. Farm financial record studies . t7ith tractor- .. Excess of sales over cash expenses-Decrease in inventory ------- 70106 .53 9\95 108 3^. 28,2 I5U8103 52 lUl 61 ISUS 105 581U6 761-13 158190 36. 51 3» 139 .86 70 llSl1162 2,k0Igl 9^ .6U 80 I23U51U 194 60 11821820 -352- Farm ! and the G-eneral Price-Level Records of Illinois fana ear
. Farm financial record studies . t7ith tractor- .. Excess of sales over cash expenses-Decrease in inventory ------- 70106 .53 9\95 108 3^. 28,2 I5U8103 52 lUl 61 ISUS 105 581U6 761-13 158190 36. 51 3» 139 .86 70 llSl1162 2,k0Igl 9^ .6U 80 I23U51U 194 60 11821820 -352- Farm ! and the G-eneral Price-Level Records of Illinois fana earnings available since I915 show thatfarm profits drop rapidly during periods wlien the general price-level isdeclining. This .Tas ti-ue for the j^ears I92O and 1921 and also for I93Oand 1931. (See graph). Index of Prices250 225200 150125100 7550 25 Rate earned i6fc = Farm prices in U. S. Atig. 1909-July I91I1 = 100 = Prices paid by farmers. Aug. 1909-July I91U = 100 = Rate earned on investment, accounting farms, central Illinoi. lU12 10 S 62 1915 lb 17 18 «19 »20 21 122 »23 «2l4 «25 ^26 »27 28 29 30 3I -k IIIFLUEITCE OF PRIGS CILING-IS 0?T ?ARI,1 EAPAIHC-S 1915-1911 Farm earnings reflect immediately changes in the farmerspurchasing power. The decline in the general price level whichstart=^d in I92O caused a wide spread to occur between the pricespaid by fanners for goods purchased and the prices received for farmproducts sold. This spread narrowed from I923 to 1929 but widenedagain in I93O and 1931• The average rate earned on investment on ac-count keeping farms in central Illinois, vras 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 1929. TThen the price-levelw(=nt again in 1930> the rate earned on investment dropped toabout 1 percent and in I93I the average for account-keeping farms incentral Illinois indicated a loss of about 1 percent. -353- ANMJAL FABM BUSlIiTESS KSPOET
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