of Acres Acres Worth of Work TJnits Work Units Crop Acres. Farms. per Man. per Horse. Machinery, per Man. per Horse. 30 or less, 4 15.6 S.7 5.7 152.8 62.3 31 to 50, 12 23.5 12.3 8.S 190.4 78.3 51 to 75, 33 20.5 12.4 9.4 241.7 78.6 76 to 100 62 31.0 15.7 10.4 226.8 90.2 101 to 150 33 33.5 16.5 11.7 248.7 93.5 151 and over 5 47.7 20.8 19.5 302.4 113.0 The same relation is shown for the tenants as for the owners. Moreover the extremes are somewhat greater for the tenant than for the owner farms. If the two extreme classes are eliminated the difference between the tenant a'nd the owner farms is not great. Therefore, we may conclude that the tenant's labor effi- ciency is affected by si^e to as great a degree as that of the owner. As a class the tenants are somewhat more efficient in the employ- ment of man, horse and machinery labor, due in part to the fact that their farms are to a certain extent larger. However, tenant farms are somewhat more efficient than the owner farms. They usually have a few more crop acres per man, horse and machine labor. This is again shown when man work units are used as a measure of work actually done. Monmouth County tenants have actually raised more acres of potatoes and other crops per man than the owners. This is not surprising since the tenant must exert himself more in order to get a return sufficient for his living than does the owner. When we consider, therefore, that on the larger farms there is accomplished from i^ to 2 times as much work per man, horse and $100 worth of machinery employed, it is quite evident large farms should be making more profitable returns to their owners than small farms. RELATION OF SIZE OF FARM TO BUILDINGS Whether large or small, a farm needs a dwelling for the family to live in, and barns and sheds for farm operations. The small farms should have a dwelling almost as large and as well equipped as the large farm. Barns and other farm buildings vary in size to accommodate the need of the individual farm. However, a barn equally well equipped can be built so that the cost per horse will be less when it is made to- accommodate 8 horses than if built for 4 horses. More acres are farmed per horse on the large farms, so that the proportionate acre expense for maintaining buildings for horses is less on the large farm than on the small 4 EX farm. Money spent for buildings brings no cash return and therefore it should be carefully invested. Table XXVII. — Relation of Size of Farm to Buildings and Building Invest- ment on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. Average Per Cent. Per Gent, of Per Cent. Value of Total Value Total Farm Value of Total No. of of All Real Estate of Real Estate of Real Estate Crop Acres. Farms. Buildings. Capital. Dwelling, Capital. Barn. Capital. SO or less 20 $2,. 500 49. S $1,655 33.0 $845 16.8 31 to 50, 35 3,766 43.4 2,229 25.7 1,537 17.7 51 to 75, 54 4,974 44.S 3,063 22.6 1,911 22.2 76 to lOO 52 5,613 34.4 3,128 18.9 2,485 15.5 101 to 150, .... 27 6,811 29.1 2,833 12.1 3,978 17.0 151 and over; . . 6 6,617 30.1 4,367 20.3 2,250 9.8 Of the total capital on the farm, that which is invested in buildings amounts on the average to 35.2' per cent, of the total farm investment. According to the 1910 census the building i'nvestment for Monmouth County is 35.2 per cent, of the total real estate value. For the large potato farms this proportion amounts to 30 per cent., or about one-third, while for the small farms it is 49 per cent., or about one-half of the total farm real estate value. By examining the average values ot the buildings on the small and on the large farms, it is apparent that while the large farms have a smaller proportion of their capital invested in buildings, yet they are far better equipped. The average value of the dwellings on the small fanns is but $1,655, while that on the large farms is $4,367. This means the farmers on large areas are more comfortably housed at a smaller proportionate expense. The same relation is true of the barn and sheds, but to a lesser degree, since, although a large farm requires more barn and shed capacity, this is obtained at a smaller relative cost than on the small farms. Table XXVIII. — Relation of Size of Farm to Buildings and Building Invest- ment on 149 Farms Operated by Tenants in Monmouth County, New Jersey. Per Cent. Value of Total of Real Estate Crop Acres. Farms. Buildings. Capital. Dwelling. Capital. Barn. Capital. 30 or less, 4 $1,950 41.5 $1,375 .28.9 $575 12.6 31 to 50, 12 2,890 37.8 1,750 22.9 1,140 14.9 51 to 75 33 4,130 30.5 2,448 18.0 1,682 12.5 76 to 100 62 5,912 32.4 * 3,538 13.9 2,374 18.5 101 to 150, 33 6,091 26.1 3,106 13.3 2,985 12.8 151 and over, ... 5 9,300 30.0 4,000 14.1 4,300 15.9 The same relation exists for the tenant farms, but to a less marked degree. The average building investment for the tenant Average Per Cent. Per Cent, of Value of Total Value Total of All Real Estate of Real Estate Buildings. Capital. Dwelling. Capital. $1,950 41.5 $1,375 ,28.9 2,890 37.8 1,750 22.9 4,130 30.5 2,448 18.0 5,912 32.4 • 3,538 13.9 6,091 26.1 3,106 13.3 51 farms is 30.8 per cent., or somewhat less than the building invest- ment on owner farms. The average investment on the owner farms for dwellings is $2,932, and bams $2,046, while on the tenant farms it is $3,0114 for dwellings and $2,340' for barns. The dwelling investment is relatively higher on the owner farms while the barn investment is higher on the tenant famis when considered from the standpoint of total real estate value. Natur- ally landlords would not care to build expensive dwellings to accommodate tenants. S'till, the average value of these build- ings would tend to show that they do have an investment large enough to furnish comfortable living conditions. The propor- tionate investment on the small tenant farms is twice the amount of that on the large farms. Thus the landlord makes a greater saving than the owner since he does not increase the investment in the house as rapidly as does the owner with the increase of size. However, he does increase the investment of his barns more rapidly than does the owner as size of farm increases. It is quite evident, therefore, that the owner or tenant can live more comfortably and have a better dwelling on the larger-sized farm than he could on the small one, while at the same time at a smaller proportionate expense or at a lower proportionate* charge against the farm for living. This is a factor of much importance when we consider that the farmer's place of business is his home. From this standpoint farming" differs from manufacturing or other commercial industries where a man has his office located at his place of business with his home at an entirely different •place. The business man thus considers his location from the standpoint of successful business operation. The farmer must consider it from the standpoint of a home as well as of business. It is thus important that the farm be large enough to afford a comfortable home without too heavy a charge against the income. RELATION OF SIZE OF FARM AND CROP ACRE VALUE Small farms frequently sell for more per acre than large farms. When we consider that the cost of buildings upon these small farms is proportionately greater, it is right that they should bring relatively more since the improvements per acre are pro- portionately (greater. 52 Table XXIX. — Relation of Size of Farm to Farm Value and Crop Acre Value on 194 Potato Farms Operated by Owners in Monmoutii County, New Jersey. Average Crop Farm Per Cent. No. of Farm Acre Acre Farm Area Crop Acres. Farms. Value. Value. Value. in Crops. 30 or less 20 $5,015 $223.90 $156.40 70.1 31 to 50 35 8,671 209.00 157.60 75.3 51 to 75 54 13,531 209.20 153.60 73.4 76 to 100, 52 16,298 187.80 133.90 71.1 101 to 150 27 23,352 197.40 157.90 80.1 151 and over, 6 21,443 121.80 96.50 79.2 The total farm value increases with the size, as would be expected. However, the value per crop acre decreases as the number of crop acres increases. The acre value of the small farms is $223.90 per crop acre while that of the larger is $121.80, a difference of $102.10 per crop acre in favor of the large farm. It is quite evident that farm values are not governed by their production values, otherwise the acre value for small farms would be less. A small farm might be likened to the first reapers placed on the market for the farmer to buy. Compared with modern reapers, they were expensive to operate, yet cost con- siderably more when purchased. Table XXX. — Relation of Size of Farm to Farm Value and Crop Acre Value on 149 Potato Farms Operated by Tenants in IVlonmouth County, New Jersey. Average Crop Farm Per Cent. ' No. of Farmi Acre Acre Farm Area Crop Acres. Farms. Value. Value. Value, in Crops. 30 or less 4 $4,750 $217.90 $150.80 69.0 31 to 50, 12 7.6.50 186.10 132.40 73.0 51 to 75 33 13,545 312.00 143.60 67.7 76 to 100, 62 18,226 207.50 147.30 71.1 101 to 150, 33 23,303 197.30 137.50 69.6 151 and over, 5 27,600 156.30 111.20 70.8 The relative acre values for the tenant farms is very similar to that of the owner farms. However, the crop acre values are somewhat higher on the former than on the latter, for farms of the same size. When computed on the total farm; acreage, there is less difference between the acre values of the large and of the small farms. Too frequently farms are valued at .their total farm' acreage rather than at their total crop acreage. If the re- mainder of the farm can be placed in crops, this method would not be at fault. But there is always a certain area which cannot be cropped, and this differs much with the individual farm. In the case of the owner farms, there is a larger pro- portion of waste on the smaller farms. This is to be expected since buildings, roads and fences take proportionately more space 53 on small areas. This amounts to a difference of almost lo per cent, on the owner farms. For the tenant farms, the percentag-e of waste area is about the same for all the farms of different size. It appears as though the tenant on the large farms is more wasteful of land than is the owner. The tenants have an average of 70.1 per cent, of their farms in crops while the owners have 74.5 per cent, cropped. RELATION OF SIZE OF FARM TO CROP YIELDS It has for a long time been the popular belief that sm,all farms are better tilled, more carefully farmed, and, therefore, more profitable. In practically all farm surveys this has proved a fallacy. However, the former work applied to grain, hay and extensive types of farm crops. Should this idea prove true in any case, one v/ould expect it to do so in potato farming where intensive methods are employed in the production of the crop. The following tables show just what effect the size of the farm has on the potato yield. Table XXXI. — Relation of Size of Farm to Potato Yield on 194 Potato Farms Operated by Owners in Monmoutii County, New Jersey. Yield of Crop Per Cent. Potatoes No, of Acres in Crop Acres Barrels Crop Acres. Farms, Potatoes, in Potatoes, per Acre. 30 or less 20 9.4 42 76 31 to 50 35 16.9 41 81 51 to 75 54 24.7 38 82 76 to 100, 52 30.0 34 86 101 to 150 27 41.8 35 84 151 and over 6 58.5 33 72 The average yield of potatoes on the owner farms is 83 bar- rels per acre. It appears, as though the size oi crops than do those on the larger areas. This difference might be influenced by the greater pro^- portion of potatoes on the small farms, but later data will show that this would not influence it materially. When the value of the owner's time is included in the labor expense, the acre cost for the small farms is over twice that oi the larger ones. The depreciation and interest charge against the small farms is almost three times that of the larger, indicating the more economical use of buildings on the latter. The same is true of the equipment charge per acre. This is almost twice as great on the small farms, and, like the buildings, decreases uniformly with the increase in size. The seed and fertilizer expense is about the same. How- ever, the total cash expense per acre is only three-fourths as much on the large farms as on the smaller. Table XXXVII. — Relation of Size to Farm and Crop Acre Expense on 149 Potato Farms Operated by Tenants in IVIonmouth County, New Jersey. Machinery or'- Buildings, Equipment, Interest Interest Laljor per Labor and and Operator's Total Acre, Not per Acre, Depre- Depre- Total Cash No. of Farm Including Including ciation ciation Expense Crop Acres. Farms. Expense. Operator. Operator, per Acre, per Acre, per Acre. 30 or less 4 $526 $8.7 $25.0 $7.1 $3.7 $24.2 31 to 50, 12 1,194 8.9 18.2 5.6 2.4 28.2 51 to 76 33 1,265 8.3 14.5 5.1 2.2 19.2 76 to 100 62 1,777 9.4 13.5 5.4 1.9 20.2 101 to 150, 33 2,138 8.9 12.1 4.1 1.7 18.1 151 and over, 5 3,046 7.4 9.0 3.7 1.1 19.4 The tenants are making a more economical use of their labor than the owners. The average acre charge for cash labor against the owner farms is $11.40, while that of the tenants is $8.90. This is a charge of $2.50 for the owner farms above that of the tenant farms. With the exception of the five largest farms there is no material difference in cash labor expense per 58 acre for the tenant farms of different size. However, when the operator's time is included there is a material difference. The building depreciation and interest as well as that of the equip- ment is again higher for the small farms. The tenant's total cash expenses per acre are greater for the small farms, but the differ- ence is not so great as in the case of the owners. For each dollar the tenant on the small farm invests he gets in return $1.76, while on the large area he gets $1.56 (Table XXXIV). It will be noted that- the small tenant is getting considerable revenue aside from actual farm income and in that manner has increased his receipts per dollar invested on the farm above that on the larger area. This then accounts for the apparent discrepancy when comparison is made with the statistics of the owner farms. The actual cash expense is considerably less on the larger areas than on the smaller. On a farm of 100 crop acres, this cash expense, due to greater efficiency, would amount to almost $1,000 less than if this area were divided into four or five farms. For the tenants, this difference would be less since they do not pay for the building repairs and depreciation. Besides, the tenants are somewhat more efficient in the use of their labor. There is still another expense of considerable importance which does not show in the cash item, but should be recalled at this point. It is the horse-labor expense. Most of the horse feed is raised on the farm, and this cost against the farming opera- tions does not appear with current cash expenses. On the owner farms a horse cared for almost twice, and on the tenant farms more than twice, as many crop acres on the large farms as on the small farms. Assuming that it costs $150 a year to keep a horse, this would be an additional crop acre charge of $5 to> $10 per acre for the small farmer, when the horses in this area work an average of 15 crop acres. It is quite evident, therefore, that a large investment is neces- sary to get large returns, and that the larger farms have a decided advantage in the use of man, horse and equipment labor as well as building expense on these potato farms. The most efficient size appears to be 100 or more crop acres. To what extent this size could be increased effectually above 100 crop acres has not been determined in this area, since no class of farms vere found whose income was diminishing because of too great size. The largest class had an average of 176 crop acres, and these made the largest average income of any class. However, it is noticeable that the acre profit is diminishing with this last class. Therefore, the greatest efficiency per acre has been reached 59 and passed. The maximum acre efficiency appears to have been reached between lOO and 150 crop acres. On farms of over 150 acres, or an average of 176 crop acres, the returns per acre diminished rapidly, and that probably is near the maximum size for efficient farms in this potato region. PRODUCTION It is a popular belief that high production is associated with profitable production; that the higher the production the larger is the profit obtained from the farm. Numerous surveys have shown that high production may be made unprofitable when carried beyond a certain point. It has also been shown that some farmers who have the highest production are not making as much money as those who are producing less per acre at a smaller cost. There is a point beyond which it is no longer profitable to spend more fertilizer or labor per acre. After this has been once reached, increased expenditures no longer bring profitable returns. Moreover, just what is the profitable amount to produce can be ascertained only by careful investigation. CROP YIELDS Table XXXVIII. — Crop Yields of Monmouth County as Found by the Sur- vey for 1914 Compared with the Census Yields for 1909. Census Yield Survey Yields per Acre for 1914. Crop. per Acre 1909, Owners. Tenants. Potatoes, 48. barrels 83.0 barrels 84.7 barrels Corn, 44.5 bushels 48.1 bushels 46.1 bushels Wheat, 22.2 " 22.7 " 22.3 Kye, 15.0 " 18.9 " 15.6 " Hay 1.34 tons 1.45 tons 1.4 tons All of these yields are above the average for the State except that of rye, which is a little below the average of the census yield of 1909. The yields upon these potato farms are above the average of the county, but the difiference is not great excepting for potatoes. One might expect greater increase for the other crops, but these soils are not well adapted to small grains and hay. The residual efifects do help to increase the other crop yields, but this residual value is not as great on these light soils as it would be on heavier soil. Again, the better portions of the farms are kept for the potato crop, and this eliminates the more fertile areas for crops other than potatoes whenever a rotation of potatoes for the whole farm is not followed. 6o Table XXXIX.— Rainfall of Monmouth County for 1909 and 1914, the Census and Survey Years' Rainfall at Freehold. May. June. July. Total. Year. Inches. Inches. Inches. Inches. 1909, 1.75 1.82 1.07 4.64 1914 2.49 3.37 4.92 10.78 Difference .74 1.55 3.85 6.14 This may explain the low potato yield obtained by the census for 1909. Since rainfall is to a large extent the limiting factor, a dry season such as that of 1909 would sharply curtail the potato yield. This would probably affect the potatoes more severely than the other crops mentioned, since in the remainder of the year 1909 there was a good rainfall, and the growing season is somewhat different for the other crops; hence, they would not be so much affected as the potatoes. POTATO YIELDS AND PROFITS While the acre production for potatoes on these potato farms is high, that of other crops is not correspondingly large. Pota- toes are the main crop while the others are merely accessory. The fact that these soils are not so well adapted to grain and grass crops, and that most attention is devoted to potatoes, does not allow such high yields for other crops. Table XL. — Relation of Potato Yields to Labor Income on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. Number Per Cent. Average Yield Per Cent, with Minus with Minus Average Yields per per Acre, No. of of Total Lahor Labor Labor Acre, Barrels. Barrels. Farms. Number. Income. Income. Income. 60 or less, . . 54.2 22 11 11 50 $172 61 to 70 66.1 28 14 10 36 657 71 to 80 77.3 61 32 13 20 740 81 to 90 86.5 38 20 2 5 1,091 91 to 100 98.1 35 18 2 5 1,645 101 and over, . . 109.0 -10 5 1 10 1,907 There is a direct correlation or relation between the potato yields and labor income. On the first class of farms, with a yield of 60 barrels or less and an average of 54.2 barrels per acre, the owners are losing money. Eleven per cent., or over One-tenth of the whole number, are in this class. It is evident that a yield of 54 barrels of potatoes per acre is not sufficient to cover the cost of producing them. The men who got between 60 and 70 barrels, or an average of 66.1 barrels per acre, made a little money, though it is not a very large amount when the owner's time is deducted. A yield between 54 and 66 barrels per acre is the dividing line for the cost of production of the 6i owner farms when potatoes sell at $1.42 per barrel. The men who have a yield between 80 and 90, or an average of 86.5 barrels per acre, which is 3^ barrels above the average for all the farms, have a labor income which is likewise a little above the average, showing that the returns follow the yield very closely. Only ten farms out of the 194 got 100 barrels or more per acre. The average of these ten farms was 109 barrels, or 31 per cent, above the average. The return of these farms, on the other hand, was $1,907, or over twice that of the average for all the farms. This increased production then is very profit- able to the farmer, and brings very high returns for the in- creased care and expense. The highest yield of any farm was from 29 acres of Giants, which produced 121 barrels per acre, and 2 acres of Cobblers, producing 112 barrels, or an average for the 31 acres of 120 barrels. This is an increase of 45.4 per cent, above the farm average. In addition to potatoes, this farm had 53^ acres of corn, yielding 75 bushels of shelled grain, 5 acres of hay, yield- ing 2 tons per acre, and 2 acres of orchard, from which the operator got no receipts. Three cows, 60 chickens, 2 pigs and 3 work horses comprised the total amount of live stock. The operator sold $410 worth of products from the cows and chick- ens, and received $5,053 for the potatoes and $100 for teaming. This was all from 43 5^ crop acres and a farm area of 46 acres. The labor income of this farm was $2,169, over twice the aver- age. This farmer used 5 barrels of seed potatoes per acre and 1,800 pounds of 4-8-10 fertilizer, which is about 25 per cent, more fertilizer, and ^/lo of a barrel more seed than the average. With this extra investment of seed and fertilizer, he got an average yield of 45 >< per cent, greater than the average potato yield and 46 per cent, greater than the average for all crops. It is quite likely that he tilled more thoroughly and carefully than his neighbors, but it all proved a good investment. In spite of the fact that the farm was small, this farmer made greater profits by more careful management and more intensive methods than his neighbors on larger areas. Table XLI. — Relation of Potato Yields to Labor Income on 149 Potato Farms Operated by Tenants in Monmouth County, New Jersey. Number Per Cent. Average Yield Per Cent. with Minus with Minus Average Yields per per Acre, No. of of Total Labor Labor Labor Acre, Barrels. Barrels. Farms. Kumber, Income. Income. Income. 60 or less, . . 41.1 4 3 2 50 $178 61 to 70, 67.7 22 14 4 14 339 71 to SO, 76.9 41 28 1 4 587 81 to 90 86.2 44 30 5 2 815 91 to 100 96.0 30 20 1,066 101 and over, .. 106.9 8 5 1,693 62 The average yield of the tenant farms is almost 2 barrels per acre above that of the owner farms. They have a smaller number with yields below 60 barrels per acre, but the same liABOR $20G0 1800 V 1600 / 1 1400 0W112RS / / 1200 / / 1000 / / / TENAimK 800 — /// flOO 1/ 400 1/ 200 200 ^"^^^""^""^ 1 1 1 A bbl3.50 bbls.60 ttls. 70 tbls.SO bblsgO bbls.lOO "bblsHO bbls. POTATO YIELD PER ACHE Fig. 22. — Relation of Potato Yield to Labor Income on 343 Potato Farms in Monmouth County, New Jersey. 6.3 proportion above lOO barrels per acre. There is a direct relation between the yield and the returns on the tenant farms, as was found on the owner farms. The highest yield in the tenant group was 114 barrels per acre (34 per cent.), or one-third above the average. The tenants do not obtain quite so high a yield as the owners' highest yield. It is expected that they would be more conservative in their investment on production. RELATION OF POTATO YIELDS TO EXPENSES Table XLII. Yield, Barrels per Acre. 60 or less, 61 to 70, . 71 to 80, . 81 to 90, . 91 to 100, 101 and over -Relation of Yield to Expenses on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. No. of Farms. 22 28 61 38 35 10 Crop Acre Expense. 127.10 32.10 33.70 32.40 3-.. 60 45.50 Fertilizer per Acre, $6.70 8.60 9.00 n..50 3.90 12.50 Acres of Potatoes per Farm, 13.6 26.7 26.8 28.7 30.2 31.8 Total Crop Acres per Farm. 52.8 75,7 73.5 78.6 79.4 63.0 The crop acre expenses do not increase proportionately with the increased yield. With the exception of the 'first and last classes, the difference is not marked. The fertilizer expenses, on the other hand, do increase regularly with increased produc- tion. However, much of this increase in fertilizer expense is due to the increased proportion of potato acreage. The high producing farms used a somewhat greater amount of fertilizer than the low producers. Table XLII I. — Relation of Yield to Expenses on 149 Potato Farms Operated by Tenants in Monmouth County, New Jersey. Yield, Operators' Fertilizer Acres of Total Barrels per No. of Crop Acre per Crop Potatoes Crop Acres Acre, Farms, Expense. Acre. per Farm, per Farm. 60 or less 4 $13.60 $2.90 14.0 73.0 61 to 70, 22 18.20 4.50 21.6 80.7 71 to 80 41 18.50 4.40 28.7 85.8 81 to 90, 44 20.10 4..30 31.7 93.0 91 to 100 30 22 80 5.40 34.7 84.2 101 and over, 8 20.50 5.90 .37.3 90.1 The tenants' expenses are very similar to those of the owners in relation to both total current expenses per acre and fertilizer expense per crop acre. Since the share tenant pays for but half of the fertilizer, the acre cost is low, as it represents only half of the total fertilizer expense. 64 RELATION OF POTATO YIELDS TO LABOR Table XLIV. — Relation of Production to tiie Man, Horse and Equipment Labor on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. Yield, ■ Crop Acres Barrels per Crop Acres Crop Acres per $100 Work TTnits Work TTnita Acre. per Man, per Horse. Equipment. per Man, per Horse. 60 or less 26.6 13.8 9.0 200 80 61 to 70, 27.9 14.3 10.0 204 83 71 to 80 27.8 15.1 8.8 208 89 81 to 90, 27.1 13.6 9.3 214 85 91 to 100, .. 28.8 13.8 7.8 217 82 101 and over, 22.9 11.6 5.7 208 84 The men and horses appear to be far more efficient on the more productive farms since they handle just as large an acreage of crops whether the yield is high or low. This is emphasized again when measured by work units. The men on the more productive farms get their labor at the same acre cost as those on the low producing areas, while their receipts are much larger as will be shown later. Table XLV. — Relation of Production to Man, Horse and Equipment Labor on 149 Potato Farms Operated by Tenants in Monmouth County, New Jersey. Yield, Crop Acres Barrels per Crop Acres Crop Acres per $100 Work TTnits Work Units Acre. per Man, per Horse. Equipment. per Man. per Horse. 60 or less 36.5 20.9 16.8 199.8 77.0 61 to 70, 33.1 16.4 11.9 222.8 93.0 71 to SO, 34.1 13.1 10.8 255.9 84.6 81 to 90 33.2 15.6 11.2 229.8 88.3 91 to 100, 22.8 14.2 10.1 219.5 86.6 101 and over .Sl.O 15.0 8.2 2.33.3 90.4 As previously noted the tenants are more economical in their use of labor, and here again it contrasts with that of the owners. Though the difference is not great, there does appear to be some relation between production and number of acres of crops handled per man. When measured by work units, and thus considering the proportion of potatoes per farm, the men on the low pro- ducing farms accomplish less than on the high producing farms. The same relation is not true for the horse labor. Horses appear to handle just as large a crop acreage whether* it is a high or a low producing farm. High production does not materially affect the acre cost on these farms as shown by the preceding data. The machinery investment on the other hand does increase. The high producing farms are better equipped, a condition which may in- crease the efficiency of equipment labor. If a farmer with the same man and horse labor cost can produce twice the yield by vskillful cropping and a slightly increased investment in fertilizer 65 and seed, this should be a very attractive manner of increasing profits on these farms. On the whole these results are not sur- prising. The main increased labor cost we would expect to- be for picking the potatoes and hauling them tO' the railroad. Pick- ing is a minor item among a large number of more important ones. Again, on most of the farms the hauling of a large or a small yield would not necessitate the farmer's buying an extra team oi horses. Costs such as cutting seed, plowing, digging, etc., remain about the same regardless of production. RELATION OF POTATO YIELDS TO FARM VALUES Table XLVI. — Relation of Production to Real Estate Values and Receipts on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. Yield, Potato Other Crop Stock- Barrels per ' Value per Receipts Receipts Receipts per Total Acre Acre. Acre. per Acre. per Acre, Crop Acre. Receipts, 60 or less, $101.20 $81.30 $12.70 $."3.00 $33.80 61 to 70, 111.70 103.10 12.70 5.20 50.10 71 to 80 143.90 111.20 13.10 5.no 55.40 81 to 90 153.70 118.80 15.70 ."5.30 59.80 91 to 100, 160.00 138.80 18.60 4.80 69.60 101 and over 205.10 150.10 29.90 5.30 96.80 The high producing farms have a greater acre value, as one would expect. However, they are comparatively not as high as the low producing farms since these high producers are twice as valuable per acre as are the low producers, while the receipts are almost three times as great. This is very striking when, with the same approximate labor cost per acre and a little increased fertilization, it is possible to obtain three times the receipts. The low value and low production of these farms may be due to several causes. In the first place, some of these farms are natu- rally more fertile and more productive than others ; again, low production and low farm values are often due to the lack of care and poor tillage given the farm by the operator. The latter may often be the cause of low production rather than the lack of fertility in this region. A poorly tilled and operated farm will not be valued as high as one maintained in a more pro- ductive state. Table, XLVIl. — Relation of Production to Real Estate Values and Tenants' Receipts on 149 Potato Farms Operated by Tenants in Monmouth County, New Jersey. Yield, Potato Other Crop Stock Barrels per Value per Receipts Receipts per Receipts Total Acre Acre, Acre. per Acre. Acre. per Acre. Receipts, 60 or less $109 .$39.10 $3.50 $1.10 $14.00 61 to 70, 104 58.20 6.40 3.90 24.70 71 to 80 125 55.20 6.10 3.90 27.90 81 to 90, 156 64.30 7.60 3.50 .30.80 91 to 100, l.'Se 72.40 8.10 2.90 37.10 101 and over 185 69.90 10.20 4.10 42.60 5 Hx 66 The farm acre value of the tenant farms is somewhat less than that of the owner farms. So, too, are the acre receipts for pota- toes on the former less than half those on the latter. The tenants' stock receipts on the other hand are more than those of the owrters ; moreover, the tenant does not always share all the stock receipts as he does the crops, and therefore he has a better bargain on his stock than on crops. The most important bearing this table has from^ the tenant's standpoint is the fact that if he rents a naturally low productive farm he gets no greater proportion of the receipts than he does on the high producing one. At the same time the cost of his horse and man labor spent on a high producing farm will bring the tenant much larger returns than if spent upon a low producing one. A tenant should consider this fact carefully in renting. Hence on a naturally low producing farm he should have a larger proportion Oif the receipts than on the more productive place. RELATION OF PRODUCTION TO SUCCESS Table XLVIII. — Opportunities for Making a Given Labor Income with a Certain Acre Production on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. , Labor Income , $1 $401 $701 $1,001 $1,601 $2,001 $2,501 ■yield, Barrels No. of Less to to to to to to and per Acre. Farms, than $1. $400. $700. $1,000. $1,500. $2,000. $2,500. Over. 60 or less 22 11 10 . . 1 61 to 70 2S 10 6 2 1 3 3 3 71 to SO, 61 11 11 10 13 6 2 2 6 81 to 90 3S 2 5 5 4 11 7 2 2 91 to 100, 35 2 3 S 2 9 1 3 7 101 and over, 10 10 1 1 1 1 2 3 As production increases, the opportunities for making a good return are greater. For the 22 farmers with a production of less than 60 barrels per acre, one-half are losing money, while only one has a labor income of over $400. For the men who have a yield of 100 barrels or more per acre one-half get over a $2,000 labor income return. There is a steady increase in the number of successful farms as production increases. Table XLIX. — Opportunities for Making a Given Labor Income with a Certain Acre Production on 149 Potato Farms Operated by Tenants in Monmouth County, New Jersey. Yield, Barrels No. of per Acre. Farms. 60 or less, 4 61 to 70, 22 71 to 80, 41 81 to 90 44 91^to 100, 30 101 and over, 8 Less than $1, 2 4 1 5 $1 to $400. 10 13 $401 to $700. 4 14 9 6 1 -Labor Income- $701 to $1,000. 4 7 7 2 $1,001 to $1,500. $1,501 to $2,000. $2; 001 $2,501 to and 1,500. Over. 67 The number of tenants who make high labor incomes with large production, increases more uniformily with production than does the number of owners. Since much of this profit is due to greater efficiency in labor expended, the tenants should show a more uniform increase in the proportion making large returns. Oif the four tenants whose production was less than 60 barrels per acre, none made over $400, while of the eight tenants who had a production of 100 barrels or more, all but one made a labor income of over $1,000. High production then does not guarantee success, but it is one of the essential factors for success on these farms. Of the owners only 10," or 5 per cent>, of the total number got a pro- duction of one-fifth above the average, while for the tenants, 8, or 5 per cent., likewise had a yield of over 100 barrels. Thus only a small proportion get much above the average, and of these farms it is not in any case 50 per cent, above the average. The highest producing farm was that of an owner whose potato yield was 45.4 per cent, above the average. However, the average potato production of these farms as a group is high. When any industry has been developed to a high degree, such as the production of potatoes in this region, it becomes more difficult to raise the individual farm above the average standard for the region. To what extent increased fertilization, seed, and green manures would bring profitable returns, has not been fully ascertained on these farmis. The most profitable production may have been reached, but it has evidently not been passed by any class of farms as the profits have all increased uniformly with increased yield. Again, the highest producing farm showed the highest acre profit. This argues well for high production, and it certainly is paying well to raise large acre yields of potatoes in this region. The farms located on favorable soils could pro- duce at least one-tenth to one-fiifth above the average with profit. On the other hand, it must not be understood that high produc- tion guarantees success on these farms. It is one of the major factors controlling success, and therefore must be included as one of the essentials for success. Production depends upon many factors, some of which are not within the farmers' control, such as rainfall and temperature. If these are not favorable to pro- duction, increased labor, fertilizer, and care for the crops, will bring no proportionate returns since the latter are not the limit- ing factors of production. g8 COST OF POTATO PRODUCTION No work was done to determine the acre and bushel cost of potato production of these farms. By the farmers this is fre- quently estimated at $60 to $70 per acre. They seldom include depreciation and interest in their estimation. Out of the 370 potato farms, there were 25 from which practically nothing but potatoes was sold. The operators of these farms were putting nearly all their efforts in the production of potatoes. Other crops were raised, and some stock kept, the latter for family use, and the crops mainly to keep the horses, a. few cows, hogs and chickens. Table L. — Acre Cost of Producing Potatoes on 25 Potato Farms in IVIon- mouth County, New Jersey. Total acres of potatoes 919 Labor expense $21 58 Cost of potato seed, 4.85 bbls 10 76 Fertilizer expense 24 94 Machinery depreciation 2 35 Spraying materials 51 Barrels 55 Cover crop seed 73 Taxes, 3 10 Insurance, 94 Interest 21 72 Grass seed per acre, 92 Miscellaneous, 7 62 Total acre expenses $95 72 Receipts from crops other than potatoes, divided by the number of acres of potatoes, 10 57 Cost per acre of potatoes $85 15 yield per acre 92. 1 bbl. Cost per barrel, 0.92 Cost per bushel, 0.33 This is arriving at the cost of production in a different man- ner than usual. None of these farms had OA^er lo per cent, of their receipts from any source except potatoes. The whole had an average of 7.8 per cent, of their total receipts from a source other than potatoes. These receipts have been de- ducted from the current cost so that the figure arrived at, 33 cents per bushel or 92 cents per barrel, must be quite representative of the production cost of potatoes in this region. It represents the actual cost of raising potatoes when the man has his house, garden and products to use for his family in addition tO' what the receipts show for his efforts. The re- ceipts per acre for potatoes were $123.48, leaving a margin of $3'8-33 pel" acre for these farms. The average price received for the potatoes was $1.45 per barrel, and the average labor income of these farms was $2,123. Some of these items may be considered 69 high, e. g., fertilizer per acre. This is true if we consider the application of fertilizer to potatoes alone. But a limited amount was purchased to apply to corn, which was raised to feed stock and work horses. The spraying cost may be considered low, but very little spraying material is used except arsenicals, and these are not used in all cases. Interest may appear quite high, yet the best part of the farm- is used for potatoes, and other crops are raised to feed the horses necessary to have in raising the crop. Hence it is not as excessive as it may appear. An acre cost of $85.15 would represent a conservative figure for the cost of producing potatoes in this area for 19 14. On these 25 farms, this would be 33 cents per bushel, or 92 cents per barrel. When potatoes sell at $1.42 cents per barrel, their normal price for the 7 years up to 191 5, a margin of 50 cents per barrel is left. Hence, a grower who has an average pro- duction makes about $40 per acre on potatoes. PROPORTION OF CROP ACRES IN POTATOES That the potato crop is profitable has already been fully demonstrated. Just to what extent of specialization it will lend itself with profit can be demonstrated only by isolating those farms producing the largest proportion of the crop. There are numerous factors to consider when we desire tO' increase or decrease the area of a certain crop, but the most important con- sideration is the results to be obtained through any change of crop area. Returns will show whether there is a lack of proper maintenance of fertility, the establishing of the wrong rotation or the wasteful use of labor. RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO PROFITS Table LI. — Relation of Proportion of Crop Acres in Potatoes to the Labor Income on 194 Farms Operated by Owners in Monmouth County, New Jersey. No, -with Per Cent. Av'age Per Per Cent. Crop Potatoes, Minus Minus Average Cent. Crop Crop Acres No. of Acres per Acres per Labor Lator Labor Acres in in Potatoes. Farms. Farm. Farm. Income. Income. Income. Potatoes. 27 80.S 13.6 5 18.5 $442 16.8 48 75.6 20.0 14 29.2 464 26.3 47 75.6 26.7 12 25.5 788 35.3 20 or less, 21 to 30, . . 31 to 40, . . 41 to 50, . . 51 to 60, . . 61 and over, 38 67.6 30.8 6 16.0 1,081 45.5 16 61.8 34.0 1- 6.0 1,611 .^5.1 18 eaJR 48.0 1 6.0 2,127 69.6 4 The highest profitable proportion of potatoes has apparently not been reached. The last class of 68.8 per cent, of the crop acres in potatoes shows the highest profit. This may be near the limit of the most profitable proportion, but it has certainly not passed it. The difference is striking and strongly empha- sizes the fact that potatoes are the most desirable enterprise in this area. That they adapt themselves well to specialization is indicated by these results. That the farms with a high potato acreage should furnish a labor income of almost five times as much as the farms with a small acreage in potatoes is quite convincing. Table LI I. — Relation of Proportion of Crop Acres in Potatoes to Labor income on 149 Tenant Farms in Monmouth County, New Jersey. Average Per Cent. Potatoes, Per Cent. Crop Acres No. of Crop Acres Acres per Average Crop Acres in Potatoes. Farms, per Farm, Farm. Labor Income. in Potatoes, 20 or less, 11 7S.0 l.S.S $186 17.7 21 to 30, 47 95.1 2.3. S 483 25.0 31 to 40 45 92.2 31.9 S88 34.6 41 to 50, 27 77.0 ^4.3 1,002 44.5 51 to 60, 11 72.5 39.3 968 54.2 61 and over, . . . . 8 71.2 46.9 1,224 65.8 The tenants do not have such a large proportion of farms with a high percentage of potatoes. After 50 per cent, or half of- their crop acres are in potatoes the labor income increase for the tenant is not as marked as for the owners. The tenants who have an average of 44 per cent, of their crop acres in potatoes have a labor income of $1,002, while the highest class, with 66 per cent., or two-thirds of their crop acres in potatoes, have a return of $1,224. The owners in this class secure a return of $2,127. It is not as profitable for the tenants to have an exceedingly high proportion of potatoes as for the owners. This, too, is emphasized by the fact that a smaller number of tenants have such a large proportion of their crop acres in potatoes. On examining the cost of producing potatoes, as previously shown, this is explained. The expenses for labor, fertilizer, and seed furnished by the tenant remain about sta- tionary. The landlord's interest charge against potatoes will decrease with the increasing proportion of potatoes planted. Therefore, the tenant's expenses per crop acre remain about the same, while the landlord's decrease. Thus it is a more profitable crop for the landlord as well as for the owners operating their own farms. While potatoes are profitable for the tenants, they are comparatively more profitable to the mvners and landlords. 71 LABOR INCOLIE 1^2100 / / 1900 / / 1700 r^ OMfi.'ERS / 1500 / 1300 / 1100 / TEIIAUTS / 900 l/^~^^^ 700 / 500 Jj 300 7 100 10^ 20J2 30^ A0% 50^ e>0% 70^ PROPORTION CROP AGR7.S IN POTATOES Fig. 23. — Relation of Proportion of Crop Acres in Potatoes to Labor Income on 343 Farms in iVIonmoutii County, New Jersey. 72 Potatoes, Otter Crop Other Crop Receipts per Receipts Receipts Acre. per Farm. per Acre, $114.00 $931 $13.90 111.50 1,008 18.00 116.80 712 14.60 117.70 415 11.30 126.60 676 24.40 122.90 195 9.30 Stock Receipts Total Farm Total Acre per Acre, Receipts. Receipts. $4.30 $2,8.50 $35.30 4.40 3,586 47.40 6.50 4,442 58.70 5.10 4,421 65.40 5.80 5,^45 86.60 5.10 6,346 92.30 RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO RECEIPTS Table Llll. — Relation of Proportion of Crop Acres in Potatoes to Receipts on 194 Potato Farms Operated by Owners in IVlonmouth County, New Jersey. Per Cent, of Potatoes, Crop Acres Receipts per in Potatoes, Farm. 20 or less, $1,552 21 to 30 2,218 31 to 40 3,119 41 to 50 3,621 51 to 60 4,291 61 and over 5,889 Per Cent, of Crop Acres Stock Receipts in Potatoes. per Farm, 20 or less, $349 21 to 30, 331 31 to 40, 495 41 to 50 344 51 to 60, 361 61 and over, 348 Receipts per acre of potatoes increase slightly with the in- crease in proportion of acres in potatoes. The farm receipts for all crops other than potatoes are greater on the farms with a smaller proportion of crop acres in potatoes, but the crop acre receipts for these crops do not vary uniformly with the increase of potato acreage. The stock receipts per farm are about the same, though the farms with less potatoes have somewhat more stock. The total farm receipts and acre receipts, including receipts from miscellaneous sources, are much greater per farm, as well as per acre, on the areas having a high proportion of potatoes. Table LIV. — Relation of Proportion of Crop Acres in Potatoes to Receipts on 149 Potato Farms Operated by Tenants in IVIonmoutli County, New Jersey. Per Cent, of Potatoes, Potatoes, Other Crop Other Crop Crop Acres Receipts Receipts Receipts Receipts in Potatoes. per Farm, per Acre. per Farm. per Acre. 20 or less, $875 $63 $296 $4.90 21 to 30, 1,380 58 499 6.90 31 to 40 2,169 69 469 7.80 41 to 50 2,086 61 386 9.00 51 to 60 2,458 63 155 4.90 61 and over, 3,092 66 43 1.70 Per Cent, of Crop Acres Stock Receipts in Potatoes. per Farm. 20 or less $292 21 to 30 : 364 31 to 40 367 41 to 50, 182 51 to 60 239 61 and over. 186 Stock Receipts Total Farm Total Acre per Acre. Receipts, Receipts. $3.7 $1,519 $19.5 3.8 2,267 23.8 4.0 3,042 34.1 2.4 2,736 35.2 3.3 2,891 39.9 2.6 3,362 47.1 73 The relation of tenants' receipts to the proportion of crop acres in potatoes, is very similar to those of the owners', except that on the tenant farms, receipts from other crops and stock decrease with an increased proportion of potatoes. The tenant must use a larger portion of his hay and corn to feed his horses, leaving a smaller proportion to sell. The owner farms, too, have rela- tively less stock on the farm^ with a high proportion of potatoes, yet the receipts from the stock are about the same. Evidently, more efficient use is made of the stock on the latter farms. RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO EXPENSE Table LV, — Relation of Proportion of Crop Acres in Potatoes to Expenses on 194 Potato Farms Operated by Owners in IVIonmouth County, New Jersey. Per Cent. Total Cur- Total Cur- Farm Acre Cash Cash of Crop Acres rent Farm rent Acre Fertilizer Fertilizer Lahor Cost Labor Cost in Potatoes. Expense. Expense, Cost. Cost. per Farm, per Acre. 20 or less, $1,67.5 $20.70 $391 $4.S0 $.568 ,$7.00 21 to 30, 2.313 30.60 575 7.60 8-17 11.20 31 to 40, 2,551 33.70 669 8.80 913 12.10 41 to 50, 2,618 38.70 723 10.70 893 13.20 51 to 60, 2,489 40.30 802 13.00 726 11.80 61 and over, . . 3,302 48.00 1,123 16.30 952 13.80 The expenses increase materially with the increased potato acreage, and of these expenses fertilizer is the one which in- creases the most. L-abor increases slightly, but not to such a great extent as one might suppose. Again, the receipts and ex- penses are not only far greater on the farms high in potato acreage, but the proportion of the receipts used for the expenses is smaller on the farm high in potato acreage. Thus the latter farms are doing business in a more economical manner than is the case where less potatoes are raised and more from other crops. It is a good indication that the farms of high potato acreage are not approaching diminishing returns due to over specialization. Table LVI. — Relation of Proportion of Crop Acres in Potatoes to Expenses on 149 Potato Farms Operated by Tenants in IVIonmouth County, New Jersey. Per Cent. Total Cur- Total Cur- Farm Acre Cash Cash of Crop Acres rent Farm rent Acre Fertilizer Fertilizer Lahor Cost Lahor Cost in Potatoes. Expense. Expense. Cost. Cost. per Farm, per Acre, 20 or less $1,171 $15.20 $210 $2.60 $618.30 $7.80 21 to 30, 1,602 16.80 323 3.30 779.30 8.20 31 to 40, 1,884 21.10 467 4.90 857.10 9.00 41 to 50, 1,614 20.90 391 5.10 742.60 9.70 51 to 60, 1,740 24.00 440 6.00 702.70 9.80 61 and over, . . 2,011 28.20 693 9.70 695.00 9.50 74 The tenants need to use a larger proportion of their receipts to meet current expenses than the owners. While they get but half of the receipts, their current expense is more than half of the owners' on the same type of a farm. When comparing the owners and tenants, it is quite noticeable that the tenants have only about three-fourths so heavy a cash labor expense as the owners. As with the owners, the cash labor expense is somewhat greater for farms higher in potato acreage, but the difference is not large. RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO LABOR Table LVII. — Relation of Proportion of Crop Acres In Potatoes to Man, Horse and Equipment Labor on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. Per Cent. Crop Acres Crop Acres Crop Acres Crop Acres per $100 Work Units Work Units in Potatoes. per Man. per Horse. Equipment. per Man. per Horse. 20 or less 35.3 17.9 12.6 220.2 83.5 21 to 30 26.5 14.1 0.5 202.1 80.6 31 to 40 27.1 13.5 8.2 215.6 §3.5 41 to 50 25.8 13.1 7.4 200.1 81.7 51 to 60 25.8 11.4 7.0 230.2 86.2 61 and over 22.9 11.7 7.7 195.6 93.2 While the crop acres per man, horse and equipment labor are more for the farms with less potatoes, if we omit the first class the difference is not great. By examining the man and horse work units, which are a more accurate measure as they include the live stock and give the proper value to all the different crops for all the labor performed upon them, we find the men and horses get practically the same amount of work accomplished on all the farms regardless of potato acreage. Table LVII I. — Relation of Proportion of Crop Acres in Potatoes to Man, Horse and Machinery Labor on 149 Potato Farms Operated by Tenants in Monmouth County, New Jersey. Per Cent. Crop Acres Crop Acres Crop Acres Crop Acres $100 of Work Units Work Units in Potatoes. per Man. per Horse, Equipment. per Man. per Horse, 20 or less, 32.4 15.9 13.9 192 72.0 21 to 30 34.8 17.2 11.1 226 87.5 31 to 40 31.2 15.5 11.2 238 89.2 41 to 50 27.6 13.1 10.0 230 86.4 51 to 60, 28.8 12.0 otato acreage. This is a very convincing answer to the frequently asked question whether the highly specialized potato farms in Monmouth County can maintain their fertility, organic matter, and yield without a more careful rotation than many of the more prominent growers follow. Their yields are being not only maintained but increased. Successive cropping evidently does not have an injurious effect upon the potato' yield. As long as diseases can be kept under control there appears to be no material danger from successive cropping. Whether this will be continued indefinitely can be determined only by future results in this area. Some unknown factor may enter to change con- ditions, but the present indications show no* danger. RELATION OF PROPORTION OF CROP ACRES IN POTATOES TO SUCCESS Table LXI. — Relation of Proportion of Crop Acres in Potatoes to a Given Labor Income on 194 Potato Farms Operated by Owners in Monmouth County New Jersey. , Labor Income 1 $1 $401 $701 $1,001 $1,501 $2,001 $2,501 Per Cent. Crop No. of Less to to to to to to and Acres in Potatoes. Farms, than $1. $400. $700. $1,000. $1,500. $2,000. $2,500. Over. 20 or less, 27 5 6 7 4 4 1 21 to 30 48 14 10 8 3 9 1 3 31 to 40, 47 12 8 • 2 5 7 3 6 4 41 to 50 38 6 5 7 5 6 4 1 4 51 to 60, 16 1 4 1 1 4 4 1 61 and over 18 1 1 1 3 2 1,2 7 Farms in all classes lost money regardless of the potato acreage. However, the losses were less frequent on the farms with the larger proportions of potatoes, while on farms with yo per cent. of the crop acres in potatoes over one-third the total number O'f 77 owners made a labor income of over $2,500. Only one farm out of 27 produced over $1,500 in the class with less than 20 per cent, crop acres in potatoes. Table LXII. — Relation of Proportion of Crop Acres in Potatoes to a Given Labor Income on 149 Potato Farms Operated by Tenants in IVlonmouth County, New Jersey. I Labor Income , ?1 $401 $701 $1,001 $1,501 $2,001 $2,501 Per Cent. Crop No. of Less to to to to ' to to and Acres in Potatoes. Farms, than $1. $400. $700. $1,000. $1,500. $2,000. $2,500. Over. 20 or less, 11 3 4 3 1 21 to 30 47, 6 17 13 3 6 2 31 to 40, 45 3 11 5 9 9 4 3 1 41 to 50, 27 . . 6 7 4 2 4 3 1 51 to 60 11 . . 2 3 2 2 2 61 and over, 8 .. .. 2 1 2 2 1 2 The results for the tenants are more clearly defined than for the owners. Hiere none of the tenants who^ had 41 per cent, or more of their farm in potatoes lost money. It is quite evident that these farms have at least not passed the highest profitable proportion of potatoes. The highest profits are obtained when two acres out of every three are planted to the potato crop. The third crop acre will furnish sufficient feed for the work hoises and a few cows, pigs and chickens necessary to supply the farmer's table with butter, milk, eggs, and meat. A single crop v^/hich permits successive cropping without decreasing its production, which makes economical use of man, horse and machinery labor, and which provides for a large farm business on a moderate-sized farm, makes a very successful crop for specialization. Potatoes on these farms prove to be the crop having all these characteristics. One other crop deserves atten- tion at this point, namely, alfalfa, which is found on a compara- tively few places, averaging about an acre per farm. AVhile it would interfere somewhat with the labor of potato raising in June and August or September, yet it might furnish a far more satisfactO'ry hay crop than the grasses. This is especially true on the farms with a small acreage, since it would allow a larger area for potatoes and corn. While a few farmers are adopting alfalfa in this capacity, the number is not so great as it should be in order to bring the greatest profit. The crops then might be alfalfa for hay for the horses and a few cows or other stock, corn for horses and stock, with the remainder of the farm in potatoes so far as the soils will permit. This would rnake the most profitable crop combination for these farms. This would eliminate a large area of grass for hay, and rye and wheat for grain to sell, as these soils are not well adapted to grass and 78 small grains. However, rye is a desirable crop to grow with co'wpeas or soybeans in securing sufficient organic matter to build up the soils which are light or deficient in organic content. The potato thus lends itself admirably to specialization. It is efficient in the use of labor and equipment. It provides for good profits, and continuous culture is not decreasing the yield. This is an instance when specialization rather than diversifica- tion is most profitable. The prevailing opinion of men interested in farm management work that diversity and stock are essential toi highest profits is erroneous if applied to an area such as this potato region. Recommendations in farm management practice should be made with the same consideration as when recommend- ing a fertilizer application. With certain conditions certain prin- ciples are applicable. Too broad applications should not be made. -^jSgii, STOCK Many types of farming other than truck-raising and fruit growing or similar intensive types, require that a certain propor- tion of live stock be kept in order to maintain fertility, distribute labor more uniformly, add to the diversity, and use up waste products or cheap feed from the farm. Surveys on such areas usually show that a certain amount of live stock brings greater profit to the farmer, and it is recommended that stock be added tO' the farm business. This potato area has many farms which keep only sufficient stock to furnish the farmer's family with milk, butter, eggs and meat. Years ago these farms were far more heavily stocked, and at present we sometimes hear it de- plored that the region has let its live-stodk industry diminish to such a marked degree. The following data will show to what extent these farms should increase or decrease their live stock in order to have the proper proportion. RELATION OF LIVE STOCK TO LABOR INCOME Table LXIII. — Relation of Live Stock to Profits on 194 Potato Farms Op- erated by Owners in IVIonmoutli County, New Jersey. stock Receipts, Productive No. with per Cent, of No. of Animal TTnits Laljor Minus Lalior Total. Farms. per Farm. Income, Income. to 5 63 3.6 $1,256 15 5.1 to 10 63 5.2 803 12 10.1 to 20, 44 5.7 740 8 20.1 to 30 13 7.9 612 1 30.1 and over 11 10.5 742 3 As the farmers increase the stock on the farm, their profits decrease. The farms having an average of 3.6 productive animal 79 units or an equivalent 3 cows and 60 chickens, which is the equivalent of one cow for each 20.9 crop acres, make a larger labor income than any of the succeeding classes which have more stock. The relation is consistent for all excepting the last class, which increases slightly above that of the preceding group. ■-.'' LABOR imcol:e $1200 r^ / lodo - ' / ' 800 ^ 'j - 600 -^-^ 5 10 lb 20 CROP ACRSS; FOR EACH PRODUCTIVE ANIIiAI. UlIIT Fig. 24 Relation of Live Stock to Profits on 194 Farms Operated by Owners in Monmoutii County, New Jersey. Several factors bear upon this last class to make it approach higher profits. Eight out of eleven of these farms are situated on the edge of the typical potato region and this location influ- ences their stock returns abnormally. Productive No. with No. of Animal Units Labor Minus Laljor Farms. per Farm. Income, Income. 35 4.5 $891 1 38 6.6 682 5 48 6.2 733 4 21 10.5 696 2 7 11.6 749 8o Table LXIV. — Relation of Live Stock to Profits on 149 Potato Farms Op- erated by Tenants in Monmouth County, New Jersey. stock Receipts, per Cent, of Total. to 5, 5.1 to 10 10.1 to 20 20.1 to 30 30.1 and over, .... The tenant farms do not show the same relation as do those of the owners. This may be influenced by the fact that the tenants do not always share the stock receipts with the land- lord. In such a case the tenants have a better bargain in live stock than in potatoes, and should receive comparatively greater returns. Therefore, as long as the tenants can stock the farms and keep the major portion of their stock receipts, they can afford to keep stock. However, there is no apparent advantage in doing so, for their returns are not any greater than those of the farmers who keep no more stock than what actually is needed for family use. RELATION OF LIVE STOCK TO TgBHiD AND FERTILIZERS COST Table LXV. — Relation of Stock Receipts and Amount of Stock per Farm, to Acre Yields and Fertilizer Cost per Crop Acre on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. stock Crop Acres Receipts, for Each Pro- Acres of Potato Fertilizer Per Cent. No. of ductive Ani- Potatoes Other Yield Cost per of Total. Farms. mal Unit. per Farm. Crop Acres. per Acre. Crop Acre. 5% or less, . . . 63 20.9 30.9 44.4 86.7 $10.60 5.1 to 10 63 14.8 27.9 49.1 81.4 9.10 10.1 to 20, 44 11.7 22.4 44.4 80.2 8.90 20.1 to 30, 13 9.2 19.3 53.1 78.3 7.30 30.1 and over, . 11 5.8 17.9 42.8 73.2 9.60 The statement that live stock is essential to maintain fertility in extensive farming is not borne out by these figures. In fact, the farms with the smaller proportion of live stock are produc- ing greater acre yields of potatoes than those more heavily stocked. There is a consistent decrease in yield as the propor- tion O'f stock increases. The amount of fertilizer purchased per crop acre is somewhat greater for those with the smaller proportion of live stock. But these farms, too, have a larger proportion of the crops in pota- toes. As the major portion of the fertilizer is applied to the potatoes, it is evident that the more heavily stocked farms are using less fertilizer per farm but more per crop acre of potatoes. This might indicate that the stocked areas are on poorer soils. but this does not appear to be the case. From these data it ap- pears that a system of potato farming- with green manures and commercial fertihzers is more efficient in maintaining and increas- ing fertility in ths area than is the use of live stock. The lightly stocked farms purchased about 7 tons of fertilizer more than those heavily stocked. These seven tons of commercial fertil- izers, applied with the green manure cover crop, apparently is of more value in adding fertility than are the extra 6.9 animal units on these farms. It is merely a question of balancing one practice against another in maintaining fertility and production on the farm. In this case live stock apparently is not equal to commercial fertilizers and green manure cover crops as they are used in the area. Table LXVI. — Relation of Stock Receipts and Amount of Stock per Farm, to Acre Yields and Fertilizer Cost per Crop Acre on 149 Potato Farms Operated by Tenants in Monmouth County, New Jersey. Stock Crop Acres Receipts, for Each Pro- Acres of Potato Fertilizer Per Cent. No. of ductive Ani- Potatoes Other Yield Cost per of Total. Farms. mal TTnit. per Farm. Crop Acres. per Acre. Crop Acre, 5% or less, . . . 35 17.4 32.7 45.8 90.4 $10.30 5.1 to 10 38 13.8 32.4 56.7 85.9 S.90 10.1 to 20, 48 13.8 28.4 58.1 81.4 8.40 20.1 to SO 21 8.6 25.6 65.6 82.6 7.60 80.1 and over,. 7 8.8 23.0 79.7 77.0 5.30 The tenants have larger farms and fertilize a little less heavily than do the owners. The seven farms most heavily stocked have decreased their fertilizer expense to almost half that of the lightly stocked farms. However, they too have only half of the proporton of acres in potatoes as the first class under 5 per cent. stock receipts and with 17.4 acres per animal unit. Comparing live stock with commercial fertilizer and green manure cover crops, the tenants' farms are similar to those of the owners in that the most heavily stocked farms are not so productive as those more lightly stocked. RELATION OF LIVE STOCK TO LABOR Table LXVI I.— Relation of Live Stock to Horse and IVlan Labor on 194 Potato Farms Operated by Owners in Monmouth County, New Jersey. Acres for Stock Receipts, Productive Each Produo- Cash Labor per Cent. No. of Animal TTnits tive Animal Crop Acres per Crop of Total. Farms. per Farm. Unit. per Horse. Acre. 5% or less, 63 3.6 20.9 l^-l 511-60 5.1 to 10, 63 5.2 14.8 13.6 11.80 10.1 to 20, ^ 44 5.7 ll.T 13.4 11.30 20.1 to so! 13 7.9 9.2 13.6 10.60 30.1 and over, ... n 10.5 5.8 13.4 9.30 6 EX 82 The increased proportion of live stock does not materially affect the labor expense upon the farm. But since the farms with most stock have the smallest prop'ortion of potatoes, the direct comparison is not satisfactory. By comparing the farms with 10.5 animal units per farm with those of 3.6, we find on the more heavily stocked farms seven-tenths of an acre less per horse, and $2.30 less per crop acre paid out for labor. On the other hand, these farms have less potatoes, a condition which probably might infiuence the labor cost to some extent. These stock farms have 13 acres of potatoes less per farm but the same number of other crop acres. These extra 13. acres of potatoes would require considerably more man and horse labor than the stock on the stock farms. In comparison with the previous class the difference is less marked. The live stock does not appear to make any appreciable difference in the more economical use of man or horse labor on these farms. Table LXVIII. — Relation of Live Stock to Horse and Man Labor on 149 Potato Farms Operated by Tenants in iVlonmoutli County, New Jersey. ' Crop Acres Stock Receipts, Productive for Each Cash per Cent. No, of Animal TTnits Productive Crop Acres Labor per of Total. Farms, per Farm. Animal TTnit. per Horse. Crop Aore« 5% or less, 3o 4.5 17.4 14.1 $9.20 5.1 to 10 3S 6.6 l.-J.o 15.4 10.10 10.1 to 20 48 6.2 l.'^.S 15.7 8.20 20.1 to 30 21 10.5 8.6 16.3 8.40 30.1 and over, ... 7 11.6 8.8 17.9 7.80 As on the owner farms, there is no relation between cash labor cost and animal units per farm. A better and more satis- factory means of measuring the effect of live stock on the use of labor on these fanns is that of the measure of work units. Table LXIX. — Relation of Live Stock to the Use of Man and Horse Labor on 343 Potato Farms Operatetf in Monmouth County, fiew Jersey. stock Receipts, per Cent, of Total. 5% or less 5.1 to 10, ....... 10.1 to 20, 20.1 to 30, ... 30.1 and over, . ... , Ov Work TJnits per Matu 197.6 196.4 191.8 2.S2.I 284.2 mers < Work TTnitB per Horse, 87.8 80.7 78.9 74.8 88.5 , .Leu Work Units per Han, 228.2 226.5 228.6 212.5 237.3 ajmk , Work TTnitB per Horse, 85.8 88.1 82.3 86.1 93.0 When measured by the work units, live stock shows no appre- ciable difference in the more economical use of labor. This, then, is another reason why it is not more profitable on these farms. 83 RELATION OF PROPORTION OF LIVE STOCK TO ANIMAL UNIT . RECEIPTS Table LXX. — Relation of Proportion of Total Receipts from Live Stock to Total Stock and Animal Unit Receipts on 343 Potato Farms in IVIonmouth County, New Jersey. Stock , Owners — ^^ , , Tenants ^ ,. Landlords , Receipts, Eeceipts Receipts Receipts Receipts Receipts Receipts Per Cent. per per Animal per per Animal per per Animal of Total. Farm, tTnit. Farm. Unit. Farm. TTnit. 5% or less, .. $74.10 $20.30 $52.40 $11.60 $34.70 $7.70 5.1 to 10 309.50 59.60 204.00 30.90 62.20 9.30 10.1 to 20, 525.50 91.20 352.70 56.90 41.80 6.70 20.1 to 30 897.80 113.60 621.10 59.00 111.70 10.60 80.1 and over,. 1,198.90 114.20 900.80 87.80 259.10 22.30 On the farms with the lesser number of animal units, most of the stock products are used by the farmer and his famliy. This accounts for the low returns per animal unit. The farms with the higher proportion of stock get good returns from their animals and should be making profits with such returns. However, it is not as much a question of profit but rather a question of what is most profitable. In this case stock is unable to compete with potatoes. These farmers are able to maintain the fertility and give satisfactory employment to their labor without the use of live stock. The amount of cheap feed and pasture in this area is small. Therefore, it is necessary to keep the stock on land high in value and on feed having a high market value. It is quite evident that keeping live stock cannot be done on these farms in a profitable way so long as potatoes are successful. The relation is somewhat dififerent for the tenant farms, since the tenants in many cases do not share the stock receipts. When the landlord furnishes all the land to raise the hay and maintains the build- ings the tenant is given a good bargain with stock. This, then, accounts for the tenants' labor income not decreasing as much as that of the owners with the greater amount of live stock kept on.the farms. However, in no case would it appear advantageous for the region to increase its live stock above the amount needed to supply the farmers' family. After this need is met, a greater amount adds nothing to the profits of farms adapted to potato production. This again is a diversion from the results reported in nearly all other surveys made up to the present time. It is universally supposed that stock is needed to give employment to labor during the season when crops are not growing, use up waste products and low grade feed, provide for a more stable income, and make manure to maintain fertility. Yet on these farms none of these platitudes apply. They clearly show that stock does not increase the efficiency in any of these phases. The very fact that stock is decreasing in the area shows that the 84 farmers know that it is not advantageous for the greater number of the individuals. Like all other so-called principles of agricul- ture, the recommendation that a farmer keep stock so as to increase the receipts from his farm, should be made with careful consideration of his individual conditions, for what is true with one condition is not true with another. There may be a few farms of this area of which stock is profitable, but usually it is not with present conditions. DISTANCE FROM THE RAILROAD For some types of farming the distance to market or the rail- road is a very important factor influencing farm profits. On others this is of minor importance. Whether the distance from the market or railroad station is of great importance in the pur- chase of a farm or the growing of certain crops and animals depends much upon the type of farming. Potatoes are a bulky product to market, and one might expect that the distance to market would be of considerable influence upon the profits and production of potatoes. Practically all of the crop is hauled to the railroad station directly from the field, an operation which requires much labor if the distance is great. RELATION OF DISTANCE TO RAILROAD AND PROFITS Table LXXI. — Relation of Distance to the Railroad Station to Labor In- come on 194 Farms Operated by Owners In Monmoutht County, New Jersey. No, with Miles to No. of Per Cent. labor Minus Xabor Eailroad. Farms. of Total. Income. Income. 1 or less 4S 25 $1,167 6 1.1 to 2 51 26 842 8 2.1 to 3 48 25 761 11 3.1 to 4, 20 10 1,592 4 4.1 and over, 27 14 403 10 The farms nearer to the railroad are making a larger labor income than those farther away. As the distance increases the profits decrease. Owners of the last class of farms having over 4 miles to haul their potatoes are not making more than the hired men. Not only do these situated farther away from the railroad average less profits, but the proportion losing money increases with the distance from the railroad. The men who are between 3; and 4 miles are making unusually large labor in- comes. Upon close analysis of this class it is found that they have larger crop areas per farm than any other class, a larger acreage of potatoes, and the highest farm receipts from all three main sources, potatoes, other crops and stock. Further, there 85 were several very unusual farms among- these twenty to make the returns very high for the whole number. Since the number of these potato farms rapidly grows less after a distance of 3 miles is exceeded, it is plainly shown that the farmers realize the decreased opportunity in raising potatoes under such condi- tions. Distance from the railroad station is one of the limiting factors for profitable production of the crop and should not be overlooked by anyone contemplating potato farming. Table LXXII.^ — Relation of Distance to the Railroad Station to Labor In- come on 149 Potato Farms Operated by Tenants in Mon- mouth County, New Jersey. No. with Miles to No. of Per Cent. Labor Minns Labor Railroad. Farms. of Total. Income. Income. 1 or less, 31 21 $904 3 1.1 to 2, , 53 35 723 4 2.1 to 3 24 16 712 3.1 to 4 16 11 568 2 4.1 and over 25 17 786 3 The difference for the tenants is not as great as that for the owners, due possibly to the fact that the tenant keeps miore stock when farther from the railroad. Since the tenant very frequently keeps all the stock receipts from hogs, chickens, and a small number of cows, stock is more profitable for him than for the owner. Nevertheless it is quite evident that profits for the tenant decrease as the distance from the railroad increases. RELATION OF DISTANCE TO RAILROAD TO FARM VALUES. Table LXXIII. — Relation of Distance to Railroad and Farm Values on 194 Potato Farms Operated by Owners In Monmouth County, New Jersey Farm Acre Crop Acre Value Com- Value Com- pared with pared with That of Farmfl That of Farms One Mile or One Mile or - Miles to Farm Farm Acre Crop Acre Less from Less from Railroad. Value, Value. Value. Railroad. Railroad. 1 or less, $14,297 $167.30 $209.00 $000 $0.00 1.1 to 2, 13,559 147.60 197.70 —19.70 —11.30 2.1 to 3 « 13,363 135.80 189.70 —31.50 —19.30 S.l to 4, 14,801 128.40 163.00 —38.90 . —46.00 4.1 and over, .... 14,074 121.20 198.70 —46.10 -10.30 The farm acre value decreases uniformly with distance from the railroad, but the crop acre value decreases far less. Farms are too frequently valued at their total area without sufficient consideration being given to that part which can be cropped economically. The difference between the crop acre value and farm acre value for the near farms is $41.70, whereas for thte distant farms it is $77.50. Farms rated by their crop acres can be bought about as cheap near the railroad as farther away. On the other hand, those near the railroad are much more profitable. VALUE PRR ACRS $!Z2D eoo 180 160 140 120 SHOP ACHE VALUE 4 S iilL^S TO SAII^OAD Fig. 25. — Relation of Distance to Railroad to Farm Acre and Crop Acre Value on 343 Potato Farms in Monmoutln County, New Jersey. 8; Table LXXIV. — Relation of Distance to Railroad' to Farm Values on 149 Potato Farms Operated by Tenants in IVIonmouth County, New Jersey. Farm Acre Crop Acre Value Cora- Value Com- pared with pared with That of Farms That of Farms One Mile or One Mile or Kiles to Farm Farm Acre Crop Acre Less from Les3 from B-ailroadi Value. Value. Value. Railroad. Railroad. 1 or less $16,516 $164.40 $203.30 $00.00 $0.00 1.1 to 2 18,536 148.70 217.80 -'—15.70 -1-14 00 2.1 to 3 15,233 141.60 187.80 —22.80 —15.50 3.1 to -4 17,312 136.10 205.10 —28.30 -f-1.80 4.1 and over 15,804 105.00 165.30 —59.40 —38.00 The tenant farms decrease less in crop acre value than do the owners, yet the difference is not uniform. The farm values decrease uniformly with an increase in distance, as they should. The crop acres are the portion of the farm from which the major receipts are derived. Again, a crop acre 4 miles from the railroad would not be worth as much as one a mile away, because of increased cost of operation. When farm values are based upon total farm acreage they are frequently misleading. A calculation based upon the acres which are the source of crop production would be a more accurate method. For the produc- tion of potatoes the farms nearer the railroad are comparatively cheaper than those farther away. RELATION OF DISTANCE TO RAILROAD TO CROPS, STOCK AND LABOR Table LXXV. — Relation of Distance to the Railroad to Crops and Stock on 343 Potato Farms In IVIonmouth County, New Jersey. Miles to Railroad. 1 or less, ,-. 1.1 to 2, .„- 2.1 to 3, ... 3.1 to 4, .., 4.1 and over. Miles to Railroad, 1 or less, . - 1.1 to 2, .„- 2.1 to 3, „,. 3.1 to 4, .,. 4.1 and over. ' uwnera - Productive Acres of Acres of Total Crop Animal Units Potatoes. Other Crops. Acres. per Farm. 29.6 38.8 ■ 68.4 5.0 24.1 43.5 67.6 4.8 27.5 51.5 78.0 6.2 33.2 54.5 87.7 7.2 19.1 51.7 . Tonairb 70.8 J 5.2 Productive Acres of Acres of Total Crop Animal Units Potatoes, Other Crops. Acres, per Farm. S6.5 44.0 SO. 5 3.4 28.7 56.6 85.3 4.9 29.1 61.1 90.2 6.2 26.3 67.8 84.4 5.2 2S.6 69.0 95.6 ^ As the distance from the railroad increases the acreage of potatoes decreases, while the proportion of other crop acres and animal units increases. As the distance increases, therefore, it appears that potatoes are to some extent replaced by other crops, such as corn, rye, wheat and stock. This indicates again that the potato crop becomes less profitable with increased distance. Table LXXVI. — Relation of Distance to the Railroad to Work Units on 343 Potato Farms in Monmouth County, New Jersey. , Owners » , ^ — Tenants , Miles to Work Units Work Units Work Units Work Units Railroad. per Man. per Horse, per Man. per Horse. 1 or less, 1S0.8 S2.7 212.8 92.9 1.] to 2 207.2 79.7 220.9 S5.4 2.1 to 3 206.3 S4.6 248.2 85.4 3.1 to 4 239.6 91.9 224.3 81.6 4.1 and over, 195.5 761,5 319.1 85.6 The distance from the railroad station apparently does not affect the amount of productive work done or number of crop acres handled by men and horses. This is not what one would expect, and there must be some other factor entering into these results. It certainly requires more man and horse labor to raise and haul the potatoes from an acre of land when 4 miles from the railroad than when i mile. If we examine the receipts per crop acre for the farms near the railroad, this may be explained. Table LXXVII. — Relation of Distance to the Railroad to Receipts on 343 Potato Farms in Monmouth County, New Jersey. ' From From From Stock per From Stock per Miles to From Other Animal From Other Animal Railroad. Potatoes, Crops. Unit. Potatoes. Crops, Unit. 1 or less, . . $127.50 $14.80 $70.70 $62.90 $6.70 $61.20 1.1 to 2 118.30 15.20 64.00 65.30 6.80 60.40 2.1 to S 116.90 13.50 63.80 63.90 7.00 58.70 3.1 to 4 138.90 16.80 75.70 55.70 9.50 48.90 4.1 and over,. 123.30 14.20 54.60 65.50 6.80 69.00 The farms near the railroad are obtaining the same receipts per crop acre for all crops and stock as those farther away. Since those farther away have a larger proportion of acres in crops other than potatoes, a smaller proportion of com, hay, rye or wheat raised is required on the farm for the stock and cover crops. Yet farmers near the railroad sell just as much per acre as those farther away with a larger acreage of crops other than potatoes. Men nearer the railroad are putting more labor on the crops and stock for they are getting higher returns per acre for stock and cro^s other than potatoes. This greater amount of work upon other crops may account for the use of as much labor per crop acre of potatoes on the farms near the railroad as for those farther away. Again, the hauling of potatoes must be done in 89 a short period during the harvesting. It is possible that the amount of extra time consumed in getting these potatoes to market would not show very markedly in the total work done for the year. Therefore, it is largely a matter of distance and getting the potatoes to the railroad in a comparatively short period. The time necessary for hauling may limit the number of acres planted, and in that way influence profits more than the increased labor involved. It is difficult for a farmer who is located far from the railroad to haul a large acreage of potatoes to the depot, during the harvest season, with his horses and equip- ment needed to raise them. Distance to the railroad is a factor influencing profits, propor- tion of crop acres in potatoes and the labor of marketing. The crop acre value is less influenced than is the real estate value. After a distance of 4 miles from the railroad is reached potatoes rapidly become less profitable. FARM EFFICIENCY In order to measure the efficiency of a farm in its operations it is necessary to establish a measure for the amount of productive work actually accomplished by the men and horses operating the place. To a certain extent this is a measure of a man's ability to handle or manage his men and horses, in order to get a large amount of productive work done. For this measure the work unit is used, intended to represent the average amount of work done in a day by the average workman on the farm. Some men get more work done because they are better managers. They do not necessarily work more days in a year or more hours in a day, but, through good management and careful farm organization, they get more accomplished for the time spent. The size and the arrangement of the farm also will affect the amount of work accomplished per man and horse. RELATION OF WORK UNITS AND PROFITS Table LXXVI 1 1.— Relation of Productive Work Units per Man to the Profits on 194 Potato Farms Operated by Owners in Mon- mouth County, New Jersey. Number •with Minus Average Work Units No. of Labor Labor Crop "Work TTnits ■Work Units per Man. Farms. Income. Income. Acres. per Man. per Horse. 140 or less, . 33 14 $53 50.8 118.2 66.8 141 to 180, . 47 11 700 67.7 162.1 77.8 181 to 220, . 37 5 895 71.2 202.2 85.7 221 to 260, . 34 2 1,219 81.1 240.6 88.9 261 to 300, . 23 3 1,111 86.4 274.8 93.0 301 and over, 20 4 2,039 96.0 354.3 103.6 7 EX 90 The ability to accomplish a large amount of work per man and horse is a very important factor in the success of these farms. It appears almost as important as size and production. Men who get an average of ii8 days' work done out of the year have an average labor income of only $53 for the year, while the men who get 354.3 days' work for the year have a labor income of $2,039. As the number of work units per man increases the labor income increases. Also, as the work units per man increase, those per horse increase. The fact that the last 20 men have an average number of work units per man of 354.3 does not neces- sarily mean that these men must work harder than the others, but merely that they get more accomplished. This may be possi- ble through a number of different agencies, such as size of farm, shape and convenience oi fields, ability to plan work properly, or some other agency such as proper equipment, machinery, horses, tools, etc. When time is lost it makes little difference how, for it is a great leakage no matter from, what source this loss may occur. Many of these losses can be controlled by the operator, and to a large extent they are a measure of his ability to manage and get work done. These work units might be termed a measure of efficiency in the management of a farm. Table LXXIX. — Relation of Productive Work Units per iVian to the Profits on 149 Potato Farms Operated by Tenants in iVionmouth County, New Jersey. Number with Minus Average Work TTnits No. of Labor Labor Crop Acres Work Units Work ITnits per Man Farms. Income. Income. per Farm. per Man. per Horse, 140 or less, .... 8 3 .$63 62.3 121.6 69.5 141 to ISO, 29 3 613 73.1 164.0 77.5 ISl to 220, 35 2 643 87.5 199.6 84.1 221 to 2C0, 29 1 807 91.7 239.9 89.6 261 to 300, 25 2 856 86.3 278.4 99.4 301 and over, . . 23 1 1,158 105.6 353.1 95.6 The tenant farms show the same relation as the owners' farms, except that there are less men in the class with 140 or less work units. Tenants usually are more economical in the use of labor than the owners. It is necessary that they should be, since' they cannot live on the interest of their capital as some owners. This, then, necessitates a greater degree of efficiency on the part of the tenant. The average number of work units per man for the tenant farms is 233.2 per man while for the owners it is 209.2, a difference of 24 work units more per man for these rented farms. An inefficient owner had far better rent his farm to a good tenant. His farm would be of greater value to the com- munity. The men who get only a small amount of work accom- 91 plished are not necessarily idle. They may be working just as hard as those getting- much done, but it is not productive of profits. Profitable farming consists of raising things to sell. To that end the labor should be employed. It is quite possible for a lABOH IKC01£E ♦2100 1900 (^ 1700 1 / 1600 / 1300 OWKEHS / • 1100 /^ 900 — / TEl^ANTS X 700 500 300 1, 100 -1 1 1 1 100 150 200 2S0 300 360 WORK inTITS F3R XS3> Fig. 26. — Relation of Productive Work Units per IVIan to Labor Income on 343 Farms in IVlonmouth County, New Jersey. 92 man to keep himself and men busy many days of the year at work which brings no return or is not efficiently used. Operations, such as hoeing weeds, that could have been destroyed by timely cultivation, building fancy fences, or plowing when the soil is not in proper condition, are all wasteful of labor. It is quite noticeable that the size of the farm increases with the number of productive work units per man. Whether this great difference would show in farms of the same size might be questioned. The following divisions in Table LXX'X have been made tO' eliminate the size of the farm as an influencing factor. This method furnishes a more accurate measure oif the farmer's efficiency in managing his labor operations for productive purposes on farms of the same size. Table LXXX. — Relation of Productive Man Work Units on 194 Potato Farms of Equal Size Operated by Owners in iVlonmouth County, New Jersey. , Farms of 55 or Less Crop Acres , Productive Crop Work "Work Bbls. of Work Units No. of Labor Acres TJnits ITnits Potatoes per Man. Farms. Income. per Farm, per Horse, per Man, per Acre, 140 or less 23 —$125.00 36.9 61.0 117.1 75.9 141 to 195 22 +341.00 34.8 71.4 167.7 74.9 196 and over, 21 491.00 41.6 78.3 247.4 81.1 -Farms of 56 to 85 Crop Acres- 170 or less, 19 $668.40 71.2 75.0 142.9 82.3 171 to 200, 20 894.20 73.2 74.6 189.9 85.7 221 and over 24 1,180.30 70.5 88.0 275.3 80.5 200 or less, 18 211 to 250, 20 251 and over, 27 $668.40 ■ 112.1 77.0 358.3 82.1 1,605.50 103.2 91.6 222.9 89.0 2,229.20 117.5 100.3 308.8 80.2 Though there are a smaller number of the small farms with a large work unit per man, there is a wide variation in amount of productive work accomplished upon individual farms o^f the same size. On the small farms the highest average is but 247.4 productive man work units, while on the large farms the highest class is 308.8 productive man work units. In all cases there is a direct relation between the labor income per farm and the num- ber of productive man work units. The same is true of the horse work units, as one might expect. They almost invariably bear the same relation as the man work units. The yield of potatoes on these farms is approximately the same regardless of work units. There appears to be no relation to yield. 93 Table LXXXI. — Relation of Productive iVIan Work Units on 149 Potato Farms of Equal Size Operated by Tenants in IVlonmouth County, New Jersey. , Farms of 55 or Less Crop Acres , Productive Crop "Work Work Bbls. of Work Units No. of Labor Acres Units Units Potatoes. per Man, Farms. Income. per Farm, per Horse, per Man. per Acre. 140 or less, 2 $129.00 16.0 38.8 77.7 86.6 141 to 195 10 335.00 40.8 67.4 163.9 84 4 196 and over 6 708.00 41.0 89.2 252.8 82.5 , Farms of 56 to 85 Crop Acres , 170 or less 10 $287.00 71.6 62.2 145.8 90 7 171 to 220 17 591.00 72.7 79.6 190.4 83.9 221 and over 29 799.00 71.1 82.2 278.1 85.1 I Farms of 86 Crop Acres and Over ., 200 or less 22 $599.00 ' 101.4 83.2 175.1 82 8 201 to 250, 24 972.00 105.6 88.3 225.8 89.0 251 and over 29 1,095.00 119.7 98.7 296.5 83.6 The tenant farms show the same relation as do the owners' farms when divided so as to ehminate the factor of size. That individual men should accomplish so much more work through good management or good organization is to be expected. This is a strong argument for more attention to the efficient opera- tion of the farm. As yet but little interest has been manifested in this phase of agriculture. At present the American farmer is reputed for the relatively high degree of efficiency in his farm operations. But the opportunity for improvement is great. This not only means much to the individual, but also' to a marked extent affects the welfare of the state and of the nation. RELATION OF THE EFFICIENCY OF THE FARMER TO PROFITS ON THE FARM Unfortunately, we have no accurate measure to illustrate the efficiency of the individual farmer or the man who is in charge. A great deal of the agricultural teaching would tend to show that success is largely due tO' the man. This is undoubtedly true in a measure, but not to the extent to which it is credited. No matter how expert or how efficient a man may be, he can- not produce something out of nothing. The manager of a large corporation could not earn $20,000 a year for the company if he were an ordinary laborer, since as a laborer he would not have the opportunity to use his skill to a good advantage. The same is true of the farmer. He must have the necessary con- ditions for success on a farm before he can show profitable returns. There are some men on small farms who have ability to run a farm properly, yet who rarely have a labor income much above the wages of a hired man. A large and a small farm, might be compared with the manager and the laborer of 94 a corporation. Both might be equally efficient and capable, yet the laborer must advance to the position of manager before he can influence the success of the company to any appreciable ex- tent. So too in farming, a man must have the opportunities necessary for success. There are, then, successful men and suc- cessful farms. This is a study of successful farms rather than of successful farmers. Failures in farming are due to unsuc- cessful farms as well as to unsuccessful farmers. The former are more easily measured than the latter. By thus establish- ing the conditions necessary for a successful farm we elimi- nate the personal factor which is entirely a different problem. Throughout all this work it will be noticed that not all large farms were successful, not all farms producing high yields were successful, not all farms near to the railroad were successful, indicating that even though the farm is successful the farmer may not be so, a condition which may again cause a marked failure. The following four farms illustrate lack of efficiency in fac- tors that may be controlled by the operator. Table LXXXII. — A Comparison of Organization and Incomes on 4 Potato Farms. CAPITAIr— Real Estate, Live Stock, Mackinery, . Feed Cash Total, . RECEIPTS— Potatoes Other Crops, Stock Miscellaneous, Total, EXPENSES— Labor, , Fertilizer and Lime, Miscellaneous , Total, MAN WORK UNITS — Per Man, HORSE WORK UNITS— Per Horse Receipts from Live Stock — Butter, Eggs, ; Calves, Hogs, Pigs ' Chickens, ...".. Milk, '.'.'.'.'.'.'. Capons .'.'.' Cows, .' Steers Farm No. 1. Farm No. 2. Farm No, 3. Farm No. 4 $12,000 $15,000 $15,000 $20,000 1,061 1,823 1,825 1,465 579 818 621 1,481 205 90 504 830 1,500 2,000 500 500 $15,345 $19,731 $18,450 $24,276 ?1,SOO $3,120 $3,200 $2,552 995 240 930 089 358 410 1,404 37 1600 20 .... $3,153 $4,370 $5,554 $3,278 $730 $624 $1,156 $616 522 70S 924 510 910 800 1,382 1,036 $2,162 $2,132 $3,462 $2,162 196 258 314 189 70 74 107 69 I. II. III. IV. $30 $25 50 50 $312 $30 15 210 35 270 84 54 60 50 > • . . 140 50 SOO 75 132 22 95 1 I. Farm Income $901 Interest on Capital, . , 767 Labor Income 224 Distance to Railroad 1% Miles. Cro^^cresiAyieW-^- ■ ___ '^T^ote-'TbusiielsX; TTTTTTr::;:;::;;;;—-- — 84 Wheat (bushels) ^__]^]|^ 35 Rye .!_;;~~~ — 424 Hay (tons), -ZUl^^^i^T. Potatoes (barrels) , .ZI^^^IT"" — ''^ Apples, »^_^^^^^~~ SO Stock — Horses, 6 Cows, 2 Heifers, Calves and Bulls, ... 1 Hogs ' a 8 Chickens, So Crop Acreage — Apples 1 Potatoes, 18 Corn 20 Rye, 20 Buckwheat, 8 Hay, 10 Wheat 7 11. III. IV. $2.2ftS $3,422 —$484 9R7 923 —1,200 1,221 2,499 -1,693 2% Miles. 21/2 Miles. 2% Miles. 86 87 86 50 80 40 20 17 bu. 1% T. 1%. 1% 1 80 ' 77 70 6 K 7 7 7 6 2 1 3 • • • ■ 3 60 175 40 9 30 30 27 12 16 25. 6 10 38 22 15. lO ^ From boarding horses. 2 g pigs, 1 sow, 1 hog These four farms have approximately the same conditions necessary to make money. They have 84 to 87 crop acres, their yields of potatoes ranging from 70 to 80 barrels per acre. The expenses for the first three farms are almost identical, while for the fourth they are about $1,300 more. The receipts for this money spent range from $3,153 to $5,554. The farm with the least expense had the greatest receipts, while the farm with the highest expense had $184 less receipts than the actual ex- pense. The operator spent too much for labor, fertilizer, and seed potatoes, and received for them a low return. The work units per man and per horse were low. The operator of the fourth farm worked at the rate of 189 days out of the year for each man employed and used the horses but 69 days. This is extremely low and shows that the fourth man was a poor man- ager. His farm had the conditions necessary for success, but he was not successful in conducting it. The third and most successful farm obtained the greatest receipts from the least ex- pense. . The operator of this place knew how to handle labor and plan his work so as to get a large amount of work done. This farmer had 314 days' work in the year for each man em- ployed. He knew where to invest money so that it would bring a return. These, then, might be termed successful farms, but the men operating them are not all successful farmers. The public ordinarily blames the farmer for his lack of success, feel-- 96 ing that he is incapable. More frequently this is due to the conditions under which he is working. When these are properly- adjusted, farmers as a class are prosperous people. If the proper facilities are not at hand he will tend to become a peasant, as so frequently is the case in European agriculture. Studies such as these throw definite light upon the requirements necessary to develop a strong and prosperous rural people. No industry that is not based upon a strong economic foundation can be successfully maintained. Economic principles, though more difficult to work out, are nevertheless important in American agriculture. REORGANIZATION The reorganization of a farm should be approached in a very conservative manner. Any change will affect the whole system, and therefore much care should be exercised in contemplated changes. In Table LXXiXII is given the relative acreage devoted to different crops as found in this survey, together with the rela- tive acreage which the results of this survey indicate to be most profitable. Table LXXXIII. — Relative Acreage of Crops in iVlonmoutln County Indi- cated to be Most Profitable as a Result of This Survey, Com- pared with the Relative Acreage Found. Recommended Crops. Crop. Acres. Potatoes, 50.0 Alfalfa or Grass, 16.0 Corn, 12.0 Fruit, 0.8 Crop. Present Crops. Acres. 28.2 Hay 16.8 13.6 8.7 3.7 Wheat, 3.4 Alfalfa, . . 0.9 0.7 2.8 Total, The rotation for these three crops could be worked out into a 5-year rotation as follows : Suggested Rotation. Field. 1st Year. 2d Year. 3d Year. 4th Year. 5th Year. Potatoes Potatoes Potatoes Grass Com Potatoes Potatoes Grass Corn Potatoes Potatoes Grass Corn Potatoes Potatoes Grass Com Potatoes Potatoes Potatoes Com Potatoes Potatoes Potatoes Grass Such a rotation would provide for a large proportion of the most profitable crop, furnish sufficient corn and hay for the stock and allow for the maintenance of organic matter so essential in potato farming. The hay should consist largely of clover or 97 alfalfa. As alfalfa is more successfully grown it may well be alfalfa entirely rather than clover and grass. In any case alfalfa should be mixed into the grass seed until it is demonstrated that it can be successfully grown, when alfalfa should be used ex- clusively with some red clover when desired. This should provide for 2 toi 3 tons of hay per acre and leave a large amount of organic matter to plow under. The expense of seeding to hay would not be much greater than seeding to a good cover crop. Anyone desiring to risk the use of lime on potato land could apply ground limestone at the rate oif one ton per acre, and harrow in the soil before seeding the grass or alfalfa. Potatoes then would not come on this land until the third year after it was limed. This should to- a large extent prevent the growth of scab due to liming- for hay. Giants in particular would be adapted to such practice since they are more resistant to scab. This rotation would require no extra plowing for grass or alfalfa when seeded after potatoes, but only sufficient harrowing to produce a firm compact seed-bed underneath and a fine loose uniform soil mulch on top. When alfalfa is seeded alone on fields that have never grown it before, considerable care is needed to make it a sure and sue- cessful crop. Lime at the rate of 2 to 4 tons of ground lime- stone, or I to 2 tons O'f burned lime should be applied. The field should be inoculated with 300 to 500 pounds of alfalfa soil taken from another successful alfalfa field. This soil should be screened, broadcasted and harrowed in as soon as applied, in order to prevent the killing of the bacteria by the sun's rays. When a seed bed, free from weeds, compact underneath, loose and fine on the surface is obtained, good clean reliable seed should be sown in August at the rate of 20' pounds to the acre. When this crop is used in the rotation with potatoes, three cuttings can be made of which the first two would be made into hay while the third can be left on the ground to plow under with the sod and furnish more organic matter in the soil. If not needed for this purpose it can be made into hay to sell. There certainly is not nearly the acreage o^ alfalfa on these farms that can be grown. The large yield of forage of high quality, and the excellent sod for a succeeding crop of corn or potatoes, would warrant a wider use of this hay crop. THE CORN CROP Though this is not a new crop it still is not nearly improved to the extent that it should be in this area. One source of loss is the 98 lack of standard varieties known to be superior for this county. Nearly every farmer grows some unnamed variety obtained from a neighbor sometime during his period of farming. A few varieties known to be superior yielders for the county would add materially to the revenue of these farms with but little added expense. Corn is not as profitable a crop as potatoes on these farms but most farmers may find it profitable to raise enough to feed their stock and work horses. It also furnishes forage and bedding for the stock as well as grain. THE POTATO As the main money crop, this is deserving of most attention. In this area American Giants, commonly called "long stock," are largely grown by most of the farmers. On the 343 potato farms 9,075 acres were of Giants, yielding 84.9 barrels per acre, while 522 acres were of round stock with a yield of 58.2 barrels per acre. This is a marked difference and explains one of the reasons for the greater preference for Giants. Though round stock brings a greater price per bushel, the difference is not sufficient to compensate for the smaller yield of the round stock. Again, but little sorting is necessary for the Giants as they are handled, permitting the use of unskilled laborers for pickers. This, too, is a very hardy potato which resists disease, is smooth with shallow eyes and sells well on the wholesale market. For these reasons this is a very desirable variety to grow on this area. In recent years the most troublesome factor in production of the potato crop is the procuring of good, pure, viable seed free from disease. Practically all of the seed is raised by Maine and New York State growers. Much diseased seed of low quality has been obtained in recent years. This is a serious problem with the farmers, and may compel them to attempt the production of their own seed stock through late planting, which will allow the major growth to be made during cool weather. In some of the southern potato sections as well as in South Jersey, this practice has be- come a prominent industry, by which the growers produce a seed potato of a very high quality. This, if once known to be success- ful in this area, would be the satisfactory solution of the seed potato problem for these farms. Not only could they grow potatoes known to be free from, disease, but improved strains could be selected in the same manner as when breeding for high producing strains of corn. These are very important problems in this area and need immediate attention. Round varieties, such as Irish Cobbler, Gold Coin, Norcross, Green Mountain and Mills' 99 Pride, are grown to a limited extent. A few acres of Cobblers are frequently planted to dig and market early to the shore trade. They aid in the labor distribution for the crop and are in good demand for local and retail trade. MEASURE OF EFFICIENCY FOR POTATO FARMS IN MONMOUTH COUNTY Any farm that will measure up to or siirpass this standard in all four points is practically sure of success. PROMTS AVERAGE 4A&2B. #ft?n ^326 LOSS 4 measures abovs av. 2 roeagurea above av, 2 ^ "belo^ " 1 -measure above av. 3 " below ", Fig. 27. — Four Measures: Size, Production, Proportion of Crop Acres in Potatoes^ and Work Units per Man; and Their Effect on Profits. Most farms have one or two of these measures as good as or better than the average, many have three as good or better, but only a few are successful enough to have all four major measures, crop acres, potato yield per acre, proportion of crop acres in pota- lOO toes and productive work units per man or the number of days' work accomplished by each man on crop and stock. When all four measures are as good as or better than the average, maxi- mum success is obtained. Two measures allow less profit while the third farm with 3 measures below the average lost money. A well organized farm makes a successful farm. It considers all important measures for success. The average number of crop acres per farm is 78.8; barrels of potatoes per acre, 84; proportion of crop areas in potatoes, 36 per cent., and an average of 219 productive work units per man. One might not expect it to be difficult to find farms which were of the average grade, or better than the average in all these four factors. Yet, out of the total 343 potato farms, there were only 9 owners' farms and 13 tenants' farms, which were as high as or higher than the average in all four points. The operators of these 9 potato owners' farms which met this stand- ard made an average labor income of $4,578 while the 13 tenants made an average labor income of $1,856. None of the operators of these 22 farms lost any money. The lowest labor income for the owners was $1,753, while that for the tenants was $868. A man who can take a farm of 78.8 crop acres or more, obtain a yield of 84 barrels of potatoes or more, have 36 per cent, or more crop acres in potatoes, and get 219 or more productive work units per man done for the year, is apparently certain of profitable returns for his investment and effort. All of these four factors are quite important. Each, as an individual, is important and when all are possessed by one farm, large profits are indicated. Of these 9 potato owner farms, the largest pro- duced a phenomenal return of $10,343, while the largest labor income for the tenant farms was $3,255. One cash tenant who had an unusually good bargain, made a labor income of $3,257, with his work units below the average, although all other fac- tors were above. However, he made it through his low casK rental. Of the total 370 farms, there were none which were 25 per cent, or more above the average in all the four factors, size, potato yield, crop acres of potatoes and man work units. These, then, are four very important measures for a successful potato^ farm in this area, and can be used by the individual farmer as a standard for measuring his own efficiency. lOI SUMMARY The average labor income for the Monmouth County potato farms, included in this survey is $842. The cash tenants have the largest average labor income of $938, while the owners have $917, and share tenants $739. Forty-five per cent, of the potato farms are operated by tenants. Cash renting is most profitable for the tenant who is a good farmer. Landlords get a return bf 8.3 per cent, on their investment, not including rise of land values. The system of share renting is too arbitrary, and does not consider differences as found on individual farms that ^ect economical farm operations. Ten per cent, of the owners and part owners get a labor in- come of over $2,500. Owners making th^^^gh^stjiiabo^^^^ $20,000 and $30,000 rol^^-^aaibr Tr m c omG_Q 43esy=j--J $^^0 - and part owners $15,000 to $20,000. Thirty per cent, of the owners who had a capital between jarcron $20,000 and $30,000 made a labor income of over $2,500. Thirty-four per cent, of the tenants who had between $5,000 and $7,000 made a labor income of over $1,500. Farm owners who have a capital between $20,000 and $30,000 receive a yearly return of $121 per thousand dollars invested. The owners have 80 per cent, of their capital in real estate, 8 per cent, in live stock, 5 per cent, in equipment, 2 per cent, in supplies and 5 per cent, in cash. Five per cent, of the total capital invested is in work horses and 3 per cent, in productive live stock. The average farm investment for the owners is $17,673, for the share tenants $3,369, and for the cash tenants $3,085. The farm profits increase with the increase of crop acres per farm for both owner and tenant farms. The larger farms are far more efficient in the use of man. horse and machinery labor than are the smaller farms. The larger farms have a smaller proportion of their capital invested in buildings. Farm and crop acre values decrease as size increases for all farms regardless of tenantry. Landlords receive as great a percentage of money return on small h&s^ as on large farms. 102 The potato yields are fully as good on large as on small farms. Large receipts are necessary for large profits. The average sized farm! for the owners is 73, crop acres, and for the tenants 87 crop acres. Size of farm has a direct relation to the depreciation rate tO' be charged for buildings and equipment. The average acre yield for potatoes was 83 barrels for the owner farms, and 84.7 barrels for the tenant farms. Profits are greater with each increase of potato yield per acre. Men and horses handle as many crop acres on the heavy yield- ing farms as upon the light yielding farms. The acre cost of producing potatoes is $85.15. The cost per barrel is 92 cents. Farmers producing 60 barrels or less per acre lose money. No class of farmers are raising higher yields of potatoes than are profitable. Less than one farm out of twenty had a yield 20 per cent. above the average. The larger the proportion of crop acres in potatoes the greater is the labor income. ' '' " The potato crop in this area lends itself admirably to high specialization. The potato crop affords as good a distribution of labor for the men and horses as more diversified crops. Lack of rotation is not decreasing potato yields. Live stock above what is needed for the farmer's personal use is not profitable on most farms. Live stock is not essential in maintaining fertility. Distance to the railroad station has an important bearing upon the profits derived from these potato farms. Farm' acre values decrease as distance from the railroad in- creases, but crop acre values decrease less rapidly. The proportion of crop acres in potatoes decreases with dis- tance from the railroad. After a distance from' the railroad of 4 or more miles has been reached, potatoes show a low return. The efficiency in the operation of the farm varies widely and affects the profits greatly. Cooperative buying and selling has proved very successful in this region. Farm values are based on farm acres rather than on crop acres. Diversification lowers profits on these farms. I03 The following are the four major measures of a successful farm in this area : 1. Crop acres. 2. Yield. 3. Proportion of area in potatoes. 4. Work units per man, or amount of work accom- plished per man. ACKNOWLEDGMENTS The writer takes pleasure in expressing his appreciation to Prof. K. 'C. Livermore and Dr. G. F. Warren for their assistance and suggestions in the preparation of this work; also to A. G. Waller for his suggestions and his assistance in reading the manu- script, collecting, checking and tabulating the data; to D. A. Coleman, R. C. Cook, H. B. Holcomb, R. M. Hubbard, E. C. Stillwell, L. N. Lewis and F. C. Johnson, for assistance in col- lecting the data; to Miss Grace Read for her able assistance in tabulation of the work, and to the farmers who co-operated so that the gathering of the data was possible. LIBRARY OF CONGRESS 002 685 384 9 •_