xt744j09x868 https://exploreuk.uky.edu/dips/xt744j09x868/data/mets.xml   Kentucky Agricultural Experiment Station. 1935 journals kaes_circulars_277 English Lexington : The Service, 1913-1958. Contact the Special Collections Research Center for information regarding rights and use of this collection. Kentucky Agricultural Experiment Station Circular (Kentucky Agricultural Experiment Station) n. 277 text Circular (Kentucky Agricultural Experiment Station) n. 277 1935 2014 true xt744j09x868 section xt744j09x868 ""*i UNIVERSITY OF KENTUCKY
rem Extension Division
muh THOMAS P. COOPER, Dean and Director
nber -—··——·
[ 21d·
»“_ ‘“ CIRCULAR NO. 277
id so
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mind. Lexington, Ky.
Plums March, 1935.
:1 thai
e tem
Published in conneetion with the zigxrienltnmil extension work carried
on by co-operation of the College of Agzricnltnre, University of Kentucky.
with the U. S. Department of Ap;ri<·u1ture, und distributed in furtherance
of the work provided for in the Act of Congress of 1\I:1y 8. 1914.

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  ` lmFig. 1. The double shading sh0ws_the zmrezg studied. The_wh0ie jslmded
::g2&n;i’;?§E?1%l;gdth€ same type of farming und is comparable in detail with

Farm Accounts and Budgets Aid Farm ‘Management
  Extreme differences in the earnings of different farmers
under similar conditions indicate the need for some method which
·i···l farmers can use to study their business, a method of study which
l will determine the reasons for success or failure and which will
  help farmers themselves to find some way to increase their net
~   farm incomes. Vlhen the causes of low incomes are definitely
  known, usually they can be corrected. Some farmers make as
  much as 5 percent on their entire investment and get good re-
lll turns for their labor and management, whereas others in the
  same area fail to get 5 percent on their investment and get no
l l pay for their labor and management. A farm-management
ii . study of a number of farms in Green, Taylor, and Adair Coun-
ll ties. helped to explain the wide differences in the net earningsl
  of farm operators in these counties. A study of farm accounts
A l and budgets used by these farmers revealed some types of farm
l R organization and farm p1·actices which were profitable and some
  which were unprofitablc.
$:3 Wlhcn the earnings of the most successful farmers were com-
pared with the average earnings of all the farmers in this study,
it was found that the 15 percent having the highest incomes
earned about twice as much as the average. Table 1 shows this
comparison for four representative years. The greater earnings
cannot be attributed to superior farms or superior ability of the
farmers. The most successful farmers kept accounts in order to
learn which combinations of crops and livestock were the most
profitable. Their higher earnings resulted from more careful
‘Net earnings is the pay a farm operator receives for his labor and
management above 5 percent interest on his entire 1`arni investment.

4 Kentucky Extension Circular N0. 277
plans of organization and management based on these accounts. .
Farm account books were kept by the farmers with_ the help of
the State Agricultural Extension Service.
TABLE 1. Net Earnings of Operators, by Years.
nam I 1927 I 1929 I 1931 I 10es
Average of ml I Dollars I Dollars I Dollars I Dollars
farms in study I 698 I 920 I 16 I 349
Average of most I I I
` I successful farms I 1580 I 1586 I 439 I SS2 I
As shown by the map, Figure 1, Green, Taylor, and Adair
Counties are located very 11ear the center of the State, east and I
west, and near the southern border. The topography is rolling A
to rough with some knobs and some river bottom lands as the Z
two extremes. G1·een River touches much of the area studied :
as it ztlows in a westerly direction thru the northern part of g
Adair County, the southern part of Taylor County, and the 3
middle of Green County. Over half of the tillable land is in ,I
crops. Most of the remainder is pasture or idle land. The pas- ·
I ture is largely grass and is of poor quality, and the seedings last '
I only a few years because of the low lime and phosphate content I
of the soil. Y
This area is mainly a livestock-producing section, and yet
the success with livestock depends upon the economical produc- I
tion of feeds. About two-thirds of the farm income is derived .
from livestock and one-third from the sale of crops. The suc- I
cess or failure of any agricultural program in this area largely ¢
depends upon the pasture and crop yields that can be obtained. 7
lt is important to select crops which provide proper feed for I
livestock and which also maintain a balanced crop rotation. I
The farms included in this study are representative of all I
farms in the area with regard to size, type, topography, and `

 Accounts and B zcdgcts Aid Farm Management 5
-natural fertility of the soil. These farms are well distributed
over three counties.
In the spring of 1927, as a preliminary step, farm business
analysis records and crop production data were obtained by the
survey method from 171 farmers in the three counties, for the
_ farm year 1926. Each of these farmers was given a. farm ac-
count book to be used for 1927. Of the 171 farmers, 126 com-
pleted their farm account books in 1927. Nineteen of these
farmers have kept farm accounts for seven years and indicated
_ their intention of continuing indehnitely, while twenty-eight of
them dropped the project after the first year.
In determining the influence of farm budgets2 and farm ac-
· counting upon earnings, the 1927 records of the 19 farmers who
L continued to keep accounts for seven years were compared with
g the records for the same year of 28 other farmers who failed to
3 keep any accounts beyond that one year. The records of the
{ same farms were compared again in 1933.3 At the end of the
E year 1927, the 19 farmers and the 28 farmers alike received
5 recommendations for their future plans, based upon the analysis
1 of their individual 1927 records. The 19 farmers continued to
. use recommendations, based upon the analyses of their account
1; books each year and many of them made complete budgets the
1; second year. None of the 28 farmers who kept accounts only
lone year made a formal budget.
tt The budgets made were designed for individual farmers to
;- show each one the practices to be followed and the kinds and
d amounts of crops and livestock to be produced in such combina-
;- tions as would likely give the highest net returns over a period
y of years. The decision as to what prices might be used in plan-
]_ ning future expenses and incomes was reached after a careful
yp study of prices that had prevailed in the section in 1·eeent years
but they were not intended to be p1·ice forecasts. Prices we1·e
used because it was necessary to assign values to the items to be
11 MS ti¥·i€"{$‘El.1}2L2*§i€ifi)? S£i}3‘i$2?§‘F HX $h§iJ;l§"l?Jl£}fl ;lSl‘£§i,§“§ 2la$I$Ti"l¤%'é'l
‘ together with the estimated amounts of money. ma.Leri;11s and labor that
ld \V1ll3L;}ll;(eggllE‘§€1h ilfgillllé €?Ll.l1lJ.g1l.€(;   · `
iess iecor s Ol . 3 were obtained by survey.

6 Kclntuclry Extension Circular N0. 277
bought and the products to be sold before deciding upon the
possibilities of an enterprise. They were assumed to be the  
approximate prices and price relations that would tend to exist
over a period of yea1·s. It is the combinations and amounts of
crops and livestock rather than price that is significant in a farm _
budget. The estimated yields of crops were based upon known ;
soil fertility; a fertility also induced by the addition of lime and  
fertilizer in amounts found by use on experiment fields, to be 1
. adequate and economical. The production of livestock, also, was
based upon known production, as influenced by proper culling,
T selecting, and feeding. One of the budgets* that was actually _,
made and used is shown in the appendix. The feed and pasture  
requirements of livestock, as well as the fertilizer and lime re-
quirements of crops and the expense as stated in these budgets,
are based upon detailed records and years of experimentation _
within the area.
By the end of 1933 the net farm incomes of the 19 farmers 1
who kept accounts seven years were $250 greater per farm per q
y year than the net incomes of the 28 farmers who kept accounts iz
i only one year. The net incomes of the two groups were nearly ll
y the same, however, in 1927. The average net farm income for 0
the entire group of 156 farms in 1927 was $1,079. In 1927 the 3
19 farmers made $70 less, and the 28 farmers, $94 less than this.
See Table 2. The size of farms and number of acres in specific n
crops were very similar, and the combined average yields of all gg
crops were the same for the two groups that year. See Table 3. ii
The number of livestock and the investment in livestock were l
practically the same for the two groups in 1927. Since these ii
farmers had, on an average, the same amounts of land, crops, il
and livestock and received the same incomes, it is evident that S<
they must have possessed very similar abilities as farm managers. 0
‘*Any farmer mnv use his own records of one or two vonrs mist in pre- ti
paring a hudpset that will increase his income. The forms used in the lj.
é`J`22l?Sl.Ta`§"i§· llélll illlfto‘TiiB°Li§`£Zui’€l}i2i` 駧lL‘l—lT£2llLl"é`€§tl8Ii"}Ft fféfillgféiii it

 Accounts and Budgets Aid Farm Management 7
i TABLE 2. Comparison of Farm Organization. Averages of 156 Farms,
28 One-Year Farms, and 19 Seven-Year Farms, for 1927.
- . 2 Average
“ Average Agfergge of 19
E Item qt 156 O“€_v€m. seven-
farinsl mrhls year
I 1 I
1 Net farm income (Dollars) I 1079 I 985 I 1009
Interest on investment @ 5% (Dollars) I 381 I 343 I 336
]_ Operators net earnings (Dollars) I (598 I 642   673
Q Number of livestock I I I
Dairy cows I 4.4 I 4.4 I 4.0
S VVork stock I 3.8 I 3.7 I 4.0
Brood sows I 1.8 I 1.4 I 1.6
r Sheep (ewes) I 5.3 I 4.1 I 5.4
ov Poultry I 88.3 67.4 I 98.6
Y Acres operated I 125.5 I 125.3 I 124.7
_ Acres in pasture I 43.7 I 28.2 I 36.2
G Acges ir; crops I 53.4 I 50.0 I 50.2
orn or grain I 21.2 I 19.2 I 22.5
3- Clover and aIfalfa hay I 3.0 I 1.8 I 3.7
ggfisstaiitl mixed hay I 10.8 I 12.7 I 9.1
S iea ”.1 4.7 ’.F
’ Tobacco I 1.0 I   I 0.9
1This is 126 farm accounts and 30 business analysis surveys.
Many community meetings, attended by account keepers and
other farmers, were held in the area in the summer of 1928, after
rs the business analyses of the 1927 accounts had been studied.
cr There it was explained that the farmers who made the highest
ts incomes had more and better dairy cattle HIICI. produced legumc
ly hay and mixed clover pastures. It was also pointed out that
Or clover and alfalfa could be grown economically with the proper
hg application of lime and phosphate.
ISN Changes in crops and livestock based upon recommendations
made from a study of farm accounts showed that with farm-
C .
an grown feeds there was more profit in producing dairy cattle and
3_ poultry than in producing hogs. The 19 farmers who con-
Im tinued the account keeping for seven years decreased their corn
ESG and hogs slightly f1·om 1927 to 1933, while the 28 other farmers
ps, increased botl1_ corn and hogs. During this same period of
mt SGVGI1 years the 19 account-keeping farmers increased the 1lll1l1IJCl`
,I·S_ of their dairy cows 57 percent, whereas the 28 farmers increased
theirs only 29 percent. See Table   The 19 farmers increased
KQ their acreage of clover and alfalfa 154; percent, while the 28
.v1{_· . .
{QH? farmers increased theirs only 61 percent.

 8 Kentucky Extension Circular N0. 277
TABLE 3. Comparison of 19 Farms_Having Farm Account Books for
7 Consecutive Years with 28 Farms Having Farm Account Books for 1927
Average of Average of
Item same 28 farms same 19 farms
two years two years
Years II 1927 I 1933* I 1927 1933
Net farm income (Dollars) 985 459 I1009 I 709
Interest on investment (Dollars) 343 240 I   I 292
Net earnings of operator (Dollars) I 642 I 219 I 673 I 417
Investment (total) (Dollars) I 6916 I 4805 I 6655 I 5834
‘ Land and improvements (Dollars) I 5038 I 3882” I 4755 I 4460°
Livestock investment (Dollars) I 954 I 473 I 874 I 650
Other investments (Dollars) II 924 II 450 II 1026 II 724
Number of livestock I I I I _
Dairy cows I 4.4I 5.7 I 4.0 I 6.:.
\Vork stock 3.7 3.3 I 4.0 I 3.3
Brood sows 1.4 1.4 I 1.6 I 1.5
Ewes 4.1 3.5I 5.4 3.0
Hens I 67.4I 61.8 I 98.6 I 70.0
Total acres operated I 125.3I 117.8I 124.7 I 122.0
Acres in pasture I 28.2 I 28.3 I 36.2 I 33.4
Acres in crops I 50.0 I 49.5 I 50.2 II 54.2
Corn (grain) I 19.2 19.9 I 22.5 I 20.3
Silage .2 .3 I .4 I .6
Oats 1.1 2.7 I 1.1I 1.7
Clover hay 1.5 3.1I 3.4I 7.0
Alfalfa hay .3 I ..- .... I .3   1.7
Soybeans and cowpeas 4.0 I 2.6 I 3.0 I 1.6
Mixed and grass hay 12.7 10.5 I 9.1 I 9.2
\Vheat 4.7 I 4.4 I 5.5 I 5.3
Tobacco .8I 2.9I .9 I 2.5
` . . I I I
I Crop mdext I S3 I 92 I $3 I 104
1'These hgures were obtained by the survey method. ”The 19 farmers
made less change in the value of their real estate than the 28 farmers. \`Vhile
the 19 farmers decreased the value of their real estate 7% from 1927 to 19233
the 28 other farmers lowered their real estate 28%. This gives the 28
farmers an advantage of $45 thru less interest in their expenses. The
farms did not changse in either case. Lower prices influenced the opinion '
of one group more than the ot-her. ”Crop index is the percent of average
these yields are of the yield of all farms studied.
As shown above, the net incomes were much higher in 1933
for the farmers who had continued keeping accounts than for
those who kept no accounts after 1927. The average net income
in 1933 of the 19 farmers who kept accounts seven years was
$709 as com arcd with $459 for the 28 farmers who ke at ac-
counts only one year. This mcans an average farm income $250
I greater per year for those who kept records and followed farm-
ing programs based on these records. These comparisons are
shown in appendix, Table 5.

 Accounts and Budgets Aid Farm Management 9
Q The 28 farmers who kept accounts only in 1927 were bene-
iited by the recommendations that year based upon the analyses
_ of their records. The increased income of the 19 farmers above
the 28 farmers shows very clearly the benents to be derived from
- continued planning based upon actual farm accounts. The
entire group of farmers made improvements. However, it will
be noted in Table 3 that the 19 farmers cooperating for 7 years
made considerably more improvements. For example, the num-
ber of dairy cattle and acres of legume hay were increased far
more on the 19 farms than on the 28 farms. Dairy cattle is one
B type of livestock well suited to this area because of the abun-
  dance of available workers on these small farms and the large
ig amount of labor required by dairy cattle. The best crop rota-
0 tions include relatively large acreages of hay and pasture. Live-
g stock, other than dairy cattle, that need hay and pasture do not
3 require so much man labor.
  Pasture is generally the cheapest feed produced in all parts
  of Kentucky. Because of the low lime and phosphate content
_G of the soil in the area studied, it is diliicult to get grasses and
  clovers to do well for more than two or three years without treat-
15 ing thc pasture with limestone and phosphate. Most of the farm-
ers in this area plow good land every three to five years and
  apply fertilizer on small grain and cultivated crops only. By
  planning the land and reseeding the pastures so frequently these
  small farms require a relatively large amount of work. Unless
can ‘ phosphate and limestone are used in sufficient quantities and
nib frequently enough to make pastures last, and unless a variety
,33 of grasses and clovers are seeded together, there is little economic
for advantage in larger farms. However, with more durable pas-
mg ture and longer crop rotations some farmers would find it more
VHS profitable to have larger farms and keep more beef cattle or
M_ sheep. On small farms the best livestock to profitably employ
250 farmers all the year are poultry and dairy cattle.
rm- During the eight years covered by this study there has been
are lloticeable progress in improving the quality of livestock. The
selection of classes of livestock also shows progress, and the

10 Kentucky Extension Circular N0. ,27 7
selection of crops has been based upon economic reasons. Pas-
ture improvement has been neglected by most of the farmers.
More acres of more durable pasture are needed. Pasture im-
provement has been started by the 19 farmers who have con-
tinued their accounts but almost ignored by the 28 farmers who
have kept no records since 1927. During the crop year, 1933,
the 19 farmers purchased 60 percent more limestone and 50 per-
cent more phosphate per farm than the 28 other farmers.
’ lt should be pointed out that the increased earnings of the
19 seven-year farmers can be credited to three conditions, (1)
The operators, having kept records from day to day, were able
i to note their progress and see how closely they were keeping to
the tentative plan set out at the beginning of the year. (2) By
comparing their records with the average of the community each
year and by learning what practices were being followed by the
most successful farmers, they were able to make adjustments in
time to increase their incomes. (3) Each year the farm man-
agement speeialist checked over their records for accuracy and
completeness. He compared them with all other records and
discussed opportunities of changing individual practices and 9 .
adjusting the organization to give the highest returns.
1 For each farmer who attempted to follow a budget, the
amount of progress was noted each year and compared with his
proposed budget. A few of the farmers who made budgets did
not continue with accounting practices, but a business analysis
survey fo1· 1933 shows that some of them followed their budgets
more closely than did others. Those whose organizations have
come nearer to the proposed budgets had higher net incomes
than tl1e ones who did not work toward their proposed plans or
budgets. _
In order to illustrate the effectiveness of following improved
practices, as discovered by these cooperating farmers, Table 4
presents the changes made by one farmer from the time he
began to study his business to 1933. See complete proposed
budget in appendix, Table 6. Briefly, he made the following
changes. He reduced his acreage of corn 50 percent and his

 Accounts and B uclgets Aid Farm Management 11
acreage of tobacco 20 percent to a point where the present barn
would take care of it without crowding. He discontinued the
keeping of beef cattle, increased his dairy cows from two to ten,
TABLE 4. Farm Organizations Qhowing Adjustments Made by One
Farmer in Eight Years.
I Pro-
— It Actual Actual Actual posed
Em 1020 1020 102: organ-
= I I I I
C acres
r((`;£i·i1, grain I 27 I 14 I J3 I 14
Silage I 7 I 0 I =»%I ........
i Oats I 13 I S I   I ,.,,_ 1
' Clover hay I ...-77. I 14 I lu I 16
) Grass hay I ll I 4 I 191 I 777-777
Wheat | _____, 1 I S I 12%I 16
I, Tobacco I 3 I ZIAI 2EéI 2
Garden I {/Q I *i3 I 1 I 1
1 Rotation pasture I 16 I 20 I 19* I 28
B Permanent pasture I 2 I 3 I 3*,QI 4
1 Number of livestock I I I I
2 Dairy cows I 2 I 5 I 10 I 10
L_ Dairy heifers I 1____,__ I 3 I 1 I 4
Dairy calves I .111. I 1 I 3 I 4
[I veins scm I ..... -. I 2 I 7 I 0
(I Soxvs I 1 I 1 I 2 I 1
7 rigs mma I 10 I 10 I 28 I 14
LI . Lbs. pork produced I ‘? I 3078 I 6036 I 2800
Beef cattle I 14 I .777777. I 77777 77 I . 111, 1
Poultry I G0 I 75 I 105 I 150
le \Vork stock I 3 I 2 I 2 I 3
is Number of men I 1 I 1'AI 11,QI 1%
d Acres in farm I 101 I 101 I 101 I 101
‘ Acres Lillable I 75   80 I S1 I S1
Ib Value of farm (Dollars) I 40)0 I 4000 I 4000 I 5000
ts Value other i`arm investment (Dollars) I 1000 I 2285 I 1550 I 2300
Total rcceiptsg (Dollars) I 814 I 1881 I 2337 I 2770
,0 Total cxpcnses“ (l,)()llLLl`S) I 604 I 841 I :134 I 1244
“ Net earnings of operator (Dollars) I 310 I 1040 I 1403   1520
O1. 119 acres grass cut for hay from pasture Iield. ’The receipts and ex-
penses were converted to conterin to the saine price per unit as the pro-
posed plan. This means that the increase of nearly $1,100 in eight years
is due to 1`arin nianagcinent adjustments and not price change.
ed _ _ _
4 and nnprovcd the quality of lns hay by the use of limestone and
he phosphate and the seeding of more clovers. He increased the
ed production of his cows, hogs, and poultry by culling and follow-
Hg ing improved practices of feeding. He substituted pasture and
;1is hay for grain crops to such an extent that the crop rotation was

12 Kentucky Extension Circular N0. ,277
longer and yields higher with the same fertilizer costs. The
drought, especially serious in this area, interrupted the program
in 1930 and disrupted his crop rotation to such an extent that it
will take a full period of the rotation to get back into line again.
The organization of the farm has been changed gradually in
keeping with the proposed budget. See Table 4.
Another farmer, on an 80-acre farm, who has made most of
the adjustments necessary in attaining the goal stated in his
‘ budget, has increased his net earnings to more than was esti-
y mated in the budget. A farmer on a 154-acre farm, who made a
budget in 1928, quit keeping accounts and soon ignored his
budget. In 1933 he was no closer to the budget goal than in 1928.
His net earnings were even lower than in 1928, assuming the
same price level. His reasons for ignoring his proposed budget
were; fertilizer prices seemed too high to him; butterfat prices
were relatively low, and he allowed h_is cows to go dry rather
than give them proper feeds; limestone and clover seed were rel-
atively expensive, and he substituted grass for clover hay to
lower his expenses; poultry and egg prices were too low to hold
his interest in egg production which was less per hen in 1933
, than in 1928, and he kept even fewer hens in 1933. In other
  words, he lost sight of his whole plan in an effort to lower his
costs at the time. This lowered his future income.
The practice of keeping farm accounts requires very little
time and serves a very definite need. Before a budget can be
made with any degree of accuracy, actual records are necessary
for one or more years. This gives a basis for livestock produc-
tion and livestock requirements on a specific farm. Normal crop
yields, with the use of fertilizers or without it, are estimated
more accurately after studying one or more farm accounts for
the given farm. Any farmer can keep and use his own ae-
eounts or he can get help from the College of Agriculture in
summarizing and analyzing his accounts.
The first step toward greater profits from farming is to

 Accoumfs and Budgets Aid Farm Jllemugcmcnit 13
study the business. From such study logically come the plans for
the operation of the farm. The second step is called budgeting.
This is the careful laying of plans for expected expenses and re-
ceipts as well as number and kinds of livestock to be kept and
the acres of crops and pasture to be maintained.
One of the most effective ways to increase receipts is by in-
creasing the yields of crops per acre and the production of live-
stock per animal. Crop yields are increased by: following a
good rotation for the locality ; using good, clean seeds; applying
V fertilizer, limestone, and manure; selecting land suited to each
g crop, followed by good cultivation practices. Increasing the
production of livestock depends partly upon crops since a bal-
Q anced feeding program requires selected feed crops. In addi-
L tion to feeding the livestock a balanced ration, it is highly im-
S portant to keep a good quality of productive livestock. Only
U high-producing dairy cows should be kept, each ewe should be a
__ good producer of lambs and wool, each sow must be a good
O mother and prolihe producer, only hens capable of hig}1 egg pro-
1 duction should be kept, each beef animal should be selected for
3 better beef production.
r Vllhen making plans for improving yields, expenses need to
.s be kept under control. Reducing costs does not necessarily
mean spending less; it may mean spending more. It means
economical and eihcient spending thruout the year. Costs can
be reduced by spending wisely for good seeds, fertilizer, and
[B supplementary feeds.
)€ A farm account book is only a tool, and its value depends
.y upon its use. The business-minded farmers who are eager to
C_ know how they can increase their net incomes will do well to con-
)p tinue the use of their accounts and use the budget method of
Bd planning their operations.
or No one farmer is likely to excel in all the factors of profit-
lg- able farming. Some excel in more points than others. It is
ju mo1·e important to farm efficiently in a large number of enter-
prises than to concentrate on a few and thereby neglect others.
to The factors denoting efficiency that have been the most im-

14 Kcntnc/cy Extension CwZrculm· N0. 277
po1·tant in this area a1·e specifically: higher receipts per dollar
expenses, higher livestock receipts per acre operated, higher
crop sales per acre operated, higher crop yields, greater dairy
receipts per dairy cow, lower cost of production, more eggs pro-
- duced per hen, more pigs raised per sow, and a greater value
of tobacco per acre grown.
Simplified farm account books kept for seven consecutive
. years by 19 farmers in Green, Taylor, and Adair Counties pro-
vided the means of finding out what changes on these farms
would bring more profits.
Farm plans were written in the form of budgets by many
farmers. These budgets served as guides and made it easier to
accomplish desired changes. The possibilities of various enter-
prises were considered. The organizations and practices that
offered the highest returns for a period of years were selected.
In 1933, the average net income per farm, of 19 farmers who
kept accounts and followed budgets continuously, beginning in
1927, was $250 more than that of 28 farmers, under shnilar con-
ditions, who kept accounts and followed budgets only in 1927.
The increase was brought about by improvements in the organi-
t xation and management of the farms, the result of keeping ae-
1 counts and following budgets.
In 1927, the average net income of 156 farmers in these
counties was higher than that of the group of 19 or the group of
28 farmers. ln 1933, the average net income of the 19 farmers
was above the average of the entire group of farmers in the
study, while the average net income of the 28 farmers was farther
below the average of the whole group than in 1927. The use of
identical farms for comparison both years makes it possible to
show actual changes which increased the profits.
In general, the profitable changes made by the 19 farmers
who cooperated in the farm accounting project for seven years
were; (1) selection of livestock for better quality and higher
production, (2) higher yields of crops per acre, (3) use of more
legumes in hay and pasture, with the application of more lime-
stone and phosphate, (4) greater income per dollar of expenses.

 Accounts and Budgets Aid Farm Jllanmgcmcnt 15
TABLE 5. Comparison of Farm Organization of the Average of 144
Farms With the 28 One-Year Farms and the 19 Seven-Year Farms, for
.4.....:..   A$‘F‘"§‘$6
Y ~. 9 .
Item of 144 0].?;_y£u. seven- ·
farms farms y ear
Net; farm income (Dollars) I 619 I 459 I 709
Interest on investment @ 5% (Dollars) I 270 I 240 I 292
Operatofs net earnings (Dollars)   349 I 219 I 417
Number of livestock I I I
Dairy cows I 5.9 I 5.7 I 6.3
\V0rk stock I 3.6 I 3.2 I 3.3
Brood sows I 1.4 I 1.4 I 1.5
Sheep (ewes) I 3.8 I 3.5 I 3.0
Poultry I 75.0 I 61.8   107.0
Acres operated I 124.0 I 117.8 I 122.0
Acres in pasture I 36.6 I 28.3 I 33.4
_ Acres in crops I 56.0 I 49.5 I 54.2
. Corn for grain I 23.6 I 19.9 I 20.3
' Clover and alfalfa hay I 5.5 I 3.1 I 9.3
Grass and mixed hay I 9.5 I 10.5 I 9.2
· 1Vheat I 6.9 I 4.4 I 5.3
) Tobacco I 3.0 I 2.9 I 2.5
I 1This table is a companion to Table 2 as it shows the same items for
_ the same farms seven years later.
For these 144 farm accounts were kept for 7 years by 19 operators, 6
_ Years by 1, 5 years by 1I, 4 years by 9, 3 years by 13, 2 years by 25, 1 year
by 36, no accounts by 30.

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