Masters Theses

Date of Award

12-1961

Degree Type

Thesis

Degree Name

Master of Science

Major

Animal Science

Major Professor

Charles S. Hobbs

Committee Members

H. J. Smith, French Bell, Robert S. Dotson, R. J. Cooper, T. J. Whatley

Abstract

The purpose of this study was to determine if it was possible to secure a satisfactory return on capital invested in converting a cotton farm to a modern dairy, cotton, and hog system of farming. One of the eight farm management units located on the Ames Plantation in West Tennessee which was supervised by the University of Tennessee in cooperation with the Hobart Ames Foundation was used in the study. The unit was one formerly rented to a tenant for a standing rent of two bales of cotton. A new farming system was developed providing for a 50-50 sharing of income and operating expenses by the landlord and tenant. The permanent capital improvements were paid for by the landlord.

A total of $40,448 was invested by the landlord in four years of which $16,000 represented the original investment in land. The landlord's total net cash income for the four years was $8,271. This represents a return of 20.4 per cent on total investment to the landlord on this farm. The return on new capital invested on this farm over the four-year period totaled 26.3 per cent. In the case of this farm, if we assume that capital supervision could be obtained at a cost of $500 per year, then the rate of return on the landlord's total investment would have still amounted to 15.5 per cent.

From this study it is evident that under conditions of good management it was possible to secure a satisfactory return on investment of new capital in this farm.

Download
Files over 3MB may be slow to open. For best results, right-click and select "save as..."

Share

COinS