. Farm financial record studies . w ----- 101 i 1 Power and machinery cost per crop i 87^ 1 2101 086 88 BOfo 1 739757 acre --__——— _ — Machinery cost per crop acre- - - - Value of feed fed to horses - - - - 170 Man labor cost per $100 gross 7? Man labor cost per acre ------ Expenses per $100 gross income- - - 194 Farm improvements cost per acre - - lOOfo Excess of sales over cash expenses- 727 Decrease in inventory ------- i 1 573 ! -10- Farm 5?;g and tlie Ge:ieral Price-Level Records of Illinois fann earn
. Farm financial record studies . w ----- 101 i 1 Power and machinery cost per crop i 87^ 1 2101 086 88 BOfo 1 739757 acre --__——— _ — Machinery cost per crop acre- - - - Value of feed fed to horses - - - - 170 Man labor cost per $100 gross 7? Man labor cost per acre ------ Expenses per $100 gross income- - - 194 Farm improvements cost per acre - - lOOfo Excess of sales over cash expenses- 727 Decrease in inventory ------- i 1 573 ! -10- Farm 5?;g and tlie Ge:ieral Price-Level Records of Illinois fann earnings available since I915 show thatfarm profits drop rapidly during periods wlien 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 ?50 225 200 150125100 7550 25 Rate earned 16^. 0 Farm prices in U. 3. Atig. 1909-July 191I1 = 100Prices paid by farmers. Aug. 1909-July I91U = 100 Rate earned on investment, accounting farms, central Illinoi. 11+12 10 S 6 1915 16 17 IS <19 »20 21 122 »23 1214 25 «26 «27 2S 29 ^],0 13I -2 -1; INFLUSITCS OF PRICE CILUTGZS ON PARJA EARIflH&S 1915-19^1 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* 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 I92I and recovered to an average ofabout k percent for the period 1922 to I929, Wlien the price-levelwent down again in I93O, the rate earned on investment dropped toabout 1 percent and in I93I the average for accouiit-keeping farms incentral Illinois indicated a loss of about 1 percent. -11- In a period T^hen the £;encral Tori
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Keywords: ., bookcentury1900, bookdecade1920, bookidfarmfinancia, bookyear1922
