ifferent types of farming common to the northern
United States from 16 to 19 per cent. This represents, of course, a
great deal of very poor farming. The income of prosperous farmers must
be somewhat better than this. If we assume that by careful methods the
gross income is 25% of the total investment, then an investment of
$16,000 will be required to bring a gross income of $4,000. While it
is true that the gross income has no necessary relation to net income
or profit, yet it is well to remember that a gross income is a
necessary antecedent of a net income. The net profit from the
production of a bushel of wheat, a dozen of eggs, or a pound of butter
is of comparatively small consequence unless a sufficient quantity is
produced.

A recent investigation by the Cornell station appears to show that
with the type of farming now existing in Tompkins and Livingston
counties, New York, where the investigation chanced to be made, the
larger farms yielded the most profitable returns and that while
present conditions exist, the size of farms is likely to increase
rather than decrease. The fundamental reason seems to be the
substitution of horse-drawn machinery for hand labor.

The following table shows the labor income on 586 farms operated by
the owners, classified according to size:

Number Average
of size Labor
Acres farms (acres) income
30 or less 30 21 $168
31 to 60 108 49 254
61 to 100 214 83 373
101 to 150 143 124 436
151 to 200 57 177 635
over 200 34 261 946
---- ----
Average 103 $415

While the larger the farm, the more prosperous was the operating owner
or tenant, the size of the farm did not seem to affect the profit of
the landlord.

The amount of land one individual may own is unlimited; the size of
the farm unit is limited. After a farm unit has reached a certain
size, depending upon the type of farming, the general arrangement of
the farm and the skill in management, any further increase will
increase the cost of operation, and as the increase continues
eventually cause a decrease in profits. Assuming this to be true, it
follows as a mathematical necessity that as the farm increases in size
the total profits will increase as the farm increases up to a given
poi