The Nonpartisan Leader Newspaper, May 3, 1917, Page 10

R 4 B (& ¢ < Farm Rental as a Partnership =SS BY HOMER DIXON HICH system of land rental offers the greatest advan- tages? This is a question which perplexes both the landlord and the tenant and is a very difficult one to answer when many different localities are concern- ed. When we consider that over thirty seven per cent of the farmers in the United States now rent all of the land that they operate and that nine per cent rent part of their land, we can see that this question is important to a great many. . The basis of rental, as stated above, is the question which determines to a large extent the success or failure of the tenant. In many cases it is de- termined by the profit which the land- lord requires in payment for his risk and trouble. Probably cash rent of- fers the least trouble to the landlord; it also reduces his risk, and is probably one of the most satisfactory systems in use at the present time. This is particularly true where the landlord and tenant are some distance apart.. Recently, however, we have come in contact with a system which works out very satisfactorily to both parties to the contract. It is especially adapt- able to a condition where the land- lord is a retired farmer and lives near his farm or where the owner is en- gaged in active business in the com- munity of his farm. This system has been tried out for a number of years and has resulted in profit to both land- lIord and tenant in spite of poor crop conditions. OWNER AND TENANT GO INTO PARTNERSHIP In this instance the farm is consid- ered as a business and the owner and tenant go in, practically, as partners in this business. That is, so far as profits are concerned. The landlord in this case supplies everything with which to run the farm and the tenant furnishes the labor. The landlord in this case rents two farms under this system and rents for cash on three other farms. He is very much dis- satisfied with the cash system and as soon as the opportunity offers will in- troduce. this other system upon the cash rented farms. He does not like the crop share system. In this system an account is kept the same as would be applied to any business of buying and selling. Every- thing which is taken onto the farm to be used in the business, is charged against the business and everything that is sold from the farm is entered on the credit side of the ledger. At the close of the year the trial balance is taken and the net gain is divided half and half. It is a peculiar fact that no grain or hay leaves either farm. The receipt page is made up entirely of stock and stock product sales. It is true that this system requires quite a bit of the landlord’'s attention and time and for that reason would not interest a number of land owners. On the other hand, it does offer a practical plan for the two classes of owners mentioned above. Oftentimes renters are young fel- lows starting out in business and take renting as a means of getting their start. For them this system should prove attractive as they would in many cases be working hand in hand with an experienced farmer or landlord and if the landlord’s profits depended upon the business system in this way, surely then the tenant’s profits would not be’ lessened by this fact. It would also give them an insight into one of the most important features of the farm business of today, cost accounting. Too many farmers neglect the use of an account book. WELL-KEPT ACCOUNTS A VITAL FEATURE There are a good many farms rented on the share and share alike basis, .where the landlord furnishes every- thing and the tenant does the labor or provides for having it done. But the system above mentioned is the first we have met, which provides for keep- ing of an accurate account and which does not allow the sale of grain or hay. It is true that the limitation placed upon grain and hay would bar the Thiz s a-depariment of the Leader devoted to mews, facts, information and opinions of interest to farmers as farmers and as business men. Elll|llflllll!lHllfllnIHIIIIIMIIIIIE«HIIIMImflfllflI]TH]IIIII]mmHHIIIEIIIHN!IIllI!llllIIllIIIMIHHIHHIl%lIIImHlfllllllllHIIlllflIIIIHH!][EHIllllflllllllIIHII!IIIIIIIIIIIHHHE g A Different System Which Has Advantages in Some Cases A Big End of the Farming Business A comfortable home and food well prepared are among the most important essen- tials of a well-managed farm. Few farmers can succeed if the household is not not well managed. Many farmers owe their success to a good business manager in the home. In their patient effort to do everything they can to make things go right farmers’ wives eagerly attend cooking demonstrations and exchange ex- periences so as to pick up new ideas of economy and home comfort that may prove useful. The picture shows a demonstration lecture by Agricultural college experts at a North Dakota town. practice of this system in a good many " regions, but there is no section of the United States where the account book could not be used to the advantage of both parties concerned. It is here that this system is different. In most share and share alike systems, the farm produce sales checks and cream- ery checks are divided evenly. Also the sales of livestock and the increase. Usually the tenant receives the total profit from the poultry. The division is not made, however, upon the basis of net profit, but more so on the divi- sion of.separate items. In both sys- tems the labor of the tenant’is bal- A League Worker Representative Frank J. Haines This picture shows Representative Frank J. Haines of White Earth, Mountrail county, and his family. Rep- resentative Haines was indorsed by the Nonpartisan League and elected as a League member. In the legislature at Bismarck last —-winter he was' a strong League supporter throughout, and this spring after he returned to his home he donated his time and labor in helping to reorganize his own township for the League. Besides re-enlisting all the old members, Mr. Haines 'and his associates got six new ones in that township. Mr. and Mrs. Haines en- tertained J. Smith, the League organi- zer, who was working through that . territory, and who had words of praise for his host and hostess. anced against the landlord’s interest on his investment. In the account system the inventory is taken and any increase is figured in on the receipt side of the ledger. There are a good many advantages to a cash system of rental and it will apply in many places where the share and share alike system can hardly be used. In a cash system the renter gets all of the advantages of superior tillage and management, especially if a long lease can be secured. The renter is not subjected to the close supervision of the landlord, nor to his inspection, which is often very objec- tionable. The tenant is allowed a great latitude on the cropping system and in the management of the farm. The disadvantage is that the tenant bears all of the risk of a crop failure. From the standpoint of the landlord the cash system frees him from any responsibility in the management of the farm. We know of a landlord who believes in the cash system and has it in vogue on five farms. He furnishes all of his tenants with clover seed each year, and divides' seed produced, with the tenant each year. One reason why he favors this system is that it lessens his risk. He believes that the clover aids the tenant to a large ex- tent and helps in keeping up the productivity of the farm. SHARE RENTAL NOT JUST TO EITHER PARTY Share rental lightens the investment of the renter and makes it possible for men with small capital to get a start. The disadvantage to this system is that the renter only gets a share of the increase due to any superior methods he might practice of tillage or care of seed, etc. Oftentimes the increase due to this superior cultivation is not great enough, on his share to pay for the extra work he had to do. The entire proposition of land tenure in mainly a matter of the landlord and tenant coming to a Satisfactory agree- ment which will meet the conditions under which they are forced to work, The Object of Co-operation RGANIZING Co-operative As- sociations” is the topic of a new bulletin just issued by ] the North Dakota Agricul- tural Experiment Station and written by James E. Boyle. “In each instance where successful,” he states, “‘co-operation has come into a specialized field to meet a clearly felt need. There are six fields of co- operation which are of great interest to North Dakota farmers. These six are: elevators, potato associations, creameries, cow testing associations, livestock shippin'g associations and egg circles”, Mr. Boyle has included in the bulle- tin the North Dakota laws governing co-operative corporations, so that any one interested in the formation of a co-operative organization in their com- munity would know how to proceed under the law, if they were in posses- sion of this bulletin. “Co-operation is for savings, not for profits”, says the bulletin. “Capital- istic corporations are for profits and for profits only. When a so-called co- operative concern makes its goal prof- its, is ceases to be co-operative”. In answer to the question “What is a co-operative organization?’ the bul- letin states that “no concern can be co-operative unless it limits the divij- dend on stock to some reasonably small per cent, and pays the surplus earn- ings back as a patronage dividend”. Mr. Boyle states the number of shares held by any one member must be limited to a reasonably “small minor- ity of the share capital”. THE DANGER TO CO-OPERATION “It is fatal to co-operation to have the stock drift into a few hands or Of Interest to Horsemen The valuation of the horse stock in North Dakota is approximately $100,- 000,000.. There is a good market for gobd horses grown in North Dakota. To sell well a horse of any kind must “have a good appearance, be sound, have good quality, action, a good dis- TEN into the control of a small clique or group. There must be some restric- tions on voting, not allowing one vote for each share of stock held.: Thesae three features, properly undertaken and continuously adhered to, consti- tute a co-operative concern. The usual program for carrying into effect the foregoing principles is this: stock dividends are limited to seven per cent; the balance of net earnings, (after the reserve or other funds are taken out) go into a patronage divi- dend. No member is allowed to hold over one-fifth. There is the one-man, one-vote rule, regardless of the number of shares held by one man. Some co- operative organizations permit one vote for each ten shares, up to a cer- tain maximum, such as ten votes, but the usual rule is the one man one vote”. PATRONAGE DIVIDENDS The patronage dividend is paid upon the basis of amount of product deliver- ed to the association by each patron. The surplus earning divided by the bushels of grain or pounds of cream delivered determines ' the patronage dividend unit. This unit is then multi= plied by the number of units delivered by each patron. The bulletin then goes on to explain “getting started” with an outline of how to conduct the first meeting, sec- ond meeting, etc., giving articles of in- corporation according to the 1915 law. It then takes up the essential points for a co-operative elevator, creamery, €gg association, cow testing associa- tjon, livestock shipping associations, local potato warehouse and local pota- to growers associations and the North ‘Dakota laws in regard to such organi= zations. position, desirable color, and must be offered for sale in good condition, In order to grow good horses it is necessary to select good foundation stock and feed the young. colts for special development. : Brood mares should be well fed but kept well exercised through the winter (Continued on page 17) ~ " e o)