Economic and Marketing Information
FOR INDIANA  FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana   
June 30, 1969
ON INDIANA FARMS 1945-1965
by V. Harrison, C. Langbehn, L. M. Eisgrubert
Capital Accumulation and Resource Adjustments
A:
STUDY WAS UNDERTAKEN to examine the
growth of Indiana farms: how growth was accomplished, and the characteristics of farms and farmers that affected growth. Thirty-three farms, for
which detailed records were available through the
Purdue Farm Account Project, were analyzed. The
farms are in Indiana, and a complete set of records
was available for each of these farms for each of the
years from 1945 to 1965.1
Table 1 shows the characteristics of all 33 farms
in 5-year periods from 1945-65. Total farm acres
increased 50 per cent during this 20-year period.
This increase in farm size was brought about by a
relatively faster increase in rented acres (owned
acres on the average farm were less than 10 per cent
higher in 1965 than in 1945, whereas rented acres
more than doubled). In fact, between 1945 and 1950
the acres owned by the average farm even decreased.
This is due to the fact that five of the 33 farmers
in the study sold their entire farms during that
period, only to turn around and rent about the same
(or a slightly larger) acreage.
While total acres increased by 50 per cent, acres
in corn doubled and acres in soybeans increased
150 per cent. Number of hogs per farm nearly
tripled, while the average number of feeder cattle
sold increased from 2 to 51 over the 20-year period.
Some of the farms were wholly owned, others
wholly rented, and some consisted of owned and
rented land. Total investment on the average farm
(including landlord and tenant shares) increased
from about $37,000 to nearly $150,000 in the 20-year
period. The average operator's capital investment in
the farm business quadrupled; his debts rose from
$1,121   in  1945   to   $17,242   in   1965   so  that  they
t Harrison is an agricultural economist, FPED-ERS-USDA,
stationed at Purdue; Langbehn is a former graduate student;
Eisgruber is a professor of agricultural economics.
1 The Purdue Farm Account Project actually has complete
records over this period on more than 60 farms. However,
analysis showed that many of these received or made substantial inheritance or gifts, or had a major non-farm income
source. These farms were excluded in order not to distort
the analysis.
amounted to about 15 per cent (as compared to
about 4 per cent in 1945) of his total assets; and his
net worth, including the value of his non-farm
assets, rose from $28,530 to $99,318.   Between 1945
Table 1. Changes in farm size, organization, ownership, and returns for 33 Indiana farms, 1945-1965
Characteristics
1945
1950
1955
1960
1965
Number of Farms
33
33
33
33
33
Land and Crops:
Acres owned (with
out woods)
145
124
129
141
170
Acres rented   (with
-
out woods)
71
104
1 13
114
151
Total acres in farm
(without woods)
216
228
242
255
32!
Acres of corn   (grain)     63
72
92
118
124
Acres of soybeans
21
23
2b
30
5 3
Acres of pasture
49
38
-42
33
50
Livestock:
No. of hogs raised
136
179
248
302
361
No. of dairy cows
S
7
9
8
8
No. of beef cows
4
5
7
G
10
No. of feeder cattli
;          2
14
13
32
51
Inventory Values
(in dollars) of:
Real estate  (farm)
23,625
34,618
56,500
67,568
104,670
Machinery, equip
ment
3,634
8,637
10,892
12,910
13,890
Livestock   (all)
4,647
8,241
8,829
12,361
15,650
Feed, grain, supplies 4,812
7,555
9,107
10,288
14,612
Total assets
(operator and
landlord)
36,718
59,051
85,328
103,127
148,822
Total assets
(operator)
27,357
39,912
58,150
70,722
100,215
Value of operator's
non-farm assets
2,294
it
16,346
Magnitude of operator's
indebtedness
1,121
17,242
Net Worth
(operator)
28,530
*
=:=
:'.=
99,318
Gross receipts
13,000
21,691
25,358
34,052
50,671
Farm income
(total farm)
7,138
11,899
4,648
13,230
27,047
Farm income
(operator)
5,921
9,371
3,101
10,784
21,016
This  information was not available for the years   1950,   1955 and
I960.
Farm   income   is gross  receipts  minus  cash  expenses,   adjusted   for
inventory change.