. Farm financial record studies . re - - Farms with tractor- -------- Excess of sales over cash expenses-Decrease in inventory - - - - - .IS SkIQg ^.53 6g 109 59106 3^.7 + ) 1021+ 123 78123 ^3 1099 135 9^ 3792 896106 5U121 1+9 33 98 U8 937215 .92 65 .6750 12771U5 Inc, 50670 539 -372- Farm 5?.,n,.cs and the G-eneral Price-Level Records of
. Farm financial record studies . re - - Farms with tractor- -------- Excess of sales over cash expenses-Decrease in inventory - - - - - .IS SkIQg ^.53 6g 109 59106 3^.7 + ) 1021+ 123 78123 ^3 1099 135 9^ 3792 896106 5U121 1+9 33 98 U8 937215 .92 65 .6750 12771U5 Inc, 50670 539 -372- Farm 5?.,n,.cs and the G-eneral Price-Level Records of Illinois farra earnings available since I915 show thatfarm profits drop rapidly during periods when the general price-level isdeclining. This as true for the years I92O and 1921 and also for I93Oand 1931. (See graph). Index of Prices 250225200 150125100 755025 Rate earned16^ Farm prices in U. S. Aug. 1909-July I91U = 100Prices paid by fanners, Aug. 1909-July I91U = 100 3ate earned on investment, accounting farms, central Illinois. ~ 10 Ik 12 6 1915 16 17 15 »19 »20 21 122 «23 «2U «25 t26 «27 2S 29 30 3I -2 -U lEFLUEITCE OF PRICE CHANGES OH FARJ4 EAMING-S 1915-1931 Farm earnings reflect immediately changes in the farmerspurchasing pov/er. 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* The average rate earned on investment on ac-count keeping farms in central Illinois, which ras 8 percent in I919,dropped to a loss of 1 percent in 1921 and recovered to an average ofabout k percent for the period 1922 to I929. When the price-levelwent down again in 1930> the rate earned on investment dropped toabout 1 percent and in 1931 the average for account-keeping farms incentral Illinois indicated a loss of about 1 percent. -373- AIRIUAL FAEM BUSIHESS EEPORT PIT THIRTY-
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