W here Does the yl
Current operating expenses are W V
l(€I1tl1Cky II 3I°II1€I°’S tho Iorgoot itom of form production J I
ll G 9 outlay here and nationally to
  `
D0 ar 0 . at
ij)-
liy ROBERT W. RUDI) and 1). MILTON SHUFFETT to family labor, management, and the land and '
l)('|TiIl'llII('lIl of Agrieiilturnl Eennoniies Capital Plant Of flu·lHiHg_ 5/
The decade of the 195(Ys saw agriculture`s gross Product-ion Ex gnggs Com med with G.-oss |.-Nome ¤•
lVll(j()Ill(’ I`(‘Il]1llIl lll)()llt StCZ1(ly \Vllll(* S()2`lI`lllg costs to The Proportion Oi. the gross iucolnc used {01. Op€l.ut_  
l'2ll`lllC]'S l)I‘()lll.§llt g€ll€l'2llly lOVV€l' lltft lllC()lT1€S. K&’Il·V ing expense is ggnerauy lower {O1. K€1]tllCky fal.In€1.S _ Q
tucky l'1l.l'lTl(‘l`S shared lll this decline with the rest of than the lmtimml average} mggcting the USC, of mow ti ‘
tll($ ll2ltl()llS i1ll`lT1CI'S. Tll€ lllCI`CZ1Slllg tOtk1l C()StVSltll2i— hunny labor in Spgcialty Crops   tobacco Ou Km} "_
[101] lTI`()lIl.[lll' (Jll2lllgCS lll V2l.l'l()llS C2l.tCg()1'1€S of l'EI1`lll tucky farn-ISV Fixed GXPGHSCS also HVGI-REE 10\V€l~ as 21 V V
oottt if"` K*`“t"CkY t=ttmot>= flurmti the lust I0 Years- proportion of gross income for Kentucky farmers Tv
l?ul'm(*l'S` pl`()(ll1Clil()Il €Xp€HSGS lull ll] t\VO classes: than for the patio;] mainly because of the lgwgy —
llX(‘(l (‘Xl)(‘llS(‘S 2lTl(l Clll'I`Cllt()p(‘l'1ltll1g CXPCITSGS.   (japltill lIlV€Stlll€lltS lll K€1ltLlCl(y 11g1'lCllltll1`€. TOtzll
(‘Xp(‘IlS(‘S 1ll'(‘ tll()S(‘ C()StS \VlllCl`l HFC lI1CllI`l`€(l I`€g2`l1`(ll€SS P1'0(lllClZl()Il QXPCDSGS in K€11tllCl(}’ 11&lV€ ZlV(i1'21g€(l t1l)OUl wa`?
()i· tll(‘ lCV(‘l (Tl: p1`()(lllCtl()ll, \VllllC Clll'I`€I1t Op€1`2l.tlllg   p€I`C€lll[   of tl'1€ gI`OSS THCOITIG tllilll {OY tl`1€‘ *; 
l‘Xl)(‘IlS(’S Vtll`y \Vltll {lll? lCV(‘l ()l' Pl'()(lllCtl()Il. 1t€l11S ll2l.tl()l1. BOtl1 K€IltllCl(yil.ll(ltl1(;‘112ItlOTl’S l"L`l1`l1lll1g Sl1()\V l
like taxes, depreciation, and interest on farm mortgage about the same effects of the last decade’s climbing _
debt are viewed as fixed expenses, while outlays for prices of items used in farming as well as the larger -
hired labor, feed, or fertilizer and the like are con- amounts of ofl?—farm purchases of production items
Sl(l(‘I'(‘(l IIS ()I)(‘l'2ltll1g CXPGITSGS. \Vl1l1lZCV€1' I'ClTl2Ill1S of     FlX€(l Hl1(l Cll1`1`€l1t€X]_)€l]S€S (521011 lZ2ll((i 2l.l)()lll Ll _ ~
gross income after covering fixed and operatin t ex- 6 Jercent more ofthe tross toda than at the betin- ·,- ' 
Y f—
penses, then, IS net 1nco1ne and includes the returns ning ofthe 1950,s.
"`£ ¤V
OPERATING EXPENSES AS PERCENTAGE OF GROSS FARM INCOME
KENTUCKY AND UNITED STATES, 1949-58* —
  S0!/N6`! L/SDI {INS]  
‘;}•;..
KENTUCKY UNITED STATES .
80 *’* A
TDTA1. v l ‘
’W'
6 0
 
tttti    
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YEAR YEAR
 
l EXPENSES DO NOT INCLUDE PAYMENT FOR FAMILV LABOR AND INTEREST ON INVESTED CAPITAL
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