531~s
Agricultural Economics Series 3
Optimum Farm
March 1964
Organization
and
Aggregate Area Production
Wiregrass Area, Alabama
AGRICULTURAL EXPERIMENT STATION
OF AUBURN UNIVERSITY
E. V. Smith, Director Auburn, Alabama
In cooperation with
FARM PRODUCTION ECONOMICS DIVISION
ECONOMICS RESEARCH SERVICE
U. S. DEPARTMENT OF AGRICULTURE
This is the eighth in a series of public~ations which have
been developed from the Southern Regional farm Management Research
Project - and from Alabama Agricultural Kxperiment Station
Project Ala-118, These reports, published by the Agricultural
Experi ent Station of Auburn University in cooperation with the
Farm Productiorn Economics Division, 
Economic Research Serv ice,
U, S. Department of Agriculture, are as fllows:
Costs an oRe.turns from Poultry Production n tre Limestone Valley
Areas of Alabama. January 196 0
Cot a_ d 5 .stn fcc: n' Cp Productio in the Limes .:ne Valley
Areas of Alaoama, February 1960,
Costs and n~eouns r~om Livocstook Productionr in the Li restone
Valle Ara n Alabama. December 19,6
Csts and Returns from Crop Production in the Wiregrass Area
Lorwer Cloastal Plains), Alabamna. Augus 1961,
Costs and Returns from i estoc Prcodction in the Wiregrass Area
(Lower Coastal Plain, Alabama. December 1961,
Optimum Farm Organization and Aggregate Area Production, Limestone
Valley Areas, Al abama, Agricultural Economics Series 1.
Junre 1963,
Agre gate Area prod :oti., liestone Valley Areas, Georgia and
Tennessee, (A. Supplement to Agricultural Eoomics Series 1).
Copies of We_, reports are available upo: req.es t from the
Department of i-. iu 'ral rocnomis, Auburn 
Unversity, Auburn,
Alabama.
Acknowledgement
The study, upon which this publication is based, is part of a
Regional Research Project S-)42, "An Economic Appraisal of Farming
Adjustment Opportunities in the Southern Region to Meet Changing
Conditions." This Regional Project is financed in part from Research
and Marketing Act funds. It is a cooperative effort of the Departments
of Agricultural Economics of the following State Agricultural
Experiment Stations: Alabama, Arkansas, Georgia, Kentucky, Louisiana,
Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee,
Texas, and Virginia; and the Farm Production Economics Division,
Economic Research Service, United States Department of Agriculture.
Dr. John W. White, Vice-President for Agriculture, University of
Arkansas, is the administrative advisor, and Dr. James H. White,
University of Arkansas, is chairman of the Regional Committee.
The Southern Farm Management Research Committee, sponsored by
the Farm Foundation and the Southern Agricultural Experiment
Stations, was helpful in the development of this Regional Project.
The overall purposes of this project are (1) to provide guides
to farmers when choosing among alternative production opportunities,
especially as those opportunities are affected by changes in prices
and technology, and (2) to provide guides to persons engaged in
developing and administering public agricultural programs.

TABLE OF CONTENTS
SUMMARY. . ........
INTRODUCTION ......
AREA OF STUDY..
PROCEDURE. .........
GENERAL ASSUMPTIONS . . .
Land Capability......
Enterprises Considered
Enterprise Budgets
Prices
Allotments
Labor. . ......
Capital... .. .. .. ..
Representative Farms
OPTIMUM 
ORGANIZATIONS 
FOR 
R 
SalFr
Medium Farm... . ......
Large Farm
Extra Large Farm , . .,
..N .TV FR
EPREENTAIVE ARM
Comparison of Responses for Different
AGGREGATE AREA SUPPLY RESPONSE 
. . .
Aggregation Models
Model one.............
Model two............
mn
Size Groups,
Farm Size Distributions ........
e
"
"
"
"
"
r
1
3
7
9
9
10
11
13
14
'9
20
20
27
32
39
h6
" " "
" " "
~~~
" " "
" "
* f e e 0 * * s o # * 
* o f 52
TABLE OF CONTENTS (continued)
The Aggregates . . .. , 
, 0 . , c o , ? a , 0 0, 0 o,
Model one aggregates .O . . . .
O. . 0Co. . . 054
M o d e l t w o 
a g g r e g a t e 
s . , a .
, a . .
O . . .
v . .v . , 
.5 
40
APPENDIX . .0 . . 0 . . 0 . 0 
.. 0 00 . . 6 . . . .0. 0. . .
. 63
Summary
Four representative farm sizes in the Wiregrass Area of Alabama
were studied under assumed conditions of estimated free market prices,
no production controls, and improved production technology. Budgets
were prepared for each size of farm and linear programming procedures
were used to select the optimum combination of enterprises. Three
sets of programs were computed. The first set included selling Coastal
bermudagrass hay and purchasing corn as alternatives; the second ex-
cluded selling hay; and the third excluded both selling hay and buying
corn.
In all cases peanuts came into the optimum program at the
maximum allowed by an agronomic restriction. Cotton was a strong
competitor for resources, and the same was true of Coastal bermudagrass
hay on the two larger size farms. However, Coastal was not competitive
on the smaller farms that were too small to support ownership of hay-
making equipment.
When Coastal was eliminated either arbitrarily or because of high
custom harvesting costs, the plowable open land unsuitable for row
crops was used for oats, and the nonplowable open land was either used
for hay and pasture for cattle or left idle. Corn was usually
purchased and more livestock entered the optimum program. When corn
buying was eliminated, livestock numbers declined. However, this
reduction in livestock numbers had only a small effect on net returns.
The effect of changing cotton prices was studied using the
situation where both Coastal selling and corn buying were eliminated.
Cotton prices were varied from h0 per cent below to ho per cent above
the 25-cent base price. With peanuts at base prices, all high-yield
2
cotton entered the optimum plans at cotton prices between 17.8 and 21.3
cents per pound. Medium-yield cotton entered the plans in two groups:
(1) that which replaced feed crops for steers and hogs, and (2) that
which replaced peanuts. Medium-yield cotton replaced feed crops at
cotton prices between 21.h to 23.3 cents, and it replaced peanuts at
prices between 31.0 and 32.0 cents per pound. Low-yield cotton
replaced additional peanuts at prices between 35.0 and 37.1 cents per
pound. Reducing or raising peanut prices by 30 per cent, respectively,
lowered or raised the cotton price at which cotton replaced peanuts.
Cotton price was then held constant at base price and peanut prices
were varied from 40 per cent below to hO per cent above the $160-per-ton
base price. Peanuts replaced feed grains at peanut prices between
$100.32 and $11h.80 per ton. Part of the medium-yield cotton was
replaced at peanut prices ranging from $115.h3 to $125.h6 per ton.
Rotational restrictions on peanuts prevented further competition with
cotton.
Weights were developed for each representative farm size reflect-
ing the acreage in the respective size class. These were used to
estimate aggregate area production for 20 different peanut and cotton
price situations. Normative, partial-equilibrium supply curves for
cotton and peanuts were constructed from the aggregates. These curves
demonstrate very high supply elasticities for cotton up to the point
where it begins to compete with peanuts for land. The peanut supply
curves show that peanut production increases from none to the assumed
agronomic maximum within a very small range of peanut prices. This
range is far below the assumed base price for peanuts. Thus, peanuts
seem to be a more profitable enterprise than cotton at base prices.
OPTIMUM FARM ORGANIZATION AND AGGREGATE AREA PRODUCTION,
WIREGRASS AREA (Lower Coastal Plains), ALABAMA"
Earl J. Partenheimer and P. L. Strickland, Jr.
-
Introduction
The comparative economic advantage of different areas in the
production of various farm products changes as farm technology and
economic conditions change. Questions repeatedly raised by farmers
and agricultural workers indicate a need for economic information to
guide them in adjusting to technological and economic changes. Some
of these questions concern the relative returns from various enter-
prises and enterprise combinations for particular farm resource
situations. Other questions concern the kinds and quantities of
resources needed for various enterprises and enterprise combinations.
Answers to these questions should help public agencies and farm
organizations concerned with agricultural policy problems and assist
State and Federal agencies in administering agricultural programs.
Adjustments that will pay any one farmer to make depend upon
actions taken by competing farmers. This interpendence of profitable
actions makes it essential to know the nature and extent to which
various individual adjustments, when taken as a whole, would affect
-The research reported herein was conducted under Alabama
Agricultural Experiment Station Project Ala-118. The Alabama project
is a contributing project to the Regional Research Project S-h2, "An
Economic Appraisal of Farming Adjustment Opportunities to Meet Changing
Conditions in the Southern Region."
-*Associate Professor, Alabama Agricultural Experiment Station,
Auburn University, and Agricultural Economist, Farm Production Economics
Division, Economic Research Service, United States Department of
Agriculture, respectively.
4
production, price, and therefore the ultimate profitability of individual
adjustments.
The specific objectives of this study are: (a) to determine the
most profitable combinations of enterprises for several selected resource
situations under a range of product prices, and (b) to determine
aggregate production for the Wiregrass Areas of Alabama under these
price and resource situations,
Area of Study
The area of study comprises the southeastern portion of the Lower
Coastal Plain and includes 12 counties (Figure 1). The eastern two-
thirds of the region, often referred to as the Wiregrass Area, is
largely a nearly level to rolling plain with a rougher area along its
northern rim. The western third of the region has slightly rougher
topography and a larger proportion of the land is in forest. Soils
vary from light to medium in texture.
Average annual precipitation varies from 52 to 58 inches, but late
spring and fall months are often relatively dry. High evapotranspiration
rates and the low water-holding capacity of the soil cause frequent
damaging droughts.
The 1959 Census of Agriculture reported 20,095 farms within the
study area (Table 1). Nearly two-thirds of these farms had less than
50 acres of cropland harvested, However, 80 per cent of the harvested
cropland was on farms where 50 or more acres of crops were harvested.
The 1959 census also indicated that there were 988,716 acres of
cropland harvested in the 12 county area. Alabama Crop and Livestock
Reporting Service estimates indicate that 60 per cent of this acreage
Figure 1, Location of~ 
the Area of7 Study
6
Table I. Estimated Distribution of Farms by Total Land,
Cropland Harvested, and Economic Class, Wiregrass
Area, Alabama, 1959"&
Item Number
Total land class
Less than 10 acres
10 to 49 acres ,
50 to 99 acres , , ,.
100 to 179 acres.
180 to 259 acres,
260 to 499 acres .,
500 to 999 acres ,
1,000 acres and over
Total ,.,. e 49 .
Cropland harvested
N one ". . a. 0 a . *. ,a ,0 ,. . , . .. . 0
1 to 9 acres ,. *0000 . .. o
10 to 49 acres .0 0 00. " *. *.
50 to 99 acres... .. * * 0"* ,
200 tohL99 acres . . 0. .....
500 to 999 acres . 0 , ,f,0,. 0" O
1,000 acres and over ,0. .* . ,.0
Total .0 . .0 0 0 * 0* 0 . t . .,
. 5,'298
)*4,628
. ). *** 4280
. 1, 924
1,803
* * * * 718
* * * * 373
o e e o . 20, 095
* e .s.e 0 2, 940
o 0 o e " 2,351
" o o e B 7,900
o e o e 0 4,9176
e 0 A , e 2,126
o s " e 0 559
* " 0 0 0 37
* 0 0 0 0 609 9
o ** .2009
Economic class
Class I,
Class II-
Class III
Class IV,
Class V.,
Class VI,
Part-time
Semi -retired
Total.,. . ........ ...........
'Source: 1959 Census of Agriculture.
*0 Differences in total number of farms is due to
sampling error.
71
296
880
2,091
3, 712
4,381
5,553
3,084.
2 0,0o68&
A _- - ,
1 0 e o "
7
was in corn, 15 per cent in cotton, and 19 per cent in peanuts
(Table 2).
Five-year (1957-61) average yields per harvested acre were 29.5
bushels of corn, 3h7 pounds of lint cotton, and 966 pounds of peanuts.
The only major livestock enterprises in the area were beef cows
and hogs. Hogs were more prevalent in the Wiregrass proper, and the
western fringe area had relatively more cattle. Generally, quality
of breeding stock was poor in both enterprises. Litters were small
and hogs were often sold at lighter weights than in other areas.
Calf weaning weights were also low.
Procedure
The wide diversity of resources on Wiregrass farms creates an
opportunity for a variety of farm adjustment alternatives. It was
impractical to investigate each of these situations. Instead, farms
were divided into four size groups and a representative situation was
selected for each group. Linear programming techniques were used to
determine the optimum combinations of enterprises for each representa-
tive situation with selected alternatives, product prices, and
resource situations. These investigations were made for individual
farm adjustments without considering the aggregate effect of such
adjustments.
Adjustment opportunities that are profitable for an individual
may become less profitable when a large number of individuals take
the same action. It is desirable to determine the aggregate effect
of the adjustment alternativs. The optimum programs for each
representative farm situation were expanded to the total acreage
8
Table 2. Estimated Production of Major Agricultural Commodities,
Wiregrass Area, Alabama, 1959"
Item Amount
Crops:
Corn for grain:
Acres harvested
Bushels harvested . .
Corn for silage and hogging off:
Acres harvested. a*.e
Cotton:
Acres harvesteda...... .....
Bales (L80 pounds of lint) harvested
Peanuts:
Acres harvested . a
Tons harvested . 00 0.0 a
Livestock on hand January 1, 1960:
All cattle other than milk cows . .,
Milk cows e a a . , * . * . *. * *
Hogs 0 . . e e 0 a 0.0 0.a* .. ..
" . e e )41plol0
" e s 3l,'804, 000
172,900
150, 050
102,030
189, 900
77, 83)4.
239, 600
33, 600
2453, 600
"Source: "Alabama Agricultural Statistics" Alabama Crop
and Livestock Reporting Service, July 1962.
"I~7ncludes cows kept to produce milk for home consumption,
--
0 
O 
f
f 1 f I
f 
I 
f
crop and livestock production, and total resource use for the area.
Aggregations were made assuming that all the included land base would
be adjusted to the optimum farm organizations. Further aggregations
were made assuming that specified portions of the included land base did
not adjust to the optimum organizations,
General Assumptions
Land Capability
Classification of land capabilities were based on the Soil
Conservation Service land use capability classes. All Classes I and
II cropland and pasture were considered suitable for continuous 
use
for row crops. It was further assumed that Classes IlIe and IIIw
could be used for row crops one half of the time. Thus, in the
programming model row crops must not exceed the total acreage of
Class I, Class II, and 1 of Classes IIIe and IIIw. The remaining
Class III land was classified as plowable open land but it could be
used only for close-growing crops. Class IV land was classified 
as
nonplowable open land and its use was limited to permanent sod crops
such as Coastal bermudagrass.
Estimates of the acreage in each of these classes which are
currently being used for cropland or pasture were obtained 
from
SCS data.I/ Using these estimates and the above definition, 
58 per
cent of the total open land was classified as row cropland, 28 per
cent as plowable land suitable only for close-growing crops, and lh
per cent as nonplowable open land.
1/Alabama Conservation Needs Committee, Alabama Soil and Water
Conservation Needs Inventory, State Soil Conservation Committee, 1961.
10
Enterprises Considered
The enterprises considered for the programming model included
cotton, peanuts, corn, oats, grain sorghum, oats and grain sorghum
double-cropped, soybeans, wheat, Coastal bermudagrass hay, beef cows,
feeder steers, and hogs. Poultry enterprises were not considered since
they do not compete for land. They could be added to any organization
if sufficient labor and capital were available.
Several enterprises were eliminated because of institutional,
resource, or market restrictions. Entrance into Grade A milk pro-
duction is severely restricted by the existing institutional framework,
Fruit, nut, and vegetable production were eliminated because of the
limited market for these products. These enterprises could be very
profitable for an individual farmer, but if a large number of farmers
were to enter these activities their profitability would decrease.
Also, other areas appear to have physical and management resources
that are better adapted to the production of fruits, nuts, and
vegetables.
Optimum farm plans were computed considering all of the activities
stated above. In the aggregate, these farm plans included much more
Coastal bermudagrass hay than could be utilized in the Wiregrass and
surrounding areas. A second set of optimum farm plans were computed
with Coastal limited to that used on the farm on which it was
produced. To further limit adjustment alternatives to land based
activities, a third set of farm plans was developed with corn-buying
eliminated,
11
Enterprise Budgets
Input-output budgets had previously been developed 
and published
for the major enterprises of the area for 
both existing and improved
management practices.2/ The budgets assuming 
the use of the best
available technology and a high level of managerial 
ability were used
in this study. These budgets were modified 
by using the assumed prices
for this study and by using machinery coefficients 
fitted to the size
of farm under consideration.
Row cropland classified as having poor 
drainage (Classes 11w and
IIIw) was considered as not suitable 
for cotton production. Eliminat-
ing this land restricted cotton production 
to 9h per cent of the row
cropland. Class I soils with good management 
should produce continuous
cotton without reduction in yield. Class 
IIe soils should produce
the same yields as Class I soils if 
planted in 1-I rotation. However,
if Class II soils are planted continuously 
to cotton, there would be
some reduction in yield. Therefore, 
46 per cent (all of Class I and
one half of Class IIe) of the row 
cropland was programmed with cotton
yields of 625 pounds of lint per 
acre. The other one half of Class
lie land and all of Class lls (30 
per cent of all row cropland) was
programmed at 575 pounds of lint 
per acre. Yields of 500 pounds 
of
lint per acre were used for the Class 
ile land, which accounted for
15 per cent of the row cropland.
j See Clark, George W., and Partenheimer, Earl 
J., Costs and
Returns from Crop Production in the Wiregrass 
Area, Lower Coastal
Plains, Alabama, Alabama Agricultural Experiment 
Station in cooperation
with Farm Economics Division, ERS, USDA, August, 
1961; and Partenheimer,
Earl J., and Clark, George W., Costs and Returns 
from Livestock
Production in the Wiregrass Area, Lower Coastal 
Plains, Alabama,
Alabama Agricultural Experiment Station in 
cooperation with Farm
Economics Division, ERS, USDA, December, 1961.
12
Continuous planting of peanuts on the same acreage 
leads to
disease and nematode infestations which seriously limit yields. Thus,
peanuts could be planted on the same land only one year 
in three if the
2,000-pound yield is to be attained.
A second peanut budget was based on a two-year rotation. Planting
peanuts on the same land every other year would decrease yield approxi-
mately 300 pounds per acre as compared with that of a one year in three
rotation. To get one additional acre of peanuts per year after one-
third of the row cropland was in peanuts,three acres would have to be
converted to a one-in-two rotation. Thus, the yield on the second
peanut budget was reduced to 1100 pounds per acre 
,000 - (3 x 300 .
However, the one year in two peanut rotation did not enter the
optimum programs even with peanut price at 40 per cent above base.
For crops other than cotton, the yields used were: 5 bushels
per acre for corn; 60 bushels per acre for oats; h0 bushels per acre
for grain sorghum; 5.0 tons per acre for Coastal bermudagrass hay; 28
bushels per acre for wheat; and 22 bushels per acre for soybeans,
Livestock production rates were a 90 per cent calf crop for beef cows,
and an average of 8 pigs per litter raised to market weight. In the
case of hogs and beef cows, replacement gilts and heifers were subtracted
from production. Market hogs were sold at a weight of 210 pounds and
fat calves were sold at x75 pounds. Steers were purchased at h00 pounds
and sold at 1,0l pounds less 36 per cent shrinkage. Included in the
livestock budgets were 1.15 acres of pasture per sow; 0.836 acre of
pasture, hay, and corn silage per steer; l.h6 acres of pasture and 1.26
tons of hay per cow in beef-cow budgets. The steer pasture and hay
land produced an excess of 20.7 tons of hay which was either sold or fed
13
to beef cows. No land was double-cropped except for 
the oats-grain
sorghum rotation which did not enter the programs.
Hogs were the only livestock enterprise considered 
on the small
farms. Even if all resources on a farm of this 
size were devoted to
production of any of the other livestock enterprises, an efficient-
size operation could not be attained. Likewise, 
the beef-cow
enterprise was not considered on the medium-size farm. 
The large and
extra large farms had sufficient acreage so that 
all livestock enter-
prises could be considered.
Since some of the open land acreage was specified 
to be
suitable only for hay production and pasture for beef 
enterprises,
this acreage became idle open land when no 
such enterprises entered
the optimum program. This always occurred on 
the small farms and
occasionally on medium-size farms. Similarly, other 
acreages were
specified as usable only for close-growing crops. 
This land was
always used, but occasionally it was planted 
to sod crops. Row
cropland was always planted to row crops.
Prices
The base product prices used in the analysis 
were estimated to
represent assumed prices in a "free" market economy 
under conditions
of full employment.2/ Specifically, they 
were the market prices that
would be expected to exist in 1975 
if all marketing controls and
3/The base prices were determined cooperatively by members of
the S-h2 Technical Committee. This committee is composed of 
representa-
tives from each of the 12 State Experiment Stations cooperating and
from the Economic Research Service, USDA. The basic price assumptions
were used in each cooperating state, but modifications were made 
by
each State to reflect normal transportation and quality differentials.
1)4
price supports were removed from 
agricultural production within the 
next
few years. Except for labor, the input 
prices were at or near 1959 levels
(Table 3). Base product prices varied 
considerably from 1959 levels
(Table )4).
Optimum programs were computed only 
at base product prices for the
situations where corn-buying was 
permitted, and where both corn
purchases and hay sales were permitted. 
With corn-buying and hay sales
excluded, the effects of several 
price changes were investigates.
Optimum programs were computed for all 
prices of cotton from 40 per cent
below to 40 per cent above base price, 
with peanuts held constant at
base price. This process was repeated 
with peanuts at 30 per cent below
and at 30 per cent above base price. 
Similarly, cotton was held at
its base price and the optimum programs 
were determined for all prices of
peanuts between 40 per cent below base 
and 40 per cent above base.
Allotments
With the assumption of "free" market 
prices as base prices, no
production control or acreage allotments 
were used in the analysis.
Labor
It was assumed that most operations on the 
farm would be performed
by resident labor, the operator or full-time 
hired men, Seasonal
labor would be hired for such tasks as filling fertilizer distributors
and hauling hay. All crops were assumed 
to be mechanically harvested
and on the smaller farms this harvesting 
was assumed to be a custom
operation.
The resident labor supply was calculated 
in units of one man year-
round. The part-time resident labor supply 
consisted of an operator
who worked full time off the farm and 
ooerated the farm after work hours
Table 3. Assumed Input Prices, Wiregrass Area, Alabama
Item Unit Price
Feeds and feed additives
Corn ............. .... Bushel $ 1.25
Cottonseed meal (41%)......... ... Cwt, 3.60
Neat and bone scraps (50%) ......... Cwt500
Soybean oil meal (44%) ........... Cw. 
4.00
Alfalfa leaf meal (17%)............ Cwt4.10
Wheat middlings. .........
Cwt. 4
Commercial creep feed for hogs . . Cwt, 4.7$
Dicalcium phosphate. ,................Cwt. 4.00
Salt, loose............ Cwt180
Swine formula. ... Cwt, 2.80
$0 lb. blocks (mineralized)..........Block
Antibiotic for hogs.......Pound90
Vitamin mixture for hogs .......Pound40
Livestock
Feeder calves... Cwt. $ 23.00
Bull ................. Head 600.,00
Boar..............., Head 10000
Seed
Cotton.Pound $ 0.11-
Peanuts............Pound .26
Corn..Pound.17
Grain sorghum...... ... Pound19
Oats... ... ...... Bushel 1,50
Wheat.................... Bushel 
4.2$
Rye.......................Bushel 4.00
Vetch.Pound .20
Millet . . Pound .14
Coastal bermuda stolons........Bushel 650
Fertilizer
4-12-12 ... . . .. . . . Cwt. $ 1.90
0-10-20..................Cwt. 1.70
0-20-20.................Cwt. 2.35
Arnmonium nitrate.............Cwt. 3.80
Pesticides
4-2 Toaphene, DDT..............Gallon $ 2.80
16
Table 3 (Continued)
Item Unit Price
Custom work
Drilling and fertilizing small grain . . Acre $ 0.0
Applying lime (includes materials). 
. . Ton 7.75
Applying fertilizer. . . . . . . . Acre 1,00
Picking cotton (machine) . . . . . . Pound .06
Ginning cotton (includes bagging
and ties). . ,.......... . Bale 13.00
Defoliant application by plane (does
not include materials) . . . , . . Pound .06
Digging and shaking peanuts..... ... .. Acre 3.50
Combining and hauling peanuts . .. . Ton 2000
Drying peanuts ..... ....... Ton 10.00
Picking corn ..... .............. .Acre 6.00
Combining small grain . . . . . . Acre 6.00
Cutting silage . . . . ......... Ton 1.00
Shelling corn . . . . . . . . . . Bushel ,50
Mixing feed , . ............. Cwt. .10
Grinding and mixing feed ........... .Cwt. .30
Hauling livestock ........... Cwt. .25
Miscellaneous
Seasonal labor .. ........... Hour $ 0.90
Stilbestrol implants . . . . . . . . . . Head .07
Cotton defoliant , . . . . .. . . . Pound .07
17
Table 4. Assumed Product Prices, Wiregrass Area, Alabama
Product Unit Base price
Cotton... .....
Cottonseed . .. . . .
Peanuts i Corn.....".". .
Corn........ . . . .. .
Oats s " s s "
heat"
Coastal hay ....... . ..
Soybeans .".".. . .. ."
Grain sorghum ...... . ..
Fat calves ...... . ..
F at steers ..... . . . .
Cull cows . " " ....
C I1bulls.............
Slaughter gilts and barrows
Sows r. .. .. .
Boars .. , . .. ..
Cwt.
Ton
Ton
Bushel
Bushel
Bushel
Ton
Bushel
Bushel
Cwt,
Cwt.
Cwt,
Cwt.
Cam.
Cwt.,
Cwt,
$ 25,00*
50 .00
160. 00
1.10
1. 25
21, 00
2,*00
1.,05
22.00
23.00
15,.00
18.00
14.50o
11.00
5,.00
*7This price is for machine picked cotton and compares with a
price of $26.00 per hundredweight for hand picked cotton.
~This price was reduced to $18.90 in programming to allow for 10
per cent weather damage.
r "
18
and on Saturday. A one-man labor supply consisted of a full-time owner-
operator. The two-man supply was one full-time owner-operator and 
a
full-time hired man. Ten per cent of the operator's time was assumed
to be used to supervise the hired man. The monthly distributions for
these situations are presented in Table 
5.
Capital
Capital was divided into operating and investment capital. 
Operat-
ing capital is the money used to purchase items normally used in one
production period, such as fertilizer, feed, seed, and seasonal 
labor.
Investment capital is the amount of money tied up in resources used for
more than one production period. Examples are machinery, storage
facilities, buildings for livestock, livestock equipment, breeding herds,
and land. However, land was not included in the investment capital
figures in this publication since returns were figured as the net
returns to resident labor, management, and land,
Table 5,. Monthly Distribution of Resident Labor for Specified Labor
Forces, Wiregrass Area, Alabama
MonthLabor 
force
Month Part-time man One man Two men
Hours Hours Hours
January . . .. ... . . . ... 35 206 
391
February. . . . . . . . .
. . 30 19h 
369
March .......... ,....... 0 239 h
April ................. 39 231 )39
May ............... 66 266 505
June. ........ . . . . . 6L 297 h88
July ........... . . . 6 257 h88
August ............. 66 266 300
September ........ . . . . . 6 297 h88
October .............. . 0 239
November .. ....... . . . .. 33 199 378
December ......... . ... 39 206 391
Total .... . . . . . 76 2,817 5, 30
19
Operating capital estimates were computed on the basis of the
length of time the funds were used. Time is expressed as a fraction
of a year. For example, $12 worth of nitrogen applied 4 months before
harvest would add $h ($12 times 1/3) to operating capital. No
additions were made to operating capital if substantial returns
occurred within 30 days after incurring an expense. Thus, harvesting
costs were not included in operating capital.
Investment capital, as used in this report, is the average value
over] he life of an input, and not a new cost. For example, a fence
that costs $1,000 to build was considered as $500 of investment
capital, since this is the average value of the fence over its useful
life.
Interest at 6 per cent on both operating and investment capital
(other than investment in land) is included as an expense in the
optimum farm plans, regardless of whether the capital is owned or
borrowed.
Representative Farms
The farms of the area were classified into five major groups
according to size (cropland plus open pasture). One of these
groups, 0 to 9.9 acres of open land, was considered as nonfarm rural
residences. They were not considered in the study. A representative
farm was selected for each of the other four groups, (Table 6). The
classifications and representative farms were determined from a 10
per cent sample of the Agricultural Stabilization and Conservation
Service farm records in the area.
20
Table 6. Farm Size Groups, Representative 
Farm Sizes, Wiregrass Area,
Alabama
Size group Acreage on
(acres of open land) representative farms
Open Plowable Row crop
Nonfarm (0 to 9.9) ....... ,
Small (10 to 49.9) . ... . . . .
31 26.6 17.9
Medium (50 to 149) ., . . . . . . 81 
69.5 46.7
Large (150 to 249) . . . . . . 18h 157.9 106.1
Extra large (250 and over) .. . 438 37.8 22.6
-Farms with less than 10 acres of open land considered as rural
residences.
OPTIMUM ORGANIZATIONS FOR REPRESENTATIVE FARS
The organization of individual farms is determined by personal
preferences and the availability of resources as well as potential
profits. However, the use in this study of the term "optimum" denotes
only profit maximization. Using the base prices for farm products,
optimum programs were computed for each representative farm: (1) with
all activities considered, (2) with Coastal bermudagrass hay selling
excluded, and (3) with hay-selling and corn-buying activities excluded.
For the third group, programs were computed with five cotton prices
and three prices of other commodities to show the effect of product
price variations on farm organization.
Small Farm
The representative small farm had 31 acres of open land with 17.9
acres available for cultivation in row crops. The farm was suitable for
a part-time operation with the owner working full time off the farm and
operating the farm enterprises after work and on Saturdays. The farm
21
was not large enough to provide a reasonable income for a full-time
operator. Hog production was the only livestock enterprise that the
farm was large enough to support. A two-plow tractor and appropriate
land preparation, planting, and cultivating equipment was assumed to
be owned by the operator. As no harvesting equipment was assumed to
be owned by the farm operator, all crops were custom harvested.
When all enterprises were considered and base prices assumed, the
optimum farm organization included 11.9 acres of cotton, 6.0 acres of
peanuts, 8.7 acres of oats, and 4.h acres 
of idle land, (Table 7).
Total investment capital other than land was $2,226 and operating capi-
tal was $523. The optimum plan required 156 hours of resident labor
and 46 hours of hired seasonal labor. Net return to resident labor,
land, and management was $1,086.
Since neither the corn-buying nor the hay-selling activity entered
the optimum porgram when all enterprises were considered, the remaining
two programs are identical with the first.
Programming with corn-buying and hay-selling activities
eliminated was expanded to determine the effects of changes in cotton
and peanut prices on optimum farm organization. With peanuts at base
price, cotton prices were varied from 15 to 35 cents per pound (Table 8).
No cotton was produced until a price of just over 20.0 cents per pound,
when all of the high-yield cotton entered the optimum program. At a price
of 21.4 cents per pound, 3.7 acres of the medium cotton entered the
program, and the remaining 1.7 acres entered at a price of 31.0 cents.
All of the high-yield peanuts were planted until cotton price reached
31 cents. Between cotton prices of 31.0 and 35.0 cents, peanut
acreage declined from 6 acres to 1 acre.
22
Table 7. Optimum Farm Plans, Small Farm, Part-Time Operator Labor Force,
Advanced Technology, Base Prices for All Products, Wiregrass
Area, Alabama
Program assumptions
Enterprise 
Unit All 
Hay- Corn-buying
enterprises selling 
and
included excluded 
hay-selling
excluded
Land Use
Cotton, high yield Acre 8.2 8.2 8.2
medium yield Acre 3.7 3.7 3.7
Peanuts, high yield Acre 6.0 6.0 6.0
Oats Acre 8,7 8.7 8.7
Idle open land Acre 4.h h.
Cotton sold Cwt, 72.7 72.7 72.7
Peanuts sold Ton 6.0 6.0 6.0
Capital
Investment* Dol. 2,226 2,226 2,226
Operating Dol. 523 523 523
Resident labor used Hour 156 156 156
Seasonal labor hired Hour L6 h6 46
Net return to resident
labor, management,
and land Dol. 1,086 1,086 1,086
*Investment capital does not include the investment in land.
Resident Labor Distribution
Program Dec.
assumptions Jan. Mar. Apr. May June July Aug. Sept. 
Oct. Nov. Total
Feb.
Hours
All enterprises
considered 20 1 28 27 32 17 6 6 5 1 156
Hay-selling
excluded 20 1 28 27 32 17 6 6 5 1 156
Corn-buying and
hay-selling
excluded 20 lh 28 27 32 17 6 6 5 1 156
Resident labor
available 100 h0 39 66 64 64 66 64 40 33 576
Table 8. Optimum Program, Small Farm, Part-Time Labor Supply,
Specified Prices for Cotton and Peanuts, Other Enterprises
at Base Price, Advanced Technology, Wiregrass Area, Alabama
Enterprise Unit 
Cotton prices (cents per 
pound of lint)
15.0 20.0 25. 30.0 35.0
Peanuts at base prices
Cotton
Peanuts
Corn
Oats
Pasture"
Idle open land
So ws
Capital
Investment.,-,
Operating
Resident labor
Seasonal labor
Acre
Acre
Acre
Acre
Acre
Acre
No.
Dol.
Dol.
Hour
Hour
11.9
4.4
4. 3
4.4
3.7
2,886.00
676.1
331.9
22.5
6.0
11.9
4.4
4.3
4.4
6.0
8.7
4.4
i11.9
6.0
8.7
4.4
1.0
8.7
4.h
3.7
2, 886.00
676.4.1
331.9
22.5
2, 2256
522.96
4.6.5~
2,225.6
522.96
16.5
46.5~
2,300.06
561.05
169.3
.7 .1
Net revenue"'" Dol. 751.92 751.92 l,085.77 1,449.37 1,851.44
Peanuts at 30% below base prices
Cotton
Peanuts
Corn
Oats
Pasture"
Idle open land
Sows
Capital
Inves tment"-,"
Operating
Resident labor
Seasonal labor
Net revenu \ Dol . 46.52 65.52 821.85 1,309.44 
1,803.44
(Contiiued)
23
Acre
Acre
Acre
Acre
Acre
Acre
6.0
11.9
4.4
4.3
4.4
13.6
4. 3
8.7
4.4
16.9
1.0
8.7
4.4
No.
6.0
11.9
4.m3
4.4
3.7
2,886.00
676.41
331.9
22.5~
16.9
1.0
8.7
4.4
3.7
Dol.
Dol.
Hour
Hour
2,886.00
676.41
331.9
22.5~
2,250.6
535.74
50 .0
2,300.06
169.3
57.1
2,300.06
169.3
5.1
24
Table 8. (Continued) Optimum Program, Small Farm, Part-Time Labor
Supply, Specified Prices for Cotton and Peanuts,
Other Enterprises at Base Price, Advanced
Technology, Wiregrass Area, Alabama
Enerprise Unit Cotton prices (cents per pound of lint)
15.0 20,0 25,0 30,0 -35,0
Peanuts at 30% above base prices
Cotton Acre -11.9 11.9 11.9
Peanuts Acre 6,0 6,0 6.0 6.0 6.0
Corn Acre 11,9 11.9
Oats Acre 4.4 4.4 8. 7 8,7
Pasture" Acre 43' .3 -
Idle open land Acre 4.4 4o4 4.4 4.4 4.4
Sows No. 3.7 3.7
.Capital
Investments Dol. 2, 886.00 2,886.00 2, 225,56 2, 225,56 25225o5~6
Operating Dol. 676. 41 676. 41 522, 96 522, 96 522,.96
Resident labor Hour 331.9 331.9 15. 165 5.
Seasonal labor Hour 22,5 22,5 46.5 46,5 6,
Net revenue*' Dol,, 1, 038 x32 1,038.32 1, 372.17 1, 735.77 2, 099.37
*Some hay was harvested from pasture.
"'"Investment capital does not include the investment in land,
""'Net return to resident labor, management, and land,
Some corn and hogs were produced at low cotton prices but these
enterprises were completely eliminated when cotton reached 21.4
cents. The corn land was shifted to cotton production and the hog
pasture was used to increase the oats acreage.
With peanut prices at 30 per cent below base price, optimum
farm organizations followed the same pattern. However, the last 1.7
acres of medium-yield cotton entered the optimum program at 22.7 cents
per pound rather than 31.0 cents, and the low-yield cotton entered the
program at 25.4 cents for cotton compared with 35.0 cents with peanuts
at base price. Thus the decline from 6 acres to I acre of peanuts
occurred between cotton prices of 22.7 and 25.4 cents per pound.
With peanut prices at 30 per cent above base prices, optimum
programs were again the same as above through the 21.h-cent cotton
price. However, the last 1.7 acres of medium-yield cotton and the
low-yield cotton did not enter the optimum program below 35 cents
per pound. Six acres of peanuts were produced at all cotton prices.
Cotton prices were then held at base, while peanut prices were
varied from $96 to $224 per ton (Table 9). One acre of peanuts entered
the optimum program at a price of $104.50 per ton. At a price of $110.06
per ton, peanut acreage increased to 4.3 acres by replacing the low-
yield cotton. Peanuts reached their rotational restriction of 6 acres
at $125.46 per ton by replacing 1.7 acres of medium-yield cotton.
These programs indicate that cotton and peanuts are the only really
profitable enterprises on the small farm
- 
Reliance on custom work for
all harvesting operations eliminated Coastal bermudagrass hay
production and, along with low yields, made corn production a marginal
alternative. The 8.7 acres of oats added only $67 to returns to land,
resident labor, and management.
26
Table 9. Optimum Program, Small Farm,Part-Time Labor Supply,
Prices for Peanuts and Cotton,-Other Enterprises at
Advanced Technology, Wiregrass Area, Alabama
Specified
Base Price,
Enterprise Unit Peanut prices (dollars per ton)
Cotton at base prices
Cotton Acre 16.9 11.9 11.9 11.9 11.9
Peanuts Acre - --- 6.0 6.0 6.0 6.0
Corn Acre 1.0
Oats Acre 8.3 8.7 8.7 8.7 8.7
Pasture -- Acre-----
Idle open land Acre 4,.4 
4@4h4.4 
4
.L,4
Sows No. .31
Capital
Investment ]Dol. 2,37OJLO 2, 225 v6 25225e56 23225e56 21225i6
Operating ]Dol. 58i.58 522.96 p22.96 522,.96 522, 96
Resident labor Hour .186.K6 ij6,5 15.5 1505 15,
Seasonal labor Hour 57.2 L465 6.5 
465 6o
Net revenue""" Dol. 807,92 89h. 83 1,O085.77 1,276.72 l,h467.66
"Some hay was harvested from pasture.
~"Investment capital does not include the investment in land.
***Net return to resident labor, management, and land.
27
Medium Farm
The representative medium farm had 81 acres of open land with
L6.7 acres available for row crop production. A one-man resident
labor force was assumed. The equipment consisted of a two-plow
tractor and appropriate land preparation, planting, and cultivation
equipment. As no harvesting equipment was assumed to be owned by
the farm operator, all crops were custom harvested.
When all enterprises were considered and base prices assumed,
cotton and peanuts were the main sources of income (Table 10). The
farm organization consisted of 26.6 acres of cotton, 15.6 acres of
peanuts, 22.8 acres of oats., and 19 steers and the roughage needed
to feed them. Corn was purchased to feed the steers. Total invest-
ment capital other than land was $h,lhO and operating capital was
$3, 885. A total of 58h hours of resident labor and 166 hours of
seasonal labor was used in production. The highest labor use was
in April, when 36 per cent of the available resident labor was used.
Net return to resident labor, land, and management was $3,222.
Since no Coastal bermudagrass hay was produced for sale in the
above program, the elimination of this alternative did not change the
optimum program. When corn-buying was excluded, the optimum
combination of enterprises did change. The steer enterprise was
eliminated and the nonplowable open land that had been used for
hay and pasture was left idle. Land that had been used for corn
silage was shifted to cotton production. Investment capital
dropped from $h, lhO to $2,510, while operating capital declined from
$3,885 to $1,366. Resident labor required was 1,366 hours and hired
seasonal labor requirements were Lh33 hours. Even with these changes,
28
Table 10. Optimum Farm Plans, Medium Farm, One-Man Labor Force, Advanced
Technology, Base Prices for All Products, Wiregrass Area,
Alabama
Program assumptions
AllHaCorn-buying
Enterprise Unit 
All Hay-and
enterprises selling
included excluded 
hay-selling
excluded
Land Use
Cotton, high yield Acre 21. 21.4 21.4
medium yield Acre 5.2 5.2 9.7
Peanuts, high yield Acre 15.6 15.6 15.6
Oats Acre 22.8 22.8 22.8
Corn silage Acre 4.5----
Pasture (and hay) Acre 11. 11,----
Idle open land Acre ---- 11.5
Sters,, No. 19.2 19.2
Corn purchased Bu. 674.7 674.7
Hay produced Ton 14.4 14.4
Cotton sold Cwt. 163.7 163.7 189.7
Peanuts sold Ton 15.6 15.6 15.6
Capital
Investment* Dol . 4,140 ,140 2,510
Operating Dol. 3,885 3,885 1,366
Resident labor used Hour 584 58 433
Seasonal labor hired Hour 166 166 130
Net return to resident
labor, management,
and land Dol, 3,222 3,222 3,175
*Investment capital does not include investment in land.
Resident Labor Distribution
Dec.
Program Jan. Mar. Apr. May 
June July Aug. Sept. Oct. Nov. Total
assumptions 
Feb.
Hours
All enterprises
considered 103 5 83 72 76 60 39 46 33 17 584
Hay-selling
excluded 103 55 83 72 76 60 39 46 33 17 584
Corn-buying and
hay-selling
excluded 60 38 73 71 83 45 19 26 14 4 433
Resident labor
available 606 239 231 266 257 257 266 257 239 199 2,817
29
net return to resident labor, land, and management declined only $47
to $3,175, Thus the programs are almost identical from an income
standpoint.
With both hay-selling and corn-buying activities eliminated and
with peanuts at base prices, there was no cotton in the optimum farm
plan at a cotton price of 15 cents per pound (Table 11). This plan
consisted of the maximum permitted acreage of high-yield peanuts
(15.6 acres) along with 13 acres of oats, 355 steers, and the feed
required by the steers. The maximum acreage of high-yield cotton
(21.) entered the optimum plan with cotton between 21.1 and 21.8
cents, while the steer and feed enterprises declined and oats
increased to 22.8 acres. At a cotton price of 23.2 cents per pound,
9.7 acres of medium-yield cotton entered the plan and the steer and
feed enterprises were completely eliminated. The remaining h.3 acres
of medium-yield cotton was included in the plan at a cotton price of
31.1 cents and peanuts declined a like amountk
With peanut prices at 30 per cent below base, somewhat different
changes took place but at slightly lower cotton prices. The high-
yield cotton entered the optimum program between 21.1 and 21.3 cents per
pound of lint. Both the steer and feed enterprises and the peanut
enterprise were reduced as the cotton entered the program. At a cotton
price of 22.8 cents the remaining 8.5 acres of peanuts were replaced by
medium-yield cotton. At 23.3 and 26.1 cents, the remaining .5 acres
of medium-yield cotton and 8.7 acres of low-yield cotton entered the
optimum program and the size of the steer and feed enterprises were
further reduced.
The low-yield cotton did not enter the optimum program until the
cotton price reached 35.1 cents per pound.
Table 11. Optimum Program, Medium Farm, One-Man Labor Supply, Specified
Prices for Cotton and Peanuts, Other Enterprises at Base
Price, Advanced Technology, Wiregrass Area, Alabama
Enterprise Unit Cotton prices (cents per pound of lint)
1500 20.0 25. 30.0 3.0
Peanuts at base prices
Cotton
Peanuts
Corn
Oats
Corn silage
Pasture.
Idle open land
Steers
Capital
Investment~H
Operating
Resident labor
Seasonal labor
Net revenue %H&%
Acre
Acre
Acre
Acre
Acre
Acre
Acre
15. 6
22.7
13.0
8.94
21.3
15. 6
22.7
13.0
8.4
21.3
31.1
15. 6
22.8
11.5~
31.1
,5. 6
22.8
11.5
35.4
11.3
22.8
11.5
Mo .
Dol.
Dol.
Hour
Hour
Dol.
51 280.41
5614. 32
635.3
147.1
5.j 280 .41
5,614.32
635.3
147.1
2,509,83
1, 366. 07
433.2
130.4
2,509,83
1,366.07
433.2
130.4
2,4.82.78
1,398.79
4.41.2
139.5
Peanuts at 30% below base prices
Cotton
Peanuts
Corn
Oats
Corn silage
Pasture,,
Idle open land
Steers
Capital
Investment
Operating
Resident labor
Seasonal labor
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
Dol.
Dol.
Hour
Hour
.6
22.7
13.0
8.4
21.3
35.5
,5, 280. 41
5, 614.32
635.3
147.1
l15.6
22.7
13.0
8.4
21 .3
5,280,41
5614. 32
635. 3
147.1
3 .4
8.3
22.8
3.0
7.7
3.8
12.9
3, S02. 92
3,086.83
5.7.2
171. 2
544.1
1.9
22.8
.7
1.8
9.7
3.0
2, 662.34
7-,853.92
48200
165.1
44.1
1.69
22.8
.7
1.8
9.7
3.0
2, 662.34
1,853.92
482.*0
165.4
Net revenue" Dol 1,838.93 1, 838.93 2,513.83 3,755.15,0
1
3.7
6
(Continued)
30
2,861 258.3 ,1505 1,2.6 517.)
31
Table 11. (Continued) Optimum Program, Medium Farm, One-Nan Labor
Supply, Specified Prices for Cotton and Peanuts,
Other Enterprises at Base Price, Advanced
Technology, Wiregrass Area, Alabama
Enterprise Unit Cotton 
prices (cents per pound of lint)
Peanuts at 30% above base prices
Cotton Acre ---- 31.1 31.1 31.1
Peanuts Acre 15.6 i1.6 5.615,6 i5.6
Corn Acre 22.7 22.7
Oats Acre 13.0 13.0 22.8 22.8 22.8
Corn silage Acre 8.4 8--
-Pasture* Acre 21.3 
21.3
Idle open land Acre -ll.5 ll.5 116
Steers No. 3535 
3-----
Capit nt" Dol. 5, 280.41 5,280.h1 2, 509.83 2, 509.83 2, 509953
Operating Dol. 5,6lh.32 5,6lh.32 1, 366.07 1,366.07 1, 366.07
Resident labor Hour 635 *3 635.3 433.2 
433.2 433.2
Seasonal labor Hour 1h.7. 1h.7 .l l30, ,4 130#4 l30.L04
Net revenue"'"'"Dol. 3, 333.33 3,9333.e33-..3,922.26 h,870086 5,819..6
*Some hay was harvested from pasture.
"Investment capital does not include the investment in land.
~""Net return to resident labor, management, and land.
32
With peanuts at 30 per cent above base price, the 21.h acres of
high-yield cotton entered the optimum plan at prices between 21.1 and
21.8 cents per pound of lint while steer numbers were reduced from
35.5 to 11.1 head. At a cotton price of 23.3 cents, the remaining
steers were eliminated and 9.7 acres of medium-yield cotton entered
the optimum plan. No other changes took place as cotton prices were
increased to 35 cents,
When cotton prices were held constant at the base price and
peanut prices were varied, 11.3 acres of peanuts entered the optimum
plan at a price of $11.80 per ton (Table 12). The remaining L.3
acres of high-yield peanuts were included at $12L.73 per ton. At
the lower price peanuts replaced corn and corn silage for steers,
while the last ).3 acres of peanuts replaced medium-yield cotton.
The 81-acre farm is very inefficient from a labor use standpoint.
Only during April was as much as 35 per cent of the available resident
labor used. An operator on this size farm could get a part-time farm
job or add a labor-intensive enterprise such as poultry. If he relied
strictly on the organizations outlined above his income potential was
quite low.
Large Farm
The representative large farm had 184 acres of open land, of which
106.1 acres were suitable for row crops. The resident labor supply
consisted of one man. A three-plow tractor with appropriate land
preparation equipment and four-row planting and cultivation equipment
was assumed. All harvesting equipment except a cotton picker was
owned.
33
Table 12. Optimum Program, Medium Farm, One-Man Labor Supply,
Prices for Peanuts and Cotton, Other Enterprises at
Price, Advanced Tachnology, Wiregrass Area, Alabama
Specified
Base
Enterprise Unit 
Peanut prices (dollars per 
ton)
96 12 160 192 22
Cotton at base prices
Cotton Acre 35.4 31.1 31.1 31.1 31.1
Peanuts Acre ---- 15,6 15.6 1565.6
Corn Acre 8.3
Oats Acre 22.8 22.8 22.8 22,8 22.8
Corn silage Acre 3.0 ----
Pasture* Acre 7.7
Idle open land Acre 3.8 11.5 1.5 1165 116
Steers No. 12.9
Capital
Investment" %Dol. 3, 502.92 2, 509.83 2-509e83 2, 509.83 2, 509.83
Operating Dol. 3,086.83 1,366.07 1,366.07 1,366.07 1,366.07
Resident labor Hour 5L7.2 4.33.2 4.33.2 433.2 4133.2
Seasonal labor Hour 171.2 130.04 130.4L 130.v4 130.e4
Net revenue' Dol. 2.9513-75 2, 676.85 3,175.05 3, 673.19 4,171.34
*Some hay was harvested from pasture.
/Investment capital does not include the investment in land.
""~et return to resident labor, management, and land.
34
When all enterprises were considered and base 
prices were assumed
for cotton and peanuts, the optimum plan consisted 
of 69.6 acres of
cotton, 35.1 acres of peanuts, 75.0 acres of 
Coastal bermudagrass hay,
4.8 steers, and roughage for the steers (Table 13). A total of $3,840
of operating capital and $11,)05 of investment capital other than 
land
was required. Labor requirements were 1,203 hours 
of resident labor and
942 hours of hired seasonal labor. Labor was restricting only 
in June.
Net return to operator labor, land, and management was $9,661.
When the sale of Coastal bermudagrass hay was prohibited, 72 steers
and 23.7 beef cows entered the optimum program. Cotton acreage declined
to 53.7 acres, 17.0 acres of row cropland was used for corn silage
production, and peanut acreage remained constant at the maximum acreage.
A total of 2,535.4 bushels of corn was purchased to feed steers.
Capital requirements increased sharply because of the 
steers and beef
cows. Investment capital other than land increased to $18,163 
and
operating capital rose to $12,476. Resident labor requirements 
increased
to 1,418 hours but hired seasonal labor was reduced to 352 hours. Net
returns to resident labor, land, and management declined significantly
to $8,219.
Eliminating the corn-buying activity caused considerable changes
in the optimum combination of enterprises but had little effect on net
revenue. Cotton was increased to 70.7 acres and peanut acreage remained
at 35.4. Oats replaced Coastal on the plowable land not suited for
row crops. The 22.3 acres of nonplowable open land was used to produce
pasture and hay for 15.2 beef cows. Investment capital other than land
declined to $11,410 and only $3,690 of operating capital was required.
Net returns to operator labor, land, and management declined only $55
to $8,164.
Table 13. Optimum Farm Plans, Large Farm, One-Man Labor Force, Advanced
Technology, Base Prices for All Products, Wiregrass Area,
Alabama
Program assumptions
Corn-buying
Enterprise Unit 
All Hay- 
and
enterprises selling
included 
excluded 
hay-selling
excluded
Land Use
Cotton, high yield Acre 48.6 48.6 48.6
medium yield Acre 21.0 5.1 22.1
Peanuts, high yield Acre 35.h 
35.4 35.h
Oats Acre ---- ---- 51.8
Coastal hay Acre 75.0 ---- 3.8
Corn silage Acre 1.1 17.0
Pasture (and hay) Acre 2.9 77.9 22.3
Steers No. .8 72.0----
Beef cows No. ---- 23.7 15.2
Corn purchased Bu. 168.9 
2, ----
Hay produced Ton 378.7 5.0 
19.2
Cotton sold Cwt. 424.5 333.3 
431.0
Peanuts sold Ton 35.4 35.4 35.
Hay sold Ton 3771 ---- 
----
Capital
Investment" Dol. 11, 05 18,163 11,410
Operating Dol. 3,840 12,476 3,690
Resident labor used Hour 1,203 1,418 947
Seasonal labor hired Hour 942 352 266
Net return to resident
labor, management,
and land Dol. 9,661 8,219 8,164
*Investment capital does not include investment in land.
Resident Labor Distribution
Dec.
Program Jan. Mar. Apr. 
May June July Aug. Sept. Oct. 
Nov. Total
assumptions 
Feb.
Hours
All enterprises
considered 108 81 96 193 257 180 59 170 50 9 1,203
Hay-selling
excluded 264 124 l 94 138 146 117 200 112 78 1,418
Corn-buying and
hay-selling
excluded 113 64 99 112 173 102 83 137 43 21 947
Resident labor
available 606 239 231 266 297 297 266 297 239 199 2,817
36
With peanuts at base price and corn-buying and hay-selling
activities eliminated, no cotton entered the optimum program until
the cotton price reached 19.1 cents per pound (Table 14). Below this
level the optimum program consisted of 35.4 acres of peanuts, 23.7
beef cows, 72 steers, and the feed crops for the livestock. A total
of 420 bushels of corn was produced for sale. At 19.1 cents, 7.6
acres of cotton replaced the corn for sale. At a cotton price of
21.3 cents per pound, the remaining 41 acres of high-yield cotton and
5O.6 acres of oats entered the optimum program and the feed and live-
stock activities were reduced accordingly. A total of 22.1 acres of
medium-yield cotton were added between prices of 22.7 and 22.9 cents
per pound, while steers and their feed were eliminated and beef-cow
numbers increased to 15.2. The remaining 9.6 acres of medium-yield
cotton entered the program at 32.8 cents while peanuts were reduced
a like amount5/
Changing the price of peanuts to 30 per cent below base price
had no effect on the optimum combination of enterprises up to and
including the changes at a cotton price of 22.9 cents per pound,
However the last 9.6 acres of medium cotton replaced a like
acreage of peanuts when cotton reached 24.4 cents as compared with
32.8 cents with peanuts at base price, Another 19.7 acres of
peanuts was replaced by low-yield cotton at a cotton price of 27.4 cents
per pound.
lihen the peanut price was raised to 30 per cent above base price,
the optimum farm plans were again identical up through the 22.9-cent
i/Low-yield cotton did not enter the optimum program until cotton
prices reached 37 cents per pound.
37
Table 114. Optimum Program, Large Farm, One-Man Labor Supply, Specified
Prices for Cotton and Peanuts, Other Enterprises at Base
Price, Advanced Technology, Wiregrass Area, Alabama
Enterprise 
Unit Cotton 
prices (cents 
per pound of lint
15.0 20.0 25.0 30.0 35.0'
Peanuts at base prices
Cotton
Peanuts
Corn
Oats
Coastal hay
Corn silage
Pasture*
Cows
Steers
Capital
Investment/
Operating
Resident labor
Seasonal labor
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No.
Dol.
Dol.
Hour
Hour
53. 7
17.0
77.9
23.7
72.0
19,237.71
11,697.29
1, 286.14L
402.0
7.6
35.E
46,v1
17.0
77.9
23.7
72.0
19,0814o98
11,808.02
3914.9
70.7
35 .14
3.8
22.3
15. 2
11,1409.0 81
3, 690.06
9L ~.9
266.3
70.7
3 .14
51. 8
3.8
22.3
15. 2
11,1409,81
3,690.06
94.x
266.3
80.3
3.8
22.3
15, 2
10,9743
3, 792.114
958.14
261.9
Net revenue""" Dol. 6, 69 .13 6,703.72 8,163.93 10, 319.03l2,97.72
Peanuts at 30% below base prices
Cotton
Peanuts
Corn
Oats
Coastal hay
Corn silage
Pasture'
Cows
Steers
Capital
Inve stment""
Operating
Resident labor
Seasonal labor
Net revenue
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No .
Dol.
Dol.
Hour
Hour
Dol.
135.4
3. 7
17,0
77.9
23.7
72.0
19, 237.71
11,697.28
1, 286.
102.0
7.6
46.1
17.0
77.9
23.7
72.0
19, 0814. 98
11,808.02
1,5305-r3
3914.9
80.3
51.8
3.8
22.3
15. 2
10, 971453
3, 792. 14
958.14
261.9
100.0
6.1
3.8
22.3
15. 2
10,078,18
4,002.314
9814.2
252.9
4,961.83 5,06.12 6,1499.1 9,186.26
100.0
6.1
3.8
22.3
15. 2
10,078.18
4,002.314
9814.2
25 2.9
12,108.86
(Continued)
(Continued) Optimum Program, Large Farm, One -Nan Labor
Supply, Specified Prices for Cotton and Peanuts,
Other Enterprises at Base Price, Advanced
Technology, Wiregrass Area, Alabama
Enterprise Unit Cotton prices (cents per pound of lint)
Enert 150 20.0 250 30.0 
33.0
Peanuts at 30% above base prices
Cotton Acre ---- 76 707 70.7 70.7
Peanuts Acre 35*A 35.4 35.
4
. 35.h435.L
Corn Acre 53.7 46.1
Oats Acre ---. 8 51.8 51,8
Coastal hay Acre 3.8 3.8 3.8
Corn silage Acre 17.0 17.0
PastureX Acre 77.9 77.9 22.3 22.3 22.3
Cows No. 23.7 23.7 15.2 l5,2 15.2
Steers No. 72.0 72.0 -- -- --
Capital
Investment & Dol. 19,237.71 19,084.98 11,409.81 11,4L09.,81 11,409.81
Operating Dol. 11, 69 7.29 11,808.02 3,690.06 3, 690.06 3,690.06
Resident labor Hour 1, 286.4L1,305.3 9L15,9 9L15.9 945~.9
Seasonal labor Hour 402.0 394.9 266.3 266.3 266.3
Net revenue Iol ,357.02 8,401.31 9,537.4L 11,084 .71 12,632.01
*\Some hay harvested from pasture.
~Investment capital does not include the investment in land.
-,%%Ntreturn to resident. labor, management, and land.
38
Table 14.
39
cotton price. However, no additional cotton was brought into the opti-
mum program as cotton prices were increased to 35 cents per pound.
With cotton prices held constant at base price, 25.8 acres of
peanuts entered the optimum program at peanut prices between $102.23
and $103.61 per ton (Table 15). The peanuts replaced corn and corn
silage for steers. Peanuts reached their rotational restriction of
35.4 acres at a price of $115.43 per ton. The last 
9.6 acres of
peanuts replaced medium-yield cotton.
A one-man resident labor force could handle more land than
was included in the large farm, and still have enough time to
handle maintenance chores, under most of the organizations out-
lined above. The larger acreages and owned harvesting equipment
made Coastal bermudagrass hay a relatively more profitable
alternative than on the two smaller size farms.
Extra Large Farm
The representative extra large farm contained h38 acres of
open land, of which 252.6 acres were suitable for row crops. It
was programmed with a resident labor force consisting of the owner-
operator and one full-time hired man. Ten per cent of the
operator's time was assumed to be used to supervise hired labor.
Two 3-plow tractors, two sets of appropriate land preparation and
h-row cultivation equipment, and one set of planting equipment were
assumed. All harvesting equipment including a 2-row cotton picker
was owned.
When all enterprises were considered and base prices were
used, all of the high-yield cotton (l.7 acres) but none of the
medium-yield cotton entered the optimum plan (Tble 6) Tho maximum
40
Table 15. Optimum Program, Large Farm, One-Man Labor Supply, Specified
Prices for Peanuts and Cotton, Other Enterprises at 
Base
Price, Advanced Technology, Wiregrass Area, Alabama
Enterprise Unit Peanut prices (dollars per ton)
96p125160 192 224
Cotton at base prices
Cotton Acre 80.3 
70.7 70.7 70.7 70.7
Peanuts Acre ---- 
35.4 35.4 35.4 35.4
Corn Acre 18,8 ---- __--
Oats Acre 46,0 51,8 5118 
5118 5118
Coastal hay Acre ---- 3.8 3.8 
3.8 3.8
Corn silage Acre 7.0 ---- ----
Pasture" Acre 31.9 22,3 22.3 22.3 
22.3
Cows No. 9.7 15.2 1512 
1512 1512
Steers No. 29.5 ---- -----
Capital
InvestmentKH& Dol. 10, 940.10 11,4.09,.82 11,4x09. 82 11, 409.82 11,4x09. 
82
Operating Dol. 7, 368.41L 3,690.06 3,690,06 3,690.06 
3,690.06
Resident labor Hour 1,108.5 9451.9 
9451.9 9451.9 9451.9
Seasonal labor Hour 288*.9 266.o3 
266.3 266.,3 266. 3
Net revenue Doli. 6,275.37 7,032.20 8,163.93 9, 2951.66 10,4x27 
.40
'Some hay was harvested from pasture.,
~Investment capital does not include the investment in land.
"Net return to resident labor, management, and land.
41
Table 16. Optimum Farm Plans, Extra Large Farms, Two-Nan Labor Force,
Advanced Technology, Base Prices for All Products,
Wiregrass Area, Alabama
Program assumptions
Born-burring
Enterprise Unit 
All Hay- 
and
enterprises 
selling hay-selling
included excluded -excluded
Land Use
Cotton, high yield Acre 
115,,7 115*7115*7
medium yield Acre ---- 39.1 
52.7
Peanuts, high yield Acre 8).2 84e2 84.2
Corn Acre 3:7.8
Oats Acre .3 
123.2 123.2
Coastal hay Acre 142.3 ---- 9.1
Corn silage Acre 1)4.91.
Pasture (and hay) Acre 37.8 62.2 3.1
Steers N~o. 6.0
Beef cows No. ---- 
18.9 36.3
Corn purchased 
Bu. 137.0 
2,02)4
Hay produced Ton 758.8)3l 46
Cotton sold Cwt, 723.1 9)48.1 1,026.2
Peanuts sold Ton 2 84.2 8).2
Hay sold 
Ton 737.7
Capital
Investment* Dol. 31, 662 345363 36,215
Operating Dol. 1,O)4)15,750 8,784
Resident labor used Hour 3,064 
2,718 2, 4
Seasonal labor hired Hour 2,177 851 836
Net return to resident
labor, management,
and land Dol, 23,705 21,57 21.s514
%Investment capital does not include investment in land.
Resident Labor Distribution
Program 
Dec.
assumtions Jan. Mar. Apr. Nay June July Aug. Sept. Oct. Nov. Total
Hours
L2
amount of high-yield peanuts (8.2 acres) was also grown. 
The remaining
acreage was used to produce 5.3 acres of oats, 737.7 tons 
of hay for
sale, and feed for 63.0 steers. An additional 137.0 
bushels of corn
were purchased. Operating capital of $1,044 
and investment capital
other than land of $31,662 were required. Labor used for production
included 3,064 hours of resident labor and 2,177 
hours of hired
seasonal labor. Labor was restricting in June and September. Net
return to resident labor, land, and management was $23,70 .6/
When the hay-selling activity was excluded, cotton acreage in-
creased to 154.8 acres and peanuts remained at 84.2 acres. The
Coastal was largely replaced by 123.3 acres of oats. Steer numbers
decreased to 57,.. and 18.9 beef cows entered the program. The
remaining land was used to produce roughage for livestock. 
A total
of 2,024 bushels of corn was purchased for the steers. Investment
capital other than land and operating capital requirements were
$34,363 and $15,750 respectively, Labor requirements decreased to 2,718
hours of resident labor and 851 hours of hired seasonal labor. Labor
was not restricting in any month but almost all of the September resi-
dent labor was used, Net returns to resident labor, land, and management
dropped over $2,100 to $21,57.
With the corn-buying activity eliminated, cotton acreage increased
to 168.4 acres while peanut and oat acreages remained constant. Steers
were eliminated and beef cows increased to 36.3. The remaining acreage
was used to produce feed for beef cows. Requirements for investment
6
/This figure included returns to all resident labor, including
both the operator and the one full-time hired man. To make the figure
a return to operator labor, management, and land, subtract a total of
$2,800 to account for cash wages and perquisites for the full-time hired
man.
43
capital other than land increased to $36,215 but only $8,781 of
operating capital was needed. Labor requirements declined 
to 2,454
hours of resident labor and 836 hours of hired seasonal labor. Net
returns to resident labor, land, and management declined only $43
to $21,51L.
With peanuts at base price and corn-buying and hay-selling
eliminated, 18.2 acres of cotton entered the optimum farm plan at
17.8 cents per pound (Table 17). Below this cotton price the
program consisted of 84.2 acres of peanuts, 47.9 beef cows, 192
steers, and feed for the livestock. The first 18.2 acres of cotton
reduced steer numbers to 171.5, increased beef cows to 56.5, and led
to corresponding changes in feed crops. The remaining 97.5 acres of
high-yield cotton entered the optimum plan at a cotton price of
19.8 cents per pound. The size of feed and livestock enterprises
was drastically reduced and 120.3 acres of oats were sown. A
total of 52.7 acres of medium-yield cotton entered the optimum plan
at prices between 21.7 and 22.2 cents per pound. Oats increased
to 123.2 acres. Steers were eliminated and beef cows increased to
36.3 with corresponding shifts in feed crops. The maximum acreage
of medium-yield cotton (75,8) was reached at a cotton price of 32
cents per pound. The last 23.1 acres of medium-yield cotton re-
placed a like acreage of peanuts.7/
When peanut prices were reduced to 30 per cent below base,
optimum plans were identical with those above up through a price
of 22.2 cents per pound. However, the last 23.1 acres of medium-
yield cotton replaced the same acreage of peanuts at 23.7 cents as
?/Low-yield cotton replaced 47 additional acres of peanuts at
a cotton price of 37.1 cents per pound of lint.
Table 17. Optimum Program, 
Extra Large Farm, Two-Nan Labor Supply,
Specified Prices for' Cotton and Peanuts, 
Other Enterprises
at Base Price, Advanced Technology, 
Wiregrass Area, Alabama
Enterprise 
Unit 
Cotton prices 
(cents per 
pound of lint)
15.0 20.0 25.0 
30.0 35.
Peanuts at base prices
Cotton
Peanuts
Corn
Oats
Coastal hay
Corn silage
Pasture~
Beef cows
Steers
Capital
Investment"
Operating
Resident labor
Seasonal labor
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No .
Dol.
Dol.
Hour
Hour
84. 2
123.0
45 .4
185 .4
47.9
192.2
37,066.20
30, 40 7.11
3,100.6
1,008.2
84.2
38.5~
120.3
14.2
65 .1
19.8
60.2
31,516.63
2,583. 2
848 .1
Net revenue "~ Dol. 17,016654 17,029.68 
21, 513.,86 26,644.61 3 2,168.,24
Peanuts at 30% below base prices
Cotton
Peanuts
Corn
Oats
Coastal hay
Corn silage
Pasture*
Cows
Steers
Capital
Operating
Resident labor
Seasonal labor
Net revenue'"
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No.
Dol,
Dol.
Hour
Hour
84. 2
123.0
45 .4
185 .4
47.9
192.2
37,066.20
30,407.11
3,100.6
1,008. 2
115. 7
84.e2
38.5~
120.3
14..2
65 .1
19.8
60.2
31,516,63
15,516,36
2, 583.2
8.8.1
19165
61.1
123.2
9.1
53 .1
36.3
37,993.64
9, 030.75
2,511l.9
853 ,2
238.5
14.1
123.2
9.1
53 .1
36.3
41, 612.6 4
9, 532.2).
2,629.9
888.0
Dol. 12,626.64 12,988.08 17,645.89 
24,035.15
2386
14.1
123.2
9.1
53 .1
36.3
41, 612.64
9,532. 24
2,629.9
888.0
31, 005.00
(Continued)
44
168.4
123.2
9.1
53 .1
36.3
36, 214.94
8,784.27
2,453.9
836 .1
168.4.
84. 2
123.2
9.1
53 .1
36.3
36, 214.94
8, 784. 27
2,153.9
836.1
19165
61.1
123.2
9.1
53 .1
36.3
37,993.64
9,030.75
2,511.9
853.2
(Continued) Optimum Program, Extra Large Farm, Two-Nan Labor
Supply, Specified Prices for Cotton and Peanuts,
Other Enterprises at Base Price, Advanced
Technology, Wiregrass Area, Alabama
Enterprise 
Unit Cotton 
prices (cents 
per pound of lint)
15.0 20.0 25.0 30.0 35.0
Peanuts at 30% above base prices
Cotton Acre ---- 1 7 1684 168.4 168.4
Peanuts Acre 84.2 8h.2 84.2 8h.2 84.2
Corn Acre 123.0 38,5
Oats Acre ---- 120.3 123.2 123.2 123.2
Coastal hay Acre 9.1 9.1 9.1
Corn silage Acre 44L . 14.2
Pasture', Acre 185.4 65.1 53.1 53.1 
53.1
Cows No. 47.9 19.8 36.3 36.3 36.3
Steers No. 192.2 60.2 -- -- --
Capital
Investment'"" Dol., 37,066.20 31, 516.63 36,214,p94 36, 214 *94 36, 214.94
Operating Dol. 30,407.11 15,516.36 8,784.27 8,784.27 8, 784.27
Resident labor Hour 3,100.6 2,583.2 25453-o9 21453.9 29453,o9
Seasonal labor Hour 1,008.2 848.1 836.1 836.1 836.1
Net revenue~' , " Dol. 20,709.84 21, 071. 28 25,$55.73 30, 686 .4L8 35, 817.23
cSome hay was harvested from pasture.
"'Investment capital does not include the investment in land.
*cNet return to resident labor, management, and land.
Table 17.
L6
compared with 32 cents with peanuts at base price. The maximum possible
low-yield cotton (L7.0 acres) replaced a like acreage of peanuts at a
cotton price of 27.5 cents per pound.
With peanuts at 30 per cent above base price, optimum plans were
again identical through cotton prices of 22.2 cents per pound. However,
no additional cotton entered the plan up through cotton prices of 35
cents per pound of lint.
When cotton price was held constant at base price and peanut price
was varied, 10,7 acres of peanuts entered the optimum plan at a peanut
price of $100.32 per ton (Table 18). An additional 50.4 acres of
peanuts were planted at $103.18 per ton, Maximum acreage of high-yield
peanuts was reached at a price of $119.53 per ton. At this price the
total agronomic limit of peanuts (8L.2 acres) was reached. The
remaining 23,1 acres of peanuts replaced a like acreage of cotton.
Comparison of Responses for Different Size Groups
On the two largest size farms, beef cows or steers utilized the
nonplowable open land with steers entering the optimum plan at low cotton
or peanut prices. On the medium farm, steers utilized the nonplowable
open land at low cotton or peanut prices but it was idle at higher prices.
Nonplowable open land was always idle on the small farm. However, 
hogs
entered the optimum plan on small farms at low cotton 
or peanut prices.
Otherwise, the Wiregrass representative farms were primarily crop farms
with the main sources of income being cotton and peanuts.W
/
8_/If current allotments had been used, there would still be
considerable land available to produce feed for livestock.
Table 18., Optimum Program, Extra Large Farm, Two-Nan Labor Supply,
Specified Prices for Peanuts and Cotton, Other Enterprises
at Base Price, Advanced Technology, Wiregrass Area, Alabama
Enterprise Unit Peanut prices (dollars per ton)
96 12 160 192 22
Cotton at base prices
Cotton Acre 191.5 168.4 168.4 168.4 168.4
Peanuts Acre 84.2 84.2 84.2 84.2
Corn Acre 44.6
Oats Acre 110.0 123.2 123.2 123.2 123.2
Coastal hay Acre -9.1 9.1 9.1 9.1
Corn silage Acre 75.4 53.1 53.1 53.1 53.1
Pasture%* Acre 16.5_-
Cows No. 23.0 36.3 36.3 36.3 36.3
Steers No. 
69.8
Capital
Investment-"" Dol. 38,667.31 36,214.93 36,214.93 36,214.93 36,214.93
Operating Dole 17,499,.66 8,784.27 8,7842 ,8.78742
Resident labor Hour 2,834.9 2.9453o9 2, 453.9 23453o9 25453e9
Seasonal labor Hour 921.2 836,1 836.1 836.1 836.1
Net revenu'" Dole 17, 076.49 18,819.,46 21, 513.86 24, 208.26 26,902.66
*Some hay was harvested from pasture.
"'Investment capital does not include the investment in land.
" N-et return to resident labor, management, and land.
Corn yields are the key to the poor competitive position of steers
and hogs. The 5O-bushel yield per acre leads to high feed costs. Even
with cotton and peanut prices at 20 per cent below base, these crops
had a relatively high net return per acre when compared with crops
used for livestock feed.
Producing Coastal bermudagrass hay for sale was a profitable
alternative on the two largest representative farms at base prices
for cotton and peanuts. However, it was not profitable on the smaller
farms that were not large enough to own their own hay-making equipment.
When Coastal was eliminated, either arbitrarily or because of high
custom harvesting costs, the plowable open land unsuitable for row
crops was used for oats.
The effect of corn-buying was studied only at base prices for
cotton and peanuts. When this activity was considered, it usually
entered the optimum plan. Livestock could then be produced with less
competition from these two crops. However, the elimination of corn-
buying and the resulting decline in livestock numbers had only a small
effect on net revenue. At the same time, capital and labor require-
ments were reduced sharply.
Since most of the productive labor was used in crop production,
the labor distribution on the representative farms was highly
seasonal. Furthermore, all of the available resident labor was not
used even in the peak months except in a few cases. Thus, farm size
could be expanded, especially when the corn-buying and Coastal
bermudagrass hay-selling activities were eliminated. Other alternatives
include part-time off-farm jobs; the addition of labor intensive
enterprises such as poultry or vegetables; and replacemient of hired
seasonal labor with resident labor where time and crew requirements do
L9
not interfere. Sufficient resident labor must be left above production
requirements to perform maintenance activities,
There was consistency among farm sizes as to the levels of cotton
prices required to bring cotton into the optimum plan when peanut
prices were held constant at base price. All high-yield cotton
entered the optimum plans between cotton prices of 17.8 and 21.3
cents per pound. Medium-yield cotton entered the plans in two
groups: (1) that which replaced feed crops for steers and hogs, and
(2) that which replaced peanuts . Medium-yield cotton replaced feed
crops at cotton prices of 21.h to 23.3 cents, and it replaced peanuts
at prices between 31.0 and 32.0 cents per pound. Low-yield cotton
replaced additional peanuts at prices between 35.0 and 37.1 cents
per pound. Reducing or raising peanut prices by 30 per cent,
respectively, lowered or raised the cotton price at which cotton
replaced peanuts.
When cotton price was held constant at base price and peanut
prices were varied, peanuts replaced feed grains at peanut prices
between $100.32 and $114.80 per ton. Except for the medium-size
farm the upper limit of this range would have been $10.50 per ton.
Part of the medium-yield cotton was replaced at peanut prices
ranging from $11?5.3 to $12. 46 per ton?2 Rotational restrictions
on peanuts prevented further competition with cotton.
2
/Low-yield cotton was grown on only the small farm at base
cotton prices. It was replaced by peanuts at a price of $110.06
per ton.
AGGREGATE AREA SUPPLY RESPONSE
The individual farm organizations have shown the most profitable
farm plan with the various specified situations. Usually when an
individual farmer changes his production practices or enterprise
combination, there is little effect on the overall supply of farm
products. However, if a large number of farmers adopt the same
practices and combination of enterprises, there could be a decided
effect on supply, Therefore to fully evaluate farming adjustment
alternatives, consideration should be given to the aggregate effect
of many farmers making such adjustments.
Aggregation Models
The soil base acreage determined for this study includes all
Wiregrass soils (Table 19). Some of this acreage is presently being
used for dairy farms, vegetables, and fruit and nut trees, which have
been excluded as adjustment opportunities for this study. Similarly,
the farms with 0.0 to 9.9 acres of open land were classified as nonfarm
rural residences and were not studied for adjustment opportunities.
The land utilized by these excluded situations was eliminated from
the base acreage before determining the area aggregates.
Furthermore, any number of assumptions can be made as to which
groups of farmers actually would make the specified adjustment. For
this analysis, two such sets of assumptions have been made and for
brevity each set is called a model.
Table 19. Wiregrass Soils, by Current Use and Capability Class and
Classification as Used in Study'%
Class 
Current use
Cropland Pasture
Acres Acres
I..1.1.85...... .5... 
1
lie. . ................. 61,967 861405
Its . . . . . . . . . .
18,222 3,06
II1w . . . . . . . . 26o72 10,600
ile .28, 7l1109052
IlS 228,268 50, 926
111w...................21,083 15,634
lIVe . . . . . . . . ... .. h,68 36,4h92
IVs .. . .. .. .. . . .... .l5,674 147,012
IVw .. 2,272 7,h26
Total 1,318,9)1 393,h37
Classification
usdi td~Definition Acreage
Open land . . . . . . Class I through IV cropland
and pasture 1, 712-,378
Plowable land . . . , Class I, II, and III cropland
and pasture 1, 469,034
Row cropland . . . . Class I, II,an and 2 Class Tile-
an ~ cropland and p asture 987,h50
"Current use and capability classes were determined from county
work sheets for: Alabama Conservation Needs Committee, Alabama Soil
and Water Conservation Needs Inventory published by the State Soil
Conservation Committee, 1961,
-See page 9 for definition of classifications.
52
Model One
Model One assumes that all of the farms and acreages not specifi-
cally excluded will make farming adjustments as specified by the
optimum representative farm programs for their size group.
Model Two
Model Two further assumes that there would be no adjustment
on farms and acreages that were classified as Economic Class VI, part-
time, or semi-retired farmers in the 1959 Census of Agriculture. The
acreages in these farms not previously excluded were excluded in Model
Two. All other farms would make the adjustment in farm organization as
specified by the optimum representative farm program for their size group.
Farm Size Distributions
Further variations in the aggregate estimates were made by using
two farm size distributions. The 1959 distribution represents the esti-
mated distribution of the various farm size groups and excluded situations
that existed in 1959. Using projected changes in farm sizes, an estimate
was made of the expected farm size distribution for 1975. The acreage to
be excluded for the nonadjustment alternatives and aggregating models
were estimated for the two farm size distributions (Table 20).
Table 20. Excluded Acreages of Open Land, by Type of Farm, Wiregrass
Area, Alabama
Item Farm size distribution
1959 1975
Open land acreage
Dairy, vegetables, fruits, and nuts . .. 27,900 31,500
Nonfarm rural residences ......... 9,602 12,828
Class VI, part-time and semi-retired
farmers ....... ................. ... 37,509 437,509
Total Model One exclusion ......... 37,502 hh,328
Total Model Two exclusion . . ....... 47,O11 81,837
For each model and each farm size distribution, the excluded
acreage for that situation was removed (subtracted) from the total
soil base of the area. The remainder of the soil base acreage was
then distributed to the four farm size groups (Table 21). The
acreage in each size group was then divided by the open land acreage
on the representative farm for that size group to determine the
number of representative farms for that group. These farm numbers
were used to expand the representative farm optimum programs to the
area estimates or aggregates.
Table 21. Estimated Acreages of Open Land for Aggregation and
Maximum Number of Representative Farms, by Size Groups
and by Aggregation Models, Wiregrass Area, Alabama
Size groups
(open land acreage)
Open land acreage Representative farms
Farm size distribution Farm size distribution
1959 1975 1959 1975
Acres
Small (10 - 49.9) . .
Medium (50 - 1h9.9) .
Large (150 - 249-9)0
Extra large (250 & over)
Total
Small (10 - 49-9)f
Medium (50 - 149.9). .
Large (150 - 2h9.9).
Extra large (250 & over)
Total
*207, 700
*70 3, 080
h665256
*297.9840
1,567h,5876
4 6,500
. 435,051
. L57,976
*297.$840
1,237,367
Model One
17 3,600 6, 700
457,650 8,680
65l,360 2,534
3855440 680
1,668,050 l8,594
Model Two
12,hOO 1.950
189,621 5,37:
613,0o80 '2,489
38554h0 680
1, 230,541 lo,oho0
Number
5,600
!Is,, 6iro
3,540
880
2, 311
3,195
880
7,116
_.....
The Aggregates
The foregoing assumptions established two aggregating models with
eight sets of assumptions for each. With each model, aggregate area
production and resource use can be determined at the five cotton prices
for three levels of peanut prices and for two farm size distributions.
In addition, aggregate area production can be determined at five peanut
prices for the base level of cotton prices with both farm size distri-
butions,
Model One Aggregates
The aggregates for Model One assume full adjustment to the optimum
program of all adjustable resources in the area (Appendix Tables 1
through 8). Therefore, cotton or peanut production at each price
level for any set of assumptions is an estimate of a point on a norma-
tive supply curve for cotton or peanuts for that given set of
assumptions. These points: have been plotted and the corresponding
supply curve drawn for the eight sets of assumptions in 
Model One
(Figures 2,3, and 4). The long vertical segments on the cotton supply
functions with peanuts at base price or 30 per cent above 
base show
the cotton production level at which cotton must compete 
with peanuts
for row cropland. Apparently, the comparative advantage of cotton 
over
other enterprises is greater on the larger farms than on the smaller
farms.
Model Two Aggregates
The assumption that part of the resources in the area would not
adjust causes the aggregates under Model Two to become pseudo-optimum
estimates. The estimates for the adjustment-responding acreages were
. .. Peanuts at
Base Price
30% Above
Peanuts at Base Price
_ Peanuts at
Base Price
30% Below
Hundred thousand bales
Figure 2. MODEL ONE: Estimated Aggregate Cotton Production at a
Range of' Cotton Prices and Three Peanut
Prices, 1959 Farm Size Distribution,
Wiregrass Area, Alabama
40
38
36.
3 2;
304
9"~
"
"
"
" a--
"
" HJ
"
"
"*
a r
CH
0
0
a)
Q)
U)
CO
U)
0
0
28
26
2h
22
20--
18
300
Peanuts at
Base Price
30% Above
Peanuts at Base Price
Peanuts at
Base Price
30% Below
C0
" 
AI A'v
9
30~ 
Bel*
i1-
0 1 2 3 4 5 6 7 1 lO 1
Hundred thousand bales
MODEL ONE : Estimated Aggregate Cotton Production at 
a
Range of Cotton Prices, and Three Peanut
Prices, 1975 Farm Size Distribution,
Wiregrass Area, -Alabama
t
38{
36111
0
0
324
301 
j.
-
r
S286
-pI
i
22w
0
o 20-
C
18
i
.
.
: .
i
Mf
Figure 3.
220
210
200
190
180 -
170-
160
150 -
130-
120 4
110 -
100 -
90-
0
1959 Farm Size Distribution
-- - -- 1975 Farm Size Distribution
now
3 9 12 15 18 21 24 2? 
30 33
Ten thousand tons
Figure h. MODEL ONE: Estimated Aggregate Peanut 
Troduction at
a Range of Peanut Prices and Base Cotton
Price, 1959 and 1975 Farm Size Distributions,
Wiregrass Area, Alabama
0
-p
at)
H
0
U)
a)
(1)
58
determined from the optimum programs. The estimates for the nonadjust-
ment acreage were determined from the 1959 census data and are for the
current organization. It would be possible to add the two estimates
of acreage and production to determine total acreage and production.
However, the net revenue, operating capital, investment capital, and
]or used on the nonadjusting farms were indeterminate so that an
overall estimate of these could not be obtained. Therefore, to make all
the estimates compatible, they are presented in two categories. The
data in Table 22 show the current acreage and production of important
enterprises on the nonadjustment responding farms. The Model Two
aggregates in Appendix Tables 9 through 16 are only for the
resources that were assumed to make full adjustment.
Similar estimates of supply functions were made for the adjusting
resources of Model Two as were made for Model One (Figures 5, 6, and 7).
These functions had the same general relationships as the Model One
functions. However, both farm size distributions for Model Two had
a smaller proportion of the acreage in the smaller farm group than
did Model One. Thus, the differences between the curves for the
1959 distribution and the 1975 distribution were less for Model Two
than for Model One.
Table 22. Resources and Production Estimates for Nonrespondent
Situations* in Aggregation Model Two, Wiregrass Area,
Alabama
Item Unit Quantity
Open land . . . ,
Plowable land ,.,
Row cropland ..
Cotton .....
Cotton production
Peanuts.....
Peanut production
Corn
Corn harvested for grain ..
Corn production..
Oatsforgrain .9. ....
Oat production .*.. ,. . ,
Hay .. * . . . . . . . * . .
Hay production . ....... .
Cropland used only for pasture
Cows on f arms during year ..
Cattle and calves sold during year
Hogs and pigs on farms during year
Hogs sold during year . ,000.
" . 1 . I " " 1 f "
I . " 1 " f 1 9 I 0
I f 1 f " 1 " " 0 "
Acre
Acre
Acre
Acre
Bale
437,509
375, 335
252, 291
4l, 197
22,121
38,197
12,101~
*. Acre
*. Ton
Acre
Acre
Bushel
Acre
Bushel
Acre
Ton
Acre
Number
Number
Number
Number
175, 624
133, 378
2,554, 320
h70
11,h463
1, 200
1,060
43,h491
34, 990
20,9310
164,5~90
106,4h31
*Nonrespondent situations are the commercial Class VI, part-
time and semi-retired farms as classified by the U. S. Census of
Agriculture .
" " " "
" "
" " "
" "
"
"
"
..... ,Peanuts- at 30%
Above Base Price
-- Peanuts at Base
Price
____Peanuts at 30%
Below Base Price
F I
h 6 7 8
Hundred thousand bales
Figure 5. MODEL TWO: Estimated Aggregate Cotton Production at
a Range ofb Cotton Prices and Three Peanut
Prices, l959 Farm Size Distribution,
Wiregrass Area, Alabama
60
38-
ge
V
"
V
"
J
A
0
i
r1
H
0
0
Q)
U)
Q)
Q)
U)
0
0
3
3)4
32
304
28-
2
22
20
18
4-
7w
0 1
- -
-rird tPrc'
;t ~~Peants aa I .owBs
C---
_ _
r- --
-a
r
e "."".. Peanuts at 30%
Above Base Price
-
-
-- 
P e 
an 
ut 
s 
at 
B a 
se 
P 
a 
u 
s 
a 
0
Below Base Price
P rice
"
"
"
" 
- --
"
"
or
re 
Base 
-
0 10
Hundred thousand bales
MODEL TWO: Estimated Aggregate 
Cotton Production
at a Range o?f Cotton Prices 
and Three
Peanut Prices, l975.Farm 
Size
Distribution, Wiregrass Area, 
Alabama
61
ho4
38
36--
34-
32-
0
a)
U
0
0
0
2
2
2
22
Figure, 6
9
o
~ 3Y- Peanuts at 3(t Below Base P1
&3
C~a,
"3
C/1
d
2
- - - . - - - - - -
_
-1 --
6
I
19 9 Farm Size Distribution
- -- -- 1975 Farm Size Distribution
i1
0
Cl)
Co
'H
'U
co
12
i18
21
Ten thousand tons
Figure 7. MODEL TWO Estimated Aggregate Peanut Production
at a Range of Peanut Prices and Base
Cotton Price,' 1959 and 1975 Farm Size
Distributions, Wiregrass Area, Alabama
62
220-
210-7
20C9
1 80
1 7C
i6c
10C
CIIa 1_1
I 11
90
0 3
9
24 27
- m
15
t _I
Ar 0 5 1 m 0
)
ANEW
----JL-AIF m I 5
APPENDIX
Append;ix ladle '1. - Model 1: Aggregates f or Specified items, Wiregras Area. AgaoSawa
(Advanced Technology - 1259 Farm Size "?t?i.1n - tary 
ng
Prices for Cotton - Peanuts at Base Pr oe s
Cotton pri-es (cents per pcmd of' lint
Item Unit 15.) 0 20.0 25. 30r3.
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagr-ass hay
Corn silage
Pa sture
Idle open land
Total open land
Cows
Steers
Sows
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No .
No.
No .
322. 568
L96,48 2
142, 320
146, 86 2
537,164
29 ,4180
93, 228
621,284
249790
97934-
322.568
4.19,.763
224,124.
125.646
455,9361
211 480
1,674,6576
73,520
531, 524
24.,790
64-3 344
322.568
4%1.231
15, 817
92, 616
1,6 74,5876
63.201
3 22.68
4-71, 231
15,81 7
92,616
129,300
1,674,57
03, 201
754, 
2r\
211. 0
471, 231
i5, 817
p2,616.
127,300
1-16745876
63, 201
Investment capital
Operating capital
Resident labor available"
Resident labor used
Seasonal labor hired
Dol.
DoI.
Hour
Hour
Hour
139,123,532
103, 582, 012
39,087,038
13,106, 280
3,131.,822
'34, 962, 807
93,736,892
39,087,038
12,802,340
3, Q04, 963
Resources
90, 235,.194
30,685,235
39,087,'038
8,874, 289
2,686,0774
30 ,685,.235
39.087.038
8,874.0'289
2,686. 774
9,,605,546
31, 650,.725
39,087.038
9.100,604.
2837, 26 1
(Contin e
Appendix Table 1. - Model 1 (Continued)
Cotton prices (cents per pound of lint)
Item Unit 
15.0 20.0 
25.0 30.0 
35.0
Production
Cotton Bales ------- 122,535 784,796 784,796 908,265
Peanuts Ton 322,568 322,568 322,568 322,568 211,709
Corn sold Bu. 1,064,280
Corn produced for feed Bu. 26,242,230 23,086,965
Oats Bu. 8,539,200 13,447,440 28,273,860 28,273,860 28,273,860
Hay fed Ton 466,648 399,260 79,661 79,661 79,661
Market hogs sold No. 384, 245 384, 245
Fat calves sold No. 45,042 55,10 47,401 47,401 7,401
Net return to operator labor,
management and land Dol. 54,027,71 5 54h,158,881 68,246,916 87,866,818 109,147,581
Return to land
"  
Dol. 8,793,099 8,793,099 8,793,099 8,793,099 8,793,099
Net return to operator labor
and management Dol. 45,234,616 45,365,782 59,453,817 79,073,719 l00,354,h82
*Includes 6,700 part-time operators, and 11,894 full-time operators, and 680 full-time 
hired men.
**Open land valued at $105 per acre. 
Return to land is 5% per year or $5.25 per 
acre per year.
Appendix Table 2. - Model I:
Aggregates for Specified Items, Wiregrass Area, Alabama
(Advanced Technology - 1959 Farm Size Distribution - Varying
Prices for. Cotton. - .Peanut. Prices _ at,.30 Per Cent Below Base)
PriceCotton prices cents per pound of3
Item Unit 1. 002. 003.
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pa sture
Idle open land
Total open land
Steers
Cows
Sows
Investment capital
Operating capital
Resident labor available"
Resident labor used
Seasonal labor. hired
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No .
No .
Dol.
Dol.
Hour
Hour
Hour
322,5~68
)496, )482
1)42,320
1)46, 862
537, 16)4
29,48o
1W 76
621,,28)4
92,628
24790
139,123,532
103,582, 012
39, 087, 038
13,106, 280
3,131,822
97, 9314
322, 568
)1 9, 763
22)4,12)4
25, 6)46
)455,361
29,48o
T7T87
732,093
135, 735
72,04)4
47l, 231
15,-9l
7
26,0)40
159,4562
62 ,46)4
1167 376
911,598
31, 7)46
16, )4.92
47l,5231
15, 817
6,076
10 8,2)40
113,676
1,67)41676
911, 98
31, 7)46
16,)492
47l, 231
15, 817
6,076
108,2)40
113 676
157487
Livetock
73,520
24, 790
111,972
63,201
26,0)40
63, 201
26,0)0
63, 201
Resources
13)4,962,807
93, 736, 892
39,087,038
12,802, 3)40
3,0)44,963
99,129, 232
)46,133, 33
39, 087, 038
9,963,9734
3,06)4,8)47
92,35)4,217
36, )47)4, 913
39, 087, 038
9,600, 365
3,062, 931
92,35),217
36,474,913
39, 087, 038
9,600,365
3,062,931
(Continued
O\
Appendix Table 2. - Model I (Continued)
Cotton prices (cents per pound of
Item Unit 15.0 20.0 
2
Production
Cotton Bale ------- 122,535 886,i55 i,065,666
Peanuts Ton 322,568 322,568 135,735 31,746
Corn sold Bu. 1,064,280-
Corn produced for feed Bu. 26, 242,230 23;086,965 3,962,420 
907,060
Oats Bu, 8,539,200 13,447,440 28,273,860 28,273,860
Hay fed Ton 466, 648 399, 260 163,857 98,757
Market hogs sold No. 384, 245
Fat calves sold No. 69,471 5,l407 47,401 47,401
Net return to operator labor,
management, and land Dol. 38, 336, 289 38,$694,299 53, 890, 491 79, 084, 620l072,3
Return to land" ~ Dol. 8,793,09 ,73099 8, 793, 099 8,793, 099 8, 793, 099
Net return to operator labor
and management Dol. 29, 543,190 29,901,200 451097,392 . 70,291,521 693,3
/%Includes 6,700 part-time operators, 11, 894 full-time operators, and 680 full-time Irdmn
O0pen land valued at $105 per acre. Return to land is 5% per year or $525 per acre e 
er
ON
Appndi Tble3.- Mde 1:ONAggregates for Specified Items, Wiregrass Area, Alabama
(Advanced Technology - 1959 Farm Size Distribution - Varying
Prices for Cotton - Peanut Prices at 30 Per Cent Above Base)
Cotton .rices.(ents.pe. pound.f.lint
PriceCotton prices (cents per pound of
Item Unit 1500 20.0 
25.000 30,0
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Cows
Steers
Sows
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No .
No.
No .
322,5~68
496,482
142, 320
146,862
S37, 7164
29, 480
1, 674,576
92,628
621,1284
24,790
97, 934
322,5~68
419, 763
224,124
125) 646
x.5, 361
29,h.80
1,674,576
643, 344
322,5~68
4.71, 231
155 817
92, 616
129, 300
1, 6.74,57
64.3, 344
322,5~68
4.71, 231
155 817
.92,616
129, 300
1, 674576
64.3, 344)
322, 568
471, 231
9 2, 616
129, 300
1,674,576
Livestock
73, 520
531,524
24, 790
63,201 63,201 63,201
Resources
Investment capital
Operating capital
Resident labor available"
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
139,123,532
103, 582,012
39,087,038
13,106, 280
3,131,822
134, 962, 807
93, 736, 892
39, 087, 038
12,802,3140
3,004,963
90, 235, 194
30, 685, 235
39,087,038
8,874,289
2,9686, 9774
90, 235,194
30,P685, 23
39,087,038
8,874,289
2, 686,9774
90,5235,194
30,68S, 235
39,087,038
8, 874,289
2, 686, 774
(Continued)
Appendix Table 3. - Model 1:
00
Appendix Table 3. - Model 1 (Continued)
. Cotton prices cents per.pound of lint)
tem Unit 
15,.0 20.0 
25.0 30.0 
35.0
Production
Cotton Bales ------ 122,535 784,796 784,796 78h,796
Peanuts Ton 322,568 322,568 322,568 322,568 322,68
Corn sold 
Bu. 1,064,280
Corn produced for feed Bu. 26,242,230 23,086,965 - ------- -------
Oats Bu. 8,539,200 13,h447, 40 28,273,860 28,273,860 28,273,860
Hay fed Ton 466, 648 399,260 79,661 79,661 79,661
Market hogs sold No. 38,245 38,245---- ------
Calves sold No. 69,h71 55,10 47,hO 47,hO 17,h01
Net return to operator labor,
management, and land Dol. 69,245,428 69,603,438 82,880,h9 100,960,185 119,039,922
Net return to land")
'  
Dol. 8,793,099 8,793,099 8,793,099 8,793,099 8,793,099
Net return to operator labor
and management Dol. 60,452,329 60, 810,339 7?,087,35.0 .:.92,167,086 0,26,823
*Includes 6,700 part-time operators, and 11,894 full-time operators, and 680 full-time hired men.
-'Open land valued at $105 per acre. Return to land is 5% per year or $5.25 per acre per year.
\O
Appendix Table 4. - Model I:
Aggregates for Specified Items, Wiregrass Area, Alabama o
(Advanced Technology - 1975 Farm Size Distribution - Varying
Prices for Cotton - Peanuts at Base Prices)
Prices Cotton prices (cents per pound of
Item Unit 1540 20.0 25,.0 30.0 3.
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
321,15~2
493, 233
98,090
1)47, 592
583,3)43
24, 640
1, 66,0
128,720
321,15~2
391, 969
203, 95)4
120,136
477, )479
214, 6140
1,P665, 050
6)40, 825
321, 152
)469, 328
21,)46o
125, 670
89, 615
1,66,050
6)40, 825
321,152
)469, 328
21, x.6o
I25, 670
89, 615
1,9665050
747, 32
21)4, 515
)469, 328
21, )46o
125, 670
89, 615
1,6d.05
Livestock
101,322
5o85 43l
20, 720
Resources
Investment capital
Operating capital
Resident labor available"
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
1)46, 715, 666
103, 675,)467
33, 821, 830
12, 730,)469
3,267,541
1)41, 291, 380
90, 963,592
33, 821,830
12,3)42, 063
3,101,389
98, 903, 50
31,)439, 8)42
33,821,830
8, 831, 898
256755630
98, 903, 550
31,L)39,8)4.2
33,821,830
8,831,5898
2, 67 ,630
99.191,943
32,)416, 279
33,821,830
9,0)4)4,068
2, 785, 87 7
(Continued
Cows
Steers
Sows
No.
No.
No.
126, 050
62)4, 591
20, 720
85, 752 85,752 85, 752
Appendix Table 4i , - Model 1 (Continued)Cotnpie (ctser oudfln)
: tmCotton prices(cnsproudo
Unit0 20.0 25,0 30.0
Production
Cotton Bales 
------ 161,064 781,595 781,595
Peanuts Ton 321,152 321,152 321,152 321,152
Corn sold Bu. 1,486,800
Corn produced for feed Bu. 25,641,015 21,558,295
Oats Bu. 5,885,400 12,237,2h0 28,159,68680 28,159,680
Hay fed Ton 468,911 381,703 108,096 108,096
Market hogs sold No. 321,160 321,160
Fat calves sold No. 62,92h 75,992 
6h,314 64, 36
Net return to operator labor,
management, and land IDol. 54, 9079,324 S5,075,67)1 69, 387, 854 88, 927, 71810,182
Return to land,-& IDol. 8,757,262 8,757,262 8,757,26 ,77262 8, 757, 262
Net return to operator labor
and management Dol. 46,150, 062 .16, 318,h412 60,630,592 80,170,h45610,2L58
flIncludes 5,600 part-time operators, and 10,070 full-time operators, and 880 full-tim: iedmn
**%Open land valued at $105 per acre. Return to land is 5% per year or $5.25 per acrepeyar
H
Appendix Table 5. - Model 1: Aggregates for Specified Items, Wi regrass Area, Alabama
(Advanced Technology - 1975 Farm Size Distribution -
Varying
Prices for Cotton - Peanut Prices at 30 Per Cent 
Below Base)
Item Unit /Cotton prices (cents per pound of lint)
ItemUnt1500 
200 
25#0 
30.0 
3.0
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
321, 152
493, 233
98,090
147, 592
583,343
24,640
128, 720
321,152
391, 969
203,5954
120,136
477,479
24,640
1,665,050
728, 952
169,180
4 )6, 895
469, 328
21, 460
16, 950
169,175
46,110
1.9666, 030
907,685
39, 602
10,735
469,328
21,1460
3,955
135, 840
79,445
1,665,050
907,685
39, 602
10,735
469,328
21, 460
3, 955
135, 840
79,445
1,7, 0 0
Livestock
101, 322
508,4.31
20, 7 20
Resources
Investment capital
Operating capital
Resident labor available*
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
146, 715, 666
103,675,467
33, 8 21, 830
12, 730, 469
3, 267,11
141, 291, 380
90,5963,592
33,821,830
12,342,063
3,101,389
1041,678,873
41, 811, 969
33, 821, 830
9,595,368
2, 925, 222
100, 218,)43 7
36,173,183
33, 821, 830
9,1469, 760
2, 930, 976
100, 218,X37
36,173,183
33,821,830
9,4.69, 760
2,930,976
(Continued
N3
Cows
Steers
Sows
No.
No.
No .
126,050
624,591
20, 720
85, 752
72, 885
85,752
16,950
85,752
16,950
Appendix Table 5, - Model 1 (Continued)
Cotton prices 
(cents per pound 
of
Item Unit 15.0 20.0 25.0 30.0
Production
Cotton Bale 161064. 882
Peanuts Ton 321,152 321,152 169,180 39,602
Corn sold Bu. 1,486,800
Corn produced for feed Buo 25,641,015 21,558,295 2,579,225 590,425
Oats Bu, 5,885, 400 12,237,240 28,159,680 28,159,680
Hay fed Ton 468, 911 381,703 162,901 120,526
Market hogs sold No, 321,160 321,160
Pat calves sold No. 9h,538 75,992 64,314 64,314
Net return to operator labor,
management, and land Dol. 39, 209,188 39,684,042 54,876,874 79,754,96310,827
Return to land"" Dol. 8,757,9262 8,5728757,262 8,757, 262 8, 757, 262
Return to operator labor
and management Dol. 30, 451, 926 30, 926, 780 46,119,612... 70,997,701 9,2,1
*-Includes 5,600 part-time operators, 10,070 full-time operators, and 880 full-time 
Irdmn
-Open land valued at $105 per acre. Return 
to land is 5% per year or $5.25 per acre 
e er
Appendix Table 6. - Model 1: Aggregates for Specified Items, Wiregrass Area, Alabama
(Advanced Technology - 1975 Farm Size Distribution - varying
Prices for Cotton - Peanut Prices at 30 Per Cent Above Base)
Cotton Prices (cents per pound of lint)
Iten Unit 15.0 20.0 
2 .0 30.0 3.
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagra ss hay
Corn silage
Pasture
Idle open land
Total open land
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
321,152
x-93, 233
98, 090
1)475592
583,3)43
2)4,6)40
1,665,050
128, 720
321, 152
391, 969
203,95)4
120,136
x.77, x.79
2)4,6)40
1,66,05
6)40, 825
321,152
x.69, 328
21,)460
125,670
89,615
1,6d.05
640, 825
321, 152
)469, 328
21,160
125,670
89,615
1.9665,050
6)4,825
321 152
)469, 328
21,)46o
125,670
89 , 615
1366.05
Livestock
101, 32 2
508,x)431
20,720
Resources
Investment capital
Operating capital
Resident labor available'
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
146, 715, 666
103, 675, )467
33, 821, 830
12, 730, x.69
3,267,9hi'
1)41,291,380
90, 963, 59 2
33, 821, 830
12,3)42,1063
3,101,389
98, 903, 550
31,L)439, 8)42
33, 821, 830
8, 831, 898
2,675,630
98, 903,550
31, )439, 8)42
33, 821, 830
8,831,898
2,9675,630
98,903, 550
3', )439, 8)42
33, 8 21, 830
8,831,898
2,675,630
(Continued
Cows
Steers
Sows
No.
No .
No.
126,050
62)4,59]-
20, 720
85,752
85,752 85,752
Appendix Table 6. - Model 1 (Continued)
Cotton prices (cents per pound of lint)
item Unit 15.0 20.0 25.0 30.0 35.0
Production
Cotton Bale ------- 161,064 
781,595781,9 781,9
Peanuts Ton 321,1,152 321 321,2 321,12 321,12
Corn sold 
Bu. 1,h86,800
Corn produced for feed 
Bt 25,6h1,015 21,558,295 
------- -------
Oats Bu, 5,885,400 12,237,240 28,159,680 28,159,680 28,159,680
Hay fed Ton 468,911 381,703 108,096 108,096 108,096
Market hogs sold No. 
321,160 321,160
Fat calves sold No. 94,38 75,992 
6),31 6),31 6,31
Net return to operator labor,
management, and land Dol. 69,992,416 70,467,270 83,632,395 101,020,647 118,)08,899
Return to land" Dol. 8,77,262 8,757,262 8,757,262 8,757,262 8,757,262
Net return to operator labor
and management Dol. 61,225,15... 61,710,008 .74,875,133 .92,263,385 109,651,637
*Includes 5,600 part-time operators, 10,070 full-time operators, and 880 full-time hired 
men.
'Open land valued at $105 per acre. Return to land is 5% per year or $X5.25 per acre per 
year.
Appendix Table 7. - Model 2: Aggregates for Specified Items, Wiregrass Area, Alabama
(Advanced Technology - 1959 Farm Size Distribution - Varying
Prices for Cotton Peanuts at Base Prices)
Cotton prices (cents per pound of lint)
Item Unit 1500 
20.0 25.0 30.0 
3.
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagra ss hay
Corn silage
Pasture
Idle open land
Total open land
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
238915)4
357,071
76,x.23
1189 301
1410, 818
6,600
1, 237,367
97,592
238,15)4
280, 695
158,227
97,085'
359,01)4
6,600
1,237,367
)475, 372
238,15)4
3)48, 215
15,6)46
91,613
68,367
1,2336
)4759 372
238,1154
3)48,215
15,6)46
91, 613
68,9367
13237.,367
Live stock
72,153
410, 815
5,550
Resources
Investment capital
Operating capital
Resident labor available'
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
105,5777,9758
80, 960,517
26, 6h3, 620
9, 220, 30)4
2,509,978
101, 623, 906
71, 110,x.4
26,6)43,620
8,915,51)4
2,53835h38
69,8)43,813
23, 279, )465
26,6)43,620
6,58), 464
2, 001,)497
69,8)43,813
23, 279, )465
26, 6)43,620
6,58)4,)46)4
210015)497
69,936,059
23, 93)4, 023
26,6)43, 620
6,717,185
2,066, 950
(Continued
ONI
Cows
Steers
Sows
545,570
167, 956
3)48, 215
15,6)6
91,613
68,367
1_27,6
No.
No.
No.
91,561
500,575
5,550
62, 517 62,517 62,517
Appendix Table 7. - Model 2 (Continued)
Cotton prices 
(cents per pound 
oflit)
Item Unit 15.0 20.0r 25. 003.
Production
Cotton Bale ------ 122,106 579,731 5799731
Peanuts Ton 238,15h 238,154 238,154 238,154
Corn sold Bu. 1,045,380
Corn produced for feed a":, 18,593,525 15,438,225
Oats Bu, 4,585,380 
9,493,620 20,892,900 20,892,900
Hay fed Ton 375,868 308,480 78,797 78,797
Market hogs sold No. 86,025 86,025
Fat calves sold No. 
44,242 54,340 46,888 46,888
Net return to operator labor,
management, and land Dol. 41, 260, 553 41, 379, 726 51, 
727, 295 66,220,580o 185,6
Return to land" Dol. 6,496,177 6,496,17.,46177 6,496,177 6,496,177
Net return to operator labor
and management IDol. 34,764,376 34,883,549 45,231,118 59,7241,403 7,5,8
*Includes 1,500 part-time operators, 8,540 full-time 
operators, and 680 full-time hirdmn
"' Open land valued at $105 per acre. Return to land 
is 5% per year or $5.25 per acre e er
Appendix Table 8. - Model 2:
Aggregates for Specified Items, Wire grass Area, Alabama
(Advanced Technology - 1959 Farm Size Distribution - Varying
Prices for Cotton - Peanut Prices at 30 Per Cent Below Base)
Cotton prices (cents per pound of lint)
Item Unit 
1500 20.0 2500 
30.0 3,
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass 
ha-,
Corn silage
Pasture
Idle open land
Total open land
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
238,l5h
357,0713
118, 301
4)40,9818
6, 600
1, 237,367
97,592
238,1514
280, 695
158, 227
97,085
359,501h
6,1600
1, 237, 367
5)40, 620
112, 271 4
44,P579
348,215
15,646
16,113
132,9970
2 70, 010
1,237,9367
673, 291
26, 271
10, 205
318,215
15,6146
3,9760
101, 280
58,699
1, 237, 367
Livestock
72,1453
410, 815
5,550
Resources
Investment capital
Operating capital
Resident labor available
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
105, 777, 758
80, 960,517
26,6143,620
9, 2 20, 3014
2,509,978
101,623, 906
71, 110, 1414
26, 6143, 620
8,9915,5114
2,5383,5438
75,3141,3014
32,962,520
26, 6143, 6 20
7, 2 73, 761
2,226,560
71,130, 70 3
27,2142, 727
26,6143,620
7,080, 778
2, 207,322
71,130, 703
27,2142, 727
26,6143,620
7,080,9778
2, 20 7, 32 2
(Continued
co
Cows
Steers
So ws
673, 291
26,271
10, 205
348, 215
15,6146
3, 760
101, 280
58,699
1, 237,367
No.
No,
No.
91,561
500,575
5,550
62,517
69, 286
62,517
16,113
62,517
16,113
Appendix Table 8. - Model 2 (Continued)
Cotton prices(cents 
per pound of
Item Unit 15.0 20.0 25.0 30.0
Pro duction
Cotton Bale ----
1-- 122,106 654,398
Peanuts Ton 238,l14 
238,154 112,214 26,271
Corn sold Bu. ,OL[,380
Corn produced for feed Bu. 
18,593,525 15,438,225 21451,845 
561,275
Oats 
Bu. ,585,380 9,493,620 20,892,900 
20,892,900
Hay fed Ton 375,868 
308,480 130,896 90,613
Market hogs sold No. 86,025 
86,02~
Fat calves sold No. 
68,671 54, 340 46,888 
46,888
Net return to operator labor,
management, and land Dol. 29,607,283 
29,9963,300 41, 006,145 59, 436, 822 7,l,4
Return to land" Dol. 
6,496,177 6,496,177 6,49,76496,177 
6, 496,177
Net return to operator labor
and management Dol. 23,111,106 23,467,123 34,509,968 .
2,940,645 261,7
*Includes 1,500 part-time operators, 8,540 
full-time operators, and 680 full-time hirdmn
"+-Open land valued at $105 per acre. 
Return to land is 5% per year or $5.25 per 
acre e er
Appendix Table 9.0 - Model 2:
Aggregates for Specified Items, Wi regrass Area, Alabama
(Advanced Technology - 1959 Farm Size Distribution - varying
Prices for Cotton - Peanut Prices at 30 Per Cent Above Base)
PriceCotton prices cents per pound of
Item Unit 
13.0 20.0 
25 30,0 3,
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Cows
Steers
Sows
Acr e
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No
No.
No.,
238,5)4
3573,071
76, .23.
118, 301
440,3818
6, 600
L,237(,367
91,561
500,95 75
5.,550
979592
238,15)4
280,695
158,227
97,085
359,01 ).
6,600
1237,73
Livestock
72,)453
)4109 81
5,550
Res ources
).75;372
238,15)
3)48, 215
15, 646
91,613
68,367
1 27,)x7
625517
)475, 372
2815)4
34~89 215
15,6L6
91,613
_68, 367
19 237, 3.67
62, 517
)-75, 372
238,15)4
3)48, 215
15,6)46
91, 613
68, 367
1237, 367
62517.
Investment capital
Operating capital
Resident labor available"
Resident labor used
Seasonal labor hired
Dol_
Dol.
Hour
Hour
Hour
105, 777, 758
80, 960, 51 7
26,6)43,620
9,220, 304
2,509,978
101, 623, 906
71, 110,)4i)4
26, 6)43, 620
8,915,51)4
2,383,xh38
69,8)43,813
23, 279, h-65
26,6)43,620
6,958)4,46)4
2,9001,5497
69,8)43,813
23, 279,)465
26,6)43,5620
6,58)4,46)4
2,019 
)9
69,8)43,813
23, 279,)465
26,6)43620
6,58)4,46)4
2, 001 ,)497
(Continued
Go
0
Appendix Table 9, - Model 2 (Continued)
Cotton prices(cents 
per pound of
Item 
Unit 15.0 
20.0 23.0 
30.0
Production
Cotton Bale ------- 122,106 579573l 579,7317
Peanuts Ton 238,15l4 238,l54 238,l54 238,l3l
Corn sold Bu, 1,045,380
Corn produced;for feed Bu, 18,593,525 15,h38,225
Oats Bu h,9585,380 9,L493,620 20,892,900 20,892,900
Hay fed Ton 375,868 308,h80 78,797 78,797
Market hogs sold No. 86,025 86,025_
Fat calves sold No. 68,671 5L,3)
1
0 46,888 h6,888
Net return to operator labor,
management, and land Dol. 52,h440,109 52, 796,126 62, 337, 223 75, 317, 694. 8,98l1
Return to land Dol . 6,h496,177 654965177 61496,17,h6177 696,177
Net return to operator labor
and management Dol, L45,943,932..h6, 299,949 559841l,046 68,8219517 8,0,8
"Includes 1,500 part-time operators, 8,5h0 full-time operators, and 680 full-time hirdmn
' "0pen land valued at $105 per acre. Return to land is 5% per year or $5.25 per acrepeyar
co
Appendix Table 10. - Model 2: Aggregates for Specified Items, Wi regrass Area, Alabama
(Advanced Technology - 1975 Farm Size Distribution - Varying
Prices for Cotton - Peanuts at Base Prices)..
Cotton prices (cents per pound of lint)
Item Unit 15.0 20.0 
25.0 30,0 3.
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pastrue
Idle open land
Total open land
Cows
Steers
So ws
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No
No .
No .
Investment capital
Operating capital
Resident labor available"
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
236, 739
353,822
32,193
119,031
).86, 996
1, 760
1, 230, 541
124,984
503,882
1,480
113, 369, 892
81, 053, 97 2
21, 378,4X12
8,1844,5493
2,645,567
128,378
236, 739
25 2, 900
138,057
91,575
381,132
1,760
1,230,541
Li vstoc k
100, 256
387,722
1,480
Re sources
107, 95 2,479
68, 337,114.
21, 378,4x12
8,455,3237
2,479,865
4.72, 853
236, 739
346, 312
21,289
124, 666
28, 68 2
1192303541
85,068
78,512,169
24,034,071
21,378,412
6,542,074
1,990,353
472,P853
236, 739
346, 312
215289
12L, 666
28,$682
1,230,541
85,068
78,512,169
24, 034, 071
21,378,9412
6,542,9074
1,990,353
538,800
170, 792
346, 312
21, 289
124,666
28,682
1,230,541
85,068
78,522, 457
24,699,577
21,5378,412
6,660,649
2, 015,566
(Continued
Appendix Table 10. - Model 2 (Continued)
Cotton prices (cents per pound of lint)
Item Unit 
15.0 20.0 
25.0 30.0 
35.0
Production
Cotton Bale ------- 160,634 576,530 576,530
Peanuts Ton 236,739 236,739 236,739 236,739 170,792
Corn sold 
Bu. 1,467,900
Corn produced for feed Bu. 17,992,310 
13,909,500
Oats Bu. 1,931,580 8,283,420 20,778,720 20,778,720 
20,778,720
Hay fed Ton 378,131 290,923 107,232 107,232 
107,232
Market hogs sold 
No. 22,940 
22,940
Fat calves sold No. 62,124 75,192 63,801 
63,801 63,801
Net return to operator labor,
management, and land Dol. 42,140,161 42,306,518 
52,868,232 67,281,479 82,709,699
Return to land*
-  
Dol. 6,460,340 6,460,3h0 6,h60,3h0 6,h60,3h0 
6,460,340
Net return to operator labor
and management Dol. 35,679,821 35,846,178 46,407,892 60,821,139 76,249,359
*Includes 400 part-time operators, 6,716 full-time 
operators, and 880 full-time hired men.
""Open land valued at $105 per acre. Return 
to land is 5% per year or $5.25 per acre per year.
Appendix Table 11. - Model 2:
Aggregates for Specified Items, Wiregrass Area, Alabama
(Advanced Technology - 1975 Farm Size Distribution - Varying
Prices for Cotton - Peanut Prices at 30 Per Cent Below Base)
Cotton prices cents per pound of lint
ItmUnt1 020025030.0 
3.
Acre age
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Cows
Steers.
Sows
Investment capital
Operating capital
Resident labor available*
Resident labor used
Seasonal labor hired
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No.
No .
Dol.
Dol.
Hour
Hour
Hour
236, 739
353, 82 2
32,193
119,031
486,5996
1,760
1,230,541
124,984
503,882
1,4 80
113, 369, 892
81, 053, 972
21,378,412
8,844,4.93
2,645,567
128,378
236, 739
252, 900
138,057
91,575
381,132
1,760
1,230,541
537,4L80
145,659
19,4.30
346,312
21,289
7 ,023
142,9
10,656
1, 230,541
669, 378
34,127
4,44 8
346,312
21, 289
1,639
128, 880
24,4.68
1, 230,541
669,378
34,127
4,448
346,312
21, 289
1,639
128, 880
24,468
1,92305541
Livestock
100, 256
387, 722
1,4x80
85,068
30,199
85,068
7,023
85,068
7,023
Resources
107, 952,4179
68, 33 7,114.
21,5378,412
8,4x55, 23 7
2,479,865
80, 890, 945
28, 41,154
21,378,412
6,905,395
2,086, 936
78, 99)4,924
26,940,996
21, 378, 412
6, 950,173
2,9075,367
78,994,924
26,940,996
21,378,412
6,950,173
2,075,5367
(Continued
CX)
4::-
Appendix Table 11. - Model 2 (Continued)
Cotton prices (cents per pound of lint)
Item 
Unit 15.0 
20.0 25.0 
30.0 35.0
Production
Cotton Bale ------- 160,634 650,603 782,501 782,501
Peanuts Ton 236,739 236,739 145,659 3h,127 
3h,127
Corn sold Bu. 1,467,900
Corn produced for feed Bu. 17,992,310 13,909,500 1,068,650 
2h,6h0 2hh,6h0
Oats Bu. 1,931,580 8,283,h20 20,778,720 20,778,720 20,778,720
Hay fed Ton 378,131 290,923 129,9h0 112,382 112,382
Market hogs sold 
No. 22,9h0 22,90 
------- -------
Fat calves sold No. 93,738 75,192 63,801 63,801 63,801
Net return to operator labor,
management, and land Dol. 30,480,182 30,953,043 41,992,528 60,107,165 79,669,68h
Return to land
-
%% Dol. 6,460,340 6,460,3h0 6,h60,3h0 h,h60,3h0 6,L60,3h0
Net return to operator labor
and management Dol. 2h,019,8)2 24,h92,703 35,532,188 53,646,825 73,209,3
"Includes 400 part-time operators, 6,716 full-time operators, and 880 full-time hired men.
--Open land valued at $105 per acre. Return to land is 5% per year or $5.25 per acre per year.
cD
L\T
Appendix Table 12. - Model 2: Aggregates for Specified Items, Wir egrass Area, Alabama
(Advanced Technology - 1975 Farm Size Distribution - Varying
Prices for Cotton - Peanut Prices at 30 Per Cent Above Base)
Cotton prices (cents per pound of lint)
Item Unit 
15.0 20.0 270 
30,0 3,
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Cows
Steers
So ws
Investment capital
Operating capital
Resident labor available"
Resident labor used
Seasonal labor hired
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No.
No .
Dol.
Dol.
Hour
Hour
Hour
236, 739
353,822
32,193
119,031
486,996
1,760
1,9230,541
124,984
503, 882
1,480
113, 369, 89 2
81, 053, 972
21,378,412
8,844,493
2, 645,567
Acreage
128,378
236, 739
25 2, 900
138,057
91,575
381, 132
1,760
1, 230,541
472, 853
236, 739
346,312
21, 289
.1243-666
28,682
472, 853
236, 739
346,312
21,289
124, 666
28,682
1,230,541
472 853
236, 739
346,312
21,289
124,666
28,682
1, 230, 541
Livestock
100, 256
387, 722
1,480
85,068 85,068
Resources
107, 95 2,4x79
68, 337,114
21, 378,4x12
8,455,237
2,9479,865
78, 512,169
24,03)4,071
21, 378,412
6,542,074
1,990,9353
78,512,169
24,034,071
21, 378,412
6,542,074
1,990,353
78,512,169
24,034,071
21, 378,412
6,542,074
1,990,353
(Continued
ON
85,068
Appendix Table 12. - Model 2 (Continued)
Cotton prices(cents per poundof
Item Unit 
15.0 20.0 
25.030.03
Production
Cotton Bale ------ 
160,63h 576,53O
Peanuts Ton 236, 739 236,739 236,739 236, 739
Corn sold Bu, 14,h67,900
Corn produced for feed Bu. 17,992,310 13,909,500
Oats Bu. l,931,80 8,283,x20 20 20,778,720 20,778,720
Hay fed Ton 378,131 290,923 107,9232107,2321
Market hogs sold No. 22,90 22, 90-
Fat calves sold No. 93,738 75,192 63,801 63,801
Net return to operator labor,
management, and land Dol. 53,187, 098 53,659, 958 63, 089, 169 75,378,155 7,67lh
Return to land""* Dol. 6,460,340 61460,3h0 6,460,340 6,hx60;,3)0 6h030
Net return to operator labor
and management Dol. 46,726, 758 .h7,199, 618 56, 628, 829.. 68, 917,8l 81 ,26,0
1,*Includes 400 part-time operators, 6,716 full-time operators, and 880 full-time hiredmn
' ,0pen land valued at $105 per acre. Return to land is 5% per year or $5 .25 per acre e er
OD
Appendix Table 13. - Model 1:
Aggregates for Specified Items, Wi regrass Area, Alabama
(Advanced Technology - 1959 Farm Size Distribution - Varying
Prices for Peanuts - Cotton at Base Prices)
Peanut prices (dollars per ton)
Item Unit 
96 125 160 
19222
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total 'open land
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
754, 202
156, 711
444, 878
54.9998
201,623
62,464
1,674,5676
Acreage
643,34)4
322,5~68
4-71, 231
155817
9 2, 616
129,5300
1,9674,576
643,344
322, 568
4.71, 231
15.1817
.92,616
129, 300
1,674,76
643,344
322,568
4.71, 231
15,817
.92,616
129, 300
1,674,5876
643,344
322,5~68
4.71, 231
15, 817
92,616
129,300
1, 674L,576
Livestock
63,1201
Resources
Investment capital
Operating capital
Resident labor available'
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
100,303,010
61, 261,5~90
39,087,9038
10, 736,5~87
3,228,013
90, 235, 213
30, 685, 235
39,087,038
8, 874, 289
2, 686,64.0
90, 235, 213
30, 685, 235
39,087,3038
8, 874, 289
2,686,640
90, 235, 213
30, 685, 235
39,087,038
8, 874, 289
2,686,5640
90, 235, 213
30, 685, 235
39, 087,038
8,874,5289
2,686,640
(Continued
OD
Cows
Steers
So ws
No.
No .
No.
40,,220
234,062
2, 077
63,201 63,201 63,201
Appendix Table 13. - Model 1 (Continued)
Peanut prices (dollars per ton)
Item Unit 
96 128 
160 192 
22
Production
Cotton Bale 909,611 784,796 
784,796 78, 796 784, 796
Peanuts Ton -- 322,68 322,568 
322,568 322,568
Oats Bu. 26,715,120 28,273,860 
28,273,860 28,273,860 28,273,860
Hay fed Ton 175,761 79,661 
79,661 79,661 79,661
Market hogs sold 
No. 32,194 
------- ------- 
-------
Fat calves sold No. 30,165 47,401 47,401 47,401 67,401
Net return to operator labor,
management, and land Dol. 4,748,749 59,847,247 70,150,916 80,454,132 90,757,394
Return to land
'-
* Dol. 8,793,099 8,793,099 8,793,099 8,793,099 8,793,099
Net return to operator labor
and management Dol. 45,955,650 51,054,148 61,357,817 71,661,033 81,964,295
*Includes 6,700 part-time operators, 11,894 
full-time operators, and 680 full-time hired men.
/'Open land valued at $105 per acre. Return to land is 
5% per year or $5.25 per acre per year.
Appendix Table 14. - Model 1:
Aggregates for Specified Items, Wi regrass Area, Alabama
(Advanced Technology - 1975 Farm Size Distribution - Varying
Prices for Peanuts - Cotton at Base Prices)
Peanut prices (dollars per ton)Ui911 09
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
747, 432
158, 295
434,940
56, 250
225,023
4.6,110
1,66b.,050
640, 825
321,152
469, 328
21,4.60
125, 670
8 9, 615
640,5825
321,152
469,328
21,x460
125, 670
89,615
1, 65,050
640,825
321,152
469, 328.
21,1460
125,670
89,615
1,665,050
640,825
321,152
)469, 328
21, t460
125, 670
89, 615
1366d.905
Livestock
85, 752
Resources
Investment capital
Operating capital
Resident labor availabl&&
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
105,820,925
62,181, 310
33, 8 21, 830
10,555,442
3,121,186
98, 903, 577
31,439,842
33, 821, 830
8,831, 898
2,675,9518
98, 903, 577
31,,439, 842
33, 8 21, 830
8,831,898
2,675,518
98, 903, 577
31,4.39, 842
33, 821, 830
8,831,898
2,675,518
98, 903, 577
31,439, 842
33,821,830
8,831,9898
2,675,518
(Continued
0
Cows
Steers
Sows
No.
No.
No .
54,578
238,562
1, 736
85,752 85,752 85,752
Appendix Table 14. - Model 1 (Continued)
Peanut prices (dollars per ton)
Item Unit 96 128 160 192 224
Production
Cotton Bale 901,968 
781,595 781,595 781,595 781,595
Peanuts Ton -- 321,52 321,152 321,152 321,152
Oats Bu. 26,118,900 28,159,680 28,159,680 28,159,680 28,9,680
Hay fed Ton 179,063 108,096 108,096 108,096 108,096
Market hogs sold No. 26,908
Fat calves sold No. 40,934 64,314 64,314 64,31 64,314
Net return to operator labor,
management, and land Dol. 55,972,600 61,590,363 71,851,854 82,113,061 92,374,304
Return to land " Dol. 8,77,262 8,757,262 8,757,262 8,757,262 8,757,262
Net return to operator labor
and management Dol. 47,215,338 52,833,101 63,094, 592 73,355,799 83,617,042
"Includes 5,600 part-time operators, 10,070 full-time operators, and 880 full-time hired men.
-**Open land valued at $105 per acre. Return to land is 5% per year or $5.25 per acre per year.
1O
Appendix Table 15. - Model 2: Aggregates for Specified Items, Wir egrass Area, Alabama
(Advanced Technology - 1959 Farm Size Distribution - Varying
Prices for Peanuts - Cotton at Base Prices)
ItemUnit Peanut prices (dollars per ton)
IeUnt96 125 160 19222
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Cows
Steers
So ws
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No .
No .
54-5, 570
123,200
324, 203
44,'756
172, 628
27,010
1,237,367
39,.783
190,051
465
475,372
238,7154
348s, 215
15, 646
91,613
68,367
1, 237,367
Livestock
62,517?
Resources
475,372
238,9154
3)48, 215
15,646
91,613
68,9367
1.,237,367
62,517
Investment capital
Operating capital
Resident labor available"
Resident labor used
Seasonal labor hired
Dol.
Dol.
Hour
Hour
Hour
75,893,463
47,9691,9475
26,643,620
7,905,9700
2, 350, 863
69,843,831
23, 279, 465
26,643,620
6,584,46)4
2, 001,467
69,843,831
23, 279, 4.65
26, 643, 620
6,5841,464
2, 001,9467
69,843,831
23, 279,4)65
26,643,620
6, 584, 464
2,001,467
69, 843,831
23, 279, 465
26,643,620
6,584,)46)4
2,001,3467
(Continued
N)
475,372
238,154
3)48, 215
15,646
91,9613
68,9367
1,-27,367
62,517
475,372
238,154
3)48, 215
15,646
91,9613
68 ,36 7
1,237,367
62,517
Appendix Table 15. - Model 2 (Continued)
Peanut prices (dollars per ton)
Item 
Unit 96 
128 160 
192 224
Production
Cottan Bale 659,654 
579,731 579,731 579,731 579,731
Peanuts Ton ---- 238, 
238,154 238,154 238,154
Oats Bu. 19,462,020 20,892,900 20,892,900 20,892,900 20,892,900
Hay fed Ton 142,670~ 78,797 78,797 
78,797 78,797
Market hogs sold 
No. 7,208
Fat calves sold No. 29,837 46,888 46,888 46,888 46,888
Net return to operator labor,
management, and land Dol. 41,947,129 46,019,985 53,631,295 61,242,298 68,853,365
Return to land
-'  
Dol. 6,496,177 6,496,177 6,496,177 6,496,177 6,496,177
Net return to operator labor
and management Dol. 35,450,952 39,523,808 47,135,118 54,746,121 62,357,188
"Includes 1,500 part-time operators, 8,540 full-time operators, and 680 full-time hired men.
*"Open land valued at $105 per acre. Return to land is 5% per year or $5.25 per acre per year.
Appendix Table 16. - Model 2:
Ageae fo 
Spcfe ItmWrgasAeAaaa(Advanced Technology - 1975 
Farm Size Distribution 
- Varying
Prices for Peanuts - Cotton at Base Prices)
UPeanut prices dollars per ton
Acreage
Cotton
Peanuts
Corn
Oats
Coastal bermudagrass hay
Corn silage
Pasture
Idle open land
Total open land
Cows
Steers
Sows
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
Acre
No.
No.
No.
538,800
124, 784
314, 265
46,008
196,028
10,656
1,230,541
54,1i42
194,551
124
472,9854
236, 739
346,312
21, 289
124,666
28,681
1530
472, 854
236, 739
346, 312
21, 289
124,666
28,681
1.92305541
472, 854
236, 739
346,312
21,9289
124, 666
28,681
1, 230, 541
)472, 854
236, 739
346, 312
21, 289
124,666
28,681
1,2 30,54
Livestock
85,068
85,068 85,068 85,068
Resources
Investment capital
Operating capital
Resident 
labor available~
Resident labor used
Seasonal labor hired
]Dol.
Dol.
Hour
Hour
Hour
81,411, 378
48,5611,195
21,378,412
7,9724,555
2,9244,037
78,512,195
24, 034, 071
21, 378,412
6,542,074
1,990,345
78,512,195
24,034,071
21, 378, 412
6,9542,074
1,990,345
78,512,195
24,034,071
21, 378, 412
6,542, 074
1,990,9345
78,512,195
24,0o34, 071
21, 378, 412
6,542,074
1,990,9345
(Continued
Appendix Table 16. - Model 2 (Continued)
Peanut prices (dollars per ton
Item 
Unit 96 
12 160 
192
Production
Cotton Bale 652,011 576,530 576,530 576,530
Peanuts Ton 236,739 
236,739 236,739
Oats Bu, 18,865,740 20,778,720 20,778,720 20,778,720 20,778,720
Hay fed Ton 145,971 1073 232 107,232 107,2323
Market hogs sold No. 1,922
Fat calves sold No. 40,606 63,801 63,801 63,801
Net return to operator labor,
management, and land Dol. 43,171, 081 47, 763,102 5, 332, 232 62, 901, 226 7,7,7
Return to land~* Dol. 6, 460,34 ,40340 6, 460, 340 6, 460, 340 6,460,340
Net return to operator labor
and management Dol. 36, 710, 741 41, 302, 762 48, 871, 892. . 6, 4h0,886 6,0,3
"Includes 400patim operators, 6,716 full-time operators, and 880 full-time hiredmn
'8*Open land valued at $105 per acre. Return to land is 5% per year or $52 per acre e er
viL