'L I B RARY OF THE U N IVERSITY OF ILLINOIS NOTICE: Return or renew all Library Materials! The Minimum Fee lor each Lost Book is $50.00. The person charging this material is responsible for its return to the library from which it was withdrawn on or before the Latest Date stamped below. Theft, mutilation, and underlining ol books are reasons for discipli- nary action and may result in dismissal from the University. To renew call Telephone Center, 333-8400 UNIVERSITY OF ILLINOIS LIBRARY AT URBANA-CHAMPAIGN WM- L16I O-I096 Twelve Years of Farm Accounts in Illinois By P. E. JOHNSTON and H. C. M. CASE UNIVERSITY OF ILLINOIS AGRICULTURAL EXPERIMENT STATION Bulletin 491 FOREWORD Primary data from more than 18,000 farm records covering a twelve-year period, 1926-1937, are presented in this bulletin. Altho the farms from which the records were secured were operated by better-than-average farmers, an analysis of year-to- year changes in land use, production, investments, income, ex- penditures, and earnings on their farms gives a better picture- of the reactions of farmers to changing economic conditions than is available from any other source. The data are presented in detail so they will be available to any who wish to use them for additional studies. The material presented here should be of sj>ecial interest to representatives of governmental agencies, fanner organizations, industrial interests, lending agencies, and to teachers and research workers in the field of agricultural economics. The period covered by this study was one of violent price changes and provides a good basis for studying the adjustments that efficient farmers make in their farming operations in re- sponse to price changes, Government programs, and technological improvement. The analysis of the data by farming-type areas, by si/e of farm, and by source of income gives further opportunity to study the effect of economic changes on farms representing a wide range in physical conditions. CONTENTS PACT PRICES FOR THE PERIOD 1926-1937 191 Effect of Price Changes on Incomes 193 Prices of Commodities Used in Farm Production 195 CHANGES IN INVESTMENTS, INCOMES, AND EXPENDITURES.. 198 Investments 198 Cash Farm Incomes 202 Cash Business Expenditures and Net Income 204 INVESTMENTS, INCOME, AND EXPENDITURES BY FARMING-TYPE AREAS. 209 Variations in Investments 210 Variations in Cash Farm Income 212 Variations in Expenditures 213 Variations in Farm Earnings 216 LAND USE ON ACCOUNTING FARMS 218 Changes in Crop Acreage 219 Participation in Government Programs 220 Crop Yields 223 Land Use in the Different Areas 224 INFLUENCE OF SIZE OF FARM ON FARM ORGANIZATION AND INCOME 225 Variations in Eight Areas Due to Size of Farm 226 Variations in Central Illinois Farms Due to Size 231 VARIATIONS IN FARMS DUE TO SOURCE OF INCOME 237 Variations in Farms in Eight Areas 238 Variations in Northern and Southern Illinois 241 Comparison of Grain and Livestock Farms 248 SUMMARY AND CONCLUSIONS 250 APPENDIX (Tables 21 to 29, detailed data) . . .257 Urbana, Illinois August, 1942 Publications in the Bulletin series report the results of investigations made or sponsored by the Experiment Station Twelve Years of Farm Accounts in Illinois By P. E. JOHNSTON and H. C. M. CASE' FARM FINANCIAL and production records provide informa- tion concerning the operation of Illinois farms not available from any other source. Such records kept by Illinois farmers since 1916 in cooperation with the Extension Service of the University of Illinois mirror the reactions of farm operators to a wide range of physical and economic conditions. They show the influence on land use and farm earnings of changes in the level of prices, of the Agri- cultural Adjustment programs, and of the type of machinery and power available. This bulletin is based on an analysis of such records for the twelve- year period 1926-1937. The distribution by farming-type areas and by years of the 16,946 records from the state-wide project is indicated in Table 1. These records were used in the portion of the study re- ported on pages 198 to 225. Additional records from the Farm-Bureau Farm-Management Service for the ten-year period 1926-1935 were included in the study reported on pages 225 to 249. 2 The farms from which these records were secured are for the most part commercial farms that is, they are operated as a business and for the purpose of making a profit. The farms are on land that is better than average; they are larger than average; and they carry more livestock than the average farm. The operators are efficient managers, and their earnings are much above the level of all farmers 'P. E. JOHNSTON, Chief in Agricultural Economics; and H. C. M. CASE, Chief in Farm Management. "The state-wide extension project in farm accounts has been an organized extension project since 1916. Any Illinois farmer may enroll with the farm adviser in his county as a cooperator in this project. Records are kept by the cooperating farmers in the ILLINOIS FARM ACCOUNT BOOK and are summarized at the University of Illinois after they have been checked for accuracy and com- pleteness at the farm adviser's office by a representative of the Department of Agricultural Economics. The records include a beginning and closing inventory, cash receipts, cash farm business expenditures, and a record of crop acreages and production. The Farm-Bureau Farm-Management Service is a project in which farmers pay a fee for accounting and management service. It was organized in central Illinois in 1925 and is now (1942) operating in 31 counties. The full time of a fieldman is provided for each 225 cooperators, and the records include more detailed information than do those secured thru the state-wide project. 189 190 BULLETIN No. 491 [August, in the community in which they live. These farm records, therefore, do not represent a cross-section of agriculture in Illinois but rather represent the better-managed farms. On the accounting farms oper- ators will be found who are first to take up new and improved practices. An analysis of their records will establish goals to be attained by less efficient operators. The difference between accounting farms and average farms in the same farming-type area and in the whole state is indicated in Table 2. Tn 1939 accounting farms averaged 62 percent larger than the average of all farms in Illinois. Accounting farms had a higher per- TABLK 1. NUMBER OF ACCOUNTING RECORDS OBTAINED FOR ANALYSIS FROM ILLINOIS $TATK-\\'IDK EXTENSION PROJECT: BY FARMING-TYPE AREAS AND BY YEARS, 1926-1937 Year Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area 8 Total 1926 65 69 130 134 168 189 179 178 168 211 197 227 285 2 135 190 229 298 364 263 271 216 237 289 306 277 342 3 282 284 273 262 262 381 291 185 206 314 411 421 494 3 784 104 150 196 257 281 297 282 262 257 272 316 284 2 958 119 93 125 147 205 204 201 160 190 256 233 267 2 200 30 52 69 79 60 101 71 64 63 77 83 62 811 33 49 39 44 48 43 36 31 35 39 34 43 474 1( 894 063 247 459 572 538 322 245 490 611 658 847 946 1927 87 1928 . 124 1929 138 1930 145 1931 152 1932 153 1933. 117 1934 131 1935 53 1936 67 1937 . . 70 Total 1 302 centage of tillable land, and the land was valued $17 an acre more than the average. Investments in machinery and buildings were higher on the accounting farms. The value of products produced per farm was more than twice as much on the accounting farms as on average farms and the value per acre was 48 percent larger. The least differ- ence between accounting farms and other farms was in Area 1 and the greatest difference was in Area 7. The fact that the accounting farms are not average farms does not invalidate the use of their records for many interesting comparisons. They can be used to show variations in investment, income, expendi- tures, and earnings resulting from changing price-levels. They are useful for contrasting the organization features of the farms in differ- ent farming areas of Illinois. They show the effect of size of farm on land use, cost of operations, and farm earnings. A study of land utili- zation on the accounting farms indicates how progressive farmers re- acted to the Agricultural Adjustment programs. The records also show how farm organization and farm earnings vary because of variations in the major source of income. 7W.?] TWELVE YEARS OK FARM ACCOUNTS IN II.LINOIS 191 For the purposes of this study the records were grouped by major farming-type areas as indicated in Fig. 1. These areas differ widely in soils, climate, topography, and markets. 1 Records were available for 2. MIXED LIVESTOCK. I. DAIRY AND TRUCK 1. LIVESTOCK AND GRAIN .4. CASH GRAIN a. GRAIN AND LIVESTOCK 9.FRUIT AND VEGETABLE FIG. 1. FARMING-TYPE ARKAS ix ILLINOIS all areas except Area 9. The largest number of available records was for Area 4 and the smallest number for Area 8 (Table 1). PRICES FOR THE PERIOD 1926-1937 Changes in investment, income, and expenditures on Illinois ac- counting farms must be studied in relation to changes in the price-level of products sold and supplies purchased. The period 1926-1937 was one of violent price changes: from 1926 to 1929 the index of Illinois farm prices ranged from 136 to 145 (1910-14= 100) ; from 1929 to 1932 the index slumped from 145 to a low of 58; but from 1932 to 1937 the index rose to 134 (Fig. 2). For the period 1926-1930 the 'On pages 209 to 216 the effect of these factors on the organization, operation, and income of the accounting farms is analyzed. 192 BULLETIN No. 491 [August, e o.^^ 1 8 c X (N t 9- -f "f M L 3 as y S^S^I^2!^22 S * a "* ** ** 1 1=8 ^ 2-c 3 S8S!2:53;ssS - > M vot^'OX"-. exc * < So U * . id as "E Si E |g ^^p*l I *C^fi/^XO'-"fSOC r* - as ' u S^^"'^" " S U. . 5 B c B O M isis^l?!^ i X IE o'~ ./.u-. -t-r- ~,-~ ^. 3 u u -*2 X & K -^^e,-, z I/ Ut J3 B ss*ssii?E 1 a (fl U 10-*^^^- r^ S as 1 U. 15 C 3 M 8-5 l^ : 5li2S= 1 i "S c tS(SNfM ^ gls " f - * W ifl H f " ~ C-O-CSCN x t-u", in .T c C^"C r *5' > *wj < *^^' f *5 00 J^ "5 c V Q >s *"" . U as M 1 h 5 c Sg2S5S^S S O V*- ^ o so < (A X 1^ I z 8KSS5S8B8 g U, \ 3 c B o o 3 M n -*ioo rs 41 z J U B SxwaSSxxS x *"j H Z o^ ' > _. D *-* J2 fj c 3 Oo^r-T^o-wo. c S ^ S B "NCt OOr**O~-O4vC B < 6 XX.-Xr-'xXXX5 X E z E 2 Account ing r-*O^'^ > OC^* - OC **) *^] -*; *i -^j "^j ^i -^i fsj c T a r oi i SSSS^c!52 ^ " cd < u J Jj 1 : -o verages ;; i ;;:;:; 1| et a ::::::::: -5 < TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 193 index of prices paid by farmers for commodities used in production was at practically the same level as prices received, but from 1930 to 1935 prices received dropped far below prices paid. The effect on farm incomes of the decline in farm prices without a corresponding decline in prices paid for commodities used in production is discussed in detail on pages 202 to 209. Effect of Price Changes on Incomes Fluctuations in prices of individual farm products must be con- sidered when interpreting variations in income between farming-type areas and in analyzing records grouped according to source of income. For example, in the cash grain area (No. 4) and in parts of the gen- eral farming area (No. 5), price changes of corn, oats, and soybeans had the most effect on earnings. In the Chicago dairy area (No. 1), 192627 28 29 30 31 32 33 34 35 361937 FIG. 2. PRICES RECEIVED BY ILLINOIS FARMERS FOR PRODUCTS SOLD AND U. S. PRICES PAID FOR COMMODITIES USED IN AGRICULTURAL PRODUCTION, 1926-1937 the price of dairy products had the greatest influence, and the prices of dairy products and wheat in the St. Louis dairy area (No. 6). In Areas 2 and 3 and in parts of Area 5 the price of beef cattle and hogs had the greatest influence on incomes. 1 From 1926 to 1932 the price of wheat in Illinois declined more rapidly than the price of corn, and the price of soybeans declined even more rapidly than the price of wheat. During this seven-year period soybean production expanded rapidly, while the cost of production declined and the major demand shifted from use for seed purposes to use in industry. From 1926 to 1932 the yearly average price of corn declined from 64 cents to 25 cents a bushel; oats, from 38 cents to 17 cents; wheat, from $1.48 to 40 cents; and soybeans, from $2.13 to 'The effect of prices on variations in incomes by farming-type areas is discussed more fully on pages 212 and 213. 194 BULLETIN No. 491 [August, 35 cents. By 1937 the average prices of wheat, corn, and soybeans were more nearly equal than in 1926, ranging only from $1.02 a bushel for wheat to $1.18 a bushel for soybeans (Fig. 3). The average price of oats was 40 cents a bushel in 1937. The price of both corn and oats was therefore higher at the end of the twelve-year period than at the be- 1926*27 28 '29 '30 '31 '32 '33 '34 '35 '361937 FIG. 3. ILLINOIS FARM PRICES OF FOUR GRAINS, 1926-1937 BEEF \ CATTLEN V-LAMBS 1926 '27 '26 '29 '30 '31 '32 '33 '34- '35 '361937 FIG. 4. ILLINOIS FARM PRICES OF MEAT ANIMALS, 1926-1937 ginning, but wheat and soybeans were both lower. The higher prices for farm products in 1937 resulted primarily from a shortage of supplies caused by the drouth in 1936 and by a relatively high level of indus- trial production ; in late 1937 and in 1938 farm prices dropped sharply. TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 195 Prices of livestock and livestock products as a whole followed the major variations of the general price-level, but there were variations in the prices of individual products, due chiefly to differences in supply. The price of beef cattle advanced in 1926, 1927, and 1928, the latter year marking the end of a cycle of declining numbers of beef cattle on farms in the United States; beef-cattle prices reached a low of $4.35 a hundred in 1933. The lowest yearly average price for hogs was $3.55 and for lambs, $4.90, both occurring in 1932 (Fig. 4). 10 1926 '27 28 29 '30 '31 '32 '33 '34 '35 '361937 FIG. 5. ILLINOIS FARM PRICES OF EGGS AND BUTTERFAT, 1926-1937 The price of butterfat declined from 44 cents a pound in 1929 to 17 cents in 1932 but increased to 32 cents in 1937 (Fig. 5). The price of eggs averaged 28.6 cents a dozen in 1929, 11.9 cents in 1933, and 19.3 cents in 1937. The price of butterfat affected incomes in all parts of Illinois since butterfat production is widely distributed over the state. The price of poultry and eggs affected incomes greatly only in Areas 6 and 7. The relative prices of grain and meat animals had an important bearing on the analysis of income by farming-type areas and on com- parisons of farms grouped by source of income. The Illinois farm- price index (1910-14 = 100) for meat animals was as high or higher than the index for grain each year of the period 1926-1937 with the exception of 1934 (Fig. 6). Prices of Commodities Used in Farm Production As previously stated, the index of prices paid by farmers for com- modities used in production declined from 1929 to 1933 but declined less rapidly than the index of prices received for farm products. The index of prices paid 1 was 141 in 1929 (1910-14 = 100), 96 in 1933, and J This index does not include prices paid for family living. 1% BULLETIN No. 491 [August, 126 in 1937. Prices of farm machinery declined less than did those of other goods and services, the decline from 1929 to 1933 being only 9.2 percent. 1 During the same period building materials declined 18.9 percent, equipment and supplies 2 25.9 percent, taxes 33.5 percent, and farm wages 52.8 percent (Figs. 7 and 8). 1926 27 28 29 30 31 32 33 34 35 36 1937 FIG. 6. ILLINOIS FARM PRICE INDEXES FOR GRAINS AND MEAT ANIMALS, 1926-1937 In 1937 the U. S. index of taxes was at the same level as in 1933 ; however, equipment and supplies advanced 13 percent during this period, building materials advanced 18 percent, and farm wages went up 48 percent. The ratio of prices received for Illinois farm products to U. S. prices paid for commodities used in agricultural production was equal to or above the 1910-14 level in six of the twelve years included in this study, as shown below: Year Ratio 1926 103.0 1927 100.0 1928 101.4 1929.. . 102.8 Year 1930. 1931. 1932. 1933. Ratio Year Ratio 96.1 1934 77.3 78.2 1935 99.1 60.4 1936 102.6 65.6 1937.. . 106.3 unfavorable ratio of prices received to prices paid compelled farmers to adjust many of their spending habits during the depression years; for ex- ample, since horses cost less than machinery, few tractors and little tractor- drawn equipment was purchased during these years. Equipment and supplies, as given by "Income Parity for Agriculture," May, 1939, published by the U. S. Department of Agriculture, includes such items as axes, baskets, twine, halters, hoes, etc. The same listing has been used by the U. S. Department of Agriculture for many years, except that motor fuel, oil, and tires are now listed in a separate classification. Fuel, oil, and tires are not included under "equipment and supplies" in this bulletin. 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 197 Because agriculture is a highly competitive industry, a large part of the farm income must normally be used to pay the operating expenses of the farm, and a relatively modest return is made on the farm investment. Hence changes in the ratio of the price of the products which the farmer buys and those which he sells have a tre- mendous influence upon the net return from the farming enterprise. 180 1926 27 '28 '29 *30 '32 % 33 '34 '35 '36 1937 FIG. 7. PRICES PAID BY U. S. FARMERS FOR BUILDING MATERIALS, FARM MACHINERY, AND EQUIPMENT AND SUPPLIES, 1926-1937 1926 27 28 29 30 31 32 33 34 35 36 1937 FIG. 8. PRICES PAID BY U. S. FARMERS FOR FARM WAGES AND TAXES, 1926-1937 198 BULLETIN No. 491 [August, The spread in this ratio from 60.4 in 1932 to 106.3 in 1937 represents about a 75-percent change. Farmers receive practically no return for their investment in a period like 1932, but do receive a reasonable return in a period like 1937. Farm account records, which include all items of farm income and expense as well as changes in inventory of the farm business, provide the only accurate means of determining the influence of prices on the net earnings of agriculture. CHANGES IN INVESTMENTS, INCOMES, AND EXPENDITURES Investments The average inventory value of Illinois farm property, as indicated by these records, declined from 1927 to 1935 but recovered somewhat in both 1936 and 1937. The weighted average 1 investment for an Illi- nois accounting farm was $37,200 in 1927, $25,891 in 1935, and $27,435 in 1937 (Table 3 and Fig. 9). The total farm investment includes the value at the beginning of the year of land, improvements, livestock, machinery, and feed and grain. Land. The inventory value of land was the largest part of the farm investment, but the percentage that it occupied of the total farm investment varied from year to year, as indicated by the following data: Percent of total investment Year in land 1934..' 70.0 1935 68.3 1936 66.8 1937 65.5 The valuation of land declined from $26,905 a farm in 1927 to $17,691 in 1935. 2 Since the value per farm is a product of the value per acre and the number of acres per farm, trends in both factors will be examined. From 1926 to 1937 the accounting farms increased in size and Averages were calculated for farming-type areas by giving each farm- business report in the area equal weight. Area averages were then weighted by the number of census farms in the area to determine state averages. *The account keepers were urged not to change the valuation of their land in response to short-time changes in prices. However, when new cooperators entered the project during the period when land values were declining, they usually started their records with valuations lower than those of the older cooperators ; the land valuations of the older cooperators were therefore grad- ually lowered in order to keep the records comparable. J Percent of total Percent of total investment investment Year in land Year in land 1926 .72.1 1930 ... 69.0 1927 72.3 1931 ... 70.1 1928 72 4 1932 . . . 70.5 1929.. . 70.1 1933.. . 72.1 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 199 1926 27 29 30 31 32 33 34 35 361937 FIG. 9. TOTAL INVESTMENT PER FARM AND INVESTMENT IN LAND, ILLINOIS ACCOUNTING FARMS, 1926-1937 declined sharply in average inventory value of land per acre, as shown by the following data and by Fig. 10: Year 1926. 1927. 1928. 1929. 1930. 1931. Acres Valuation per of land farm per acre 199 130 203 206 Year 207 215 219 133 129 122 115 105 1932. 1933. 1934. 1935. 1936. 1937. Acres Valuation per of land farm per acre 219 94 218 223 216 227 227 91 83 82 81 79 It is evident that the decline in the valuation of land per acre was relatively greater than the decline per farm, since the average size of farm increased during the period studied. 250 192627 2& 29 30 31 32 33 34 35 361937 FIG. 10. ACRES PER ILLINOIS ACCOUNTING FARM, 1926-1937 200 BULLETIN No. 491 [August, ^ O~ t^VOCS CO OMOCOVOCK * rt r-i o 5,00^^ ^ z 5 SiOt-*vo CO '^ ^ CM ft g CO o5Sf>lK oo B ^ y ^ -- CO O o 2 00 CO 'H '^ '^ vo *-< fN en I J 3 voSSSS - g 2 Ojco-- z 69 69 w s CN O 30 'f -f 00 cs s ^ 00 O^ ^ CO O o o\ o co ^ ^H ^ a cs cs s 69 69 gS ro T-I f>4 CO t^ r* 00 ^~j c^ i SCO tS^H^H CS j2 f> CO S fc rocoioovt- t^ 3 1 ^S!5-N S ^ Q &$ ^ I"* 0^-50 s rx CO^OOIOCO ^ S w 69 69 u OOCSCNOOCN tN ^ oc C\ O OO OviO co (fl o 1/5 ^ o z CS CO 69 69 J ^ 1/500 C-JOOt O O "^ O '-^ vo O Pi M(NTHfs ^ M CN CO 69 69 bo c H M VO H 10 00 vo co co t^OOCSO OX 00 oo t-* i^- co '-t oo 1 H O 0) (A CM ' CO 69 69 5 ? "o z 1 1 13 1. > ^ H B E "o ^J < al ' ' C > H 1 : :'| 3 oil !S 1 JS^I (2 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 201 Improvements and machinery. Each year improvements and machinery were depreciated in the account records on the basis of the farmer's estimate of the life of each item. The inventory value of these items was therefore influenced both by the rate of depreciation and by the amount of money spent for new improvements, machinery, and repairs. The amount of money spent was influenced in turn by the cash farm incomes. The valuation of improvements per farm increased from 1926 to 1930 and declined for the remainder of the period studied (Fig. 11 and Table 3). The valuation of machinery per farm increased from THOUSANDS OF DOLLARS PER FARM O |\) W |k IK = ESTN PROV ^ rtENT EMEI^ ^ INV N IM ***-*, JTS --' ~- 1STM *cmr :NT- JERY .X _ __ ^ ~ IN M 192627 '28 '29 '30 '31 '32 '33 '34 '35 '36 1937 FIG. 11. INVESTMENT IN IMPROVEMENTS AND MACHINERY PER ILLINOIS ACCOUNTING FARM, 1926-1937 1926 to 1930, declined until 1934, and increased again until 1937 (Fig. 11, Table 3). The decline from 1930 to 1934 was due to the sharp slump in cash farm business expenditures for machinery. Livestock and feed and grain. The inventory value of livestock and feed and grain is determined by the amounts on the farm and their market price. During the period studied both the quantity and the price of livestock and feed and grain on accounting farms fluctuated violently as a result of the drouths of 1934 and 1936 and of the Agri- cultural Adjustment programs. The largest average investment in livestock on accounting farms was $2,955 a farm on January 1, 1930, and the smallest was $1,594 a farm on January 1, 1934. The total amount of livestock on all Illinois farms was largest on January 1, 1933, and smallest on January 1, 1935 (Fig. 13 and Table 21 1 ). Inventory value of feed and grain was largest on January 1, 1930, and smallest on January 1, 1933, when grain prices were so low that 'Tables 21 thru 29 are in the Appendix, pages 257 to 271. 202 BULLETIN No. 491 [August, the abnormally large supplies resulting from the 1932 corn crop were worth only 40 percent as much as the average inventory of feed and grain on January 1, 1930. Cash Farm Incomes The average cash income of the accounting farms declined from $5,622 in 1929 to $2,505 in 1932 and then increased, so that the income for 1936 and 1937 was about equal to the average for the period 1926- 1929 (Table 4). It must be remembered, however, that in 1937 farms were, on the average, 28 acres larger than farms in 1926. Grain sales made up 27.4 percent of the average cash farm income on the accounting farms for the twelve-year period, and was the largest single source of income, altho the income from hogs was nearly as large (Table 4). Income from livestock and livestock products accounted for 65 percent of the total cash farm income for the period. INCOME FROM LIVESTOCK AND LIVESTOCK PRODUCTS 1926*27 '33 '34 '35 '36 1937 FIG. 12. AVERAGE CASH INCOME FROM LIVESTOCK AND LIVESTOCK PRODUCTS AND FROM FEED AND GRAIN PER ILLINOIS ACCOUNTING FARM, 1926-1937 The yearly cash incomes from both livestock and grains varied with changes in prices of these products (Fig. 12). The income from live- stock and livestock products reached its peak in 1929, when it aver- aged $3,742 a farm. There was a rapid decline from 1929 to 1932, when the average was only 46 percent of the 1929 level. It increased again from 1932 to 1937, when it was $3,223 a farm. Changes from year to year in the quantity of livestock available for market from Illinois farms can be roughly measured from statistics showing the number of livestock on farms on January 1 of each year. 1 'A single measure of the quantity of livestock on Illinois farms has been calculated for cattle, hogs, sheep, and horses and mules in terms of grain- consuming animal units. 19421 TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 203 fi V O o i"8 2^ ^ u I PO a SSSSSSS' 5 jg KJ -* 49 H a t^ ~POO S "" c rt 2 * " ^ HI 10 ^ | ^ o> ^^^ooSpo^ d 69 69 69 69 8 M 49 5 O c PO 2oo5a 5 c5 S II 2 69 69 69 69 3& "S3 t^ 1O PO o iOfOOOO*^**O>O^ OOOOOOO'^POO'O 1 ._ ^ ro ^j ,0 S>oo3i 5; ~* 5 11 Ov 49 ^, o> (^.Tt rtPO t^ -HTj" PO (L> ^ ^ -H (S 69 U 0) N O\ "* PO (NO-<^"1 I 00-H1O 10 ? D ^ Ov H * * PO H Tl P X n O\r~ o 00 >OOO ts 3*9 J 1 49 Vi 2 PNQ CSPO O- 00 O "O "^ 00 CS O Of x IOO'tPO>O a\Ofoo\o*^Oioio -t 5 3 O ^ PO ^* ~* 10 O >O O oo 1) S 2 H 69 iC 2 J3 g Z 69 69 69 69 ^ >. o .- rt o PM PO PO^PO^Ot*OvOO t^loO*t^OOOOv!O Ov >o in o 'Z!-C S IOPOIO r-j r- IOPN S I* 3 49 v> S S Or. (A 69 69 69 69 3 'SoJ - ^ z PO OOPO>O>O>OCSIOt^ potN'OvO'o vo rj 1O S NO O NO 00 O CS 10 UT* ONPN PN t^PN PN ^ b C 3 ^^ ^ PO PO PO -H PN PO S "o 2 o 69 V* 69 8 * s 1 3 M H s 00 CN 00 C4 ' (NO O s" te a. a< en Id S? o- CS 1O NO 1O PN PO PO i d M PN 69 " 69 69 10 49 V U 69 Vf a .2 M H tc ^T3 3 a i^Sf S i s * s S z u o* PS \O 1O t^ CS PO PO [~ o 'CT3 OH 69 69 69 1O 69 _rf .5^ 8 X M 49 M w> 3 < t/i oo 69 69 49 ts 1O 69 ire men U So M M Z 00 oo PN 2 r r-r"~ioo\*ONOPO g PO b 3 49 w B ^5" a; QQ <^ OO - S - O^ PO j^ S < a! ON S>t~-*5 <(. sw> O "^ K tn ts r^oOPOi T*OM 10 >OOO>OOt>'OPOOO S 69 69 69 v> 69 fr 3 e < o> CN 1O 1O ^C ^^ PO PO O ^ M 49 w> U CM 69 69 69 69 SP a, ,. J O CN 10 ^f t~ ^ PO PO 30 2 58 03 ^^ ^1 '-M ' ' ' 1 H 49 V, B ::i;|| ; ; S 5 2) * j il j H| ! 1 : H u . . . g. rt . : a : 3^ c o B 5-S S 41 '.'. '.s '.'.' at . . O . 2 8 c B 1-1 B M I it 3 3 ~ "^ a . ae g : 1 : x-H el i >._;w a rt lJ D B i S'3 o s R :t S .;= S^ 3 "g S 3 O ill 111 S-- 1 _ n _ i_ _ ^ H ^^. ____ ^ {-" 204 BULLETIN No. 491 [August, The number of livestock in Illinois increased from 1926 to 1928, de- clined in 1929 and 1930, increased to a very high level in 1933 and 1934, declined precipitously during 1934 as a result of the drouth and the corn-hog program, and remained at a low level for the rest of the period (Fig. 13 and Table 21). 8.0 192627 28 '29 '30 31 '32 '33 '34 '35 '361937 FIG. 13. ANIMAL UNITS ON ILLINOIS FARMS, 1926-1937 The average cash income from the sale of feed and grain increased from 1926 to 1929, declined from 1929 to 1932, and increased again until 1936 (Table 4). The cash income from the sale of grain in any year is influenced by the price received, the production in the current year, and the carryover from the previous year. The acreage of grain crops increased from 1926 to 1932, went down sharply from 1932 to 1934, but increased again until 1937; the highest crop yields were in 1928, 1932, and 1937, and the lowest yields in 1934 and 1936. A more complete analysis of land use will be found in a following section. Cash Business Expenditures and Net Income The weighted average cash farm business expenditures for Illinois accounting farms increased about 10 percent from 1926 to 1928, dropped 53 percent from 1928 to 1933, but by 1937 increased to more than the 1928 level (Table 5). The farm business expenditures were influenced by the amount of cash received during the year and by the need for replacing worn-out equipment. Machinery and improvements. Year-to-year fluctuations in ex- penditures were violent for machinery and improvements (Table 5 and Fig. 14). In 1929, $646 was spent per farm for machinery, gas, oil, and repairs ; in 1932 only $254 was spent for these same items. From 1932 to 1937 expenditures increased rapidly, reaching a peak of $956 a farm in 1937. 194Z\ TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 205 During the depression years farmers bought very little new machinery, the more expensive machinery being exchanged or rented; in addition horses were used as much as possible in order to economize on gas and oil. From 1930 to 1934 the proportion of central Illinois accounting farms operated with horses alone remained constant at 26 percent (see page 234) but in 1935 it declined to 20 percent, in 1936 to 14 percent, and in 1937 to 10 percent. From 1930 to 1937 there was a change from standard tractors to general-purpose tractors, and from 1933 to 1937 there was a rapid increase in the use of mechanical corn 1000 192627 '28 '29 '30 '31 '32 '33 '34- '35 '361937 FIG. 14. CASH EXPENDITURES FOR MACHINERY AND IMPROVEMENTS PER ILLINOIS ACCOUNTING FAR.M, 1926-1937 pickers, combines, and tractor equipment for the cultivation of row crops. Expenditures for improvements declined from 1927 to 1932 and increased from 1932 to 1937 (Fig. 14 and Table 5). They were large enough in 1936 and 1937 to check the decline in inventory value which started in 1930 but were not large enough to cause an appreciable increase, as was true for machinery. Expenditures for improvements include cash paid for new buildings and fences, repairs, insurance, and for limestone and rock phosphate. If the change in expenditures on accounting farms from 1932 to 1937 was typical of all farms in the state, Illinois farmers spent 28 million dollars more for building materials and limestone and 95 mil- lion dollars more for machinery in 1937 than in 1932. 1 'These figures were obtained by reducing the average expenses for the accounting farms to an acre basis and then multiplying the increase per acre by the total Illinois farm acreage. The expenses per acre for improvements and machinery were $.33 and $1.16 respectively in 1932 and $1.21 and $4.21 respec- tively in 1937. This increase in expenses per acre was fairly typical of Illinois farms. 206 BULLETIN No. 491 [August, Labor and taxes. Cash expenditures for labor reached a peak of $376 a farm in 1928, declined to a low of $164 in 1933, and in- creased each year until in 1937 the average was $306 (Fig. 15 and Table 5). These variations represent variations in the rate of pay for hired men, as there was no appreciable change in the amount of labor 400 350 3OO 250 200 150 100 192627 '28 J 29 '30 '31 '32 "33 '34 '35 '361937 FIG. 15. CASH EXPENDITURES FOR LABOR AND TAXES PER ILLINOIS ACCOUNTING FARM, 1926-1937 used per farm during this period. However, the months of man labor per 100 tillable acres declined from an average of 12.6 for 1926-1928 to 11.5 for 1935-1937, showing that the same amount of labor was working a larger acreage. Months of Months of man labor man labor Months of Months of man labor man labor Year 1926. 1927. 1928. 1929. 1930. 1931. per farm 20.8 21.5 21.8 21.6 20.4 21.0 per 100 till- able acres 12.5 12.7 12.5 12.2 11.3 11.3 Year 1932. 1933. 1934. 1935. 1936. 1937. per farm 21.2 21.5 20.3 21.3 21.2 21.2 per 100 till- able acres 11.5 11.7 10.9 11.8 11.3 11.4 Expenditures for taxes were highest in 1927, with an average of $337 a farm and lowest, $206 a farm, in 1935. Taxes averaged $1.66 an acre in 1927, $.95 in 1935, and $1.03 in 1937. Feed and livestock purchased. Expenditures for feed and for livestock are major items of expense on Illinois accounting farms (Table 5). Expenditures for feed were largest in 1928 and smallest in 1932, and expenditures for livestock were largest in 1928 and small- est in 1933. Variations are due largely to variations in prices. Cash balance. The cash balance the difference between cash farm receipts and cash farm business expenditures represents the 194Z\ TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 207 cash available for farm family living, interest and debt payments, and savings. The average cash balance for Illinois accounting farms was highest in 1929, when it was $2,445, but it declined 60 percent by 1932 (Fig. 16 and Table 6). On many farms the cash balance in 1932 was not sufficient to pay the interest charges which were due ; the level of living of farm families was drastically reduced, and many farms were taken over by mortgage holders. The cash balance minus the value of unpaid labor (operator's labor plus unpaid family labor) gives a measure of farm income which is very useful for many purposes and which may be used in lieu of "farm income" when it is desirable to exclude inventory changes. This difference divided by the number of acres gives the "net income per acre," calculated on a cash basis, as contrasted with the usual "net 03 "CASH- M CASH BALANCE INCOME EXPENDITURES 1926 27 '28 '29 30 31 '32 '33 '34 '35 '36 1937 FIG. 16. CASH FARM INCOME PER ILLINOIS ACCOUNTING FARM, 1926-1937 receipts per acre," calculated on an inventory basis. The measure cal- culated on a cash basis gives a better picture of variations in farm income for a group of farms over a period of years than does the one which includes inventory changes. There were large inventory losses on accounting farms in 1930, 1931, and 1932 which resulted in nega- tive net receipts an acre in both 1931 and 1932; on the cash basis the smallest annual net income an acre was $1.43 in 1932. Earned value of land and improvements. The net cash income per acre (changes in inventory disregarded) was used to calculate the earned value per acre of land and improvements when the net income was capitalized at 5 percent. 1 The earned value fluctuated widely with changes in the price of farm products (Fig. 17 and Table 7). It 'Five percent was deducted for the use of operating capital. 208 BULLETIN No. 491 [August, ^ esr- ^ ^ w ^ o> i/j* g OO r OlO^*l I s * O MM o- X i - i - 00 ' M o* V, VV n^ to oo ON 8 SSSi i s a I w ON es T 1 s es es ^ 2 w> v> v eN * 9 O 1O t-ooaa oo 1/5 3 , es >Ooo W S t^ *O O f* 00 -CM ^J S oo ~* ON oo * * * ^^ ^" 00 ^* z *^ tif as y U S ^go oo 2 S S 35 x r oo > o GO *o - o >C es H 2 i/l r-> U E H Z n 5 f^ CNMO^* ^ ^ (SCO z <> r^oo ^ 2 ID ON 0- O * 3 H S g 1 ^ o E O i M g es Issl i 5 ^ s E a 2 S "= " a 2 ^ 9 gg ~ ****** I Z <;2 g ^ M ,r. -r . - -' " / r Q ^ rt l/) OOfO t- g as fO Ov esS!/)O 5> "^ "^ es Z ^ S O es es | es es j ^ 5 S * i s 7 h g" i ^~ rt i 1 i O'^'O 1 ' ' 00 lf ) O^i/5 w < pto s 10 ^^< es ' -8 ,^ ^ in es J ^H * w> * es ~ ' t/t :> I 2 r z _ H | Q Jr , XOUNT es es -* es v> IB 5 o 11 ON es es ses "5 es esrji es *>** \ w Q | tft oo *^ eS ON C ON t^ -- O 'Z oo O* ON X ?*) P es O Z 2 es S 2 5 5 v> J j w 9- ,** < at es S;S5S 2 3 5 2 55 "5 3>es * ^ -^ 1/5 00 1 td Ov O 00 < r>> es PJ QV g 0. 1/5 ^ * s * es ~* *-i o ^ U H o 1 J fs^O 1 ^ es oo OON 1 Z cs C O>3> * ^ ^ ^H f ti es ^" *- *"* ^ ^ - H ||2 Z 9 E B Cash balance Unpaid labor Cash balance less unpaid labor Inventory increases Net receipts including inven- tory change Net income per acre, cash basis Net receipts per acre, inven- tory basis Acres per farm s B s g Inventory value of land per acre Inventory value of improve- ments per acre Total Earned value of land and im- provements per acre*. . . Derived by capitalizing 1942] TWELVE YEARS OK FARM ACCOUNTS IN ILLINOIS 209 averaged $123 an acre in both 1929 and 1936 but only $7 an acre at the low point in 1932. Only in 1936 was the earned value equal to the average inventory value as reported by farm-account keepers. 192627 28 29 30 31 32 33 34. 35 361937 FIG. 17. INVENTORY VALUE AND EARNED VALUE OK LAND AND IMPROVEMENTS PER ACRE KOR ILLINOIS ACCOUNTING FARMS, 1926-1937 The inventory value of land and improvements declined each year from 1927 until 1934, but there was no appreciable change from 1934 to 1937. INVESTMENTS, INCOME, AND EXPENDITURES BY FARMING-TYPE AREAS In the following section comparisons between the farming-type .ircas are made in investments, income, expenditures, and earnings, all based upon averages for the twelve-year period 1926-1937. Data are available for all major farming-type areas except Area 9 (Fig. 1). TABLE 8. INVESTMENTS PER ILLINOIS ACCOUNTING FARM, BY FARMING-TYPE AREAS, 1926-1937 Item Area 1 Area 2 Area 3 Ar.-a -4 Area 5 Area 6 Area 7 AreaS Land $20 5 2 1 1 . $33 3 725 875 441 384 403 75 141 813 911 768 444 $20 5 1 1 1 $32 3 296 398 442 865 843 107 141 635 895 622 398 $26 279 4 278 478 1 323 1 039 99 112 1 563 2 102 $37 273 3 051 $33 913 4 225 571 964 480 76 122 1 693 2 446 Ml 490 2 213 $23 533 3 593 473 1 051 656 85 110 1 442 1 723 $32 666 2 375 $10 2 1 1 $17 1 776 493 400 829 220 43 181 354 366 662 673 $ 8 725 2 218 359 707 277 85 155 932 1 046 $14 504 1 583 $11 767 2 297 396 597 350 54 147 933 1 302 $17 843 1 544 Improvements Cattle Sheep Poultry . Feed and grain Total investment . Investment in livestock 210 BULLETIN No. 491 [August, Variations in Investments Total investments. Investments per farm differ because number of acres per farm and inventory value per acre differ. Differences in the inventory value of land are responsible for the major difference in the total investment per acre. The following data indicate the varia- tion from area to area in average size of farm, in investment per acre in land, and in total investment per acre. Investment Acres per per acre 1 Farming-type area 2 3 4 5 . . . 6 . . . 7 8 farm 188 196 219 241 234 185 195 199 in land #110 104 120 141 100 58 45 59 Total Percent nvestment invested per acre in land 3180 61 166 63 170 71 184 77 140 72 95 61 74 61 90 66 For the twelve-year period the largest average investment per farm, including land, improvements, machinery, livestock, and feed and grain, was $44,490 for Area 4, and the smallest average investment was $14,504 for Area 7 (Table 8 and Fig. 18). The large invest- ment in Area 4 was the product of a large acreage and a high investment per acre. Land was inventoried higher in Area 4 than in LAND IMPROVEMENTS LIVESTOCK 3 FEED AND GRAIN i3 MACHINERY 3456 FARMING- TYPE AREA FIG. 18. AVERAGE INVESTMENT PER ILLINOIS ACCOUNTING FARM IN VARIOUS FARMING-TYPE AREAS, 1926-1937 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 211 any other area, but the investment per acre in items other than land was higher for Areas 1, 2, and 3 than for Area 4 because of larger investments in livestock and improvements. The investment per acre in land and the total investment per acre were smallest in Area 7 altho the smallest farms were in the dairy areas (Nos. 1 and 6). The total investment per acre in Areas 1 and 4 averaged twice as much as in Areas 6, 7, and 8, showing the influence of higher quality of land in the northern areas on capital investment per farm. Improvements. Improvements included all farm buildings (ex- cept the residence), fences, limestone, rock phosphate, and other fixed improvements of a permanent or semipermanent character. Their value ranged from $5,875 a farm in Area 1 to $2,218 in Area 7 (Table 8). The second largest investment in improvements was in Area 2 in northern Illinois, where more expensive buildings are required for the dairy and livestock farms. In Area 1 the investment per acre for im- provements was more than twice the average of Areas 5, 6, 7, and 8. The investment per farm in improvements was about the same for the cash grain area (No: 4) as for the livestock and grain area (No. 3), but the investment per acre was 11 percent greater for the livestock area than for the grain area. The amount of money invested in im- provements was clearly influenced by size of farm, productivity of land, and amount of feed, livestock, and machinery to be stored and housed. Livestock. The total livestock investment per farm averaged largest in Area 1 and smallest in Area 8, ranging from $3,444 to $1,544. The investment per acre for the eight farming-type areas was as follows : Area 1 $18.32 Area 5 $10.15 Area 2 17.34 Area 6 9.04 Area 3 13.93 Area 7 8.11 Area 4 9.17 Area 8 7.77 The investment in cattle, including both beef and dairy cattle, was largest in Area 1 and smallest in Area 8; the investment in hogs was largest in Area 3 and smallest in Area 6 ; and the investment in poultry was larger in Areas 6 and 7 than in any other part of the state (Table 8). Machinery. The investment in machinery was highest in Area 1, being almost twice as large as in Areas 7 and 8 (Table 8). It was slightly larger per farm in Area 4 than in Area 3 altho the investment per acre was smaller. Feed and grain. The investment per farm in feed and grain was largest in Area 4 and smallest in Area 7. Normally more corn and oats are on hand at inventory time in Areas 3 and 4 than in other parts 212 BULLETIN No. 491 [August, of the state since these areas consist of large farms having a high percentage of land in grain crops with large average yields. Variations in Cash Farm Income Characteristics of the period. In contrasting the sources of in- come in the different farming-type areas during the twelve years of this study, some of the characteristics of the period should be kept in mind. Obviously the percentage of income from any source changes from year to year because of variations in the prices and quantities of the commodities sold. Some variations are cyclical in character ; whereas other changes proceed as a trend in one direction over a long period. The increase in soybean production, particularly in the east- central part of the state, is an example of an upward trend which was not interrupted thru 1937. Dairy production also expanded during the period studied in areas adjacent to new hard roads, particularly in the St. Louis area. The period 1926-1937 was long enough to average out many minor fluctuations. It was a period with years of high prices and years of TABLE 9.- CASH INCOME PER ILLINOIS ACCOUNTING FARM, BY SOURCES AND BY FARMING-TYPE AREAS, 1926-1937 Source of income Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area 8 $ 41 $ 42 $ 68 $ 66 $ 64 $ 37 $ 51 $ 43 Cattle 988 1 469 1 342 733 933 346 415 385 Hogs 729 1 711 2 211 1 004 1 682 497 709 916 Sheep 110 118 138 75 86 44 70 47 Poultry and eggs. . . . 303 2 197 293 844 232 311 267 407 222 365 406 750 386 358 368 300 695 503 1 078 2 254 1 300 785 496 923 Machinery 106 111 130 146 143 93 77 63 Labor 51 60 62 66 68 71 78 66 Miscellaneous Total 11 $5 231 11 $5 162 11 ?5 583 11 $5 029 15 $4 878 16 J3 045 18 $2 658 18 $3 129 low prices as well as years of high crop yields and years of low crop yields, and the balance between the high and low years seems to have been fairly even. Total income per farm. The average gross cash income per farm was $5,583 in Area 3 but only $2,658 in Area 7 for the twelve years. Areas 1, 2, 3, and 4 each had average farm incomes exceeding $5,000 a year (Table 9). The income per farm in Area 3 exceeded that in Area 4 even tho farms in the latter area averaged 22 acres larger and land was valued $21 an acre higher. The larger income was due primarily to the greater amount of livestock sold and reflected in part larger purchases of feeder stock. In general, gross cash incomes were larger in livestock areas than in grain areas having soils of com- parable productivity. Hogs, grain, and cattle were the major sources of income for the 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 213 accounting farms; dairy sales were important in Areas 1, 2, and 6; and poultry and eggs contributed an appreciable percentage of the income in Areas 6, 7, and 8. These differences in source of income reflect the wide variation in physical, biological, and economic conditions found within Illinois. Livestock income. Illinois farmers have made striking adjust- ments in livestock production to correspond to variations in kinds of feeds available and in market demands. The cash income per farm from cattle was greatest in Area 2, from hogs and sheep in Area 3, from poultry and eggs in Area 6, and from dairy sales in Area 1. Income from cattle, hogs, and sheep was smallest in Area 6; income from poultry and eggs was smallest in Area 5 ; and that from dairy sales smallest in Area 8. The income from dairy sales was over seven times as great in Area 1 as in Area 8 (Table 9). 1 Income from feed and grain. The average income from sales of feed and grain ranged from $2,254 a farm in Area 4 to $496 in Area 7 (Table 9). More feed and grain was sold than was purchased in all areas except Area 2. The twelve-year average excess of sales over purchases per farm was as follows: Area 1 $187 Area 5 $595 Area 2 -82 Area 6 393 Area 3 342 Area 7 73 Area 4 1,928 Area 8 557 Income from other sources. Income from machinery (including all machinery traded as well as custom work 2 ) was the most important minor source of income (Table 9). In 1937 this source of income was over three times as large as in 1932 because more old machinery was traded and more custom work with combines, corn pickers, and other tractor-powered machinery was done. Income from machinery was largest in Areas 4 and 5. Income from labor off the farm and miscellaneous income were practically the same for all areas. Miscellaneous income included only a few minor items, such as sale of gravel, lumber, and posts. Variations in Expenditures Cash farm business expenditures ranged from $3,353 a farm in Area 3 to $1,661 in Area 7 (Table 10). In Area 4 these expenditures were much less than in other areas of similar quality of land because 'In 1934 and 1935 payments under the Agricultural Adjustment Act received for participation in the hog program were credited to hog sales, and those received for participation in the wheat and corn programs were credited to feed and grain. In 1936 and 1937 the benefit payments were credited entirely to grain. "The gross income from custom work was divided in each account between machinery and labor in proportion to the contribution of the two factors. 214 BULLETIN No. 491 [August, TABLE 10. CASH BUSINESS EXPENDITURES PER ILLINOIS ACCOUNTING FARM, BY FARMING-TYPE AREAS, 1926-1937 Item Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area 8 Horses $ 52 * 37 $ 55 $ 52 $ 58 $ 44 $ 40 $ 47 Cattle 495 629 565 302 400 126 138 130 Hogs 71 99 180 76 154 44 70 100 Sheep 70 50 81 31 28 13 13 8 Poultry 35 29 23 29 18 25 27 29 Feed and grain 508 585 736 326 705 392 423 366 Machinery 650 563 605 659 580 399 338 360 Improvements 251 224 204 208 184 187 139 151 Labor 374 248 337 342 356 171 147 217 Livestock expense. . . . 60 57 55 41 47 26 24 25 Crop expense 197 169 180 213 190 160 133 164 Taxes 295 264 305 385 308 162 148 208 Miscellaneous 49 30 27 30 29 26 21 21 Total expenditures.. $3 107 $2 984 S3 353 $2 694 83 057 $1 775 51 661 f\ 826 Total livestock purchases 723 844 904 490 658 252 288 314 of smaller expenditures for livestock and feed. In Areas 1, 2, and 5 expenditures were practically equal, and in Areas 6, 7, and 8 they were also about equal. Livestock purchases. Total livestock purchases were the largest single item of expenditure in Areas 1, 2, and 3, but machinery was the largest item in Areas 4 and 6, and feed and grain in Areas 5. 7, and 8. The relation of livestock purchases to total expenditures per farm in each farming-type area was as follows: Livestock Livestock Farming-type expenditures, Farming-type expenditures, area percent area percent 1 23.3 5 21.5 2 28.3 6 14.2 3 27.0 7 17.3 4 18.2 8 17.2 Feed and grain. Feed and grain purchases per farm were more than twice as large in Areas 3 and 5 as in Area 4, the latter having the smallest amount of any area. Feed purchased made up 22 percent of the total expenditures in Area 3 and 23 percent in Area 5, because these two areas have the most livestock in proportion to the feed produced. Machinery. Expenditures for machinery, gas, oil, and repairs ranged from $563 to $659 a farm in the five areas farthest north in the state and from $338 to $399 in Areas 6, 7, and 8. In Area 4 almost 25 percent of all expenditures was for machinery, oil, gas, and repairs. Improvements. Average annual expenditures for improvements were highest in northern Illinois, particularly in Areas 1 and 2, and lowest in Areas 7 and 8. TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 215" Labor. Expenditures per farm for labor averaged about the same in Areas 1, 3, 4, and 5 (Table 10). The expenditure per acre however, averaged $1.99 in Area 1, as contrasted with $1.54 in Area 3, $1.52 in Area 5, and $1.42 in Area 4. Labor costs were much lower in Areas 6, 7, and 8 than in the other areas, being only 75 cents an acre in Area 7. Cash expenditures for labor represent only a portion of the total available labor supply since the value of family labor is not included as a cash expenditure. The total labor cost per farm for each area is the total of the cash cost (Table 10) and the value of the operator's labor and family labor (Table II). 1 The estimated value of the labor of the operator and his family ranged from $858 a farm in Area 1 to $642 in Area 8. The rate per month for both the operator's labor and family labor was higher in the northern part of the state than in the southern part. The total number of months of hired and family labor per farm and per 100 tillable acres for the various areas was as follows: Months of labor Cash labor Area Months of labor 23 8 per 100 till- able acres 15.3 expense per acre #1.99 21 13.2 1.27 20 9 11.6 1.54 216 9.8 1.42 ... 22 11.4 1.52 21 6 14 .92 19 1 11.8 .75 19.5 11.5 1.09 There was less variation in the amount of labor used per farm in the various areas than in the cost of hired labor, and less variation in the amount of labor per farm than in labor per 100 tillable acres. The influence of the amount of livestock on the labor utilization is apparent, since Areas 1. 2, 3, and 6 had the most labor per 100 tillable acres and also the most livestock per farm. Crop expense. Crop expense (including seeds, twine, threshing, and combining) was largest in Area 4 and smallest in Area 7. It varied less from area to area than most other major expense items (Table 10). Taxes. Expenditures per farm for real estate and personal taxes 'The value of the operator's labor and family labor was based on an esti- mate of the total cost for the best grade of hired labor and was intended to represent only the value of the physical work done, no charge being included for management. Rates were changed from year to year as the cost of hired labor changed. The charge for hired labor included the cash cost plus the value of food and shelter furnished. 216 BULLETIN No. 491 [August, TABLE 11. CASH BALANCE, INVENTORY CHANGES, AND FARM EARNINGS PER ILLINOIS ACCOUNTING FARM, BY FARMING-TYPE AREAS, 1926-1937 Item Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area 8 Acres per farm 188 196 219 241 234 185 195 199 Cash balance $2 124 $2 178 $2 230 $2 335 $1 821 $1 270 $ 997 $1 303 Inventory changes Livestock $ 48 $-6 $-6 * 17 $ 39 $ 43 $ 16 $ 13 Feed and grain 52 74 133 140 122 56 77 44 Machinery 48 65 78 81 60 53 43 49 1 mprovements -10 -25 -22 -16 -18 20 2 6 Total JUS $108 $183 $222 $203 $172 $138 $112 Cash balance plus inventory in- creases $2 262 $2 286 $2 413 $2 557 $2 024 $1 442 $J 135 $1 415 Operator's labor 602 609 609 604 579 500 474 470 Family labor 256 237 172 189 194 267 204 172 Net farm receipts $1 404 $1 440 $1 632 $1 764 $1 251 $ 675 $ 457 $ 773 Rate earned on investment. percent 4.2 4.4 4.4 4.0 3.8 3.8 3.2 4.3 Labor and management wage. . $318 9418 $378 $144 $197 $292 $206 $351 Earned value of land and buildings* 98 101 103 102 66 30 14 47 Net cash income per acre 1 ' 6.73 6.80 6.62 6.40 4.48 2.72 1.64 3.32 Derived by capitalizing net cash income at 5 percent after allowing a similar return on operat- ing capital. b Cash balance less labor of operator and family divided by number of acres per farm. ranged from $385 in Area 4 to $148 in Area 7. Average expenditure per acre for the twelve years was: Taxes Rank on Taxes Rank on per basis of per basis of A rea acre land value A rea acre land value 1 $1.57 3 5 $1.32 5 2 1.35 4 6 88 7 3 1.39 2 7 76 8 4 1.60 1 8 1.05 6 Except that Area 1 and Area 3 are interchanged, the areas are ranked in the same order for taxes as for value of land. The higher taxes in Area 1, in proportion to the inventory value of the land, are no doubt due to the influence of the Chicago metropolitan area. Variations in Farm Earnings For the twelve-year period the cash balance (the difference between the cash income and cash farm business expenditures) averaged $2,335 a farm in Area 4 and $997 in Area 7. The balance per farm was prac- tically the same for Areas 1, 2, 3, and 4 (Table 11). The average annual inventory increases exceeded the average an- nual inventory decreases in all areas, ranging from a net increase of $222 a farm in Area 4 to $108 a farm in Area 2. However, net de- creases in livestock were found in Areas 2 and 3 and in improvements in Areas 1, 2, 3, 4, and 5. No decreases in feed and grain or in machinery occurred in any area. Altho they do not actually do so, the data on inventory changes TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 217 given in Table 11 appear to conflict with those in Table 3. In Table 3 beginning-of-the-year inventories for all accounting farms show that the average value of improvements, livestock, machinery, and feed and grain was $537 less in 1937 than in 1926; while the data in Table 11 show that inventory increases for improvements, livestock, machinery, and feed and grain exceeded the inventory decreases for the same records for the same period. This seeming discrepancy arises from the different ways the data were calculated. Table 3, which gives the average investment per accounting farm for each year, shows the effect of new cooperators' entering during a period of falling prices; these new cooperators inventoried items on a lower basis than did the cooperators who were in the project the pre- vious year and who depreciated items on the basis of their age and not on the basis of price changes. 1 Thus altho there might be only a slight change in inventory value for identical farms, the average for all accounting farms in one year might be considerably below the average for all accounting farms in the previous year. Table 11 shows the changes in inventory that occurred on identical farms and eliminates the effect of new cooperators starting their records on a lower basis than that of the old cooperators. Net farm receipts, rate earned on investment, and labor income. Net farm receipts, after allowing for inventory increases and deducting the value of the operator's labor and family labor, averaged largest in Area 4 and smallest in Area 7. The capital investment, however, was also largest in Area 4, so that the rate earned on the investment for the twelve-year period was not quite so large in Area 4 as in Areas 2 and 3, being 4.0 percent in Area 4 and 4.4 percent in Areas 2 and 3. There was little difference between the various areas except that the rate earned in Area 7 was lower than in other areas (Table 11). Had the value of farm products used in the household been included as income, even less variation would have been found. These data indicate that, on the average, land values in the various areas have been maintained at such a level that the opportunity for makiny a return on capital invested in farms is practically the same In all sections of Illinois. For the period 1926-1937 the labor and management wage, or labor income, was largest in Area 2 and smallest in Area 4, where the farms were largest. The total receipts per farm including inventory change and its division into cash farm business expenditures, unpaid labor, and net farm receipts by farming-type areas are shown in Fig. 19. 'The inventory value of a tractor, once entered in the records, would he prorated over the years of use and would not he depreciated faster hccause prices of new tractors declined. 218 BULLETIN No. 491 [August, U- C u 5 Q. RECEIPTS FARM IN COME I m\ NET FARM U RECEIPTS ^UNPAID LABOR CASH FARM "BUSINESS EXPENDITURE 3456 FARMING-TYPE AREA FIG. 19. INCOME, BUSINESS EXPENDITURES, UNPAID LABOR, AND XET FARM RECEIPTS PER ILLINOIS ACCOUNTING FARM IN VARIOUS FARMING-TYPE AREAS, 1926-1937 Earned value of land and buildings. The earned value of land and buildings was calculated by deducting 5 percent for the use of capital invested in livestock, machinery, and feed and grain from net cash income per acre and capitalizing the remaining income at 5 per- cent. The earned value of land and buildings in Areas 1, 2, 3, and 4 averaged $101 an acre for the twelve-year period and was practically the same for all four areas. The earned value for the other four areas was much less, being only $14 in Area 7 (Table 11). Year-to-year fluctuations in the earned value of land and buildings by farming-type areas are shown in Table 25, page 264. LAND USE ON ACCOUNTING FARMS Changes in land use by account keepers represent the reaction of the most alert farmers of the state to changing economic conditions. Most of the account keepers were leaders in their communities. They were among the first to adopt improved farming practices, and prior to the conservation programs their cropping systems contained a higher ratio of legumes to grain than the average farms in their communities. From 1926 to 1929 prices of farm products were relatively high ; from 1929 to 1933 prices declined sharply; but from 1934 to 1937 prices rose, and Agricultural Adjustment programs were available for 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 219 Illinois farmers. Changes in land use will be studied with these facts in mind. The important changes in land use for the period 1926-1937 are shown in Fig. 20. Changes in Crop Acreage The area in corn on Illinois accounting farms increased from an average of 58 acres a farm in 1926 and 1927 to 75 acres in 1932, declined to a low of 51 acres in 1934, but increased again to 66 acres in 1937 (Table 12). During this period the average size of farm in- creased from 199 to 227 acres. The percentage of tillable land in corn and in total grain crops by years was as follows: Percentage of tillable Percentage of tillable land in land in - Total grain Total grain Year Corn crops Year Corn crops 1926 . . . 34 . 8 62.6 1932 . .. 39 5 70 3 1927 . . . 33.7 62.6 1933 . . . 36.2 66 8 1928 . .. 37.4 67.1 1934 . . . 26.8 57 9 1929 . . . 35.5 67.0 1935 . . . 28.0 60 9 1930 ... 37.7 69.8 1936 . . . 34.1 64 5 1931.. . 38.2 70.7 1937. . .34.6 68.9 The percentage of tillable land in corn increased from 1929 to 1932, but the price of corn in Illinois declined from 80 cents to 25 cents a bushel. Meanwhile the percentage of land in total grain crops in- creased from 67 to 70 percent, showing that in an effort to secure as much income as possible during a period unfavorable to agriculture, farmers were increasing their acreage of intensive crops. 300 250 iaoo K a 150 100 50 BOTHER CPOPSt/OLE LAND ^ZJ^NONTILLABLE LAND \HAYt TILLABLE PASTUPE WHEAT O A TS f BARLEY % i MI 1926 27 28 29 30 31 32 33 34 35 36 1937 FIG. 20. AVERAGE LAND USE PER ILLINOIS ACCOUNTING FARM, 1926-1937 220 BULLETIN No. 491 [August, From a high of 39.5 in 1932 the percentage of tillable land in corn dropped to 26.8 in 1934, mainly as a result of the corn-hog program. The percentage increased each year from 1934 to 1937 because the price of corn advanced sharply and because fewer farmers cooperated in the Agricultural Adjustment programs. In the drouth years of 1934 and 1936 the corn surplus was reduced to the point where an increased acreage seemed desirable. From 1926 to 1931 the acreage of wheat harvested on accounting farms fluctuated but little, averaging 20 acres a farm if the data for 1928, a year of excessive winter injury, are omitted. The acreage declined, however, to 16 acres a farm in 1932 and 1933, when the price of wheat was low, but increased to 24.4 acres a farm in 1937. Hence the Illinois acreage increased while the wheat program was operating. An outstanding change in land use on the accounting farms from 1926 to 1937 was the increase in soybean plantings. The acreage grown for grain increased from .7 acre a farm in 1926 to 15.7 acres in 1935, declining somewhat in both 1936 and 1937. Most of the soybean acreage is in the southern part of east-central Illinois, in Areas 4 and 5, Area 5 averaging 23 acres a farm in 1934 and Area 4 averaging 35 acres in 1935. Year-to-year changes in soybean acreage are shown by farming-type areas in Table 26. Tillable land in hay and pasture averaged 52.4 acres a farm for the period 1930-1933 (Table 12). In 1934 the acreage jumped to 70.5 acres as a result of the corn-hog program. In 1935 and 1936 it was above normal, but in 1937 it was the same as the 1930-1933 average. Hay and pasture was difficult to maintain during 1934 to 1937, as most new seedings were killed in the drouth years of 1934 and 1936; there- fore for these four years there was an average of only 60.4 acres in hay and pasture on accounting farms. A further effect of the adjustment programs was to cause an in- crease in "other crops," such as legumes seeded alone, oats clipped, and soybeans plowed under. The increase in the acreage of nontillable land was the final out- standing change in land use during the period 1926-1937. From 1926 to 1933 the acreage of nontillable land deviated but little from 30 acres a farm, but it increased each year from 1934 to 1937. averaging 37 acres in 1937. This increase was undoubtedly the result of the adjustment programs; during these four years farms were measured more carefully than ever before (this fact necessitating some cor- rections in the accounting records), and farmers gave increased atten- tion to erosion problems and improved land use, retiring some land from cultivation to secure better erosion control. Participation in Government Programs The percent of accounting farms receiving Government payments declined each year from 1934. when the payments started, to 1937 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 221 xoetx o- SO (*^ (S (N (S I/) **5 O> (^ (S mXV) t^ o> X WJW5 'i'O inrM OO O 00 oo f^ c tM oo O o\ o o> I/) **i 00 P*^ -* />>- 'to M >O rsoo "^ O. 00 OOr- trstoo r^ioi^ ooo iO 'tOO* r ocioo t^<)c (S >OO(NI tl (NOO xxi- in > IO(N O(N >*> x co ) 9 S O> in 5> 9 * 5 2 t~ "1 9 S a m fO O ^" <} e> r > 0- >c fi a IO fO ^ ^ o 9 t ' r^ g XfS O r S" I- XO "t 5>O> w> 1^<5 x>om r^ m ** - (*) o O 1 8 (SMO't m xfo O> "> ^ O> O t t "> n 5> * a St^lO i^t^ 1/1 O IO O- & X : : . ' '? -N5''t e8 222 BULLETIN No. 491 [August, (Table 13) ; 91 percent received payments in 1934 but only 69 percent in 1937. 1 The participation was not the same in all areas ; the largest per- centage of account keepers receiving payments was in Area 3 in 1934, in Area 5 in 1935 and 1936, and in Area 6 in 1937. The type of program available in 1934 was most favorable to those sections of the state having the best land and the most hogs ; whereas the 1937 pro- gram favored those sections having the poorest land. Each year the percentage of account keepers receiving Government payments was lower in Area 1 than in any other farming-type area because the per- centage of tillable land in corn was smaller in this area than in most other areas, because a large percentage of the corn grown was put in the silo, and because many of the farms fed more grain than they produced. For all areas except the three southern ones the percentage of account keepers receiving payments declined markedly each year after 1934. In Areas 6, 7, and 8 the percentage also declined but less rapidly than in the other areas. In Area 3 the percentage cooperating declined 28 percent from 1934 to 1937, while the decline in Areas 7 and 8 was only 8 percent. The following data indicate that Illinois account keepers partici- pated in adjustment programs when it appeared profitable for them to do so. In 1934 and 1935 about 90 percent of the account keepers cooperated in the program and received payments averaging $278 a farm in 1934 and $386 in 1935. Only 81 percent received payments in 1936, and in 1937 the percentage declined to 69 the payments aver- aging $220 in 1936 and $233 in 1937. The average payment in Area 3 was 26.8 percent less in 1937 than in 1934, as contrasted with a decline of 6.3 percent in Area 6 and .5 percent in Areas 7 and 8. The weighted average payment per farm for all accounting farms was largest in 1935 and smallest in 1937 (Table 13), when there were fewer farms cooperating and smaller payments per farm on cooperat- ing farms. The portion of the total cash farm income on all farms derived from benefit payments was 6.9 percent in 1934, 7.9 percent in 1935, 3.4 percent in 1936, and 3.0 percent in 1937. In 1935 the pay- ments ranged from 5.0 percent of the total cash farm income in Area 1 to 7.9 percent in Area 3. In 1937 when the payments were smaller and the farm income from other sources increased, the range was only from 1.5 percent in Area 1 to 4.2 percent in Areas 7 and 8. For the period 1934-1937 benefit payments for all accounting farms equaled land and personal taxes. 'Except in 1934, payments were usually received for participation the pre- vious year. They were entered in the accounts as a cash farm income on the date when the checks were received. Payments on hogs were entered in the hog account, and payments for corn, wheat, and agricultural conservation were entered as cash income from grain. 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 223 Crop Yields Corn yields on accounting farms averaged 40.2 bushels an acre for the twelve years of this study (Fig. 21). Corn yields were at a record low level, 26 bushels, in 1934 and 1936 and at a record high level, 54.9 bushels, in 1937. Yields on accounting farms were higher than were those for the average of all farms in the respective counties. The average oat yield on all accounting farms for the twelve years was 33.3 bushels an acre. The yearly average ranged from a low of 13.3 bushels an acre (on the basis of the planted acreage) in 1934 to a high of 49.1 bushels in 1937. 60 1926 27 28 29 30 '31 32 *33 '34- '35 '36 1937 IMC. 21. AVERAGE CORN AND OAT YIELDS PER ILLINOIS ACCOUNTING FARM, 1926-1937 Variations in the average level of crop yields account for many of the differences between farming-type areas in land use, livestock or- ganization, and net income per acre. For the twelve-year period corn yields were 59 percent higher in Area 2 than in Area 7 ; and the aver- age net income was $6.80 an acre in Area 2 but only $1.64 in Area 7. For the twelve-year period the average corn and oat yields on account- ing farms by farming-type areas were: Area 1 Corn yields per acre 39.7 Oat yields per acre 39.0 2 47 4 40 5 3 45 6 38 1 4 ... 42 5 35 9 5 38.9 31 8 6 30.9 25.6 7 29.9 20.1 8.. 33.7 23.7 The average yields of corn, oats, and wheat are shown by years and farming-type areas in Table 27, page 270. 224 BULLETIN No. 491 [August, Land Use in the Different Areas The average acreage of corn per farm for the twelve years ranged from 35.5 acres in Area 6 to 89.8 acres in Area 4 (Table 14). Only 12.8 acres of oats were grown per farm in Area 7, whereas 41.6 acres were grown in Area 4. Less than 10 acres of wheat per farm were grown in Areas 1, 2, and 3, but more than 30 acres in Areas 5, 6, and 8. Barley was important in Areas 1 and 2 only. There was little soybean production before 1930; therefore aver- ages for 1926-1937 do not represent conditions in 1937. Nor do area TABLE 14. LAND USE ON ILLINOIS ACCOUNTING FARMS, BY FARMING-TYPE AREAS, 1926-1937 (Acres per farm) Item Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area 8 Corn . 54 .0 57.7 74.8 89 ,8 67 .0 35.5 36.9 47.8 Oats 27 .4 28.8 29.3 41 .6 21 ,6 19.5 12.8 14.6 Wheat 7 .5 3.3 9.7 18 .7 30 ,9 36.0 16.5 33.0 Barley 11 .2 8.0 Soybeans 1 .2 1.1 5.8 14 ,4 ii ,2 1.9 2.5 2.5 Other grains 1 .6 1.8 3.8 3 ,6 1 ,6 .9 .8 1.2 Total grains 102 .9 100.7 123.4 168 ,1 132 .3 93.8 69.5 99.1 Hay 28 .1 27.4 24.7 18 ,4 21 ,8 25.4 36.2 23.2 Other crops S .1 4.0 3.5 6 ,0 5 ,6 5.8 7.1 5.7 Total crops 136 .1 132.1 151.6 192 ,5 159 .7 125.0 112.8 128.0 Idle land .5 .3 .5 ,2 1 .1 .8 4.0 3.7 Tillable pasture 19 .5 27.2 27.8 28 33 .1 28.1 45.4 39.1 Total tillable land 156 .1 159.6 179.9 220 ,7 193 .9 153.9 162.2 170.8 Nontillable land . 31 .9 36.4 39.1 20 .5 40 .2 30.6 33.1 27.8 Total acres 188 ,0 196.0 219.0 241 .2 234 .1 184.5 195.3 198.6 Percent tillable 83 .0 81.4 82.1 91 ,5 82 .8 83.4 83.1 86.0 averages bring out the importance of the crop in some counties. In both Areas 4 and 5 the principal acreage is concentrated in a few counties. The average acreage for soybeans was 14.4 acres in Area 4 and 11.2 acres in Area 5 ; but in Champaign county in Area 4 soybeans in 1937 averaged 54.9 acres a farm on accounting farms. Total grain crops averaged 168 acres a farm in Area 4 but only 70 acres in Area 7. The acreage of hay, on the other hand, was least in Area 4 and greatest in Area 7. The acreage of hay was also large in Areas 1 and 2. The acreage of tillable pasture was least in Area 1. where there was an average of 20 acres to a farm, and greatest in Area 7, where there were 45 acres to a farm. Xontillable land averaged only 20 acres a farm in Area 4 but 40 acres in Areas 3 and 5. The percent- age of land area tillable was a,bout 83 percent in all areas except Areas 4 and 8, where it was 91.5 and 86.0 respectively. These differences have a bearing on the farm income by areas, since the yield of one crop may be low when yields of other crops are high, thus favoring the area with a high percentage of land in the crop with TWELVE YKARS OF FARM ACCOUNTS IN ILLINOIS 225 the high yield. Differences in crop prices also influence the relative income of the different areas (Fig. 3). The percentage of land in various crops for the twelve years is shown by areas in Fig. 22 below and Table 28, page 271. 100 I 23456 FARMING-TYPE AREA \OTHEft CROPS HOLE LAND %V\NONTILLABLE LAND *.-! \HAY 4 TILLABLE PASTURE M^WHEAT OATS t BARLEY 8 \CORN FK;. 22. LAN n I'SK ON ACCOUNTING FARMS IN EACH OK EICHT ILLINOIS FARMING-TYPE AREAS, AVERAC.ES FOR 1926-1937 INFLUENCE OF SIZE OF FARM ON FARM ORGANIZATION AND INCOME 1 In this study "acres per farm" is used as a measure of size of farm ; and when considering groups of Illinois accounting farms, it is a good measure of size of business as well. For individual farms "acres per farm" does not always indicate the size of the business since the in- tensity of operation varies widely between farms in different farming- type areas and between farms within the same area. This intensity of operation may be secured by growing a high percentage of crops re- quiring a large labor input such as corn, alfalfa, or canning crops or by producing livestock which uses large quantities of feed or labor. ( )n the productive and intensively cropped farms in Areas 3, 4, and 5 (central Illinois) a close relationship was found between acres per 'This and the following section are based on records from both the state- wide extension project in farm accounts and the Farm-Bureau Farm-Manage- ment Service project for the period 1926-1935. 226 BULLETIN No. 491 [August, 40 80 120 160 200 240 280 320 360 400440 ACRES PER FARM FIG. 23. INVESTMENT, GROSS RECEIPTS, AND NET RECEIPTS PER FARM FOR VARIOUS SIZES OF ACCOUNTING FARMS IN AREAS 3, 4, AND 5, AVERAGES FOR 1926-1935 farm and size of business as measured by gross income or investment per farm (Fig. 23). For each additional acre of land per farm gross income increased $13.60 and investment $178. The rate of increase was practically the same for all size-groups, and a similar relationship was present in the other farming-type areas. Variations in Eight Areas Due to Size of Farm Number of farms in various size-groups. There were 17,911 records available for the size-of-farm study (Table 15). In Areas 1, 2, 3, 5, and 7 more farms were found in the 160-acre group (140 to 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 227 TABLE 15. VARIATIONS DUE TO DIFFERENCE IN SIZE OF FARM, AVERAGE FOR ILLINOIS ACCOUNTING FARMS, 1926-1935 0-99 100-139 140-179 180-219 220-259 260-299 300-339 340 + Area acres per acres per acres per acres per acres per acres per acres per acres per farm farm farm farm farm farm farm farm Number of records* 1... . 99 159 161 110 50 42 35 42 2 . . 122 326 492 307 270 153 130 166 3 207 386 830 492 611 320 318 484 4 .... . . 190 529 1 270 1 024 1 295 595 698 997 5 106 244 387 380 367 264 176 299 6 . . 133 327 400 403 224 97 57 54 7 82 99 153 127 84 41 28 57 g . 41 92 68 62 58 50 16 25 Total 980 2 162 3 761 2 905 2 959 1 562 1 458 2 124 Net receipts per farm 1... .. S517 SI 033 SI 275 SI 600 SI 882 2 414 590 1 063 1 130 1 484 SI 859 SI 725 S2 062 3 277 635 979 1 218 1 289 1 643 1 906 2 318 4 . 93 407 838 1 092 1 475 1 829 2 062 2 512 5 58 380 524 563 843 1 363 1 551 2 009 6 335 401 458 519 787 715 944 7 ... ... 15 122 -132 411 449 843 8 105 340 ... 840 ... 814 Percent earned on investment 1 . . 2.93 4.18 4.22 4.13 3.80 2 2.68 2.93 3.91 3.41 3.86 4. 23 3. 39 3 . 35 3 1.62 2.72 3.17 3.43 3.12 3 59 3 29 3 32 4.. 53 1.61 2.47 2.71 3.06 3 33 3 30 3.13 5 .46 2.28 2.39 2.20 2.63 3. 83 3 64 3 88 6 . . 2.98 2.97 2.97 2.93 3.69 3 22 3 40 .... 7 23 1.54 -.99 2.50 2.55 3 .64 8 ... 1 . 30 2 . 70 .... 3.82 2 79 Net receipts per acre 1 . S6.92 S8.96 S8.18 S8.25 S6.23 2 5.35 5 11 6 77 5 81 6 34 S6 83 S5 48 S5 03 3 . . . .... 3 . 45 5 . 49 6.23 6.24 5 . 49 6 02 6 06 5 . 30 4 1 21 3 46 5 30 5 52 6 30 6 70 6 54 5 80 5. . . .64 3.22 3.33 2.90 3.58 4 96 4 94 4 . 63 6 4.22 3.52 2.98 2.69 3.39 2 63 2 ,47 7 . . 20 1.05 .85 2.16 1.93 2 .41 8 1 . 33 2.55 .... 3 . 86 .... 2 51 Labor and management wage (labor income) 1... ..S134 S298 S262 S164 $ - 94 2 142 82 203 - 27 62 S164 S-323 S-515 3 -79 33 - 66 58 -280 -144 493 -678 4 ... -292 -353 -361 -419 -438 -419 -558 -1 004 5 -70 47 - 74 -218 -263 83 - 78 - 83 6 .... 173 126 88 322 122 5 - 45 7. . 83 125 -398 - 12 - 32 86 8 102 111 139 -245 A total of 17,911 records were used, distributed as follows: Area 1, 698; Area 2, 1,966; Area 3, 3,648; Area 4, 6.598; Area 5, 2,223; Area 6, 1,695; Area 7, 671; and Area 8, 412. In Area 1 all farms over 220 acres are included in the 220-259 group; in Area 6 all over 300 acres are in the 300-339 group; and in Areas 7 and 8 all over 260 acres are in the 260-299 group. In Area 8 the 100-139 group includes farms of 100-179 acres, and the 180-219 group includes farms of 180-259 acres. (Table is concluded on next page) 228 BULLETIN No. 491 [August, TABLE 15. VARIATIONS DUE TO DIFFERENCE IN SIZE OF FARM (Concluded) 0-99 100-139 140-179 180-219 220-259 260-299 3OO-339 340 + Area acres per acres per acres per acres per acres per acres per acres per acres per farm farm farm farm farm farm farm farm Months of labor per 100 tillable acres 1. . . 28 Q 22 S 18.2 17.1 13 S 2 22 ? 16 6 13.5 12.8 12 4 11.2 11 .0 9.8 3 19 6 14 6 12.8 12.3 11 T 10.4 10.3 9.6 4 . .... 19 4 13 6 12.3 11.5 10 4 9 7 9.1 8.4 5 19 9 16, S 13.7 12.5 11 4 11.2 10.4 9.3 6 23 ? 18 6 15.5 13.2 13 11.7 10.8 7 21 4 16, 8 14.1 12.4 11 7 8.5 8 19 6 14. 1 11.9 9.7 Labor expense per crop acre 1 $n 65 $14 23 $11 20 10 72 $8 17 2 14 .96 10.41 8 31 7 86 7 46 $6.79 J6.84 $5.87 3 14 .11 9.47 8 .23 7 54 6.99 6.23 6.49 5.86 4 .... 13 .07 8 83 7 58 6 83 6 28 5 85 5 52 5.08 5 13 .80 10.30 8 60 7 80 6.95 6.63 6.09 5.44 6 13 15 9 67 7 95 6 83 6 65 6 04 5 84 7 . . . . 13 23 9.99 8 70 7 56 7.46 4.90 8 12 24 8.03 7 45 5.34 Machinery expense per crop acre 1 $5 10 $4 84 $4 00 $4 27 $3 46 2 4 .02 3 07 2 68 2 92 2 88 $2 82 $2.94 f? ^1 3 . . . 3 .55 2.97 2.70 2.48 2.51 2 .39 2.62 2 71 4 3 49 2.70 2.68 2.43 2.40 2 37 2.16 ? 1 > 5 2 80 2.75 2 52 2 16 2.23 2 27 2.47 2 77 6 . . . . 3 08 2.56 2.23 1.92 2.17 1 .68 1.99 7 2 53 2 01 1 90 1 92 2 11 1 77 8 2. 75 1 84 2.32 1 93 Feed fed per acre to productive livestock 1 $19 $16 $15 $14 $12 2 17 14 13 13 13 $11 $11 $10 3 15 12 12 11 11 10 11 9 4 16 g g 7 6 6 6 5 12 10 g 7 8 8 7 6 11 9 7 7 5 5 6 7 .... . . 8 5 6 6 6 4 8 9 7 6 4 179 acres) than in any other. The largest percentage of small farms was found in Area 1 and the smallest percentage in Area 4 (Table 16). A high percentage of large farms was found in the grain sections of the state and a high percentage of small farms in the dairy areas. Fifty-four percent of the farms in Area 4 and 50 percent in Area 5 were over 220 acres in size, these two areas having the largest per- centage of large farms. Sixty percent of the farms in Area 1 and 51 percent in Area 6 were less than 180 acres in size. Influence of size on livestock organization. As the size of farm increased, the amount of feed fed an acre declined in all areas, but more sharply in the grain areas than in the livestock areas (Table 15). TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 229 TABLE 16. PERCENTAGE OF ILLINOIS ACCOUNTING FARMS IN VARIOUS SIZE-GROUPS, 1926-1935 Size-groups An 1 ?a Area 2 Area 3 Area 4 An S ?a Area 6 Area 7 Area 8 All farms acres 0-99 14 ? 6 2 5 7 2 9 4 8 7 8 12 2 9 9 5 5 100-139 . 22 8 16.6 10.6 8.0 11 (i 19.3 14.8 22.3 12.1 140-179 23 t 25 22 7 19 3 17 4 23 6 22 8 16 5 21 180-219 . 15 7 15.6 13.5 15.5 17 ) 23.8 18.9 15.1 16 2 220-259 7 ? 13 7 16 7 19 6 16 s 13 2 12 5 14 1 16 5 260-299 6 i) 7.8 8.8 9 11 9 5 7 6.1 12.1 8.7 300-339 5 it 6 6 8 7 10 6 7 9 3 4 4 2 3 9 8 2 340-419. . 4 1 5.7 7.7 8 8 6 7 1 .8 5.7 4 4 6 9 420 + 1. 9 2.8 5.6 6.3 6 7 1 .4 2.8 1.7 4.9 Total 100 ii 100 100 100 100 100 100 100 100 In all areas the greatest decline in feed fed per acre came between the smallest size-group (less than 100 acres) and the next group, 100-139 acres. Farm incomes. Farm incomes for the various size-groups are measured by net receipts per farm, net receipts per acre, rate earned on investment, and labor income (Table 15). In all areas the net farm receipts increased as the size of farm in- creased. In Areas 2, 4, 5, and 7 the 280-acre farms had the largest net receipts per acre, and in Areas 3 and 8 the 200-acre farms. In Areas 1 and 6, the Chicago and the St. Louis dairy areas, however, the highest net receipts per acre were found on the smaller farms. Using rate earned on investment as a measure of relative profit- ableness (Table 15) gave a slightly different result since the investment per acre was greater on small farms than on large ones. In Areas 2, 3, 4, and 7 the rate earned on investment increased as the size of farm increased up to 300 acres. In Area 5 the highest rate was for the group containing the largest farms; in Area 1 the highest rate was for the 160-acre farms and in Area 6 for the 240-acre farms. The relationship between size of farm and rate earned on investment was different for each farming-type area (Fig. 24). Labor and management wage, or operator's labor income, indicates that small farms were more profitable than large ones, or, to be more exact, that small farms had smaller losses than large farms during this period of low average earnings (Table 15). The most profitable size of farm, as measured by labor income, varied widely for the different farming-type areas. Rate earned on investment is better than labor income as a measure of the relative profitableness of farms under Illinois conditions, where average investments ranged from $15,000 a farm in Area 7 to over $44,000 a farm in Area 4. The relationship between size of farm and 230 BULLETIN No. 491 [August, rate earned on investment is not appreciably disturbed by changes in the level of earnings. On the other hand, in a period when the average rate earned on investment is low, labor income shows that small farms have the smallest losses ; but in a period when the average rate earned is high, labor income indicates that large farms are most profitable. 1 Labor and machinery expenses. For each size-group the months of labor per 100 tillable acres was largest in Area 1, second largest in Area 6, and smallest in Area 4 (Table 15). Approximately one more month of labor was used for each 100 tillable acres in Area 3 than in Area 4. There was a close relationship between labor input and amount NV b O Q o r. U d-U Z cr J3u K 5 i.o r~~'^-' AREA 1 A s/x $*= /sAREA 6X /' -/" ^ r? / ** ^^-"^.^ AREA 3 j; / ' / / / \REA 4 ^"t I 50 100 150 200 250 300 350 400 450 500550 ACRES PER FARM FIG. 24. RATE EARNED ON INVESTMENT AS RELATED TO SIZE OF FARM, ACCOUNTING FARMS IN AREAS 1, 3, 4, AND 6, AVERAGES FOR 1926-1935 'The relationship between labor income and size of business is a product of the method of calculating labor income. It is calculated by deducting a charge equal to 5 percent of the total capital investment from the "farm income" and represents the return for the operator's physical labor and managerial ability. If it is assumed that the capital is entitled to a return of 5 percent, then in a period when the average rate earned on investment is 4 percent, there is a negative margin between the rate of return on the capital and the rate deducted for the use of capital ; consequently the larger the capital investment, the smaller the labor income or the greater the loss. On the other hand when the average rate earned on investment is 6 percent, there is a positive margin above the 5 percent for the use of capital; consequently the larger the capital investment, the larger the labor income. In years of low incomes there is a negative corre- lation between size of business and labor income ; in years of high incomes, a positive correlation. 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 231 of livestock on farms of the same size. The dairy farms, however, used more labor than did the beef cattle and hog farms. The labor input per 100 tillable acres and the labor cost per crop acre declined in all areas as the size of farm increased. The labor cost per crop acre was twice as much on the 80-acre farms as on the 240- acre farms. The machinery expense per crop acre was largest in the Chicago dairy area and least in the southern part of the state. In all areas it declined as the farms increased in size. Variations in Central Illinois Farms Due to Size In order to provide an adequate sample for a more complete analysis of the influence of size of farm on farm organization, oper- ating expenses, and earnings, records for Areas 3, 4, and 5 were averaged together. An average of 1,247 records a year was available in the three areas for the ten-year period. The distribution of farms by size-groups was nearly enough alike in these areas to justify such a study. It must be remembered that these farms were on rela- tively fertile land in central Illinois. On a high percentage of farms tractors are used for cultivating row crops, most of the corn is harvested with two-row mechanical pickers, and the wheat and soy- beans are harvested with combines. Land value and percent tillable. On the small farms a higher percentage of the land was tillable than on the large ones, and the land (exclusive of improvements) had a higher value per acre. The value of land ranged from $138 an acre for farms less than 180 acres in size to $122 an acre for farms over 340 acres (Table 17) ; the percent of land area tillable was 89 and 82 respectively. Crop yields, however, were practically the same for all size-groups. The average corn yields for the ten-year period were: Bushels of corn Bushels of corn Acres per farm per acre Acres per farm per acre Less than 100 42.1 220-259 41.8 100-139 42.5 260-299 41.8 140-179 41.8 300-339 42.2 180-219 41.8 340 or more 41.4 Amount of livestock. Considerable variation by size-groups was found in the amount of livestock per acre as measured by the value of feed fed per acre to productive livestock (Fig. 25). The value of feed fed per acre declined as the size of farm increased, being twice as large on the 80-acre farms as on the 400-acre farms. For each size- group in each of the three areas, income from productive livestock was greater than income from grain, altho Area 4 is known as the cash 232 BULLETIN No. 491 [August, J^ (NX^J *2 + || S*t C 10 a ~" S 49 49 Z ** 1^ _* o ^^ 1^. <=!/> tn g OS fc X *? I ^ t ". so so a r? E 49 jj Q " rt f*5 ii^- X "5 u, >O 1 IO 49 49 Z H u 10 O> X O -* rO-$r-5^ D N fl X49 49 O o cu p3 tN >O so '^ u 2 jft*8 _ 1 u * 49 49 tn a o^^- f>X O a fc K ON O sO<*> CO t> OfO O O> r^irt ^- -^ ,,--.- c ~ ^ t^ W C *O sOX X49 ^^"^^ ^-5 49 | OS "0 w ^^ rt ^ 49 ^ -^ vO os o5 ^ so X X C 1^. X C O O O 0! ^S t^.r^ CX ^- fs ^ r- fv) 10 o^ c ax X49 49 tS>/1 49 | fciO ~ cs N g 49 U, Q ** Z L. r-i 2 sOXX C -*IOX X l~^ X - *' O*r*mrr)in U E C u^ i ts 1 49 49 3 g Q U c o RIATIONS L C y * ' tl 1 i ^j I v : > 1 : "o 1. 3 3 ber of records 3 per farm stment per farm stment per acre in land receipts per farm earned on investment, r and management wag s receipts per acre nses per acre receipts per acre area tillable, percent . per acre to productive ths of labor per 100 till r expense per crop acre linery expense per crop es per farm es per 100 tillable acres Weighted by number S| |1 z< f ~> *>.c o ft^j 2 1 = .5 u E 2 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 233 grain area in Illinois. The average percentages of the gross income de- rived from productive livestock in the three areas were: Percent of income Acres per farm from livestock Less than 100 94.6 100-139 83.5 140-179 76.4 180-219.. 76.2 Percent of income Acres per farm from livestock 220-259 74.6 260-299 73.0 300-339 72.2 340 or more. . 67.6 Even tho the percentage of income from productive livestock de- clined as the size of farm increased, over two-thirds of the income on the largest farms came from livestock production. Even in Area 4, the cash grain area, 57 percent of the income on the 420-acre ac- counting farms was from livestock. As was previously indicated, more livestock was produced on the accounting farms than on the average farms in the same areas. Labor, horse, and machinery input. The months of labor per 100 tillable acres declined as the size of farm increased, ranging from 19.6 months for the 80-acre farms to 8.9 months for the 400-acre farms (Table 16 and Fig. 26). This 55 percent decline was due in part to less livestock per acre and in part to economies in the use of crop labor on the larger farms. Labor input and the value of feed fed to livestock declined more rapidly for the small size-groups than for the large ones. The labor expense per crop acre declined 60 percent from the 80- acre to the 400-acre farms, averaging $13.51 for the smallest farms and $5.36 for the largest ones (Fig. 25). FEED PER ACRE TO PRODUCTIVE LIVESTOCK LABOR EXPENSE PER CROP ACRE-' MACHINERY EXPENSE PER CROP ACRE I I I I i i i I 40 80 120 160 200 240 28O 320 360 400440 ACRES PER FARM FIG. 25. VALUE OF FEED FED PER ACRE, LABOR EXPENSE, AND MACHINERY EXPENSE PER CROP ACRE FOR VARIOUS SIZES OK ACCOUNTING FARMS IN AREAS 3, 4, AND 5, AVERAGES FOR 1926-1935 234 BULLETIN No. 491 [August, The average number of horses per farm ranged from 3.5 on the 80-acre farms to 7.8 on the 400-acre farms ; the number per 100 tillable acres ranged from 5.0 to 2.2. As the size of farms increased, the rate of decline in the number of horses per 100 tillable acres was similar to the decline in labor input (Fig. 26). As farms became larger, the machinery expense per crop acre also declined but less rapidly than expenses for labor because machinery expenses are influenced less by varying amounts of livestock than are 40 80 120 160 200 240 280 320 360 400440 ACRES PER FARM FIG. 26. MONTHS OF LABOR AND NUMBER OF HORSES PER 100 TILLABLE ACRES FOR VARIOUS SIZES OF ACCOUNTING FARMS IN AREAS 3, 4, AND 5, AVERAGES FOR 1926-1935 expenses for labor. The machinery expense per crop acre was $3.32 for the 80-acre farms and $2.31 for the 400-acre farms, a decline of only 30 percent (Fig. 25) ; there was very little decline as the size of farm increased beyond 220 acres. The use of general-purpose tractors increased rapidly during this period, especially near the end of the period, as indicated by the following data: Type of power Horse only 25 . 3 Horse and standard tractor 61 .4 Horse and general-purpose tractor. ... 13.3 (1935) Horse only 20.2 Horse and standard tractor. 45 .0 Horse and general-purpose tractor. ... 34.8 Proportion of farms using power indicated (1930) (1931) (1932) (1933) (1934) 26.1 25.3 25.3 26.2 58.1 55.9 57.2 56.5 15.8 18.8 17.5 17.3 (1936) (1937) (1938) (1939) 14.0 10.0 9.0 7.2 28.7 19.6 18.7 16.5 57.3 70.4 72.3 76.3 The use of tractor power has reduced the amount of man labor needed to produce an acre of crops, as indicated by detailed cost records reported in Illinois Bulletin 467: 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 235 "Improved cultural practices and increased use of mechanical power during the twenty-five years [1913-1937] reduced the amount of man labor re- quired in producing corn from 18.5 hours an acre in 1913-1915 to 9.6 hours an acre in 1935-1937. Man-hours an acre used in producing wheat declined from 19.4 in 1914-1916 to 4.9 in 1935-1937, and in producing soybeans they declined from 13.4 in 1922-1924 to 4.2 in 1935-1937. Man labor per acre in producing oats declined approximately 40 percent in the twenty-five years." 1 Since Illinois farms are predominately family sized, the months of labor used per farm remained practically unchanged, from 1926 to 1937. With no change in the supply of labor and with an increased use of power-operated machinery, the farmers had three alternatives: to in- crease the size of their farms ; to increase the amount of livestock per acre ; or to work fewer hours per year. The records indicate that the average size of farm was increased, tha,t the amount of livestock per acre was not increased, but that the hours of productive labor per worker declined. According to detailed cost records from Champaign and Piatt counties, the hours worked per month of available labor declined from 242 in 1923-1925 to 203 in 1935-1937. Farm operators worked 330 fewer hours in 1935-1937 than in 1923-1925. In regions where tractor power and power-driven machinery are available, there will continue to be an economic incentive to increase the average size of commercial farms, particularly in those areas where cash grain crops are produced. For the period 1926-1935 the larger farms in central Illinois had a decided advantage over the smaller in operating cost per acre, due largely to savings in the use of labor, horses, and machinery. Im- provement expense and crop expense declined similarly as size of farm increased. Influence of size of farm on profits. Both net receipts and in- vestment per farm increased rapidly as the size of farm increased during the ten-year period. The rate earned on investment was highest for the 280-acre farms and was higher for all size-groups above 260 acres than for those smaller (Fig. 27). The net receipts per acre also were largest for the 280-acre group, being $6.08 per acre, but declined 71 cents an acre for the farms more than 340 acres in size. The average labor income (labor and management wage) showed the smallest loss for the small farms and the largest loss for the large farms (Fig. 27). Labor income, however, should not be used as a measure of profitableness in an analysis of size of farm (see page 230). Gross receipts, operating expenses, and investment per acre de- clined as the size of farm increased (Fig. 28). The decline in gross receipts was due to the higher percentage of nontillable land on the *R. H. Wilcox and H. C. M. Case, Twenty-five years of Illinois crop costs, 1913-1937. 111. Agr. Exp. Sta. Bui. 467, pp. 405-406. 1940. 236 BULLETIN No. 491 [August, larger farms and to the smaller amount of livestock per acre. Crop yields were practically the same for all size-groups. The farm operator is interested not only in getting a good return for his capital but also in providing his family with a high level of living. If the owner-operators on the 80-acre and the 320-acre farms had half of their capital borrowed at 5 percent, the families on the smaller farms would have had $436 a year from the farm for' family 4.0 80 120 160 200 240 280 3?0 360 400440 ACRES PER FARM FIG. 27. RATE EARNED ON INVESTMENT AND LABOR INCOME FROM ACCOUNTING FARMS OF DIFFERENT SIZES IN AREAS 3, 4, AND 5, AVERAGES FOR 1926-1935 UNDER IOO- 140- 180- 220- 26O- 30O- 34OOR 100 139 179 219 259 299 339 MORE FK;. 28. GROSS RECEIPTS, EXPENSES, AND NET RECEIPTS PER ACRE FOR VARIOUS SIZES OF ACCOUNTING FARMS IN AREAS 3, 4, AND 5, AVERAGES FOR 1926-1935 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 237 living expenses and savings ; whereas, the families on the larger farms would have had $1,288 a year for the 10-year period, as indicated by the following: 80-acre 320-acre farms farms Investment $16 227 $56 164 Receipts 1 740 Expenses 898 Receipts less expenses 842 5 percent on half of investment 406 Amount available for living, debt payments, and savings $ 436 $ 1 288 These records for central Illinois indicate that farms 260 to 500 acres in size were on the average more efficient than smaller farms. Accounting farmers in these areas have shown their approval of the larger farms by continuing to buy the type of machinery adapted to larger farms and to increase the average acreage operated. VARIATIONS IN FARMS DUE TO SOURCE OF INCOME The question is often asked, "Which is the most profitable type of farm for a particular part of the state?" To answer this question it is necessary to know the relationships between different types of farms and size of farm, amount of labor per farm, investment in improve- ments and machinery, crop yields, and expenses per acre for labor, horses, and machinery. 1 The 17.946 records for the period 1926-1935 were sorted according to the percentage of the gross income derived from various sources, and the following groups were formed: Number of Percent of Source of income records total Sixty percent or more of gross income from grain (inten- sive grain) 2 679 14.9 Forty to 59 percent of gross income from grain 2 652 14.8 Forty percent or more of gross income from Hogs 5010 27.9 Beef cattle 907 5.0 Dairy sales 2 384 13.3 Poultry 161 .9 Hogs and beef cattle 271 1 .5 Mixed sources (no more than 40 percent from any one source) 3617 20 . 2 Other classifications 265 1 . 5 Total 17 946 100.0 'The analysis in this section is based on averages for large numbers of farms and does not take into consideration variations within the source-of-income groups due to the efficiency of the individual operators. In deciding the type of farm organization he is going to use, each farmer must consider his own efficiency as well as the physical and economic factors which arc discussed here. 238 BULLETIN No. 491 [August, Variations in Farms in Eight Areas The data in Table 18 represent the reactions of superior farm operators to variations in the productive level of soils, the percentage of nontillable land on the farms, markets available, and disease and insect hazards. 1 The manner in which these operators used their land, labor, and capital under widely divergent conditions can serve as an example to other operators in the same areas. In Areas 2, 3, and 5 there were more hog farms than any other type of farm. In Area 1 dairy farms predominated ; in Area 4 the intensive grain farms (over 60 percent of the income from grain) pre- dominated, and in Areas 6, 7, and 8 there were more mixed-income farms (less than 40 percent from any one source). For the entire state, 29.7 percent of the farms were grain farms ; 27.9 percent, hog farms ; 20.2 percent, mixed-income farms; and 13.3 percent, dairy farms. These four classifications thus accounted for 91 percent of all the farms in the study. The following points were shown by an analysis of the records when grouped by source of income and by areas: (1) The largest investment per farm was on cattle farms in Areas 2, 3, 4, and 5 ; on hog farms in Areas 6 and 7 ; and on grain farms in Area 8. The investment per farm depended chiefly on the size of farm and to a less degree on the quality of land and the amount of im- provements, machinery, and livestock. (2) The grain farms were on the best land as indicated by the fact that they had the highest land value per acre and the highest per- centage of tillable land in all areas except 1 and 7. Dairy farms and poultry farms were on land which had a low value per acre, and the dairy farms had a high percentage of nontillable land. Dairy and beef cattle farms had a relatively small percentage of tillable land in corn and a large percentage in hay and pasture. (3) The largest value of feed fed per acre in Areas 2, 3, 4, and 5 was on the beef cattle farms ; on the hog farms in Areas 6 and 7 ; on the dairy farms in Area 1 ; and on the poultry farms in Area 8. The smallest value of feed fed per acre was on the intensive grain farms in all areas where this classification was found. (4) The returns for each $100 of feed fed were higher for the dairy and poultry farms than for the hog and beef cattle farms, because feed is a smaller percentage of the cost of producing dairy products and poultry than of the cost of producing hogs and cattle. The returns per $100 of feed fed necessary to pay feed and other costs for a group of central Illinois farms for the five-year period 'Averages were not calculated for a number of groups where the number of farms was small. TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 239 TABLE 18. VARIATIONS IN ILLINOIS ACCOUNTING FARMS DUE TO DIFFERENCES IN SOURCE OF INCOME, BY FARMING-TYPE AREAS, 1926-1935 Source of income Area Grain 60% + Grain 40-59% Hogs Cattle ^airy 40%+ 40%+ ^ + Poultry 40% + Hogs and All less cattle each than -Kt-; 40% Number of records* 1 546 65 2 153>> 648 219 377 489 3 255 423 1 866 262 114 105 550 4 . 1 936 1 489 1 159 283 533 1 053 5 . . 230 247 990 86 177 401 6 111 257 101 ... 507 43 641 7 47 67 113 ... 98 40 280 8 45 42 100 ... 32 30 138 Total 2 624 2 678 4 977 850 2 384 113 105 3 617 Investment per farm 1 $32 661 $33 614 2 $36 275 $34 044 $47 677 26 459 32 145 3 .... .$46 926 42 455 38 745 56 892 31 675 $57 322 36 059 4 52 151 47 206 45 523 59 762 37 022 41 838 5 . . . 38 553 31 982 29 707 44 127 25 193 25 194 6 19 142 19 160 20 167 .... 17 338 $13 296 16 382 7 13 828 16 186 20 141 12 749 8 771 ... 13 058 8 27 743 22 761 20 692 ... 15 249 12 271 13 724 Acres per farm 1 171 208 2 218 196 265 158 198 3 . . 265 237 212 288 182 300 208 4 270 241 228 275 186 221 5 265 237 223 280 172 210 6 172 197 220 ... 166 151 180 7 213 237 204 . . . 164 130 184 8 . . 250 264 208 . . . 144 147 164 Investment per acre in land 1 $111 $ 98 2 $117 $111 $112 100 103 3 $137 135 128 131 115 $129 124 4 151 149 147 151 137 141 5 116 103 94 108 93 83 6 72 64 55 ... 62 $47 57 7 43 44 63 ... 45 37 41 8. . . 87 61 66 ... 67 48 55 Months of man labor per farm 1 25.7 24.7 2 20 7 20 5 25 20.5 20.5 3 21.8 21 .1 20.9 26.0 20.7 28.1 20.2 4 22.1 21.6 22.4 25.5 22.9 21.4 5 . . 22 4 22.1 21.4 25.7 23.3 .... 20.4 6 21 .9 21.7 22.1 21.7 22.1 21.1 7 20 8 20.3 21.2 .... 19.8 15.6 .... 18.6 8 21.7 21.6 22.3 21.6 16.7 17.4 A total of 17,348 records were used, distributed as follows: Area 1, 611; Area 2, 1,886; Area 3, 3.575; Area 4, 6.453; Area 5, 2,131; Area 6, 1,660; Area 7. 645; and Area 8, 387. >>Includes a few bor- derline farms getting more than 59 percent of their income from grain. (Table is concluded on next page) 240 BULLETIN No. 491 [August, TABLE 18. VARIATIONS IN ILLINOIS ACCOUNTING FARMS DUE TO DIFFERENCES IN SOURCE OF INCOME (Concluded) Source of income Area Grain 60% + Grain 40-59% Hogs 40% + Cattle 40% + Dairy sales 40% + Poultry 40% + Hogs and cattle each 40% + All less than 40% Percent of land area tillable 1.. . 80.1 82.2 2 85 8 82 7 81 5 77.2 81 8 3 89 .4 88.2 82 1 79 9 72.5 78.7 80 8 4 92 .6 90.0 87 } 88 7 84.4 86.0 5... . 90 6 84 4 76 .2 82 ,1 80.8 76 2 6 86 .6 86.3 72 .7 82.5 85 .4 82.8 7 83 6 88 2 80 4 83 5 75 4 83 2 8 91 2 88.3 85 6 80.6 87 .8 86.6 Feed fed per acre to productive livestock 1 $14 15 $ 9 60 2 $6 .49 $13 .61 $15 .35 11.61 10 . 73 3 $3 .78 5 .70 12 ,59 17 .12 10.81 $16.73 8.70 4 3 .04 5 42 10 87 15 .05 10.10 7 88 5 3 .38 4 .27 9 .62 11 .21 8.95 6.15 6 4 ,24 4 41 13 58 7.78 $11 .85 6.06 7 . . . 2 .74 2 .81 8 .73 7.12 6.00 4.74 8 3 34 4 25 7, 38 6.77 8.05 5.12 Returns per $100 of feed fed 1 . . $163 $151 2. $126 $129 $126 152 141 3 $123 137 135 128 146 $148 138 4. .. . 125 137 131 133 159 140 5 140 154 138 141 177 142 6 107 139 137 148 $157 149 7 108 147 133 169 155 153 8 106 124 147 205 140 154 Percent earned on investment 1. .. 4.05 3.62 2 ... 3 80 3 24 3.44 3.07 4.09 3 4.48 3.96 3.44 3.72 2.55 3.22 3.54 4 3 34 3 21 2 57 3 33 2 62 2.82 5 5.00 4.22 2.52 3.80 3.16 2.39 6 4 01 4 55 5 88 2 25 4 26 3.34 7 4 74 4 37 1 .99 1.99 -2.61 2.06 8 7.17 5.12 2.55 3.25 2.62 .96 Corn yields, bushels per acre I... 37.2 38.6 2 45 5 46 7 47 7 44 7 45.2 3... . 41.8 46.7 45.4 48.8 43.0 48 . 8 45 . 1 4 43.7 43.6 43.2 44.7 39.1 41.9 5 40 5 40.3 37.7 36.7 38 . 4 34.9 6... 33.8 33.9 31.2 27.4 31.8 28.8 30.3 30.5 32.9 27.2 25.9 27.7 40.2 36.9 33.0 29.1 35.0 32.5 194Z\ TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 241 1933-1937 were: feeder cattle, $117; hogs, $127; dairy cattle, $157; and poultry, $195. (5) Corn yields did not vary much between farms with different sources of income. In Areas 2, 3, and 4 cattle farms had the highest corn yield while dairy farms had the lowest yield. In Areas 5, 6, and 8, grain farms had the highest yield, while hog farms had the highest yield in Area 7. The months of man labor per farm was about the same for all source-of -income groups except that the beef -cattle farms used more labor than the other groups since the farms were large. (6) The highest return for the capital invested in the business was on the intensive grain farms in Areas 3, 4, 5, 7, and 8; on the dairy farms in Area 1 ; on the mixed-income farms in Area 2 ; and on the hog farms in Area 6. 1 These records indicate that the accounting farmers have adjusted the type of organization to the conditions found in the various areas so that there is not much difference between areas or between source-of -income groups in rate earned on investment. Variations in Northern and Southern Illinois To make a more complete analysis, the northern and southern Illi- nois records were grouped separately and averages calculated based on the six sources of income. In Areas 2, 3, 4, and 5, a total of 13,934 records for the ten-year period were grouped to represent northern Illinois, exclusive of the Chicago dairy areas; in southern Illinois (Areas 6, 7, and 8), 2,692 records were used for the ten-year period (Tables 19 and 20). In northern Illinois 33.5 percent of the farms were hog farms, 17.9 percent were mixed-income farms, 17.4 percent were intensive grain farms, 16.5 percent were farms having 40-59 percent of the income from grain, 8.6 percent were dairy farms, and 6.1 percent were cattle farms. In southern Illinois the distribution was: mixed- income farms, 39.3 percent ; dairy farms, 23.7 percent ; 40-59 percent of the income from grain, 13.6 percent; hog farms, 11.7 percent; in- tensive grain farms, 7.5 percent; and poultry farms, 4.2 percent. Size of farm and quality of land. In northern Illinois the cattle farms were largest, the intensive grain farms second largest, and the dairy farms smallest. They ranged in size from an average of 178 acres per farm for the dairy farms to 277 acres per farm for the cattle farms (Table 19). In southern Illinois the farms with 40-59 percent grain averaged 227 acres per farm as contrasted with an aver- age of 162 acres for the dairy farms and 140 acres for the poultry farms (Table 20). In northern Illinois the investment per acre in land ranged from 'The high return on the hog farms in Area 6 was due to the effect of two large and unusually successful farms. 242 BULLETIN No. 491 [August, TABLE 19. ANALYSIS OF RECORDS OF ILLINOIS ACCOUNTING FARMS, BY SOURCE OF INCOME: AVERAGES OF FARMING-TYPE AREAS 2, 3, 4, AND 5, 1926-1935 Grain Grain Hogs Cattle ^airy A " le88 60%+ 40-59% 40%+ 40%+ * * Number of records ....... 2421 2312 4663 850 1 195 2493 Acres per farm ................. 267 236 219 277 178 212 Investment per farm Land ....................... ?37 092 331007 ?27 652 ?36 470 $20 995 525357 Buildings ................... 4212 4292 4786 6729 4789 4277 Total investment ............ 47 335 41 211 38 895 53 893 31 711 35 502 Receipts Productive livestock .......... $1 161 $1 832 $3 472 $5 656 $3 024 $2 518 Grain ....................... 3229 1981 135 ..... 177 683 Total receipts ............... 4480 3917 3759 5889 3357 3379 Total expenses ................. ?1 829 $1 617 $1 872 $3 233 $1 635 $1 456 Operator and family labor ....... 772 808 786 761 848 831 Net farm receipts .............. 1 879 1 492 1 101 1 895 874 1 092 Rateearnedoninvestment, percent 3.97 3.62 2.83 3.52 2.76 3.08 Investment per acre in land ..... $ 139 $ 131 $ 126 $ 132 $ 118 $ 120 Gross receipts per acre .......... $ 16.78? 16.60? 17.16? 21.26? 18.86? 15.94 Expenses per acre .............. 9.74 10.28 12.14 14.42 13.95 10.79 Net receipts per acre ........... 7.04 6.32 5.02 6.84 4.91 5.15 Percent tillable land in corn ..... 42.2 40.4 39.4 39.0 32.9 37.5 Percent tillable land in hay and pasture ................... 16.3 21.8 28.4 30.7 35.6 28.7 Percent of land area tillable ..... 91.3 87.8 83.1 84.3 80.1 82.1 Average yield of corn, bushels ... 42.4 43.8 43.0 44.2 40.6 41.5 Average yield of oats, bushels ... 34.9 35.0 35.5 37.7 35.6 35.4 Feed per acre to productive live- stock ..................... ? 3.31? 5.38? 11.36? 14.67? 10.22? 8.09 Return per ?100 feed fed ........ 128 139 133 133 159 140 Months labor per 100 tillable acres 9.0 10.4 11.9 10.9 15.4 12.1 $118 for the dairy farms to $139 for the intensive grain farms. Ninety- one percent of the land was tillable on the grain farms and 80 percent on the dairy farms, thus indicating higher quality of land on the grain farms. In the southern part of the state the average investment per acre in land was $59 for the intensive grain farms, $60 for the hog farms, but only $42 for the poultry farms. The grain farms had the largest percentage of land area tillable, and the hog and poultry farms had the smallest. (Tables 19 and 20) Land use. The percentage of tillable land in corn in northern Illinois ranged from 32.9 on the dairy farms (Fig. 29) to 42.2 on the intensive grain farms. In southern Illinois, where wheat is a more im- portant crop than corn on many farms, the percentage of tillable land in corn was much less than it was in the northern section, ranging from 21.1 on the less intensive grain farms to 31.0 percent on the hog farms. The percentage of tillable land in wheat was particularly high on the grain farms. The percentages of tillable land in wheat in southern Illinois were: intensive grain farms, 20.7; farms with 40-59 percent grain, 20.9; hog farms, 13.6; poultry farms, 12.2; dairy farms, 12.9; and mixed-income farms, 15.2. 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 243 In northern Illinois the percentage of tillable land in hay and pasture ranged from 16.3 on the intensive grain farms to 35.6 on the dairy farms (Fig. 29). In the southern part of the state the percentage ranged from 31.4 on the intensive grain farms to 49.6 on the dairy farms. The yields of corn and oats on these farms are shown in Fig. 30. For groups of accounting farms it appeared that the cropping systems were adjusted to the character of the land and that the live- 30 '20 10 CORN HAY AND PASTURE il GRAIN GRAIN HOGS CATTLE DAIRY SALES ALL LESS 60% 40-59% 40% 40% 40% THAN405 FIG. 29. PERCENT OF TILLABLE LAND IN CORN AND IN HAY AND PASTURE ON ACCOUNTING FARMS GROUPED ACCORDING TO MAIN SOURCE OF INCOME, AREAS 2 TO 5, AVERAGES FOR 1926-1935 50 40 30 '20 10 i OATS CORN GRAIN 60* GRAIN 40-59% HOGS 40% CATTLE DAIRY SALESALL LESS 40% 40% THAN40X FIG. 30. YIELDS OF CORN AND OATS ON ACCOUNTING FARMS GROUPED ACCORDING TO MAIN SOURCE OF INCOME, AREAS 2 TO 5, AVERAGES FOR 1926-1935 244 BULLETIN No. 491 [August, stock organizations were on the whole rather well adjusted to the kind of crops produced. Value of feed fed and returns from feed. The value of feed fed per acre to productive livestock varied from $14.67 for the cattle farms to $3.31 for the intensive grain farms in the northern section of the state, and from $10.24 for the hog farms to $3.34 for the intensive grain farms in the southern section. In both regions more feed was fed on the hog and cattle farms than on the dairy farms. In both sections the largest return for $100 of feed fed was on the dairy farms, and the smallest return was on the intensive grain farms (Fig. 31). Farm investments. The average investment per farm in northern Illinois varied from $31,711 on the dairy farms to $53,893 on the cattle farms and in southern Illinois from $10,825 on the poultry farms to $20,225 on the hog farms. In the northern section the investment in land was larger on the intensive grain farms than on the cattle farms, but the investments in buildings, feed, livestock, and machinery were much larger on the cattle farms (Fig. 32). The smaller investment on the dairy farms was due to a smaller acreage and a lower value of the land. The percentage of the total farm investment in land in the TABLE 20. ANALYSIS OF RECORDS OF ILLINOIS ACCOUNTING FARMS, BY SOURCE OF INCOME: AVERAGES OF FARMING-TYPE AREAS 6, 7, AND 8, 1926-1935 T ,^ r Grain Grain Hogs Poultry 60%+ 40-59% 40%+ 40% + Dairy All less Number of records Acres per farm 203 204 366 227 314 210 113 140 637 162 1 059 180 Investment per farm Land J12 006 $11 998 $12 679 $5 923 $8 706 $8 715 Buildings 1 978 2 276 2 942 2 106 2 299 2 194 Total investment 17 577 18 119 20 225 10 825 14 689 14 307 Receipts Productive livestock $ 740 $1 206 $3 197 $1 876 $2 116 $1 509 Grain 1 955 1 281 16 225 Total receipts 2 756 2 603 3 319 i 965 2 246 1 914 Total expenses $1 188 SI 062 $1 963 $i 179 $1 208 $ 844 Operator and family labor 691 714 664 663 704 723 Net farm receipts 877 827 692 123 334 347 Rateearned on investment, percent 4 .99 4 .56 3 .42 1 .14 2 .27 2.43 Investment per acre in land $ 59 $ 53 f 60 $ 42 $ 54 $ 48 Gross receipts per acre $ 13 .51 $ 11 .47 $ 15 .80 $ 14 .04 $ 13 .86 $ 10.64 Expenses per acre 9 .21 7 .82 12 .51 13.16 11 .80 8.71 Net receipts per acre 4 30 3 65 3 29 M 2 .06 1.93 Percent tillable land in corn 24 .8 21 .1 31 .0 23 .1 23 .1 22.4 Percent tillable land in hay and pasture 31 4 38 9 38 5 43 ,7 49 6 44.8 Percent of land area tillable 85 . 7 87, 6 78. 4 80 6 82 8 83.5 Average yield of corn, bushels . . . 32 .9 32 6 32 .3 29, ,2 27 5 28.7 Average yield of oats, bushels . . . 25 1 22 9 25 3 23. ,4 22 5 21.6 Feed per acre to productive live- stock $ 3 34 $ 3. 56 $ 10. 24 $ 8. a $ 7. 30 $ 5.25 Return per 1100 feed fed 107 141 136 154 167 152 Months labor per 100 tillable acres 12 6 10. 8 13. 15. 9 15. 2 12.9 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 245 northern section was: intensive grain farms, 78.4; farms with 40-59 percent grain, 75.2; mixed-income farms, 71.4; hog farms, 71.1; cattle farms, 67.7 ; and dairy farms, 66.2. $180 '120 u 40 SOUTHERN ILLINOIS NORTHERN ILLINOIS GRAIN 60% GRAIN 40-59% HOGS 40% CATTLE POULTRY DAIRY ALL LESS 40% 40% SALES40%THAN 40% FIG. 31. RETURNS PER $100 OF FEED FED ON ACCOUNTING FARMS GROUPED ACCORDING TO MAIN SOURCE OF INCOME, NORTHERN AND SOUTHERN ILLINOIS, AVERAGES FOR 1926-1935 50 o>a>otv)^o>a m m SOUTHERN ILLINOI NORTHERN ILLINO 5 S || - - GRAIN GRAIN HOGS CATTLE POULTRY DAIRY ALLLESS 60# 40-59% 40% 40% 40% SALES40* THAN40/S FIG. 35. MONTHS OF LABOR USED PER 100 TILLABLE ACRES ON ACCOUNTING FARMS IN NORTHERN AND SOUTHERN ILLINOIS GROUPED ACCORBING TO MAIN SOURCE OF INCOME, AVERAGES FOR 1926-1935 248 BULLETIN No. 491 [August, The source-of-income groups clearly indicated varying degrees of intensity of operation. The output in value of farm products increased as the amount of livestock increased, but the input of labor, capital, and management increased even more rapidly. Expenses for improve- ments, machinery, labor, and miscellaneous livestock items increased similarly as the amount of livestock increased. The relative profitable- ness of the types of farm organization depended to a considerable degree upon the relative prices of farm products. Labor, an important farm expense, fluctuates with the amount of livestock. The labor input was only 9 months for each 100 tillable acres on the grain farms of northern Illinois, but was over 15 months for each 100 tillable acres on the dairy farms of northern Illinois and on the poultry and the dairy farms of southern Illinois (Fig. 35). Labor input increased for all groups as the feed fed per acre increased, but it increased more rapidly on the dairy farms than on the beef cattle and hog farms. Rate earned on investment. For the average of the period 1926- 1935 in northern Illinois (exclusive of the Chicago dairy area), the return for the capital invested in the business was highest on the in- tensive grain farms and lowest on the dairy farms. The highest return in southern Illinois was on the intensive grain farms and the lowest on the poultry farms (Fig. 36). 1 It is important to remember, how- ever, that the operators of the grain farms probably depleted the fer- tility of their farms more rapidly than did the operators of the live- stock farms. On the intensive grain farms in northern Illinois only 16.3 percent of the tillable land was in hay and pasture as contrasted with 30.7 percent on the beef cattle farms and 35.6 percent on the dairy -farms. Comparison of Grain and Livestock Farms Most of the grain farms were on the more level prairie soil where erosion was not a big problem. They were not required to have as high a percentage of tillable land in hay and pasture in order to maintain a high level of yields as were the livestock farms on the more rolling land. Crop yields were higher on the cattle farms than on the intensive grain farms, altho the land on the cattle farms was valued at a lower rate per acre and altho a smaller percentage was tillable. By using more farm machinery operators of large grain farms were able to reduce their operating expenses more than could operators of other types of farms. The use of general-purpose tractors and motor-operated equipment had a very important bearing on the relative profits from various types of farms during the period 1926-1935. It enabled farmers to 'The rate earned on poultry farms varied widely, however, being much higher in Area 6 than in Area 7 (Table 18). 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 249 reduce the labor used in producing crops and to make a material re- duction in the total cost per acre. Fewer labor-saving devices have been developed to reduce the labor needed in producing most classes of livestock. In fact, increased difficulties in disease control on many farms have increased rather than decreased the amount of labor on livestock farms during the period of this study. Z 2 a SOUTHERN ILLINOIS NORTHERN ILLINOIS GRAIN 60% GRAIN 40-59% HOGS DAIRY SALES ALL LESS 40% 40% THAN 40* FIG. 36. RATE EARNED ON INVESTMENT BY ACCOUNTING FARMS IN NORTHERN AND SOUTHERN ILLINOIS GROUPED ACCORDING TO MAIN SOURCE OF INCOME, AVERAGES FOR 1926-1935 The grain farms averaged larger than the livestock farms, and had a lower operating cost per acre (when no charge is made for fertility losses). Other factors helped increase the advantage of grain farms over livestock farms, such as the use of hybrid corn and improved varieties of other crops, which increased production per acre without appreci- ably increasing cost. There was no comparable improvement in ef- ficiency of producing livestock and livestock products. The severe decline in the volume of pork and lard exports from 1929 to 1937 seriously depressed the price of hogs and had a bearing on the relative profitableness of grain and livestock farms. From 1924 to 1929 the average annual exports of lard were equivalent to the lard produced by 23.5 million hogs, but in 1937 the exports were equal only to the lard produced by 3 million hogs. 250 BULLETIN No. 491 [August, SUMMARY AND CONCLUSIONS The reactions of progressive farm operators to a wide variety of physical and economic conditions is shown by an analysis of nearly 18,000 records kept in cooperation with the Extension Service of the University of Illinois from 1926 to 1937. These records show the land use on the accounting farms during these years and how in- vestments, incomes, expenditures, and earnings differed from year to year and between farming-type areas. The records were also grouped to show differences in farm organization and income resulting from differences in size of farm and in sources of income. The farms from which these records were taken were better-than- average farms. They were larger than the average farm in their locality and had better managers. The organization on the accounting farms can therefore serve as an example to other Illinois farmers who wish to increase their production and their efficiency. During the period covered by this study there were violent fluctua- tions in the prices of farm products. The index of Illinois farm prices, which was 145 in 1929 (1910-14= 100), slumped to a low of 58 in 1932, but advanced again to 134 in 1937. The ratio of prices received by farmers to prices paid by farmers declined from 103 in 1929 to 60 in 1932 and increased to 106 in 1937. The effect of these violent price changes on all phases of farm organization and operation is shown in this publication. Changes in Incomes, Investments, and Expenditures The average value of capital used on accounting farms in 1935 was only 70 percent of that for 1927, and by 1937 it had advanced to only 74 percent of the 1927 level even tho the average size of farm had increased 14 percent. These variations reflected the changes in prices of farm products during the period, except that the inventory value of land on the accounting farms did not fully reflect the fluctuations in the selling prices of farm land. The average inventory value of land which was $130 an acre in 1926 was only $79 an acre in 1937. The inventory value of improvements declined 15 percent from 1930 to 1937 ; during this period of low farm incomes there was little new construction and buildings were not kept in repair. The average expenditure per farm for buildings, fences, building insurance, lime- stone, and rock phosphate was $264 in 1929, $73 in 1932, and $274 in 1937. The inventory value of machinery increased during periods of favorable price ratios and decreased during years when farm prices declined. The average expenditure per farm for machinery, gas, oil, and repairs in 1932 was only 39 percent of that for 1929, but by 1937 it had reached a peak of 48 percent above the previous high of 1929. 194Z] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 251 These changes reflected both the changes in farm income and the increased use of power machinery. Cash expenditures for labor in 1933 were only 44 percent of those for 1928; the decline was due to a drop in wage rates as there was no change in the amount of labor per farm. The months of labor per 100 tillable acres, however, declined from 12.5 in 1926 to 11.4 in 1937, during which time the average size of farm increased. This increase in size of farm was not enough to offset the decline in the amount of labor required per crop acre which resulted from increased mechaniza- tion. Therefore there was a reduction in the amount of work done per worker since there was no decline in the labor available per farm. Taxes averaged $1.66 an acre in 1927, 95 cents in 1935, and $1.03 in 1937. The total cash business expenditures per farm were $3,180 in 1928, $1,494 in 1933, and $3,424 in 1937. During periods of low farm prices farmers were poor customers for goods, but when prices increased they bought increased quantities of manufactured goods, indicating the ex- tent to which industry is dependent upon a prosperous agriculture to furnish a market for its products. The average accounting family had a cash balance of only $968 in 1932 for family living, interest, debt payments, and savings only 40 percent of the amount available in 1929. This amount was much smaller for the average of all farms in Illinois, which indicates why there was widespread unrest and distress among farm people during the depression years and a demand for legislation concerning parity prices and the prevention of farm foreclosures. If the net cash income per acre is capitalized at five percent, land and improvements were worth $123 an acre in 1929 and 1936, but only $7 an acre in 1932. The average for the twelve-year period was $79 an acre. The long-time earnings on accounting farms should be studied especially by those who wish to purchase farms and by those who make farm loans. If superior managers made a five-percent return on a valuation of only $79 an acre for the period 1926-1937, a prospective purchaser who pays more for land of average quality must either be a better manager than the account keepers, or accept less than a 5-percent return for his capital, or expect prices of farm products to have a more favorable ratio to goods purchased than prevailed during this twelve-year period. Variations by Farming-Type Areas The farm account records, summarized by farming-type areas, picture the reactions of successful farmers to variations in soil types, topography, climate, markets, and labor supply found in different portions of Illinois. The patterns of farm organization and operation worked out by the account keepers are those most likely to succeed 252 BULLETIN No. 491 [August, in each area and under different soil conditions. This portion of the study demonstrates differences in size of farm, capital investment, crop yields, land use, livestock organization, mechanization, and farm incomes resulting from variations in physical and economic conditions. The accounting farms were 31 percent larger in the grain area of east-central Illinois than in the St. Louis dairy area. The total invest- ment per farm was over 3 times as large in the grain area as in Area 7 of southern Illinois. Investments in buildings were largest in the livestock areas of northern Illinois where there is more feed, livestock, and machinery to house and where winters are more severe than in southern Illinois. The investment per acre in livestock ranged from $7.77 in Area 8 to $18.32 in Area 1. Areas 2 and 3 also had large livestock investments. The investment per farm in machinery was highest in Area 1 where it was almost twice as large as in Areas 7 and 8. Farms in northern Illinois were more completely mechanized than those in southern Illinois. Dairy farms predominated in those regions near centers of popu- lation which provided a market for whole milk. Poultry farms had a maximum advantage in southern Illinois where farms were small, grain production was at a relatively low level, and there was abundant labor. Both poultry and dairy enterprises were used to increase the volume of business on small farms, since the labor requirements of these enterprises are high in relation to feed requirements. Grain farming predominated in areas of relatively level land which was adapted to large machinery and where crop yields were high. Hog farms were most numerous in the western half of central Illinois, where there is an abundant supply of corn and where hogs fit in with other types of livestock production adapted to the area. Beef cattle and sheep were used on the more rolling farms to utilize the hay and pasture so essential to the maintenance of good crop yields. The choice between beef cattle and dairy cattle was influenced primarily by available markets, size of farm, and labor supply. The excess of cash income over cash expenses (cash balance) ranged from $997 per farm for Area 7 to $2,335 in Area 4. The rate earned on investment was about the same for all areas for the twelve- year period, indicating that the average value of land in the various areas was such that the opportunity for making a return on capital invested in farms was practically the same in all sections of the state. However, farm owners in northern Illinois who have their farms free from debt have more to spend for family living than owners in southern Illinois because of the greater farm investment in northern Illinois. Land and buildings were worth $101 an acre in Areas 1, 2, 3, and 4 for the period 1926-1937 (net income capitalized at 5 percent). In 1942] TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 253 Area 5 the earned value was $66 ; in Area 6, $30 ; in Area 7, $14 ; and in Area 8, $47. Land Use on Accounting Farms Farm-account keepers grow more legumes and less grain crops than the average farmers in their respective communities. The per- centage of tillable land in corn on accounting farms increased from 34.8 percent in 1926 to 39.5 percent in 1932, declined to a low of 26.8 percent in 1934, but increased again to 34.6 percent in 1937. The high acreage in 1932 represented an attempt to get high production to offset very low prices, while the changes from 1934 to 1937 were influenced by the Agricultural Adjustment programs. The acreage of soybeans for grain increased from .7 acre per farm in 1926 to 15.7 acres in 1935. The soybean acreage was concentrated in the southern part of east- central Illinois, the maximum for Area 5 during the period being 23 acres per farm in 1934 and the maximum for Area 4, 35 acres per farm in 1935. The tillable land in hay and pasture averaged 52.4 acres per farm for the four years 1930-1933, but jumped to 70.5 acres in 1934 as a result of the corn-hog program. A further effect of the adjustment programs was to cause an increase in "other crops" such as legumes seeded alone, oats clipped, and soybeans plowed under. Ninety-one percent of the accounting farmers received benefit payments in 1934 but only 69 percent in 1937. The average payment per farm was $256 in 1934, $342 in 1935, but only $160 in 1937. Corn yields on accounting farms were 19 percent higher than the average of all farms in the state. They averaged 40.2 bushels an acre from 1926 to 1937; they were above 44 bushels in four years and below 35 bushels in three. This period was before the general intro- duction of hybrid corn. There was no apparent correlation between size of farm and corn yields. High production on accounting farms was associated with a higher- than-average proportion of land in legumes and grasses. The Federal Agricultural Adjustment programs caused many other farmers to adopt cropping patterns similar to those found on accounting farms ; thus over a period of years these programs resulted in increased production per farm rather than in reduced production. Many Illinois farmers could increase their yields, control soil erosion better, and increase their net farm income by following the general cropping patterns used by accounting farmers. The acreages in various crops varied considerably between the areas ; the average acreage of corn per farm for the twelve-year period ranged from 35.5 acres in Area 6 to 89.8 acres in Area 4. Less than 10 acres of wheat per farm were grown in Areas 1, 2, and 3, but more than 30 acres were grown in Areas 5, 6, and 8. The acreage of hay was 254 BULLETIN No. 491 [August, least in Area 4 and greatest in Area 7. These variations in land use indicate how the accounting farmers adjusted their cropping systems to meet differences in soil type, slope, and susceptibility to erosion, as well as to meet the goals established by the Agricultural Adjustment programs. Influence of Size of Farm To study the effect of size of farm on farm organization and income the accounting farms in selected areas were classified into various size-groups. Fifty-four percent of the accounting farms in Area 4 and 50 percent in Area 5 were over 200 acres in size. A high percentage of large farms were in the grain areas and a high percentage of small farms in the dairy areas. More feed was fed per acre on the small farms than on the large farms. For each size-group the labor input per 100 tillable acres was largest in Area 1 and second largest in Area 6 (the dairy areas), but smallest in Area 4 (the grain area). There was a close relationship between the labor input per 100 tillable acres and the labor cost per crop acre ; in all areas both declined as the size of farm increased. For the accounting farms as a whole in Areas 3, 4, and 5, 95 percent of the income on the smallest farms was from livestock but only 68 percent on the largest farms. A higher percentage of the land was tillable and the land value was higher on the small than on the large farms. In central Illinois gross receipts, operating expenses, and investment per acre declined as the size of farm increased. The largest average net receipts per acre and the largest rate earned on the investment were for the 280-acre farms. In Area 1 the 160-acre farms were the most efficient, and in Area 6 the 240-acre farms. The months of labor per 100 tillable acres declined as the size of farm increased, ranging from 19.6 months for the 80-acre farms to 8.9 months for the 400-acre farms, due mainly to a corresponding decline in the amount of livestock per acre and to the economy which resulted from the increased mechanization on the larger farms. The increased mechanization of all farms during this period meant that farmers could handle a larger business than formerly. The most profitable method of doing this was to increase the size of farm, and as a result the acreage on accounting farms increased about 14 percent from 1926 to 1937. Not all farmers could secure more land to operate, so some intensified their business by growing intensive crops, shifting to classes of livestock which require more labor, or by increasing the amount of livestock on the farm. Persons who purchase farms should study these records to find the most efficient size of farm for the type of land to be purchased. The most efficient size for grain farming is much larger than the most efficient size for dairy or poultry farms. 1942\ TWELVE YEARS OF FARM AcvorxTs IN ILLINOIS 255 In central Illinois if the operators of the 80-acre and the 320-acre farms had half of their capital borrowed at five percent, the families on the smaller farms would have had $436 a year from the farm for family living expenses and savings, but the families on the larger farms would have had $1,288 a year for the ten-year period. Effect of Variations in Source of Income The accounting records were sorted according to the percentage of gross receipts derived from various sources. For the period 1926-1935, 29.7 percent of the accounting farms were classified as grain farms, 27.9 percent as hog farms, 20.2 percent as mixed-income farms, 13.3 percent as dairy farms, and 5.0 percent as beef cattle farms. Beef cattle farms averaged largest in size, followed by the grain farms, while the dairy and poultry farms were smallest. The grain farms were on the best land, and the dairy farms were on the poorest land. The dairy and beef cattle farms had a smaller percentage of tillable land in corn and a larger percentage in hay and pasture than had the grain farms. Apparently the operators of these farms on the average had adjusted their grain and livestock systems to variations in the quality of their land. The average yields of corn and oats for the different source-of- income groups in northern Illinois varied little since the better land on the grain farms offset the effect of the higher percentage of tillable land in hay and pasture and the additional manure on the livestock farms. In northern Illinois the value of feed fed per acre to productive livestock ranged from $3.31 for the farms having over 60 percent of income from grain to $14.67 for the cattle farms, and in southern Illinois from $3.34 for the intensive grain farms to $10.24 for the hog farms. More feed was fed on hog and cattle farms than on dairy farms. In northern Illinois the percent of gross income from livestock ranged from 26 percent on the intensive grain farms to 96 percent on the cattle farms. On the grain farms of northern Illinois an average of only nine months of man labor was available per 100 tillable acres per year; whereas on the dairy farms in the same region and on the poultry farms of southern Illinois fifteen months were available. There were no striking differences between source-of-income groups in rate earned on investment. In Areas 2, 3, 4, and 5, the average rate earned on intensive grain farms was 3.97 percent compared with 2.76 percent for the dairy farms. The average rate earned on dairy farms in the Chicago area (Area 1) was 4.05 percent. In southern Illinois farms getting 60 percent of their income from grain earned the highest rates. Operators of grain farms, however, had a smaller percentage of their land in legumes and probably depleted the fertility of their 256 BULLETIN No. 491 [August, soil more rapidly than the livestock farmers. In calculating net earnings no charge was made for fertility loss. On rolling land where erosion is a problem and a large acreage of hay and pasture must be produced, the operator must organize around livestock in order to have a market for the roughages grown. On level land either a grain or a livestock organization may be chosen, the rela- tive profitableness depending primarily on the operator's ability to con- vert feed into livestock. If his return for each $100 of feed fed is low, he will make more money by selling grain, but if his return is high he will make more money by selling livestock and livestock products. Under either system a high level of crop yields may be main- tained by using sufficient legumes and fertilizers. In central Illinois and on bottomlands farmers will continue to maintain grain farms because of the demand for corn for processing and for shipment to poultry and dairy farms in the eastern states as well as to adjoining areas short of feed. There is no region which has greater economic advantages in the production of cash corn than the level lands of north-central Illinois. The use of general-purpose tractors and motor-operated equipment reduced the labor input on crops more than on livestock; from 1913 to 1937 the labor input per acre of corn was cut more than half, and the labor input per acre of wheat and soybeans was reduced by two- thirds. The introduction of hybrid corn and improved varieties of other grain crops during these years increased crop production with- out appreciably increasing cost. There were no comparable savings in livestock production. Because of differences in soil conditions and markets, different parts of Illinois are adapted to different types of farming. Within any area, however, the organization of many farms can be profitably adjusted to any one of a number of types of production, depending on the ability of the individual farmer. TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 257 X I I Q fc W ^ PH >o xa tNO^^-* O> 00 2. oo 1 "21 w ^ rt .. "3" 1 3q Sd _ 4> .2 4! l = - sl .l-^ cS 013 637 1 368 1 085 117 649 1931 . 1 945 921 554 858 595 372 1 035 036 579 1932 1 893 698 494 743 494 263 809 767 444 1933 1 669 571 442 578 303 179 809 716 329 1934 . ... 1 646 445 308 421 270 127 804 632 241 1935 1 668 I 412 226 465 222 139 877 710 249 1936 . . .1 726 621 637 738 467 250 931 918 464 1937 1 924 729 839 ; 023 708 309 1 092 203 667 (Table is concluded on next page) TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 259 TABLE 22. CAPITAL INVESTED PER ILLINOIS ACCOUNTING FARM IN THE FARM BUSINESS (Concluded) Year Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area Weighted 8 average Feed and grains 1926 $2 192 $2 056 $2 987 $2 780 $2 088 $1 590 $1 219 $1 697 $2 193 1927 1 894 2 088 2 464 2 743 1 914 525 1 235 619 2 067 1928 1 956 1 790 2 332 2 814 2 095 468 1 199 469 2 052 1929 2 397 2 440 2 823 3 069 2 364 792 1 152 255 2 330 1930 . . .... 2 229 2 384 2 595 3 450 2 339 668 1 201 722 2 397 1931 2 158 2 220 1 958 2 389 1 812 367 960 167 1 841 1932 . . . .... 1 607 1 394 1 426 1 804 1 264 161 796 866 1 364 1933 1 103 999 992 1 228 920 883 582 559 960 1934 . . 1 495 1 594 1 700 2 068 1 537 030 847 027 1 523 1935 1 694 1 931 1 869 2 226 1 342 329 1 272 769 1 733 1936 1 872 1 639 1 875 2 283 1 394 1 216 944 1 046 1 646 1937 2 336 2 210 2 198 2 496 1 606 1 356 1 143 1 421 1 920 Total investment 1926 .. 38 337 36 033 47 332 49 589 34 050 19 235 16 618 26 888 35 883 1927 38 092 38 464 4<> 830 51 496 39 833 19 020 16 502 23 809 37 200 1928 37 384 34 413 44 718 51 521 40 698 19 835 17 315 21 392 36 732 1929 39 688 38 479 45 109 50 441 38 359 19 242 15 068 18 348 36 152 1930 37 659 38 162 40 599 51 Oil 38 483 19 438 16 512 19 737 35 877 1931 34 121 35 800 35 861 47 403 34 067 18 417 14 287 17 946 32 689 1932 32 353 30 853 31 662 42 731 29 796 16 768 12 605 13 342 29 068 1933 28 711 28 226 31 437 40 309 28 376 15 463 11 801 12 293 27 411 1934 29 737 27 736 J 993 36 957 28 708 15 389 12 588 12 532 26 502 1935 30 181 27 723 28 853 36 042 24 747 15 853 13 526 15 635 25 891 1936 29 424 28 158 32 569 38 415 26 958 16 518 13 502 15 107 27 377 1937 29 529 27 420 32 316 37 968 27 917 16 763 13 719 17 085 27 435 260 BULLETIN No. 491 [August, TABLE 23. CASH INCOME PER ILLINOIS ACCOUNTING FARM, BY SOURCES, 1926-1937 Year Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area 8 Weighted average Cattle 1926.. . . . .$1 002 $1 224 1 909 1 253 2 097 1 883 1 276 1 160 885 1 092 1 549 1 725 1 574 $1 980 1 898 1 583 1 650 1 322 791 864 904 1 035 1 124 1 584 1 366 $ 708 $1 777 774 1 922 1 818 440 538 435 611 734 1 051 1 986 1 198 916 392 030 931 600 559 601 756 687 069 453 J491 305 371 386 387 264 261 208 242 436 422 385 $486 565 544 490 435 246 199 194 222 507 553 537 $384 583 661 378 319 226 182 165 161 351 556 660 $ 943 986 970 1 029 889 556 568 500 623 784 1 018 1 014 1927 ... 1 166 1928 ... 1 410 1929 ... 1 397 1930 ... 1 005 1931 . . 856 1932 892 1933 581 1934 718 1935 883 1936 .... . . 938 1937 ... 1 005 Hogs 1926 . . 718 2 760 2 246 1 914 2 276 2 046 1 404 760 872 1 054 1 603 1 916 1 678 2 977 2 489 2 677 3 094 2 826 1 851 1 107 1 382 1 536 2 044 2 456 2 097 1 173 2 1 288 1 1 242 2 1 279 2 1 345 2 831 1 461 545 1 693 1 955 1 1 142 1 1 094 1 379 903 054 290 376 336 892 038 170 364 635 748 593 545 460 699 622 431 233 312 331 517 626 593 1 131 795 767 619 902 429 313 386 489 901 946 834 1 518 1 151 1 268 1 159 1 229 657 353 438 563 1 033 850 767 1 654 1 429 1 431 1 574 1 581 986 592 703 827 1 144 1 341 1 239 1927 670 1928 815 1929 . . 1 022 1930 947 1931 . . 913 1932 588 1933 545 1934 619 1935 547 1936 . . 769 1937 595 Poultry and eggs 1926 305 321 296 383 414 349 291 215 171 234 295 265 288 271 277 324 362 241 196 145 135 169 222 222 218 322 293 351 358 281 209 174 174 212 290 259 288 274 261 287 334 255 182 138 131 159 209 211 224 521 412 462 538 500 368 286 273 298 420 403 387 357 367 402 507 388 325 276 313 371 499 412 416 417 439 480 494 387 349 238 247 280 370 359 354 337 317 367 410 326 258 204 201 239 320 297 302 1927 . . 299 1928 356 1929 . . 387 1930 346 1931 .... 309 1932 248 1933 226 1934 . . 239 1935 292 1936 . . 357 1937 276 Dairy sales 1926 . . 2 503 925 1 058 1 177 1 193 968 657 477 462 584 667 964 1 000 300 322 463 475 345 239 185 226 245 277 297 355 394 487 551 519 464 360 278 256 307 368 411 492 296 425 448 431 414 332 267 251 320 362 360 473 875 975 976 1 099 929 633 464 478 499 563 677 836 283 501 499 442 336 287 291 440 311 310 302 292 272 522 342 391 546 234 172 212 190 222 272 225 572 714 716 729 622 460 373 387 409 489 588 668 1927 ... 2 985 1928 . . . . 2 297 1929 ... 2 539 1930 2 160 1931 . . 1 702 1932 1 487 1933 . . 1 362 1934... . . . 1 401 1935 2 045 1936 ... 2 793 1937 . 3 088 (Table is concluded on next Page) 1942} TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 261 TABLE 23. CASH INCOME PER ILLINOIS ACCOUNTING FARM (Concluded) Year 1 Area 2 Area 3 Area Area 4 5 Area 6 Area 7 Area 8 Weighted average Feed and grains 1926... $1 148 849 867 909 849 506 394 453 560 451 640 719 $319 397 361 568 548 387 264 455 567 698 760 711 $1 200 1 137 1 344 1 489 1 101 533 443 691 1 Oil 992 1 416 1 575 $2 2 2 2 2 1 1 1 2 2 3 2 234 $1 310 1 842 1 883 1 556 1 389 057 396 352 1 120 1 258 1 657 1 274 296 762 764 509 680 592 880 489 225 557 575 $940 959 755 791 716 489 359 560 898 825 923 1 206 J723 642 492 522 430 345 243 262 562 518 563 654 $1 451 1 138 840 819 737 453 377 569 944 1 080 1 160 1 505 $1 310 1 292 1 469 1 530 1 323 732 567 785 1 286 1 181 1 629 1 548 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 Other sources 1926... 258 212 338 393 278 221 246 264 297 501 415 396 237 337 321 448 322 267 229 238 322 413 453 514 344 459 404 442 316 238 201 314 333 501 643 720 237 329 362 360 362 226 216 254 345 472 586 609 338 351 426 373 364 276 204 229 334 443 568 602 236 292 216 217 195 228 195 166 241 332 386 425 444 341 270 277 226 278 167 176 262 338 370 374 273 269 266 228 214 179 110 100 233 279 252 439 300 339 338 350 303 245 201 230 308 424 500 538 1927 1928 1929 1930 1931 1932 1933 1934 . . . 1935 1936 1937 Total income 1926.. . . . 5 934 181 083 647 585 507 855 431 834 719 912 079 5 786 6 243 5 409 6 996 6 116 4 282 3 105 3 083 3 853 5 225 6 083 5 765 7 072 6 582 6 795 7 512 6 151 3 848 2 945 3 652 4 329 5 160 6 618 6 331 5 5 6 6 5 3 2 3 4 4 6 6 068 5 484 5 122 6 321 6 826 5 455 3 724 2 060 3 520 4 939 4 707 5 126 6 759 152 369 222 849 406 652 130 228 290 400 075 3 656 3 488 3 240 3 730 3 349 2 413 1 798 1 997 2 509 3 093 3 437 3 832 3 424 3 211 2 974 2 857 2 717 1 910 1 489 1 771 2 217 3 073 3 146 3 107 4 315 4 102 3 857 3 469 3 432 2 098 1 432 1 731 2 371 3 335 3 449 3 950 5 116 5 077 5 291 5 622 5 044 3 237 2 505 2 806 3 692 4 342 5 373 5 309 1927. . . . 6 1928 6 1929 6 1930 5 1931 4 1932 3 1933 3 1934 3 1935 4 1936 5 1937... .. 6 262 BULLETIN No. 491 [August, TABLE 24. CASH BUSINESS EXPENDITURES PER ILLINOIS ACCOUNTING FARMS 1926-1937 Year Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area 8 Weighted average Improvements 1926 . . . $214 $217 278 233 287 290 157 83 108 166 229 259 378 $267 237 268 287 232 115 62 103 127 175 257 314 $228 357 229 309 278 94 76 89 127 183 221 306 $235 243 213 264 267 127 69 89 131 163 187 214 $237 242 370 279 204 124 78 71 107 130 193 210 $164 170 184 158 139 95 58 77 107 187 144 186 $333 246 109 169 146 78 53 99 118 132 132 191 $228 267 237 264 237 118 73 93 127 185 212 274 1927 282 1928 . . . ... 257 1929 289 1930 278 1931 231 1932 122 1933 153 1934 132 1935 321 1936 320 1937 417 Machinery 1926 .. 751 550 616 520 696 555 395 292 309 357 648 843 969 644 551 637 760 553 309 245 323 407 769 954 1 103 496 558 631 822 692 349 296 383 505 867 1 093 1 212 514 518 558 692 645 392 272 308 482 663 920 996 441 413 194 480 399 284 200 234 348 478 551 762 379 335 389 300 293 232 169 170 222 494 506 569 428 443 285 364 370 206 151 195 261 579 458 573 512 508 517 646 543 333 254 303 401 683 841 956 1927 668 1928 688 1929 783 1930 610 1931 508 1932 . . 362 1933 417 1934 460 1935 690 1936 904 1937 961 Feed 1926... 482 580 970 894 754 659 395 263 275 400 570 697 569 667 778 1 118 962 918 547 301 362 668 726 917 864 258 412 377 354 464 200 119 137 308 376 429 479 738 813 1 054 810 868 416 250 318 594 630 847 1 121 506 482 508 441 523 271 125 197 291 382 447 532 462 412 592 504 601 252 135 232 327 437 570 548 317 445 622 516 439 225 110 144 139 312 554 572 484 593 697 592 630 326 193 236 413 488 612 656 1927 632 1928 703 1929 620 1930 522 1931 434 1932 361 1933 280 1934 536 1935 . . 440 1936 504 1937 587 Livestock purchased 1926... 812 736 919 923 1 410 1 036 698 719 467 516 940 922 857 1 482 1 248 1 294 1 235 851 524 560 585 469 836 853 921 570 659 535 567 486 316 337 224 334 547 632 681 928 854 1 069 924 660 380 379 360 363 476 646 864 309 237 281 285 252 215 219 126 168 335 321 285 609 278 455 264 241 156 151 122 165 340 296 375 316 429 643 325 399 211 140 119 181 289 343 366 740 687 745 723 555 365 376 292 327 569 602 657 1927 831 1928 1 072 1929 955 1930 . . 644 1931 583 1932 609 1933 368 1934 399 1935 887 1936 765 1937 745 Livestock expense 1926 .. 50 69 81 53 60 75 61 40 36 39 43 73 50 83 72 59 60 62 58 40 37 46 42 49 52 47 50 41 44 53 38 31 33 35 37 41 39 78 63 57 53 56 45 33 37 36 32 30 45 33 30 25 24 27 30 21 21 22 30 26 28 42 39 32 18 19 15 19 20 20 26 22 19 27 36 27 23 48 20 18 17 17 28 20 21 55 53 43 42 49 40 31 31 33 36 43 40 1927 39 1928 38 1929 ... 47 1930 69 1931 . . ... 62 1932... 47 1933... 46 1934 46 1935 65 1936 126 1937.. .. 87 (Table is concluded on next page) TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 263 TABLE 24. CASH BUSINESS EXPENDITURES PER ILLINOIS ACCOUNTING FARM (Concluded) Year Area 1 Area 2 Area 3 Area Area 4 5 Area 6 Area 7 Area 8 Weighted average Crop expense 1926... . .. $175 SI I', 197 177 202 205 157 113 92 122 169 188 257 $200 202 210 232 187 140 93 97 125 156 217 304 $199 $177 224 194 238 233 247 236 225 221 179 168 132 106 118 113 171 161 225 173 267 210 331 283 $183 168 187 159 184 174 98 87 142 142 160 231 $141 151 178 139 160 158 73 54 107 119 126 190 $266 187 176 169 158 162 89 97 154 120 153 240 $182 194 209 208 201 166 107 98 144 174 205 276 1927 192 1928 207 1929 207 1930 229 1931 188 1932 131 1933 . . . 103 1934 154 1935 . . . 232 1936 238 1937 . . 307 Labor 1926... 431 258 377 269 353 322 243 173 139 136 207 246 251 515 489 467 442 380 285 194 209 182 252 291 335 394 455 421 530 460 552 456 449 422 459 322 317 230 247 190 208 217 209 290 238 326 260 376 351 190 186 207 205 189 182 141 109 139 146 164 196 153 136 192 183 163 149 93 93 127 156 149 172 369 294 218 209 253 173 107 99 157 232 201 291 348 369 376 364 337 262 189 164 180 236 261 306 1927 456 1928 440 1929 460 1930 372 1931 . . 330 1932 279 1933 .... 218 1934 217 1935 . . 380 1936 433 1937 468 Taxes 1926 317 274 324 270 290 295 325 295 253 206 204 217 212 373 383 363 347 346 326 294 280 219 214 258 257 418 331 444 371 435 387 417 346 449 356 458 335 419 327 358 282 303 240 281 215 319 245 319 256 186 190 188 166 177 181 167 148 116 133 137 150 177 201 200 161 182 153 133 113 115 109 115 121 303 282 246 219 260 234 175 163 130 149 158 181 313 337 326 305 322 315 290 253 214 206 231 234 1927 . . 347 1928 325 1929 304 1930 .... 328 1931 301 1932 320 1933 265 1934 248 1935 250 1936 279 1937 253 Miscellaneous 1926... 92 28 33 36 43 31 28 26 28 26 27 27 25 27 32 29 30 30 26 23 23 26 27 27 26 31 34 31 29 29 28 35 31 32 34 28 29 25 26 26 26 30 28 29 28 31 27 28 28 30 22 25 24 28 26 26 24 26 27 26 24 22 20 21 20 23 23 19 19 21 27 20 18 20 28 22 20 23 21 19 18 19 23 23 21 32 32 30 33 30 27 24 24 26 28 27 25 1927 . . 99 1928 75 1929 . . 76 1930 33 1931 32 1932 30 1933 . . 29 1934 31 1935 31 1936 32 1937 .... 30 Total expenditures 1926 3 324 2 858 3 795 3 375 4 095 3 468 2 459 2 004 1 707 1 968 3 037 3 472 3 568 4 258 3 992 4 445 4 355 3 559 2 330 1 812 2 019 2 269 3 197 3 823 4 176 2 641 3 490 3 156 3 615 2 975 4 151 3 251 3 805 3 101 3 566 1 984 2 209 1 665 1 709 1 558 1 741 2 030 2 244 2 835 2 618 3 359 3 372 3 771 4 158 2 115 970 985 063 983 487 075 017 359 803 2 025 2 418 2 149 1 742 2 243 1 747 1 821 1 233 850 900 1 211 1 895 1 948 2 198 2 379 2 390 2 348 2 014 2 096 1 330 862 951 1 176 1 864 2 042 2 456 2 894 3 040 3 180 3 177 2 904 1 952 1 537 1 494 1 865 2 605 3 034 3 424 1927 . . . 3 546 1928 3 805 1929 . . . 3 741 1930 3 085 1931 . . 2 669 1932.. . 2 261 1933 . . . 1 879 1934 2 223 1935... . . . 3 296 1936 . . 3 601 1937. 3 855 264 BULLETIN No. 491 [August, TABLE 25. CASH BALANCE, OPERATOR'S AND FAMILY LABOR, INVENTORY IN- CREASES, AND NET FARM INCOME, ILLINOIS ACCOUNTING FARMS, 1926-1937 Year Area 1 Area 2 Area 3 Area 4 Area Area 5 6 Area 7 Area Weighted 8 average Cash balance 1926 . . $2 610 635 278 906 500 838 594 552 611 423 311 224 $2 928 2 448 2 034 2 901 2 648 1 823 1 101 1 376 1 885 2 188 2 611 2 197 fl 2 2 3 2 1 t 1 2 1 2 2 814 590 350 157 592 518 133 633 060 963 795 155 $2 427 2 328 3 147 3 070 2 725 1 471 1 059 1 502 2 490 2 104 3 348 2 355 ?2 269 $1 1 537 1 2 218 1 2 417 1 2 283 1 1 197 943 1 389 1 984 1 1 672 1 2 028 1 1 917 1 541 518 255 667 366 926 723 980 150 290 412 414 $1 275 1 469 731 1 110 896 677 639 871 1 006 1 178 1 198 909 Jl 936 1 712 1 509 1 455 1 336 768 570 780 1 195 1 471 1 407 1 494 $2 222 2 037 2 111 2 445 2 140 1 285 968 1 312 1 827 1 737 2 339 1 885 1927 2 1928 2 1929 2 1930 . . 2 1931 1 1932 1 1933 1 1934 1 1935 1 1936 2 1937 2 Labor of operator and family 1926... 1 001 005 016 981 992 790 732 744 704 762 774 796 967 966 997 983 961 822 716 728 720 710 806 777 866 894 904 916 868 729 658 659 680 672 756 769 876 917 923 899 865 734 676 705 692 687 780 757 734 838 863 897 867 752 670 677 725 708 778 761 893 940 918 894 869 681 633 649 644 654 717 714 655 812 796 791 755 687 576 608 582 586 642 640 766 771 854 783 760 627 520 532 515 494 517 557 833 893 902 892 861 730 654 671 669 668 740 733 1927 1 1928 . ... 1 1929 1930 1931 1932 1933 1934 1935 1936 1937 Cash balance less unpaid labor 1926 1 609 1 961 1 948 1 551 1 535 648 620 1 170 1 389 1927 1 630 1 482 1 696 1 411 699 578 657 941 1 144 1928 1 262 1 037 1 446 2 224 1 355 337 -65 655 1 209 1929 1 925 1 918 2 241 2 171 1 520 773 319 672 1 553 1930 1 508 1 687 1 724 1 860 1 416 497 141 576 1 279 1931 1 048 1 001 789 737 445 245 -10 141 555 1932 862 385 475 383 273 90 63 50 314 1933 808 648 974 797 712 331 263 248 641 1934 907 1 165 1 380 1 798 1 259 506 424 680 1 158 1935 661 1 478 1 291 1 417 964 636 592 977 1 069 1936 1 537 1 805 2 039 2 568 1 250 695 556 890 1 599 1937 1 428 1 420 1 386 1 598 1 156 700 269 937 1 152 Inventory increases 1926... 166 -99 -47 187 -188 12 184 375 63 1927 222 -102 -107 499 394 224 -198 -70 169 1928 887 881 1 101 645 879 755 455 -18 730 1929 232 329 436 568 597 407 282 526 449 1930 -302 -625 -967 -1 088 -603 -306 -379 -630 -701 1931 - 1 403 -1 785 -1 576 -1 292 -1 195 -475 -247 -704 -1 097 1932 -1 140 -971 -944 -1 001 -724 -522 -446 -412 -799 1933 88 530 719 755 490 53 42 433 454 1934 227 568 560 561 359 419 697 827 530 1935 1 278 959 1 055 946 887 382 346 -64 779 1936 1 237 1 382 903 853 687 500 458 620 802 1937 171 228 1 067 1 029 857 615 461 457 727 (Table is concluded on next page) 194Z\ TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 265 TABLE 25. CASH BALANCE, OPERATORS' AND FAMILY LABOR, INVENTORY INCREASES, AND NET FARM INCOME (Concluded) Year Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area Weighted 8 average Net income from investment 1926 $1 775 852 149 157 206 -355 -278 896 134 939 774 599 cso *0 * I/) CS - O S 10 ^ 2S fO 00 "> X !5S8 8 5s- SS ss X * M ON'*"! O <*5 "O r^.cs Oi 0000 CS CS ~"'t O'* fo oo o X 33"^- S S"g :Sio 5 2 R X -. 1O CS O* " "" " X o " 5 ^ X 00 in i/) r- fs ^ <) <*1 -CSI -H T- oo> * o\ S r~^-cs -10 o> xiors T)fO X fo X * * nr^ oo tO ?)"* (N^. r^o cs X T( s. ~ - - ^trso 1O1O r CS OCS - q - ^ VO5 .-H CN * -tMO f) O\ X \OrO < ~H CS r)< CS WJO CS X cs ^ CS - X O O CS > ro-i --.CS t-Ov 10 <; 1OO'*-' '(MCS 1OCSO\ r~>C ocs CS CSX X \OfO -H O CSX X -O CS ^ O CS W5 CSO too ts X cs X IOCS O ~H -H rt X <*> IOCS T-I O> *r rs ~H -o> Of^O 'fO r*> (s) .^t XX esvo W2 X \O Tf T}* o ^^ 10 -^ TJ< o :Svn 2 S o X 3S2- : :S r)M !-- X ^^ X * CS X "> CS f*5 IT) XX Hi H J2 "S : ii S : : : :^8 % ii .20 ^ S3 >k Q y _- JS W *- u .O CS JS : : :g : : :|| ^2 il ^rt-- ble lai acres . 3 _c LJ. t ^ ^" " C 1 ~~ T ' ^ M^" ^ ^ ~~ g3f^ cfl ^- ^ c g.g.Sjj'S ^ u cC i *^ rt - +* ^2 ** a w 9 co O Ow^ S'O^"' HO 2n p H E c V p W5 fS IO -tSOO J5tS 00 JO 3f)- . 'OiO'J 1 OOOJTJ- .< tsr- <^ oo ; : : : .E2 :&8 ; ;ss |s^ -SE- =- ^j^rtco "^^co -j^^rt r; g Sv (2 3^2 7l2i2 '^(2 ** P" or:f~^ m^ of i o- o 10 o lo^^j- -oo 1010 o O '(S") tSlO $ : -ro .o ts ts o> 30 ts ro tsO"> vO")'!' r~t^ ooo O>t^ ts o *t o. o ts ts cs ri t^ io 10 10 O ^- ^H _ 10 00 tS( (SOO i O 5 -H (S : : :S i 3 2 - : c g ; JB o ; g' M |.oo T3-2- >>8"2 ^^5 S' 3 2 JJ J3 f O rt 1) " cd O nr ?8 H il H lisli - . r J-J - Co w 3 e o 8 268 BULLETIN No. 491 [August, ooo.-cs.om *. - ON CS X ^0 -ONONX ^-XO X-ON NO ^ NC cs m m cs m cs m2m " ON cs^cs *B 2 m o NOCS*J- 5 CS NO :m 33 S m *'* ^o cs * cs _ x *csm -S^m cs^S cs cs mcs5 '^^o cs^m cs * -f m x x 0i - m cs cs cs m NO ^< m-* x m m x cs f*5 I/) fS OC 30 m CS csmTf -mcsNO ONino t-cscs m NO mm x ON t- m m ON mm x m^S :- :S S 00 ^ N SS as s -o r^. S3S : = -3 8S cs -^ o * m mo ^ ^ x cs cs ^ csm -o cs CN CSIO CSX X ^< X t *-H p*} *^ cs t- r^-^oc t~-l/> NO "t cs ON mm x cs m>/5 -TC -m >!"* ^ csm -o cs m NOt^ Nom 10 CSU5 CSX X NO 2SS : = 3 2T3 cs Si < cscsi/5 'cs cs mmx 'tcsm o cs cs in 1/5 m NO ON 1/5 CSI/5 CSt~- X * ^ 23 :^S 8 W S cs mTi< . NO'* 100 m * ON cs cs .Tj-^l NOO * CSTt CSt^ X ON * t-~ cs cs **5 cs ^ * S " mcs cs -x cs cs cs* cst- x o 1O O *-< * ^O /5 O *- vO CSfO ~H cSi-llO 1/5 NO x *j* m mx m cs x cs x-t o -cs mNO cs * -x cs m m xm m * SCO ON t** O *^> C^ *-S -O CS **5 mNO ^o t^ cs 1/5 1/5 x -x o m m cs cs -x m cs : : *-?- ~~ ' ' Z * ^ 4J cLs "8 d : : : : :j ' '.' '-S.8 a) cd S >> O U - cd tn ^ ^= "^& a ^^"3 3 rt 3 5 *^ rt w o3 c *- *j S *!* F 1 H Z OH : :S : : i.E2 ,a 0! (tf 64 >J O O UN||I|S H H6 H rt en jD S| || | "ol^iS '^2 " 2(2 1 TWELVE YEARS OF FARM ACCOUNTS IN ILLINOIS 269 I/; cs X G "*t 'Ot^cs ^io(S <*>\n "> Cwii "(? "^SiS "u^tS ^3(2 o rt :? rt 5 H o5 H SO H o'" UO^fflttC HO 2n Z oo M-O a O. o\ KW UTO lOOO'f ir)00 -fNPOO ' 5 O CS ts s (Sl-- roio * ts ao s f>rf c^v ^3 4^^ js .n ' ' c >;_ 2 h e = = ->>. cd 3 * rt S*''' = g||f||2 ip |l2 1 OCS^TOO** * *ri o Ji UO^aowO HO 2n Z 270 BULLETIN No. 491 [August, TABLE 27. YIELDS OF CORN, OATS, AND WHEAT ON ILLINOIS ACCOUNTING FARMS, BY FARMING-TYPE AREAS, 1926-1937 (Bushels per acre) Year An 1 ;a Area 2 Area 3 Area 4 Area 5 An 6 :a Area 7 Area 8 Weighted average Corn 1926... . 38 43.4 47.3 47.8 40.8 24 7 32.2 38.3 41.8 1927 . . . 34 5 37.7 39.5 39.8 36.4 31, 4 27.8 36 4 36 7 1928 43 ft 49.8 52.2 48.0 46.4 41, 6 25.3 31.7 44 9 1929 40 7 45.7 46 5 43 9 44 8 39 7 29 2 45 42 5 1930. . . . . 37 7 44.4 38.6 35.9 33.2 22 7 15.6 20 2 33 1931 41 1 46.1 46.8 44.4 40.2 11 6 33.9 15.5 41.1 1932 . . 46 6 60.0 59.6 54.0 55.6 42, s 37.7 38.5 52 1 1933 35 6 50.8 46.7 29.1 37.6 71 ? 32.9 39.9 35.8 1934... 20 37.0 26.4 27.2 16.9 16 4 30.2 36.4 26.0 1935 54 ? 54.0 50.2 52.6 40.2 17 1 33.9 33.8 46 7 1936 37 g 42.3 27.0 27.8 18.0 17 8 23.3 21.6 26.7 1937 . . . 47 6 58.0 65.8 59.6 56.9 40. 8 36.9 47 2 54 9 Oats 1926... . 45 8 33.6 35.1 36.1 26.8 70 7 14.4 21.7 30.6 1927 ... 45 4 36.5 35.8 31.6 17.0 10 9 8.8 8.3 26.2 1928 47 7 46.9 48.0 43.0 41.4 17 ? 33.7 34.7 42.4 1929 35 6 41.5 43.9 38.9 35.7 7? 17.9 24.7 35.1 1930 .. . . 48 9 51.2 37.9 38.0 32.9 76 6 21.3 23.4 35.9 1931 32 44.6 42.6 44.3 41.0 17 7 33.9 42.4 41.3 1932 . . . ... 43 9 50.4 46.0 45.7 38.6 29 S 20.2 23.7 40.3 1933 24 7 33.7 33.1 20.1 26.2 16 ? 9.2 10.1 22.7 1934 14 ? 11.5 6.9 14.0 10.4 18 7 18.3 21.6 13.3 1935 40 7 42.2 32.5 34.3 30.9 76 S 14.5 14.9 31.2 1936 40 7 42.4 32.3 32.0 29.5 74 S 18. S 29.4 31.0 1937 48 8 51.1 62.7 52.8 50.6 17 30.3 29.7 49.1 Wheat 1926... 26 4 19.1 24.0 18.8 70 S 19.8 25.2 1927 23 9 16.5 16.9 13.7 12 7 11.8 13.2 1928 . 24 4 22.1 17.6 17.4 8 ? 6.9 6.4 1929 17.8 13.3 18.6 1? 1 12.3 17.1 1930 9 o 23.1 20.5 21.4 18 7 16.2 15.2 1931 22.6 25.7 26.7 77 8 28.3 26.3 1932 20.4 17.4 18 3 14.6 14.6 1933 20.5 18.4 16 9 13.9 13.1 1934 20.1 23.4 7? 7 19.8 22.2 1935 17.6 18.3 IS R 12.4 11.4 1936 23.9 20.4 16 9 15.6 15.7 1937... 19.8 15.9 19.3 22 16.6 22.0 1942} TWELVE YEARS OF FARM Arc or. NTS IN ILLINOIS 271 TABLE 28. LAND USE ON ILLINOIS ACCOUNTING FARMS EXPRESSED AS PERCENTAGE OF TOTAL ACRES, BY FARMING-TYPE AREAS, 1926-1937 Item Area 1 Area 2 Area 3 Area 4 Area 5 Area 6 Area 7 Area 8 Corn ... ... 28 .7 .6 ,0 .0 .6 .8 .7 .0 .7 .4 .2 .4 .0 .0 .0 29.4 14.7 1.7 4.1 .6 .9 51.4 14.0 2.0 67.4 .1 13.9 81.4 18.6 100.0 34 13 4 2 1 56 11 1 69 12 82 17 100 .2 .4 .4 .6 .7 .3 .3 .6 2 .2 .7 .1 .9 .0 37.2 17.2 7.8 28.6 9.2 13.2 19 10 19 .2 .6 .5 18.9 6.6 8.4 24.1 7.4 16.6 Oats ... 14 Wheat 4 Barley 6 6.0 1.5 69.7 7.6 2.5 79.8 .1 11.6 91.5 8.5 100.0 4.8 .7 56.5 9.3 2.4 68.2 .5 14.1 82.8 17.2 100.0 1 50 13 3 67 15 83 16 100 .0 .5 .8 .8 .2 ,8 4 .2 .4 .6 .0 1.3 .4 35.6 18.5 3.6 57.7 2.1 23.3 83.1 16.9 100.0 1.2 .6 49.9 11.6 2.9 64.4 1.9 19.7 86.0 14.0 100.0 . . 54 Hay . 15 Other crops 2 Total crops ... 72 Idle land 10 Total tillable land Nontillable land . . . . ... 83 17 Total 100 TABLE 29. NUMBER OF ILLINOIS ACCOUNTING RECORDS, 1926-1935, GROUPED BY FARMING-TYPE AREAS AND BY SOURCE OF INCOME Area Grain 60% + Grain 40-59% Hogs 40% + Cattle 40% + Dairy sales 40% + Poultry 40% + Hogs and cattle, each 40% All less than 40% Other classi- fica- tions Total farms 1... 9 20 33 15 546 6 3 65 8 705 2 46 107 648 219 377 11 52 489 17 1 966 3 255 423 1 866 262 114 4 105 550 69 3 648 4... . . 1 936 1 489 1 159 283 533 18 58 1 053 91 6 620 5 230 247 990 86 177 9 43 401 46 2 229 6 111 257 101 19 507 43 2 641 15 1 696 7 47 67 113 14 98 40 4 280 8 671 8 45 42 100 9 32 30 4 138 11 411 Total... . 2 679 2 652 5 010 907 2 384 161 271 3 617 265 17 946 10.050 8-42 24213