Agricultural Economics Department
Agricultural Economics, Spring Wheat, Farm Management
Size of farm business is recognized by all farm management investigators and by many farmers as one of the most important factors making for success or failure in farming. A moderately large size of business, doubtless is more profitable in so-called normal times than is a small sized business. Size of business in this circular is not measured in acres only, as is common in certain sections where most of the land is fertile and tillable, and most of the farms are of the same type. Size of business cannot be measured accurately, nor by a single descriptive term such as acres. It includes the area farmed the area in crop land, the amount of productive labor employed, the amount of capital used, the rate of turnover of capital, the total production and the quality of production. Size of business may be increased by employing a laborer for productive work, by increasing the numbers of livestock, by increasing yields per acre, by doing work for hire outside the farm, etc. The purpose of this circular is to discuss the relative profitableness of a selected type of farm when operated as a business of different sizes. In the discussion six hypothetical farms are used for illustration. In the first group of three, a diversified farm, which is farmed rather intensively, is shown as a business of large size, of medium size, and of small size. The same plan is used for presenting the second group, a diversified farm which is farmed rather extensively.
South Dakota State State College of Agriculture and Mechanic Arts, Agricultural Experiment Station
Hampson, C. M. and Christophersen, P., "Estimated Returns from Farms of Large, Medium and Small Size of Business in the Spring Wheat Areas of South Dakota" (1934). Agricultural Experiment Station Circulars. 19.