. Farm financial record studies . 9^+.57 go^ 1 1 9SU|1 207 Machinery cost per crop acre- - - - Value of feed fed to horses - - I5g Man labor cost per $100 gross 6g Man labor cost per acre - - - - Expenses per $100 gross income - 20U Farm improvements cost per acre - - .98 70/. Excess of sales over cash expenses-Decrease in inventory ------- 1 171 1 7S6 1 -1S2- Farm ;g and the General Price-Level Records of Illinois farm earnings available since I915 show thatfarm profits drop rapidly during periods vdien the general price-level isdeclining. This v;as true for t
. Farm financial record studies . 9^+.57 go^ 1 1 9SU|1 207 Machinery cost per crop acre- - - - Value of feed fed to horses - - I5g Man labor cost per $100 gross 6g Man labor cost per acre - - - - Expenses per $100 gross income - 20U Farm improvements cost per acre - - .98 70/. Excess of sales over cash expenses-Decrease in inventory ------- 1 171 1 7S6 1 -1S2- Farm ;g and the General Price-Level Records of Illinois farm earnings available since I915 show thatfarm profits drop rapidly during periods vdien the general price-level isdeclining. This v;as true for the years I92O and 1921 and also for I93Oand 1931• (See graph). Index of Prices 1^0 225 200 175 150 125 50 25 100 _; 75 - Rate earned16^ Farm prices in U. S. Aug. 1909-July I91U = 100Prices paid by farmers. Aug. 1909-July igiU = 100 Sate earned on investment, accounting farms, central Illinoi / -7^-^ 7 %- / 4; Y V ■y V / /,/ ■/ II / I I / \ 4v ■A-^ 1^ /. /:./.- /y// K V //• ■/ / I ■//. V, // •/ / // //■ \ \ / TS. 11+ 12 10 6 1915 16 »17 «1S «19 «20 21 122 23 «2U 25 «26 «27 2S 29 30 31 -2 -4 IHFLUEI-ICS OF PRICE CHAI-TGLS OH FARM EABKIN&S 191^-1931 Farm earnings reflect immediately changes in the farmerspurchasing power. The decline in the general price level whichstarted in I92O caused a wide spread to occur between the pricespaid by farmers for goods purchased and the prices received for farmproducts sold. This spread narrowed from I923 to I929 but widenedagain in 1930 and 1931* Tl^e average rate earned on investment on ac-count keeping farms in central Illinois, which ras g percent in I919,dropped to a loss of 1 percent in I92I and recovered to an average ofabout U percent for the period 1922 to I929, TYhen the price-levelwent down again in 1930> the rate earned on investment dropped toabout 1 percent and in 1931 thR average for account-keeping farms incentral Illinois indicated a loss of about 1 percent. -1S3- AMUAl FABM BUSINESS REPOET ON THIRTY-F
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