. Farm financial record studies . -------- Excess of sales over cash expenses-Decrease in inventory ------- 991U6 1^. - .39 97151 252 . lOUlUg ^ 2 215113 2 590135 62ikG 86 139 2 kSS93 53 56 +3202 U9 k. 1U2 97 .97 70/0 3166U5 193 2 1211 5^9 ^.+9216 183 .81 1 260 2 302 ,-302- Farm ;s and the ^l Prlce-Levgl Records of Illinoi
. Farm financial record studies . -------- Excess of sales over cash expenses-Decrease in inventory ------- 991U6 1^. - .39 97151 252 . lOUlUg ^ 2 215113 2 590135 62ikG 86 139 2 kSS93 53 56 +3202 U9 k. 1U2 97 .97 70/0 3166U5 193 2 1211 5^9 ^.+9216 183 .81 1 260 2 302 ,-302- Farm ;s and the ^l Prlce-Levgl Records of Illinois farra earnings available since I915 show thatfarm profits drop rapidly diJiring periods wlien the general price-level isdeclinins. This .vas true for the years I92O and 1921 and also for I93Oand 1931. (See graph). Index of Prices 250225200 150125100 7550 25 Bate eamsd Farm prices in U. S. Aug. 1909-July I91U = 100Prices paid by farmers, Aiig. 1905-J-aly 19l!4- = 100 Hate earned on investment, accotmting farms, central I11±qo1. -v^. lU 12 10 - u 1915 16 117 IS 19 «20 21 «22 «23 «2U «25 «25 »27 «2S i29 30 13I -2 -k IWLVEllCS OF PRICE CHANG-ZS ON FABJA EARi:i!-TC-S 1915-iq^l Farm earnings reflect immediately changes in thp 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 I93O and 1931• The average rate earned on investment on ac-count keeping farms in central Illinois, which was g percent in 1919,dropped to a losr, of 1 percent in I92I and recovered to an average ofabout U percent for the period 1922 to I929. IThen the price-levelwent again in 1930, the rate earned on investment dropped toabout 1 percent and in I93I the averai^e for account-keeping farms incentral Illinois indicatert a loss of about 1 perceiit. -303- AMUAL BUSi:CESS
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Keywords: ., bookcentury1900, bookdecade1920, bookidfarmfinancia, bookyear1922
