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An Economy Study of Family-Sized Farms in Puerto Rico 1943-1945, 1944-1945

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EXCESO DE COPIA PARA IDOIVAR CPR UPR RP FEBRUARY, 1951

BULLETIN NO. 80

AN ECONOMIC STUDY OF FAMILY-SIZED FARMS IN PUERTO RICO IV. Aibonito, Barranquitas, and Corozal Farm Security Administration Farms 1943-44, 1944-45

Guillermo Serra and Manuel Piñero

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University of Puerto Rico AGRICULTURAL EXPERIMENT STATION

Río Piedras, Puerto Rico

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AGRICULTURAL EXPERIMENT STATION University of Puerto Rico JAIME BENÍTEZ, M.A., LI.M.

Río Piedras, Puerto Rico Chancellor

STATION STAFF' Director ROQUE, ARTURO M.S. Asst. Dir, for Research B. G. CAPÓ, PH.D. Agricultural Economics G. Serra, Ph.D.', Econ, Head of Dept. P. Vázquez, Ph.D., Rural Socio!., Actg. Head of Dept. I. Avilés', M.A., Res. Asst. in Econ. H. Bayrón, B.S., Res. Asst. in Econ. A. Burgos, B.S., Res. Asst. in Rural Socio!. J. Calderón, B.S., Res. Asst. in Soon. G. Espinet', B.S.. Res. Asst. in Econ. D. Haddock, M.B.A., Assoc. Econ. L. Hernández', B.A., Res. Asst. in Econ. R. Miraba!, B.A., Res. Asst. in Econ. M. Piffero, B.S., Assoc. Econ. F. Román M.S. Res. Asst. in Econ. E. Silva', s.S., hes. Asst. in Econ. Agronomy and Horticulture Head of Dept. F. Aróstegui, M.S., Assoc. Agron. A. Cruz-Miret, B.S., Res. Asst. in Agron. P. Landrau, M.S., Asst. Agron. M. Martinez, M.S., Res. Asst. in Agrie. Eng. F. Méndez, M.S., Assoc. Agron. W. Pennock, M.S., Assoc. fort. J. P. Rodriguez, B.S., Aesoc. Agron. M. A. Valencia, B.S., Res. Asst. in Stat. F. Vázquez, B.S., Res. Asst. in Stat. Animal Husbandry An. Husb., Head of Dept. R. Rivera-Brenes, M.S., Assoc. An. Husb., Actg. Head of Dept. J. I. Cabrera, M.S. Asst. An. Husb. L. F. Colón, B.S., Res. Asst. in Chem. E. Del Toro, M.S., An. Hush. F. J. Marchán', M.S., Asst. Chem. J. Martínez, A.S., Res. Asst. in Bact. J. Rivera-Anaya, D.V.M., Assoc. Vet. Chemistry Chem., Head of Dept. L. Igaravidez, B.S., Asst. Chem. B. López-Ramos, B.S., Res. Asst. in Chem. I. Rieckehoff, M.S., Asst. Chem. (Mrs.) F. Sánchez-Nieva, M.S., Assoc. Cliem. R. Santini, M.S., Asst. Chem. Entomology G. N. Wolcott, Ph.D., Ent., Head of Dept. L. F. Martorell, Ph.D., Ent. M. Pérez, M.S., Asst. Ent. Plant Breeding Plant Breeder, Head of Dept. P. González-Rios, M.S., Assoc. Plant Breeder, Actg. Head of Dept. E. Boneta, M.S., Asst. Plant Breeder A. Hernández, M.S., Res. Asst. in Cytology (11ím.) F. Mariota-Trlas, M.S., Asst. Plant Breeder C. Moscos&. B.S., Res. Asst. in Plant Breeding J. Vélez-Fortufo, M.S., Asst. Plant Breeder Plant Pathology L. A. Alvarez M.S., Plant Path., Head of Dept. J. Adsuar, B.S1., Plant Path. J. Bird, M.S., Res. Aast, in Plant Path. L. López, B.S., Res. Asst. in Plant Path. Plant Physiology Plant Physiol., Head of Dept. M. C. Fernández, Ph.D., Asst. Plant Physiol. (Mrs.) E. Hernández, M.S., Asst. Plant Physiol. J. Martínez, B.S., Res. Asst. in Chem. L. Miranda, B.S., Res. Asst. in Chem. (Miss) G. Samuels, Ph.D., Plant Physiol. M. A. Tió, M.S., Asst. Plant Physiol.

Soils J. A. Bonnet, Ph.D., Soil Scient., Head of Dept F. Ascorbe, M.A. Res. Asst. in Chem. R. Caro, It.S.,', I#es. Asst. in Soil Conserv. M. Lugo-López, Ph.D., Assoc. Soil Scient. A. Riera, B.S., Asst. Chem. J. Roldán, B.S., Res. Asst. in Chem. Rum Pilot Plant V. Rodriguez-Benitez, M.S., Tech. Dir. H. Brau, M. Chem. Eng., Asst. Chem. E. Brugueras, Res. Asst. in Chem. (Mm.) A. Garcia', M.S., B.S.Asst. Chem. Y. Landrau, M.S. Aest. Chem. (Mrs.) R. Marifelarena, Ph.D. Assoc. Beet. J. Rivera, M.S., Mt. Chem. (Miss) School of Tropical Medicine D. Fernández, B.S., Res. Asst. in Chem. (Miss) A. Mufíz, B.S., Res. Asst. in Chem. (Miss) G. Urrutia, B.A., Res. Asst, in Nutr. (Mrs.) Institute of Nutrition (University of Puerto Rico) L. D. Rodriguez, M.S., Res. Asst. in Chem. (Miss) L. Colom, B.S., Res. Asst, in Chem. (Miss) Library and Publications M. L. Betanees, M.S., Librarian (Miss) E. Molinary-Salés, B.S., Editor Se"vice Department C. J. Clavell, B.S., Adm. Asst. R. Grant, B.S., Res. Asst, in Agron. in Charge of Station Farm. Substations and Seed Farms Seed Farms Dirision—Main Office R. Vizcarrondo, B.S., Agron. Head of Div. C. Rigau, M.S., Asst. Agron. Isabela A. Riollano, M.S., Agron. in Charge M. Avilés, M.S., Asst. Agron. in Charge Seed Farm F. Meijer, B.S., Res. Asst. in Agron. Lajas A. González-Chapel, M.S., Assoc. An Huab. in Charge F. Gelpi, B.S., Res. Asst. in An. Huab. M. Guevara, M.S., Asst. Agron. L. B. Ortíz,', M.S., Res. Asst. in Agron. C. Ortíz-Lugo', B.S., Asst. Agron. Tobacco A. Amy, B.S., Assoc. Agron. in Charge A. Meléndez, B.S.A., Assoc. Agron. Animal Production Substation (La Plata) M. Rojas, M.S., Asst. An. Husb. I. Carlo, B.S., Res. Asst. in An. Husb. Plant Propagation Substation (Trujillo Alto) Asst. Agron. in Charge Coffee (Mayagüez) A. Rodriguez-Cabrera, M.S., Asst. Agron. in Charge S. Rodríguez', B.S., Res. Asst. in Agron. Minor Cropº (Corozal) H. Gandia, B.S., Assoc. Agron, in Charge R. Olivencia, M.S. Res. Asst. in Agron. C. Rivera-López, .S., Asst. Agron. ' As of date of issue 1/31/51 ' Leave to pursue advanced studies ' Leave without pay ' Military Leave 6 Soil Conservation Cooperative Project between P.R. Expt. Sta., SCS, BPISAE, OES-PR. Sta.j


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¿/) $ I-~^

1o30a 7,2

FEBRUARY, 1951

BULLETIN NO. 80

EXCESO DE COPIA PARA DONAR CPR UPR RP AN ECONOMIC STUDY OF FAMILY-SIZED FARMS IN PUERTO RICO IV. Aibonito, Barranquitas, and Corozal Farm Security Administration Farms 1943-44, 1944-45

Guillermo Serra and Manuel Piero

University of Puerto Rico AGRICULTURAL EXPERIMENT STATION

Río Piedras, Puerto Rico


AN ECONOMIC STUDY OF FAMILY-SIZED FARMS IN PUERTO RICO IV. AIBONITO, BARRANQUITAS, AND COROZAL FARM SECURITY ADMINISTRATION FARMS, 1943-44, 1944-45 GUILLERMO SERRA AND MANUEL PIÑERO CONTENTS Page

Introduction Purpose of the study Sample, procedure, and limitations The Area Topography Location Rainfall Soils The Families Size of the families. . Age of head of families Education of heads of families Dwelling security of families Location of families Family income Family net worth Farm Security Administration loans Organization of the Farms Topography of farms Size of farms Kind of labor force Use of the land Crops grown Crop yields Livestock Machinery and equipment Distribution of farm capital Farm Receipts, Expenses, and Returns Sale of crops Crops used by the families Livestock products Farm privileges Miscellaneous farm receipts Farm cash expenses Summary of farm receipts, expenses, and returns. . Differences Between the Groups of Farms Summary and Conclusion. Resumen y Conclusión 1

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3 3 4 5 5 6 6 7 7 7 8 8 8 9 10 12 13 16 16 16 17 17 18 21.. 21 23 24 24 24 27 28 30 31 31 33 35 37 41


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GUILLERMO SERRA AND MANUEL PIÑERO ACñNOWLEDOMENTS

Mr. Francisco de Jesús, formerly of the Department of Agricultural Economics, organized the field work of the present study. Messrs. Pablo B. Vázquez-Calcerrada, Isidoro Avilés, Carlos Rivera and José Soto Aguayo helped in the collection and tabulation of data. Mrs. Dolores B. Agrait and Miss Wanda C. Colom did the typing. Dr. Martín Hernández revised the whole manuscript.


AN ECONOMIC STUDY OF FAMILY-SIZED FARMS IN PUERTO RICO IV. AIBONITO, BARRANQUITAS, AND CORozAL FARM SECURITY ADMINISTRATION FARMS, 1943-44, 1944-45 GUILLERMO SERRA AND MANUEL PIÑERO INTBODUOTION

Five groups of farms established by the Farm Security Administration in Puerto Rico have been studied by the Department of Economics of the Agricultural Experiment Station. This report presents the findings on the group established in the interior of the Island. The reports on the San José, Monserrate and La Plata groups are already published as Bulletins Nos. 77, 78, 79 respectively. The last report of this series will deal with the group of farms in Victoria. The introduction to Bulletin No. 77 gives a description of the land problems and the land tenure reform program of Puerto Rico, as well as of the farm ownership program of the Farm Security Administration. The essential facts may be summarized as follows: A high density of population, an economy depending almost entirely on agriculture, and the best lands concentrated in the hands of very few operators led to widespread land hunger in Puerto Rico and to a constant demand by the people for a land tenure reform program. Several governmental agencies have undertaken work on land distribution in the Island. The Farm Security Administration has been one of those agencies. Under the farm ownership program of the Farm Security Administration loans were made to selected families to buy family-sized farms. Loans are being amortized over a period of 40 years at an interest rate of 3 per cent. Farms are operated by the borrowers under a farm and home management plan. To become a borrower, a family had to meet the requirements of the Administration, one of which was to be unable to obtain credit from other sources for the purchase of a farm. Purpose of the Study The Farm Security Administration gained valuable experience in one of the phases of the land reform program in Puerto Rico, the establishment of family-sized farms. This study undertakes to analyze the experiences accumulated and the accomplishments attained by the Administration in this program. The purposes are: 1, to provide reliable data upon which any agencies involved in this program may base changes to improve their 3


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GUILLERMO SERRA AND MANUEL PIÑERO

policies in the future, and 2, to help the established farmers to understand why some of them are better off than others and also to provide information on which to base adjustments to obtain higher profits from the operation of their farms. The establishment of landless farm people on family-sized farms is a matter of widespread interest. Although conditions in Puerto Rico may be unique in many respects, there are certain principles that should be of universal application. The experiences gained here may be of interest to other people. Thus, this study intends to make those experiences available to those working on similar programs in other places. Sample, procedure, and limitations Thirty-two farms were surveyed for two consecutive years, 1944 and 1945. Farmers in Aibonito, Barranquitas and Corozal, who had been in operation of their farms for two years or more, were visited and a record filled for each one who was found and who was willing to give the information. Thus the records taken and the data used herein are for the fiscal years 1943-44 and 1944-45. The distribution of the surveyed farms by municipalities and "barrios" was as follows: In Aibonito, 12 farms of which 6 were in Asomante, 5 in Llanos, and 1 in Pasto; 8 farms in Barranquitas, of which 5 were in Honduras and 3 in Palo Hincado; and 12 farms in Corozal, of which 2 were in Cedro Arriba, 5 in Cibuco, 2 in Dos Bocas, 1 in Negros, and 2 in Palmarito. Only 122 farms were established by the Administration in the interior of the Island, up to June 30, 1944 (table 1). Most of those in Barranquitas, Corozal, Lares, and Comerlo were established shortly before this survey started and could not be included in the study. The study was conducted by the survey method. The main part of the information was obtained from the farmers in personal visits of the enumerators. Some information was obtained from records kept by the farmers. In many cases, after reviewing the records in the office, farmers were visited for a second time to check any information that seemed inaccurate. Some information used was obtained from the "county" and regional office records of the Farm Security Administration. Data on sugar cane production, sugar cane sales, and cane transportation rebate payments were furnished by the sugar mills. Information on government payments was obtained from the office of the Production and Marketing Administration. The Puerto Rico Tobacco Marketing Association furnished considerable information on sales of tobacco. The analysis of the farm records was divided into four sections, as follows: 1, the family; 2, organization of the farms; 3, farm receipts, expenses and returns; and 4, differences between the groups of farms.


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ECONOMIC STUDY OF FAMILY-SIZED FARMS

The 32 farms are not described together, but in three separate groups. Each group differs considerably from the others. Soils, climate, topography, and location varied from one group of farms to the others. In addition, the size of the farms, the length of time that the operators had been on them, and the crops grown differed among the groups. Within each municipality the farms were similar enough to permit grouping them together for descriptive purposes. The analysis is limited to the presentation of general information on each group. Detailed information on variations among the farms in each group is not presented. Relationships are not established. The fact that TABLE 1. FARMS ESTABLISHED BY THE FARM SECURITY ADMINISTRATION IN THE INTERIOR OF PUERTO RICO, UP TO JUNE 30, 1944 Municipality

Number of farms

Barranquitas Corozal Aibonito Lares Comerlo

33 27 16 13 10

Utuado Juncos San Lorenzo. . . Jayuya Orocovis Cayey

5 5 4 3 3 3

Total

122

only a few farms had been established by the Farm Security Administration in the interior of Puerto Rico by 1942, made it impossible to study a sufficiently large number of farms in any one area of the interior to permit an analysis of relationships. THE AREA

Topography The central mountain range is the most extensive physiographic division of Puerto Rico. The range runs from east to west dividing the Island into a northern and a southern part. The steep soil-covered slopes of the mountains gradually change to gently rolling hills toward the interior valleys and coastal plains. Aibonito and Barranquitas are located on the peak of the range, where


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GUILLERMO BERRA AND MANUEL PIÑERO

the elevation is around 3,000 feet. Corozal is located toward the north, where the mountain range meets the coastal plains. In this latter place most of the hills have longer and more gentle slopes better suited for the cultivation of crops than higher up in the mountains. Location Aibonito and Barranquitas are two small towns located near the center of the Island. Both town are accessible by good hard-surfaced roads that make communications and transportation relatively easy. Aibonito is 48 miles from San Juan, the capital city, and 30 miles from Ponce, the second largest town of Puerto Rico, on the southern coast. Barranquitas is 38 miles from San Juan and 35 miles from Ponce. Summer residences of wealthy people are common both in Aibonito and Barranquitas. TABLE 2. PRECIPITATION IN AIBONITO, BARRANQUITAS, AND COROZAL, PUERTO RICO i91í3-44, 1944-.45, and long time average Town

1943-44

1944-45

Long time average•

Aibonito Barranquitas Corozal

41.74 54.07 57.41

Inches 103.59 80.15 88.51

59.40 — 78.29

* 31-year average for Aibonito and 39-year average for Corozal.

Corozal, located north of Barranquitas, is connected also with the rest of the island by excellent, hard-surfaced roads. The town is only 27 miles from San Juan. Communications and transportation facilities between Corozal and the capital city are good. Sugar cane produced in Aibonito is processed in Central Cayey, at a distance of about 16 miles from the farms surveyed. Cane produced in Corozal is processed in Central Constancia-Toa, at about 12 miles from Corozal. No cane was grown in the farms in Barranquitas. Rainfall Rainfall in Aibonito, Barranquitas, and Corozal, although variable from month to month and from year to year, is adequate for the production of crops. In these locations the dry season occurs around February, and the rainy season around October. In Aibonito, the precipitation for 31 years averaged 59 inches (table 2). In 1943, 44, the first year of this study, the precipitation in this town was 42 inches. The following year it was 104 inches. In Barranquitas, a long-time average of the rainfall was not avail-


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ECONOMIC STUDY OF FAMILY-SIZED FARMS

able. In 1943 precipitation in Barranquitas was 54 inches, and the following year 80 inches. In Corozal, the rainfall in 39 years averaged 78 inches. In 1943-44, rainfall in this town was 57 inches and the following year 89 inches. Soils The soils of the farms surveyed are highly variable, both in types and in productivity. In the farms surveyed in Aibonito the soils predominating as to area are Juncos clay, Múcara silty clay loam and Mabf clay. These soils are shallow to medium deep, dark brown, well-drained and overlying tuffaceous rocks. They are of medium productivity and best adapted to shallow rooted crops. Use of fertilizers, control of erosion, and rotation of crops are practices required for the successful management of these soils. In the farms surveyed in Barranquitas an association of Múcara silty TABLE 3. PERSONS PER FAMILY 38 families, 1948-44 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Group of farms

Aibonito Barranquitas Corozal

Number of families

12 8 12

Persons per family Range

Average

5-11 6-15 7-13

7.8 9.5 9.6

clay loam and Catalina clay predominates. Catalina clay is a deep, red, friable, acid soil overlying tuffaceous shale. It is fairly productive for a variety of crops. Múcara silty clay loam is a medium-deep, dark brown, well-drained soil, overlying tuffaceous rocks. Although less productive than Catalina clay, Múcara silty clay loam is also adapted to a diversity of crops including tobacco. In the farms surveyed in Corozal, an association of Catalina and Cialitos clay predominates. Cialitos clay is similar to Catalina clay, but lighter brown and much more plastic. With good management, Cialitos clay produces good yields of subsistence crops and coffee. THE FAMILIES

Size of the families The number of persons per family in the farms studied in Aibonito ranged from 5 to 11 and averaged 7.8 (table 3). In Barranquitas the size of families ranged from 6 to 15 persons averaging 9.5. In Corozal, it ranged from 7 to 13, averaging 9.6 persons per family. On the average, families in


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GUILLERMO BERRA AND MANUEL PIÑERO

the three groups of farms studied were larger than in Puerto Rico as a whole. Age of heads of families The age of the heads of families in the group of farms studied in Aibonito ranged from 44 to 67 years and averaged 56 years (table 4). In Barranquitas, heads of families ranged from 41 to 60 years of age and averaged 52 years. In Corozal they ranged from 36 to 61 years of age and averaged 49 years. TABLE 4. AGE OF HEADS OF FAMILIES 33 families, 1949-.41 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Group of farms

Aibonito Barranquitas Corozal

Number of familiee

12 8 12

Age of heads Range

Average

44-67 41-60 36-61

56 52 49

TABLE 5. EDUCATION OF HEADS OF FAMILIES 32 families, i9/á4.4 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Group of farms

Aibonito Barranquitas Corozal

Number of families

12 8 12

Years of schooling Range

Average

0-6 0-7 0-7

2.1 3.6 2.3

Education of heads of families In Aibonito, the number of years of schooling received by the heads of the families ranged from 0 to 6 and averaged 2.1 years (table 5). In Barranquitas, education of heads ranged from 0 to 7 years and averaged 3.6 years. In Corozal, education ranged also from 0 to 7 years of schooling but the average was only 2.3 years. Dwelling security of families Of the twelve families surveyed in Aibonito, 6 were "agregado"1 families who did not own the house or the house lot where they lived before being established as farm owners by the Administration; 3 families were "agre1 Farm laborer living on a farm where they work as daily wage earners without paying rent for the houses they occupy.


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ECONOMIC STUDY OF FAMILY-SIZED FARMS

gado" who owned only the house; 1 family was owner of both house and house lot, and the other 2 families lived in some other way (table 6). Of the 8 families in Barranquitas, 4 were "agregado" without house or house lot; 2 were "agregado" owning house only, and 1 was owner of both the house and the house lot. Of the 12 families in Corozal, 5 were "agregado" who did not own either the house or the house lots; 6 owned only the house; and only one family was owner of both the house and house lot.

Location of families In Aibonito, the distances to the homes, before and after the families were established on the farms respectively, were as follows: from school 2 and 2.6 kilometers, from town 4.2 and 4 kilometers, from road 0.5 and TABLE 6. DWELLING SECURITY OF FAMILIES BEFORE BEING ESTABLISHED AS FARM OWNERS 3$ families, 1943-44 and 1944-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Number of families Dwelling security Aibonito Barranquitas Corozal

"Agregado" landless and houseless "Agregado" owning house only Owners of both house and house lots Other Total

6 3 1 2

4 2 1 1

5 6 1 —

12

8

12

0.5 kilometers, from church 3.2 and 4 kilometers, and from health unit 4.3 and 4.6 kilometers (table 7). On the average the distances from the homes to these places was about the same before and after the families moved from the old homes to the new ones. Homes in Barranquitas, before and after the families were established on the farms, averaged the following distances: from school 1.9 and 2.2 kilometers, from town 9.2 and 3.3 kilometers, from road 1.6 and 0.8 kilometers, from church 8.4 and 3.4 kilometers, and from health unit 7.9 and 2.2 kilometers. On the average this group of families came to live considerably closer to the town, the road, the church, and the health unit than they had lived before. In Corozal, distances to the homes, before and after the families were established on the farms respectively were: from school 1.6 and 1.5 kilometers, from town 4.9 and 7.0 kilometers, from road 1.1 and 0 kilometers, from church 3.4 and 2.1 kilometers, and from the health unit 4.2 and 3.2 kilometers. On the average, families came to live farther from town but


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GUILLERMO SERRA AND MANUEL PIÑERO

nearer to the road, the church, and the health unit than they had lived before. TABLE 7. LOCATION OF FAMILIES BEFORE AND AFTER BEING ESTABLISHED AS FARM OWNERS 32 families, 1918-44 and 1911-46 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Average distance in kilometers From home to: Aibonito

Barranquitas

Corozal

School

Before established After established

2.0 2.6

1.9 2.2

1.6 1.5

Town

Before established After established

4.2 4.0

9.2 3.3

4.9 7.0

Road

Before established After established

0.5 0.5

1.6 0.8

1.1 0.0

Church

Before established After established

3.2 4.0

8.4 3.4

3.4 2.1

Health unit

Before established After established

4.3 4.6

7.9 2.2

4.2 3.2

TABLE 8. INCOME OF FAMILIES THE YEAR BEFORE BEING ESTABLISHED AS FARM OWNERS 32 families, 1943-44 and 1944-46 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito

Barranquitaa

Corozal

Source of income

Sale of farm products Wages Farm privileges Salaries Other Total

Amount

Per cent

Amount

Per cent

$182 148 134 62 94

29 24 22 10 15

$200 197 204 — 150

27 26 27 — 20

$265 105 212 — 56

42 16 33 — 9

$620

100

$751

100

$638

100

Amount Per cent

Family income The average income per family interviewed in Aibonito for the year before being established as farm owners was $620 (table 8). Of this, 29 per cent came from the sale of farm products, 24 per cent from wages, 22 per cent from farm privileges, 10 per cent from salaries, and 15 per cent from


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ECONOMIC STUDY OF FAMILY-SIZED FARMS

other sources. The average income of the families in Barranquitas for the year before becoming farm owners was $751. Of this income, 27 per cent came from the sale of farm products, 26 per cent from wages, another 27 per cent from farm privileges, and 20 per cent from other sources. The corresponding income for the families interviewed in Corozal averaged $638. About 42 per cent of it came from sale of farm products, 16 per cent TABLE 9. TOTAL FAMILY INCOME 32 families, 1943-44 and 1944-46 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Barranquitas

Aibonito Item

Corozal

Amount per farm

Per cent of total

Amount per farm

Per cent of total

Cash income Farm cash income Nonfarm cash income

$ 451 45

48 5

$1,611 216

61 8

$ 967 92

59 6

Total cash income Farm privileges

$ 496 436

53 47

$1,827 819

69 31

$1,059 577

65 35

$ 932

100

$2,646

100

$1,636

100

Cash income Farm cash income Nonfarm cash income

$ 845 697

42 34

$1,224 618

46 23

$1,025 602

44 26

Total cash income Farm privileges

$1,542 480

76 34

$1,842 825

69 31

$1,627 689

70 30

$2,022

100

$2,667

100

$2,316

100

Amount Per cent per farm of total

1943-44

Total family income

1944-45

Total family income

from wages, 33 per cent from farm privileges, and 9 per cent from other sources. In 1943-44, the first year of the study, the total family income in Aibonito averaged $932 (table 9). Of this amount 53 per cent was cash income. Farm privileges were 47 per cent of the total. The average income for the families interviewed in Barranquitas was $2,646. Farm cash income accounted for 61 per cent, nonfarm cash income for 8 per cent, and farm privileges for 31 per cent. The average income for the families in Corozal, that year, was $1,636. Of this total, 59 per cent was farm cash income, 6 per cent nonfarm cash income, and 35 per cent farm privileges. In 1944-45, the second year of the study, the average family income in

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GUILLERMO BERRA AND MANUEL PIÑERO

Aibonito was $2,022, of which 42 per cent was farm cash income, 34 per cent nonfarm cash income, and 34 per cent farm privileges. The family income for Barranquitas averaged $2,667, of which 46 per cent was farm cash income, 23 per cent nonfarm cash income, and 31 per cent farm privileges. In Corozal, family income averaged $2,316, that year. Of this amount, 44 per cent was farm cash income, 26 per cent nonfarm cash income, and 30 per cent farm privileges. The highest family income was obtained in Barranquitas. This group of families averaged about the same income in both years of the study. In Aibonito, family income the second year was more than twice what it was the first year. In Corozal, in the second year, it was about $700 more than in the first year. Nonfarm cash income in the second year of the study was relatively much higher for Aibonito than for any of the other groups. Family net worth On the average, families in Aibonito had a net worth of $429 at the time they became borrowers of the Administration (table 10). Assets averaged $480. Land, with a value of $52, was the most important item of fixed assets and livestock, with a value of $192, the most important nonfixed asset. Liabilities averaged $51 of which the most important part were debts to groceries. In Barranquitas, families had a net worth of $609 at the time they became borrowers of the Administration. Assets averaged $649. Dwellings and livestock were the two most important assets. Liabilities, most of which were debts in groceries, averaged $40 per family. In Corozal, the net worth averaged $582 at the time families moved to their new farms. Assets averaged $605. Dwellings and livestock were the principal items of assets. Liabilities averaged $23 out of which $20 were debts to grocery stores. As of June 30, 1944, the net worth of the families surveyed in Aibonito averaged $1,816 (table 11). Assets averaged $6,675. Land and buildings accounted for 70 per cent and livestock for 10 per cent of the assets. Liabilities averaged $4,859. Farm ownership loans accounted for 87 per cent of the debts and rehabilitation loans for 12 per cent. In Barranquitas, the family net worth, as of June 30, 1944, averaged $3,436. Assets averaged $7,988. Land and buildings accounted for 64 per cent of the total assets and livestock for 14 per cent. Liabilities averaged $4,552 of which 98 per cent corresponded to farm ownership loans. On the same date, the family net worth for the group interviewed in Corozal averaged $3,031. Assets averaged $7,816. Land and buildings accounted for 62 per cent; and livestock for 14 per cent of the total assets.


13

ECONOMIC STUDY OF FAMILY-SIZED FARMS

Liabilities averaged $4,785, of which 91 per cent corresponded to the farm ownership loans. TABLE 10. NET WORTH OF FAMILIES AT THE TIME THEY BECAME BORROWERS 32 families, 1943-44 and 1944-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Item

Barranquitas

Corozal Per Value per ctotf family

Value per family

Per cent of total

Value peF family

Per cent of total

Assets: Dwelling Land Other buildings

$ 49 52 17

10 11 4

$119 6 —

18 1 —

$ 51 12 —

9 2 —

Fixed assets

$118

25

$125

19

$ 63

11

Livestock House equipment Cash Farm implements Other

192 91 46 27 6

40 19 9 6 1

170 86 82 29 157

26 13 13 5 24

372 82 57 18 13

61 14 9 3 2

Total assets

$480

100

$649

100

$605

100

$ 33 1 17 —

65 2 33 —

$ 21 — 19

53 — — 57

$ 20 — 2 1

88 — 9 3

$ 51

100

$ 40

100

$ 23

100

$609

-

$582

-

Liabilities: Food Medicines Clothing Other Total liabilities Net worth

$429

Farm Security Administration loans The farm ownership loans made to the 12 families studied in Aibonito averaged $4,348 (table 12). Eighty-three per cent of this amount was used to pay for the land, 13 per cent for the construction of buildings on the farm, including dwelling, and 4 per cent for other purposes. Farm ownership loans in Barranquitas averaged $4,938, of which, 84 per cent was to pay for the land, 13 per cent for the construction of farm buildings, and 3 per cent for other purposes. In Corozal, the farm ownership loans averaged $4,878 per farm. Of this


14

GUILLERMO SERRA AND MANUEL PIÑERO

amount, 82 per cent was used to pay for the land, 14 per cent for the construction of farm buildings, and 4 per cent for other purposes. As of June 30, 1944, the families studied in Aibonito had been operating TABLE 11. FAMILY NET WORTH AS OF JUNE 30, 1944 32 families, i9./á-44 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Item

Barranquitas

Corozal

Per Amount per Per cent Amount per Per cent Amount per cent of farm of total farm of total farm total

Assets: Land Buildings

$3,508 1,152

53 17

$3,636 1,540

46 19

$4,022 812

52 10

Total fixed assets

$4,660

70

$5,176

64

$4,834

62

Livestock Accounts receivable Standing crops Cash on hand Household equipment Farm equipment Machinery Fences Other

653 253 324 312 168 83 138 72 12

10 4 5 5 2 1 2 1 *

1,118 95 441 688 172 70 — 86 142

14 1 6 9 2 1 — 1 2

1,111 235 475 561 233 113 102 101 51

14 3 6 7 3 2 1 1 1

$6,675

100

$7,988

100

$7,816

100

Liabilities Farm ownership loans Rehabilitation loans Other debts

$4,195 607 57

87 12 1

$4,455 — 97

98 — 2

$4,361 396 28

91 8 1

Total liabilities

$4,859

100

$4,552

100

$4,785

100

Total assets

Farmer's Net Worth

..

$1,816

$3,436

$3,031

• Less than 1 per cent.

their farms for 50 months and had repaid 3 per cent of the farm ownership loans. By that date, the families in Barranquitas had been operating their farms for 51 months and had repaid 10 per cent of the loans, while those in Corozal had been on their farms for only 40 months and had repaid 11 per cent of the loans. A year later, the families in Aibonito had repaid 4 per cent of the loans, those in Barranquitas 11, and those in Corozal 15 per cent.

r


15

ECONOMIC STUDY OF FAMILY-SIZED FARMS

TABLE 12. FARM OWNERSHIP LOANS AND LOAN REPAYMENT 32 families, 1943-44 and 1944-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Item

Corozal

Barranquitas

Per Amount per Per cent Amount per Per cent Amount Per cent of farm of total farm of total farm total

Farm ownership loan Land Buildings Roads Fences Other

$3,597 583 62 63 43

83 13 1 2 1

$4,135 630 61 60 52

84 13 1 1 1

$3,983 694 11 111 79

82 14 * 2 2

Total loans

$4,348

100

$4,938

100

$4,878

100

As of June 30, 1944 Months in the farms Amount repaid Unpaid balance

50 $ 151 $4,197

3 97

51 $ 477 $4,461

10 90

40 $ 517 $4,361

11 84

As of June 30, 1945 Months in the farms Amount repaid Unpaid balance

62 $ 185 $4,163

4 96

63 $ 521 $4,417

11 89

52 $ 721 $4,157

15 85

* Less than 1 per cent. TABLE 13. REHABILITATION LOANS MADE UP TO JUNE 30, 1944 32 families, 1943-44 and 1944-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Item

Total number of loans Total amount loaned Average amount per loan Lowest number of loans to a family Highest number of loans to a family Average number of loans per family Lowest total amount loaned to a family Highest total amount loaned to a family Average total amount loaned per family

Aibonito

Barranquitas

Corozal

66 $25,748 $ 390

29 $13,297 $ 459

46 $18,083 $ 393

4 7 5.5 $ 1,766 $ 2,569 $ 2,146

1 5 3.6 $ 550 $ 2,755 $ 1,662

1 5 3.8 25 $ 2,278 $ 1,507

Up to June 30, 1944, during the first 50 months on the farms, a total of 66 rehabilitation loans were made to the 12 families studied in Aibonito (table 13). The total amount loaned was $25,748 and the average amount


16

GUILLERMO SERRA AND MANUEL PIÑERO

per loan $390. The number of loans made per family ranged from 4 to 7, and averaged 5.5. The number of loans made to the 8 families studied in Barranquitas during the first 51 months on their farms, was 29, the total amount loaned was $13,297, and the average amount per loan $459. The number of loans made per family ranged from 1 to 5 and averaged 3.6. The number of loans made to the 12 families studied in Corozal during the first 40 months on their farms was 46, the total amount loaned was $18,083 and the average amount per loan $393. The number of loans made per family ranged from 1 to 5 and averaged 3.8. Most of these loans were repaid each year with the proceeds of the crops. TABLE 14. TOPOGRAPHY OF FARMS 62 farms, 194,3-4y and 1944-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Per cent of land Group of farms

Aibonito Barranquitas Corozal

Number of farms

12 8 12

Total cuerdas

427 521 506

Level

Rolling

Steep

30 4 16

61 60 38

9 36 46

ORGANIZATION OF THE FARMS

Topography of farms The topography of the area covered by the 12 farms studied in Aibonito was classified by the farmers as 30 per cent level, 61 per cent rolling and 9 per cent steep (table 14). The land of the farms studied in Barranquitas was level in 4 per cent of the total area, rolling in 60 per cent, and steep in the remaining 36 per cent. The farms in Corozal were level in 16 per cent of the total area, rolling in 38 per cent, and steep in 46 per cent.

Size of farms The farms in Aibonito ranged in size from 24.2 to 48.3 cuerdas2 and averaged 35.6 cuerdas (table 15). In Barranquitas, the size of the 8 farms surveyed ranged from 45 to 82 cuerdas, averaging 65.1 cuerdas. In Corozal, farms ranged from 23.5 to 60.3 cuerdas and averaged 42.1 cuerdas in size. In terms of man equivalent, the farms in Aibonito ranged from 2.3 to 5.4 and averaged 3.9 in 1943-44. In 1944-45 they ranged from 1.7 to 5.2 and averaged 3.2 (table 16). The farms in Barranquitas ranged from 2.6 to 6.8 and averaged 4.9 in man equivalent the first year of the study. In 2

One cuerda is equivalent to 0.9712 of an acre.


17

ECONOMIC STUDY OF FAMILY-SIZED FARMS

the second year they ranged from 2 to 6.5 and averaged 4.8. In Corozal man equivalent ranged from 2.2 to 5.7 and averaged 3.4 in 1943-44. The following year the range was from 2 to 5.6 and the average 3.2. Kind of labor force In 1943-44, the operator and his family provided 61 per cent of the labor on the farms in Aibonito, 45 per cent on the farms in Barranquitas. and 65 per cent on the farms in Corozal. The rest was hired labor (table 17). TABLE 15. SIZE OF FARMS 32 farms, 1943-44 and 19444-4 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Group of farms

Number of farms

Range in size

Average sise

Cuerdas 24.2-48.3 45.0-82.0 23.5-60.3

Cuerdas 35.6 65.1 42.1

12 8 12

Aibonito Barranquitas Corozal

TABLE 16. MAN EQUIVALENT 32 farms, 1943-44 and 1944- 45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Man equivalent Group of farms

Number of farms

Aibonito Barranquitas Corozal

12 8 12

1943-44 Range Average

2.3-5.4 2.6-6.8 2.2-5.7

3.9 4.9 3.4

1944-46 Range Average

1.7-5.2 2.0-6.5 2.0-5.6

3.2 4.8 3.2

In 1944-45, the operator and his family provided 56 per cent of the labor on the farms in Aibonito, 50 per cent on the farms in Barranquitas, and 59 per cent on the farms in Corozal. The highest amount of hired labor was used in Barranquitas. This was due to the fact that this group of farms had more tobacco than the other two groups. Tobacco requires a lot of seasonal hand labor. Use of the land In Aibonito, the net area in crops, in 1943-44, averaged 21.6 cuerdas. With an average of 6.3 cuerdas intercropped, the total area in crops came to be 27.9 cuerdas (table 18). Clear permanent pasture averaged 11.4 cuerdas per farm that year. In 1944-45, the net area in crops in Aibonito


18

GUILLERMO SERRA AND MANUEL PIÑERO

was 19 cuerdas, the total area in crops 20.4 cuerdas, and the area in clear, permanent pasture 13.3 cuerdas. In Barranquitas, in 1943-44, the net area in crops was 26.9 cuerdas per farm, the total area in crops 31.6 cuerdas, and the area in clear, permanent pasture 27.8 cuerdas. In 1944-45, the net area in crops on these farms was 22 cuerdas, the total area in crops 28.1 cuerdas, and the area in clear permanent pasture 32.9 cuerdas per farm. In Corozal, during the first year of the study, the average net area in TABLE 17. KIND OF LABOR PER FARM 32 farms, 1943-44 and 19.44-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Kind of labor

1943-4 Operator Operator's family

Man-equivalent

Corozal

Barranquitaa

Per cent Man-equiof total valent

Per cent Man-equiof total valent

Per cent of total

0.9 1.5

23 38

0.9 1.3

18 27

0.9 1.3

27 38

2.4 1.5

61 39

2.2 2.7

45 55

2.2 1.2

65 35

Total labor

3.9

100

4.9

100

3.4

100

1944-46 Operator Operator's family

0.8 1.0

25 31

0.9 1.5

19 31

0.9 1.0

28 31

1.8 1.4

56 44

2.4 2.4

50 50

1.9 1.3

59 41

3.2

100

4.8

100

3.2

100

Total family labor Hired labor

Total family labor Hired labor Total labor

crops was 16.5 cuerdas, the total area in crops 21.4 cuerdas, and the area in clear, permanent pasture 17.7 cuerdas. The second year of the study, the average net area in crops in this group of farms was 15.3 cuerdas, total area in crops 20.1 cuerdas, and area in clear permanent pasture 19.2 cuerdas. In both years of the study, the net area in crops constituted a greater proportion of all land studied in Aibonito than in any of the other two groups, while the proportion of land in clear permanent pasture was greater in Barranquitas. Crops grown

were

More than thirteen different crops were grown on the farms surveyed each year of the study. Among these crops sugar cane, beans, corn,


i

19

i

ECONOMIC STUDY OF FAMILY-SIZED FARMS

plantains, taniers, sweet potatoes, tobacco, rice, bananas, yams and coffee (table 19). In Aibonito, the most important crops grown, according to area planted, were tobacco, sugar cane, and corn. Tobacco averaged 4.5 cuerdas the TABLE 18. USE OF THE LAND 3Q farms, 19.43-.44 and 194.4-.46 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Item

193-4 Total area in crops Intercropped Net area in crops Clear permanent pasture Seeded pasture Wooded pasture Woodland Waste land Buildings, roads, and fences Total 19.4.4—.46 Total area in crops Intercropped Net area in crops Clear permanent pasture Woodland Wooded pasture Waste land Buildings, roads, and fences Total

Barranquitas

Corozal

Area per per cent Area per per cent Area per Per farm (all of total farm (all of total farm (all cent of farms) total farms) farms)

Cuerdas 27.9 6.3

— —

Cuerdas 31.6 4.7

— —

Cuerdas 21.4 4.9

— —

21.6 11.4 — — 0.7 0.4 1.5

61 32 — — 2 1 4

26.9 27.8 — 1.3 0.8 6.3 2.0

41 43 — 2 1 10 3

16.5 17.7 0.2 2.0 0.4 3.8 1.5

39 42 1 5 1 9 3

35.6

100

65.1

100

42.1

100

20.4 1.4

— —

28.1 6.1

— —

20.1 4.8

— —

19.0 13.3 1.4 — 0.4 1.5

54 37 4 — 1 4

22.0 32.9 0.8 0.9 6.8 1.7

34 51 1 1 10 3

15.3 19.2 3.5 — 2.5 1.6

36 46 6 — 8 4

35.6

100

65.1

100

42.1

100

first year and 5.7 cuerdas the second year. Beans, plantains, and coffee were important during the first year of the study, but not so the second year. In Barranquitas, the most important crops, according to area planted, were tobacco, corn, plantains, and beans. Tobacco was, by far, the most important crop in both years of the study. It averaged 7 cuerdas the first year and 9.1 cuerdas the second year.


20

GUILLERMO SERRA AND MANUEL PIÑERO

TABLE 19. CROPS GROWN 32 farms, 1943-44 and 1944-46 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito

Corozal

Barranquitse

Farina Area'perfarm Farina Areaperfarm Farina reporting (all farina) reporting (all farina) reporting fa farms) m

Crop

1943-44 Sugar cane Beans Corn Plantains Tamers Sweet potatoes Harvested pasture Tobacco Rice Bananas Yams Coffee . Cabbage Taro Other

11 11 12 11 12 10 1 12 4 10 8 6 3 3 -

Total 1944-46 Sugar cane Beans Corn Plantains Tamers Sweet potatoes Harvested pasture Tobacco Rice Bananas Yams Coffee Cabbage Other Total

4.0 3.6 4.8 2.0 1.5 1.2 .1 4.5 .5 1.2 .4 3.2 .2 .2 .5

8 7 8 8 4 1 8 7 5 4 1 5 3 -

4.3 .2 4.4 .5 .3 .7 — 5.7 .4 1.4 .5 1.8 — .2 20.4

7 12 11 12 12 11 7 8 7 2 4 4 3 -

7 7 6 6 5 2 8 6 5 7 1 2 —

3.5 5.0 2.2 1.4 .6 .8 9.1 1.6 1.3 .5 1.0 .3 .8 28.1

4.0 2.3 2.2 4.1 2.0 1.4 .5 .7 1.1 .5 1.2 .2 .3 .9 21.4

31.6

27.9 11 2 9 6 5 7 — 12 4 11 11 5 — —

3.0 3.3 5.1 2.6 .6 .1 7.0 2.3 2.0 .5 1.0 .7 .4 3.0

7 11 7 12 10 7 4 9 3 6 3 3 2 —

4.2 1.4 1.4 4.6 2.1 .7 .3 1.6 .5 .9 .1 1.2 1.1 — 20.1

In Corozal, the most important crops were plantains, sugar cane, and taniers. Plantains was the most important in both years. It averaged 4.1 cuerdas the first year and 4.6 cuerdas the second year.


'I,

21

ECONOMIC STUDY OF FAMILY-SIZED FARMS

Crop yields In general, the yields of crops per cuerda, were higher in 1944-45 than in 1943-44 (table 20). In the second year of the study rainfall was higher in amount and better distributed. This might have influenced the difference in yields during those years. The yields of sugar cane were greatly influenced by the amount of rainfall and by the fertilizers used, each year, in each area. In the first year TABLE 20. CROP YIELDS 32 farms, 1943-44 and 1944—k6 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico 1943.44 Item

Sugar cane Beans Corn Plantains Taniers Sweet potatoes Tobacco Rice Cassava Bananas Peppers Tomatoes Pigeon peas Yams Taro Coffee Cabbage

tons lbs. lbs. thous. cwt. cwt. cwt. lbs. cwt. thous. cwt. cwt. lbs. cwt. cwt. lbs. cwt.

1944-45

Aibonito

Q an-

Corozal

Aibonito

8.8 140 210 5.0 23.8 20.8 6.7 510 21.8 20.5 — — 44.5 26.5 66 43.2

— 110 390 12.8 18.7 37.4 9.1 460 9.6 12.1 — 8.8 200 29.7 44.8 94 58.4

14.2 260 680 9.3 17.7 35.3 7.5 460 12.8 25.7 30 36.9 100 33 68 297 25.3

21.2 — 90 88 270 470 7.8 4.5 35.7 24.5 24.3 37.1 8.4 8.7 570 530 65 37 8.6 9.1 — — 450 61.9 60 41.3 — 125 150 81 —

Unit

Bquiittans

Corozal

17.6 260 600 12.4 19 20.7 5.8 200 37.5 12.3 20 28.3 200 37.7 13.3 260 48

of the study the yields per cuerda of this crop were 8.8 tons in Aibonito and 14.2 tons in Corozal, and in the second year, 21.2 tons in Aibonito and 17.6 in Corozal. Each group of farms had some crops with the best yields, per cuerda. Aibonito had the highest yields of taniers and yams, while Corozal had the highest yields of beans, corn, plantains, and bananas. The yields of sweet potatoes, tobacco, pigeon peas, and cabbage were highest in Barranquitas. Livestock The number of animal units averaged 5.6, 9, 10 per farm in Aibonito, Barranquitas and Corozal, respectively during the first year of the study


22

GUILLERMO SERRA AND MANUEL PIÑERO

(table 21). For the second year the number of animal units averaged 6 in Aibonito, 9.9 in Barranquitas, and 10 in Corozal. In all the groups of farms, dairy cattle was the most important kind of livestock, measured in terms of animal units. Dairy cattle averaged 2.4, 4.1, and 5 animal units per farm in Aibonito, Barranquitas, and Corozal, respectively, on the first year of the study. The second year it averaged 2.8 animal units in Aibonito, 5.5 in Barranquitas, and 5.4 in Corozal. TABLE 21. ANIMAL UNITS BY TYPE 3/i farms, 1943-44 and 1944-45 Aibonito, Barranquitas, and Corozal, F.S.A. Farms, Puerto Rico Aibonito

Barranquitas

Corozal

Type of livestock Units

Per cent

Unite

Per cent

Units

Per cent

2.4 2.8 .2 .2 **

42 50 4 4 *

4.1 4.2 .4 .3 **

46 47 4 3 *

5.0 4.1 .5 .3 .1

50 41 5 3 1

5.6

100

9.0

100

10.0

100

2.8 2.7 .2 .2 .1

46 45 4 4 1

5.5 3.6 .4 .4 "

54 37 4 4 1

5.4 3.8 .4 .3 .1

54 38 4 3 1

6.0

100

9.9

100

10.0

100

194-44 Dairy cattle Work animals Swine Poultry Other Total

...

1944-46 Dairy cattle. Work animals Swine Poultry Other Total

/

Work stock followed in importance. The first year of the study work stock averaged 2.8 animal units in Aibonito, 4.2 units in Barranquitas, and 4.1 in Corozal. The second year, it averaged 2.7, 3.6, and 3.8 animal units respectively, in Aibonito, Barranquitas, and Corozal. Swine, poultry, and other livestock were of minor importance in all the groups of farms. As of June 30, 1944, the value of dairy cattle on the farms averaged $305 in Aibonito, $583 in Barranquitas, and $609 in Corozal (table 22). The second year of the study, the average was $276 in Aibonito, $551 in Barranquitas, and $595 in Corozal. The value of work stock, the first and second year of the study respectively, was as follows: $289 and $287 in Aibonito, $414 and $433 in Barranquitas, and $403 and $367 in Corozal.

/

* Less than 1 per cent. ** Less than .1 unit.


23

ECONOMIC STUDY OF FAMILY-SIZED FARMS

The value of poultry was $35 and $35 in Aibonito, $71 and $73 in Barranquitas, and $55 and $70 in Corozal. That of swine was $22 and $15 in Aibonito, $48 and $20 in Barranquitas, and $40 and $43 in Corozal. The TABLE 22. VALUE OF LIVESTOCK, BY TYPES, AS OF JUNE 30 32 farms, 1943-44 and 1944-46 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico 1944

1945

Kind of livestock Aibonito Barranquitas

Corozal

Aibonito Barranquitas Corozal

$215 42 21 27

$ 295 131 118 39

$ 399 91 53 66

$211 24 13 28

$ 289 138 61 63

$ 357 103 76 59

$305

$ 583

$ 609

$276

$ 551

$ 595

$236 34 8 3 8

$ 303 86 — — 25

$ 279 79 7 — 38

$244 30 5 — 8

$ 322 72 8 — 31

$ 254 93 3 — 17

Total work stock

$289

$ 414

$ 403

$287

$ 433

$ 367

Hens and roosters Chickens Other

$ 28 7 —

$

48 21 2

$

41 12 2

$ 26 9 —

$

40 30 3

$

50 19 1

Total poultry

$ 35

$

71

$

55

$ 35

$

73

$

70

Hogs and sows Small pigs

$ 21 1

$

32 16

$

26 14

$ 8 7

$

12 8

$

26 17

Total swine

$ 22

$

48

$

40

$ 15

$

20

$

43

Goats and sheep

$ 2

$

1

$

4

$ 3

$

2

$

1

$653

$1,118

$1,111

$616

$1,079

Milk cows Heifers Young bulls Calves Total dairy cattle Oxen Horses Mares Colts Mules

Total

$1,076

total value of livestock, the first and second year of the study was respectively $653 and $616 in Aibonito, $1,118 and $1,079 in Barranquitas, and $1,111 and $1,076 in Corozal. Machinery and equipment The total value of machinery and equipment on the farms, the first and second years of the study respectively, was $221 and $211 in Aibonito and


24

GUILLERMO SERRA AND MANUEL PIÑERO

$215 and $209 in Corozal (table 23). The total value of machinery was more than the total value of equipment in Aibonito. In Corozal equipment was valued higher than machinery. Barranquitas did not report machinery. The value of equipment in Barranquitas averaged about $70 each year of the study. Distribution of farm capital The average capital investment in 1943-44 and 1944-45 respectively, was as follows: in Aibonito, $5,591 and $5,570; in Barranquitas, $6,331 and $6,469; and in Corozal, $6,222 and $6,263 (table 24). In Aibonito, real estate accounted for about 83 per cent of the total capital investment. Livestock accounted for 11 per cent and machinery and equipment for 4 per cent of the total each year. Other items of investTABLE 23. MACHINERY AND EQUIPMENT 3Q farms, 1943-44 and 194íl-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico June 30, 1944

June 30, 1945

Item Aibonito

Baffin' quitas

Corozal

Aibonito on

Bin quitas'

Corozal

Machinery Equipment

$138 83

— $70

$102 113

$125 86

— $69

$ 93 116

Total

$221

$70

$215

$211

$69

$209

ment accounted for 1 per cent of the total the first year and for 2 per cent the second year. In Barranquitas, land and buildings accounted for about 81 per cent and livestock for about 16 per cent of the total capital investment. Equipment accounted for 1 per cent and other items for 2 per cent of the total each year of the study. In Corozal, real estate accounted for about 77 per cent of the capital and livestock for about 18 per cent. Machinery and equipment accounted for 3 per cent and other items for 2 per cent each year of the study. FARM RECEIPTS, EXPENSES, AND RETURNS

Sale of crops The respective incomes from the sale of crops during the first and second year of the study were as follows: in Aibonito, $1,240 and $1,727; in Barranquitas, $2,894 and $2,682; and in Corozal, $1,546 and $1,884 (table 25). From the standpoint of income, the most important crops were: tobacco


25

ECONOMIC STUDY OF FAMILY-SIZED FARMS

and sugar cane in Aibonito; tobacco and plantains in Barranquitas; and plantains, sugar cane, and tobacco in Corozal. Some of the other crops sold by the farms studied were coffee, bananas, yams, cabbage, taniers, TABLE 24. DISTRIBUTION OF FARM CAPITAL* 32 farms, 19.43-44 and 1944-46 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Item

1943- 44 Land Dwelling Other buildings Total real estate Livestock Machinery and equipment Other Total 1944-46 Land Dwelling Other buildings Total real estate Livestock Machinery and equipment Other Total

Barranquitas

Corozal

Value per Per cent Value per Per cent Value per farm of total farm of total farm

Per cent of total

$3,508 705 491

63 12 9

$3,637 792 770

57 13 12

$4,022 680 151

65 11 2

$4,704

84

$8,208

82

$4,853

78

$ 588 221 78

11 4 1

$ 942 77 104

15 1 2

$1,079 179 111

17 3 2

$5,591

100

$6,331

100

$6,222

100

$3,508 673 459

63 12 8

$3,636 772 794

56 12 12

$4,022 648 172

64 10 3

$4,640

83

$5,202

80

$4,842

77

$ 636 217 77

11 4 2

$1,098 69 100

17 1 2

$1,094 212 115

18 3 2

$5,570

100

$6,469

100

$6,263

100

* Average for the year.

beans, corn, and sweet potatoes. No one of these accounted for up to 5 per cent of the total sales of crops in any one year. The average prices at which the most important crops were sold in Aibonito the first and second year of the study respectively, were: sugar cane, at $5.30 and $5.00 per ton; tobacco, at $38.60 and $23.30 per hundredweight; plantains, at $10.40 and $17.30 per thousand; coffee, at $23.70 and $24.50 per hundredweight; bananas, at $2.80 and $4.60 per thousand;


26

GUILLERMO SERRA AND MANUEL PIÑERO

TABLE 25. SALE OF CROPS 32 farms, 1943-44 and 1944-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Barranquitaa

Aibonito Crop

1943-44 Sugar cane Tobacco Plantains Coffee. Bananas Yams Cabbage Taniers Beans Corn Sweet potatoes Tomatoes Vegetables Other Total 1944- 46 Sugar cane Tobacco Plantains Coffee. Bananas Yams Cabbage Taniers Beans Corn Sweet potatoes Tomatoes Vegetables Other Total

Corozal

Sales per farm

Per cent of total

Sales per farm

Per cent of total

Sales per farm

Per cent of total

$ 186 935 31 34 26 14 4 5 2 2 —

15.0 75.4 2.5 2.7 2.1 1.1 0.3 0.4 0.2 0.2 —

— 1

— 0.1

$2,460 207 26 35 23 47 32 — 8 — — — 56

85.0 7.1 0.9 1.2 0.8 1.6 1.1 — 0.3 — — — 2.0

$ 330 216 517 69 44 — 13 63 29 20 27 51 22 155

31.3 14.0 33.4 4.5 2.9 — 0.8 3.4 1.9 1.3 1.7 3.3 1.4 10.1

$1,240

100.0

$2,894

100.0

$1,546

100.0

$ 459 1,117 12 30 18 41 — 8 — 26 12 — — 4

26.6 64.7 0.7 1.7 1.1 2.4 — 0.4 — 1.5 0.7 — — 0.2

$2,085 276 * 25 70 * 56 5 46 8 * * 111

— 77.8 10.3 0.9 2.6 — 2.1 0.2 1.7 0.3 — — 4.1

$ 409 242. 873 56 33 4 4 88 27 12 4 66 — 66

21.7 12.8 46.4 3.0 1.7 0.2 0.2 4.7 1.5 0.6 0.2 3.5 — 3.5

$1,727

100.0

$2,682

100.0

$1,884

100.0

* Included in other.

taniers, at $2.70 and $2.90 per hundredweight; and corn, at $5.00 and $4.60 per hundredweight (table 26). In Barranquitas the first and second year of the study the prices were: for tobacco, $41.70 and $26.30 per hundredweight; for plantains, $11.20


27

ECONOMIC STUDY OF FAMILY-SIZED FARMS

and $19.60 per thousand; for coffee, $30.00 and $20.00 per hundredweight; for bananas, $3.00 and $3.40 per thousand; for yams, $2.00 and $3.30 per hundredweight; for cabbage, $3.20 and $3.50 per hundredweight; for taniers, $1.90 and $2.80 per hundredweight; and for sweet potatoes, $5.00 and $3.90 per hundredweight. In Corozal, the prices for the corresponding years were: $5.80 and $5.50 per ton of sugar cane; $41.40 and $26.80 per hundredweight of tobacco; $15.50 and $18.60 per thousand of plantains; $24.30 and $24.00 per hundredweight of coffee; $3.80 and $3.80 per thousand of bananas; $3.60 and $4.50 per hundredweight of cabbage; $2.90 and $3.40 per hundredweight TABLE 26. PRICE OF CROPS 82 farms 1943-44 and 19.44-4S Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico 1943-44 Crop

Aibonito qe

Sugar cane Tobacco Plantains Coffee Bananas Yams Cabbage Taniers Beans Corn Sweet potatoes Tomatoes

1944"48

Unit

ton cwt. thous. cwt. thous. cwt. cwt. cwt. cwt. cwt. cwt. cwt.

Corozal

Aibonito

Q~ n"

Corozal

$ 5.30 - $ 5.80 $ 5.00 - $ 5.50 38.60 $41.70 41.40 23.30 $26.30 26.80 10.40 11.20 15.50 17.30 19.60 18.60 23.70 30.00 24.30 24.50 20.00 24.00 3.00 2.80 3.80 4.60 3.40 3.80 — 2.00 2.70 3.30 3.00 1.00 3.20 3.60 3.50 4.50 2.70 1.90 2.90 2.90 2.80 3.40 10.00 9.70 9.00 10.90 5.00 5.00 4.30 4.60 3.90 4.70 — — 2.30 3.00 2.50 2.10 2.70 10.70 10.00

of taniers; $9.70 and $10.90 per hundredweight of beans; $4.30 and $4.70 per hundredweight of corn; and $2.30 and $2.10 per hundredweight of sweet potatoes. Crops used by the families The average value of the crops used by the family, the first and second year of the study respectively, was as follows: in Aibonito, $135 and $182; in Barranquitas, $281 and $280; and in Corozal, $180 and $273 (table 27). Plantains was the most important crop used at home. The value of the plantains used at home, the first and second year was respectively as follows: $17 and $33 in Aibonito, $65 and $49 in Barranquitas, and $54 and $132 in Corozal. The most important of the other home grown crops used by the families were taniers, sweet potatoes, beans, rice, bananas and yams.


28

GUILLERMO SERRA AND MANUEL PIÑERO

TABLE 27. CROPS USED BY FAMILIES 32 farms, 1943-44 and 1944-45 Aibonito, Barran quitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Crop

1943-44 Plantains Taniers Sweet potatoes Beans Rice Bananas Corn Cassava Yams Taro Coffee. Home garden. Other Total 194.4-46 Plantains Taniers Sweet potatoes Beans Rice Bananas Corn Cassava Yams Taro Coffee Home garden. Other Total

Barranquitas

Corozal Per Value per cent of farm total

Value per farm

Per cent of total

Value per farm

Per cent of total

$ 17 12 17 8 14 16 6 5 16 2 17 — 5

13 9 12 6 10 12 4 4 12 2 12 — 4

$ 65 30 25 17 64 32 7 3 5 3 2 10 18

23 11 9 6 23 11 2 1 2 1 1 4 6

$ 54 16 24 17 13 3 4 2 — 6 17 12 12

30 9 14 10 7 2 2 1 — 3 9 7 6

$135

100

$281

100

$180

100

$ 33 16 16 2 19 27 13 2 23 — 26 — 5

18 9 9 1 11 15 7 1 13 — 14 — 2

$ 49 38 15 20 58 15 9 1 36 — 15 — 24

18 14 5 7 21 5 3 * 13 — 5 — 9

$132 46 13 13 8 6 9 6 4 — 21 2 13

48 17 5 5 3 2 3 2 1

$182

100

$280

100

$273

100

8 1 4

* Less than 1 per cent.

Livestock products Milk and eggs were the only livestock products on the farms and milk was the most important of the two, (table 28). Milk production in Aibonito averaged 1,074 quarts in 1943-44 with a value of $104. In 1944-45, milk


29

ECONOMIC STUDY OF FAMILY-SIZED FARMS

production was 871 quarts and its value :9. All the milk produced in this group of farms was used in the homes. In Barranquitas, milk production the first year of the study averaged 2,301 quarts per farm with a value of TABLE 28. LIVESTOCK PRODUCTS 32 farms, 1943-44 and 19.44-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito

Barranquitas

Corozal

Produot Quantity

Value

Quantity

Value

Quantity Value

21 1,053

$ 2 102

53 2,248

$ 7 234

263 1,670

$ 28 171

1,074

$104

2,301

$241

1,933

$199

Eggs sold Eggs used at home*

100 493

$ 5 24

62 1,123

$ 3 59

500 664

$ 26 34

Total eggs Other

593 —

$ 29 —

1,185 —

$ 62 2

1,164 —

$ 60 3

—

$133

—

$305

—

$262

5 866

$ — 89

75 1,909

$ 11 201

144 1,898

$ 15 193

871

$ 89

1,984

$212

2,042

$208

Eggs sold Eggs used at home*. . .

73 772

$ 4 38

192 1,208

$ 10 59

550 698

$ 27 35

Total eggs Other

845 —

$ 42 1

1,400 —

$ 69 —

1,248 —

$ 62 1

—

$132

—

$281

—

$271

1943-44 Milk sold (quarts) Milk used at home*. . . . Total milk

Total 1944- 46 Milk sold (quarts) Milk used at home* Total milk

Total * Includes given away.

$241. The second year milk production averaged 1,984 quarts with a value of $212. Almost all the milk of these farms was used for home consumption. In Corozal, the first year, milk production averaged 1,933 quarts per farm with a value of $199 of which only $28 were sold. The second year, the production averaged 2,042 quarts and the value $208. The value of eggs produced averaged $29 in Aibonito, $62 in Barran-


30

GUILLERMO SERRA AND MANUEL PIÑERO

quitas, and $60 in Corozal the first year of the study. The second year, it averaged $42 in Aibonito, $69 in Barranquitas, and $62 in Corozal. As in the case of milk, most of the eggs produced on the farms were used in the homes. Livestock product averaged a total value of about $130 each year of the study in Aibonito, about $300 in Barranquitas and $270 in Corozal. TABLE 29. FARM PRIVILEGES* 32 farms, 1943-44 and 1944.-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Item

Barranquitaa

Coroaal Per Value per cent of farm total

Value per farm

Per cent of total

Value per farm

Per cent of total

$ 36 126 136 106 32

8 29 31 25 7

$ 68 295 291 123 42

8 36 36 15 5

$ 55 207 183 103 29

9 36 32 18 5

$436

100

$819

100

$577

100

$ 28 128 182 106 36

6 27 38 22 7

$ 85 260 288 122 70

10 32 35 15 8

$ 49 228 279 103 30

7 33 41 15 4

$480

100

$825

100

$689

100

1943-44 Livestock Livestock products Crops Rent value of dwelling Other Total

1944-45 Livestock Livestock products Crops Rent value of dwelling Other Total * Includes given away.

Farm privileges The value of farm privileges averaged $436 in Aibonito, $819 in Barranquitas, and $577 in Corozal the first year of the study. The second year, it averaged $480 in Aibonito, $825 in Barranquitas, and $689 in Corozal (table 29). In general, crops were the most important item of farm privilege and accounted for over one-third of the total farm privileges in each group of farms. Livestock products followed in importance, accounting for close to one-third of the farm privileges. Rent value of dwellings, as a source of farm privileges, was third in importance in the three groups of farms.


31

ECONOMIC STUDY OF FAMILY-SIZED FARMS

Miscellaneous farm receipts In the year 1943-44, miscellaneous farm receipts averaged $290 per farm in Aibonito, $108 in Barranquitas, and $303 in Corozal. In 1944-45 they averaged $444 in Aibonito, $118 in Barranquitas, and $353 in Corozal (table 30). Sugar cane benefit and subsidy payments were the most important sources of miscellaneous receipts for Aibonito and Corozal. The first year of the study they amounted to $176 in Corozal. The second year, they amounted to $273 in Aibonito and $248 in Corozal. Sugar cane transTABLE 30. MISCELLANEOUS FARM RECEIPTS 32 farms, 1943-44 and 194-.45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Source

Barranquitas

Corozal

Average Per cent Average Per cent Average Per per farm of total per farm of total per farm cent of total

1945-44 Sugar cane government payments Cane transportation rebates Soil conservation payments Other Total

$176 19 83 12

61 6 29 4

$290

— $ 93 15

— — 86 14

$145 56 49 53

48 19 16 17

100

$108

100

$303

100

$273 69 21 81

61 16 5 18

— — 44 74

— — 37 63

$248 61 16 28

70 17 5 8

$414

100

$118

100

$353

100

1944-46 Sugar cane government payments. Cane transportation rebates Soil conservation payments Other Total

portation rebate payments were also of importance in Aibonito and Corozal. Barranquitas had no sugar cane. Soil conservation payments were the most important single source of miscellaneous income in Barranquitas. Farm cash expenses Farm cash expenses, the first year of the study, averaged $1,030 in Aibonito, $1,349 in Barranquitas, and $1,083 in Corozal. The second year of the study they averaged $1,368 in Aibonito, $1,756 in Barranquitas and $1,374 in Corozal (table 31). In each group of farms, cash expenses were from three to four hundred dollars higher the second year than the first. The most important item of cash expense was labor. Labor costs were

~


TABLE 31. FARM CASH EXPENSES 53 farms, 1945-y4. and 1944-!6 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Barranquitaa

Aibonito Item

1943-44 Wages Labor Insurance Board

Corozal

Average per Per cent Average per Per cent Average per Per cent farm farm of total of total farm of total

$ 429 35 29

41.6 3.4 2.8

$ 560 18 116

41.5 1.3 8.6

$ 398 26 20

36.7 2.3 1.9

Total labor costs

$ 493

47.8

$ 694

51.4

$ 444

40.9

Fertilizer Cane transportation Mixed Feeds Taxes New buildings Repair of buildings. . . . Feeds (other) Thread and rope Purchase of seed Repair of fences Marketing expenses Insecticides Other

$ 185 49 — 49 — 15 10 23 51 7 63 26 59

18.0 4.8 — 4.7 — 1.5 1.0 2.2 5.0 0.6 6.1 2.6 5.7

$ 230 — — 72 — 77 5 34 24 12 135 32 34

17.1 — 5.4 — 5.7 0.4 2.5 1.8 0.9 10.0 2.4 2.4

$ 296 84 24 54 11 — 16 16 31 4 42 9 52

27.4 7.7 2.2 5.0 1.0 — 1.5 1.5 2.9 0.4 3.8 0.9 4.8

$1,030

100.0

$1,349

100.0

$1,083

100.0

$ 536 25 44

39.2 1.8 3.2

$ 634 15 199

36.1 0.9 11.3

$ 556 23 59

40.5 1.6 4.3

Total labor costs

$ 605

44.2

$ 848

48.3

$ 638

46.4

Fertilizer Cane transportation Mixed feeds Taxes New buildings. Repair of buildings Feeds (other) Thread and rope Purchase of seeds Repair of fences Marketing expenses Insecticides Other

$ 237 161 4 44 14 32 11 33 66 2 4 21 134

17.3 11.8 0.3 3.2 1.0 2.3 0.8 2.5 4.8 0.1 0.3 1.5 9.9

$ 306 — — 67 81 50 20 49 49 5 11 44 226

17.4 — — 3.8 4.6 2.9 1.1 2.8 2.8 0.3 0.6 2.5 12.9

$ 311 109 20 53 25 28 47 23 12 8 6 8 86

22.6 8.0 1.4 3.9 1.8 2.0 3.4 1.7 0.8 0.6 0.5 0.6 6.3

$1,368

100.0

$1,756

100.0

$1,374

100.0

Total 1914-5 Wages. . Labor Insurance Board

Total

32


ECONOMIC STUDY OF FAMILY-SIZED FARMS

33

close to half of all the farm cash expenses in each group of farms each year of the study. Fertilizer was the second most important item of cash expense in all the groups of farms. In Aibonito and Corozal, where sugar cane was grown, transportation of cane was the third most important item of cash expense. These three items accounted for not less than two-thirds of the total farm cash expenses in each group of farms. Some other items of cash expense on these farms were: feeds, taxes, repair to buildings, thread and ropes, seeds, repair to fences, marketing expenses, and insecticides. In general, no one of these items accounted for over 6 per cent of the total farm cash expenses in any of the groups of farms. Summary of farm receipts, expenses, and returns In 1943-44, total farm receipts in Aibonito averaged $1,632 per farm (table 32). Crops sold accounted for 76 per cent of the total receipts, livestock and livestock products for 3 per cent, increase in inventory for 3 per cent, and miscellaneous receipts for 18 per cent. Expenses averaged $1,592 per farm. Farm cash expenses accounted for 65 per cent of the total, unpaid family labor for 29 per cent, and livestock bought for 6 per cent. Farm income averaged $40, labor income $296, and labor earnings $140. The return on capital averaged $448 and the per cent return on capital 12.5. Net farm cash income was $451. Return on labor averaged $1,092 and return on labor per man $280. The same year, the farms surveyed in Barranquitas averaged $3,547 in farm receipts. Crops sold accounted for 81 per cent of the total, increase in inventory for 9 per cent, livestock and livestock products for 7 per cent, and miscellaneous receipts for 3 per cent. Expenses averaged $2,025 per farm of which 67 per cent were cash expenses, 19 per cent unpaid family labor, and 14 per cent livestock bought. Farm income averaged $1,522, labor income $1,142, labor earnings $1,961, return on capital $1,041, per cent return on capital 16.4, and net farm cash income $1,611. Return on labor averaged $3,053 and return on labor per man $623. In the farms surveyed in Corozal, total farm receipts, the first year of the study, averaged $2,160 per farm. Crops sold accounted for 72 per cent of the total receipts, miscellaneous receipts for 14 per cent, livestock and livestock products for 13 per cent, and increase in inventory for 1 per cent. Expenses on these farms averaged $1,552, of which 70 per cent were cash expenses, 25 per cent unpaid family labor, and 5 per cent livestock bought. Farm income averaged $608, labor income $235, labor earnings $812, return on capital $137, per cent return on capital 2.2 and net farm cash income $967. Return on labor averaged $1,644 and return on labor per man $483. The following year in Aibonito total farm receipts averaged $2,256 and

~-~


34

GUILLERMO SERRA AND MANUEL PIÑERO

TABLE 32. SUMMARY OF FARM RECEIPTS, EXPENSES AND RETURNS 32 farms, 19.43-k4 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Item

Receipts: Crops sold Livestock and livestock products Miscellaneous receipts Increase in inventory

Corozal

Barranquitas

Per Amount per Per cent Amount per Per cent Amount per cent of farm of total farm of total farm total

$1,240

76

$2,894

81

$1,546

72

51 290 51

3 18 3

236 108 309

7 3 9

282 303 29

13 14 1

Total receipts

$1,632

100

$3,547

100

$2,160

100

Expenses: Farm cash expenses Livestock bought Unpaid family labor Unpaid animal work.

$1,030 100 459 3

65 6 29 *

$1,349 278 398 —

67 14 19 —

$1,083 81 388 —

70 5 25 —

Total expenses

$1,592

100

$2,025

100

$1,552

100

Returns: Farm income Interest on capital Labor income Farm privileges Labor earnings Operator's time Return on capital Capital invested Per cent return on capital Capital turnover Net farm cash income Hired labor Return on labor. Man equivalent Return on labor per man

$ 40 $ 336 $ 296 $ 436 $ 140 $ 488 $ 448 $5,591 — 12.5 3.4 $ 451 $ 493 $1,092 3.9 $ 280

$1,522 $ 380 $1,142 $ 819 $1,961 $ 481 $1,041 $6,331 16.4 1.8 $1,611 $ 694 $3,053 4.9 $ 623

$ 608 $ 373 $ 235 $ 577 $ 812 $ 471 $ 137 $6,222 2.2 2.9 $ 967 $ 444 $1,644 3.4 $ 483

* Less than 1 per cent.

expenses $1,814 (table 33). Farm income averaged $442, labor income $108, and labor earnings $588. In Barranquitas, total receipts averaged $3,091 and expenses $2,123. Farm income on these farms averaged $968, labor income $580, and labor earnings $1,405. In Corozal, in 1944-45, total receipts averaged $2,517 and expenses


35

ECONOMIC STUDY OF FAMILY-SIZED FARMS

TABLE 33. SUMMARY OF FARM RECEIPTS, EXPENSES, AND RETURNS 3Q farms, 1944-45 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico Aibonito Item

Receipts: Crops sold Livestock and products Miscellaneous

Corozal

Barranquitas

Per Amount per Per cent Amount Per cent Amount cent farm of total per farm of total per farm totalof

$1,727

76

$2,682

87

$1,884

75

85 444

4 20

291 118

9 4

280 353

11 14

Total receipts

$2,256

100

$3,091

100

$2,517

100

Expenses: Farm cash expenses Livestock bought. Unpaid family labor Unpaid animal work Decrease inventory

$1,368 43 301 1 101

75 2 17 * 6

$1,756 111 235 — 21

83 5 11 — 1

$1,374 118 315 36 98

71 6 16 2 5

Total expenses

$1,814

100

$2,123

100

$1,941

100

livestock

Returns: Farm income Interest on capital Labor income Farm privileges Labor earnings Operator's time Return on capital Capital invested Per cent return on capital Capital turn over Net farm cash income Hired labor Return on labor. Man equivalent Return on labor per man

$ 442 $ 332 $ 108 $ 480 $ 588 $ 464 $ 22 $5,570 0.4 2.5 $ 845 $ 605 $1,494 3.2 $ 467

$ 968 $ 388 $ 580 $ 825 $1,405 $ 522 $ 446 $6,469 6.9 2.0 $1,224 $ 848 $2,487 4.8 $ 518

$ 576 $ 376 $ 200 $ 689 $ 889 $ 495 $ 81 $6,263 1.3 2,5 $1,025 $ 638 $1,842 $ 576

* Less than one per cent.

$1,941. Farm income averaged $576, labor income $200, and labor earnings $889. DIFFERENCES BETWEEN THE GROUPS OF FARMS

Barranquitas had the highest profits and Aibonito the lowest each year of the study. In trying to explain this difference some of the factors that


36

GUILLERMO SERRA AND MANUEL PIÑERO

affect profits in farming were compared among the three groups of farms (table 34). Businesses were largest in Barranquitas and smallest in Aibonito. This was true in terms of acreage in farms and capital invested although it was not true in terms of net cuerdas in crops per farm. Corozal had the lowest number of net cuerdas in crops and Barranquitas the highest. TABLE 34. DIFFERENCES BETWEEN THE GROUPS OF FARMS 32 farms, 1918-44 and 1944-46 Aibonito, Barranquitas, and Corozal F.S.A. Farms, Puerto Rico 1843-44

1944-45

Item Aibonito Corozal

4m~e

Aibonito Corozal

gm'~ntss

12 12 Number of farms 8 12 12 8 Size 42.1 Cuerdas in farm 35.6 65.1 35.6 42.1 65.1 Capital invested $5,591 $6,222 $6,331 $5,570 $6,263 $6,469 Net cuerdas in crops 21.6 16.5 26.9 19.0 15.3 22.0 Yields of crops Crop index. 83 102 108 101 89 118 Tons of cane per cuerda 8.8 14.2 — 21.2 17.6 — Combination of enterprises Per cent income from cane 83 25 0 36 29 0 Labor efficiency Net cuerdas in crops per man 5.5 5.5 4.9 5.8 4.6 4.8 Total labor costs per net cuerda in crops.. $76 $79 $72 $58 $95 $72 Hired labor costs per net $44 cuerda in crops $52 $33 $40 $53 $34 Other factors Persons per family 7.8 9.6 9.5 7.8 9.6 9.5 Education of operators 2.1 3.6 2.1 2.3 2.3 3.6 56 49 52 Age of operators 57 50 53 Earnings $812 $1,961 Labor earnings $140 $588 $889 $1,405

A crop index for all the farms was calculated to measure the yields of crops other than cane. The yields of these crops were lowest in Aibonito and highest in Barranquitas in 1943^44. The yields of sugar cane were higher in Corozal than in Aibonito. Barranquitas had no cane. In 1944-45 the yields of sugar cane per cuerda were lower in Corozal than in Aibonito. This year Corozal had the highest and Aibonito the lowest yields of crops other than cane. However, it should be remembered that Corozal had the lowest number of net cuerdas in crops. A high per cent income from sugar cane was considered unfavorable for


ECONOMIC STUDY OF FAMILY-SIZED FARMS

37

profits in these years. The price of sugar was kept low by govenrment control during the years of the war but the prices of other food crops were higher than ever before. The farms that grew less sugar cane and more food crops for the local market had higher profits. The per cent income from sugar cane was about the same for the farms in Aibonito and Corozal in 1943-44. Barranquitas had no cane. However, upon comparing Aibonito with Corozal in this respect, it should be remembered that Corozal had much better crop yields both of cane and of other crops than Aibonito. In 1944-45, Aibonito had the highest per cent income from sugar cane and Barranquitas the lowest. Corozal, that had in general the highest yields of crops, also had the lowest labor efficiency. The number of net cuerdas in crops per man was higher in Aibonito and Barranquitas than in Corozal the first year. Barranquitas had the lowest number of net cuerdas in crops per man and Aibonito the highest the second year. However, the labor costs per net cuerda in crops were lower in Barranquitas than in any of the other two groups. The families were smallest in Aibonito. The education of the operators was lowest in Aibonito and highest in Barranquitas. The operators were youngest in Corozal and oldest in Aibonito. SUMMARY AND CONCLUSION

This is the fourth in a series of five studies on family-sized farms established by the Farm Security Administration in Puerto Rico. The study was undertaken to analyze the experiences accumulated and the accomplishments attained by the Farm Security Administration in the establishment of family-sized farms in Puerto Rico. The information supplied by the study should be of use to the agencies that have to do with the organization of this type of farm and to the established farmers. Thirty-two farms were surveyed for two consecutive years, 194344 and 1944-45. These farms are divided into three small groups. One of them is composed of 12 farms located in Aibonito, another of 8 farms in Barranquitas, and the last of 12 farms in Corozal. The study is limited to a description of the farms because there were not enough farms of this type in any one area of the interior of the Island to permit a study of relationships. The study was conducted by the survey method. The farms are described in three separate groups. Aibonito and Barranquitas are located on the peak of the mountain range that divides the island of Puerto Rico into a northern and a southern part, where the elevation is about 3,000 feet. Corozal is located toward the north where the mountain range meets the coastal plains.


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The three towns are connected to the rest of the Island by good hardsurfaced roads. Transportation and communication facilities with San Juan are good. Rainfall in these towns is variable, both from month to month and from year to year, but is, in general, adequate for the production of crops. The soils of the farms surveyed vary considerably in type and productivity. In general, they are fairly productive and adapted to a diversity of crops. The average number of persons per family was 7.8 in Aibonito, 9.5 in Barranquitas, and 9.6 in Corozal. The age of the heads of the families averaged 56 years in Aibonito, 52 in Barranquitas and 49 in Corozal. The average number of years of schooling received by the heads of families was 2.1 in Aibonito, 3.6 in Barranquitas, and 2.3 in Corozal. Most of the families surveyed were "agregado" families before they were established as farm owners by the Administration. The average income of the families before being established as farm owners by the Administration was $620 in Aibonito, $751 in Barranquitas, and $638 in Corozal. The average income of the families, the first and second year of the study respectively, was $932 and $2,022 in Aibonito, $2,646 and $2,667 in Barranquitas, and $1,636 and $2,316 in Corozal. Net worth of families, at the time they became borrowers of the Administration and as of June 30, 1944 was respectively as follows: in Aibonito, $429 and $1,816; in Barranquitas, $609 and $3,436: and in Corozal, $582 and $3,031. The loans made for the purchase of the farms averaged $4,348 in Aibonito, $4,938 in Barranquitas, and $4,878 in Corozal. By June 30, 1945, the farmers had been operating their farms for 62, 63, and 52 months and had repaid 4, 11, and 15 per cent of the farm ownership loans, in Aibonito, Barranquitas, and Corozal respectively. By this date, an average of 5.5, 3.6, and 3.8 rehabilitation loans averaging $390, $459, and $393 per loan were made for the operation of the farms respectively in Aibonito, Barranquitas, and Corozal. The topography of the farms is mostly rolling in Aibonito and Barranquitas and mostly steep in Corozal. Farms averaged 35.6 cuerdas in size in Aibonito, 65.1 cuerdas in Barranquitas, and 42.1 cuerdas in Corozal. The average size of the farms in terms of man equivalent, the first and second year of the study, respectively, was as follows: in Aibonito, 3.9 and 3.2; in Barranquitas, 4.9 and 4.8; and in Corozal, 3.4 and 3.2. Hired labor, the first and second year of the study was respectively 39


ECONOMIC STUDY OF FAMILY-SIZED FARMS

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and 44 per cent of the total labor in Aibonito, 55 and 50 per cent in Barranquitas, and 35 and 41 per cent in Corozal. The rest was labor of the operator and his family. Net area in crops, the first and second year of the study respectively, was 21.6 and 19.0 cuerdas in Aibonito; 26.9 and 22.0 cuerdas in Barranquitas; and 16.5 and 15.3 cuerdas in Corozal. More than 13 different crops were grown on the farms surveyed each year of the study. The most important crops grown were: in Aibonito, tobacco, sugar cane, and corn; in Barranquitas, tobacco, corn, and plantains; and in Corozal, plantains, sugar cane, and taniers. The yields of crops per cuerda were, in general, higher in 1944-45 than in 1943-44. This was due to a higher amount and a better distribution of rainfall in the second year of the study. The average number of animal units per farm was about 6 in Aibonito, a little over 9 in Barranquitas and 10 in Corozal. The value of livestock on the farms was about $625 in Aibonito and about $1,100 in Barranquitas and in Corozal. The value of machinery and equipment per farm was a little over $200 in Aibonito and in Corozal. Barranquitas reported equipment only with an average value of $70 each year of the study. The average capital investment was about $5,600 in Aibonito, $6,400 in Barranquitas, and $6,200 in Corozal. Real estate accounted for about 83 per cent of the total in Aibonito, 81 per cent in Barranquitas and 77 per cent in Corozal. The income from the sale of crops, the first and second year of the study respectively, was $1,240 and $1,727 in Aibonito, $2.894 and $2,682 in Barranquitas, and $1,546 and $1,884 in Corozal. The value of livestock products, the first year of the study, averaged $133 in Aibonito, $305 in Barranquitas, and $262 in Corozal. The second year, it averaged $132 in Aibonito, $281 in Barranquitas, and $271 in Corozal. Farm privileges, the first and second year of the study averaged respectively $436 and $480 in Aibonito, $819 and $825 in Barranquitas, and $577 and $689 in Corozal. Miscellaneous farm receipts, the first and second year respectively, averaged $290 and $444 per farm in Aibonito, $108 and $118 in Barranquitas, and $303 and $353 in Corozal. Farm cash expenses, the first and second year averaged $1,030 and $1,368 in Aibonito, $1,349 and $1,756 in Barranquitas, and $1,083 and $1,374 in Corozal. Hired labor accounted for close to a half of the total cash expenses.

~


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GUILLERMO SERRA AND MANUEL PIÑERO

Total receipts per farm, the first and second year of the study respectively, were $1,632 and $2,256 in Aibonito, $3,547 and $3,091 in Barranquitas, and $2,160 and $2,517 in Corozal. The corresponding farm expenses were $1,592 and $1,814 in Aibonito, $2,025 and $2,123 in Barranquitas, and $1,552 and $1,941 in Corozal. In the first and second year of the study respectively, labor income was: in Aibonito, $296 and $108; in Barranquitas, $1,142 and $580; and in Corozal, $235 and $200. Labor earnings were $140 and $588 in Aibonito, $1,961 and $1,405 in Barranquitas, and $812 and $889 in Corozal. Of the three groups of farms Barranquitas had the highest profits each year and Aibonito the lowest. This might have been due to the facts that Barranquitas had larger businesses, highest yields of crops other than sugar cane in at least one of the years, lowest labor costs per net cuerda in crops, was less dependent on cane, and had the best educated group of operators, while Aibonito had the smallest businesses, the lowest yields of crops other than cane, depended to a highest extent on sugar cane, and had the least educated group of operators. The type of farm organization set up in Puerto Rico by the Farm Ownership Program of the Farm Security Administration has been very successful up to the present time. In spite of the fact that the families selected were not considered to be good clients for private credit agencies, experience has indicated that they have been able to make a living from their farms and to meet the annual payments of their farm ownership loans. As would be expected, some of the families have accomplished more than others, but on the average, the families are better off than they were before being established as farm owners. Of course, it should be considered that they have been farming in a period of favorable price levels. Considering that success in farming depends on efficiency, skill, and community assistance and understanding, it is reasonable to expect increasing success on the part of the new farmers as tienes goes on and as they become more a part of their new communities and develop additional skill and efficiency in the operation and management of their farms. If it is considered that the farmers selected for the program have been very poor and that they lacked an appropriate education and farm management experience, it has to be concluded that much of the success of the Farm Ownership Program in Puerto Rico has been due to the assistance, in the form of credit and technical guidance, that the farmers have received from the Farm Security Administration for the operation of their farms. The individually operated farm has the following advantages over the other types of farm organization: 1, the manager, being the owner, has more interest in the business; 2, the labor supply is more flexible—in emer-


ECONOMIC STUDY OF FAMILY-SIZED FARMS

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gencies family members help and put in longer hours of work; and 3, owners can make decisions more quickly. For these reasons, the individuallyoperated family-sized farm is far in advantage over other types of farm organization in regions of general farming because of the complexity of this type of farming. Since the interior of Puerto Rico is a region of general farming the individually owned family-sized farm seems to be best adapted to it than any other type of farm. Moreover, this type of farm offers a solution to the problems of labor and of poor utilization of lands in the large farms of the interior of the Island. In carrying the land reform program of Puerto Rico to these areas, the organization of family-sized farms should be emphasized. RESUMEN Y CONCLUSIÓN

Este es el cuarto de una serie de trabajos en que se estudia el tipo de finca individual, de tamaño adecuado para una familia, que ha sido establecido por la Administración de Seguridad Agrícola en Puerto Rico. El propósito del estudio es analizar las experiencias de esa Agencia en su trabajo de organización de fincas del tipo mencionado. El estudio va encaminado a proveer información útil a las agencias gubernamentales que tienen que ver con el establecimiento de familias en fincas individuales. Se estudiaron 32 fincas por dos años consecutivos, 1943-44 y 1944-45. Esas fincas estaban divididas en tres grupos; uno de ellos comprendiendo 12 fincas, en Aibonito; otro de 8 fincas en Barranquitas y el otro, de 12 fincas en Corozal. Para la fecha en que se efectuó el estudio se habían establecido muy pocas de esas fincas en el interior de la Isla. Esto hizo imposible incluir en el estudio un número suficientemente grande de fincas que permitiera hacer un análisis de relaciones. Cada uno de los tres grupos de fincas se describió separadamente. Aibonito y Barranquitas se encuentran a unos 3,000 pies de altura en la Cordillera Central de Puerto Rico. Corozal está hacia el norte donde los llanos de la costa se unen a las montañas. Los tres pueblos se comunican con el resto de la Isla por carreteras asfaltadas. Tanto la transportación como las comunicaciones entre estos pueblos y la capital de la Isla son buenas. La lluvia en los tres pueblos es variable pero adecuada para la producción agrícola. Los suelos son muy variados tanto en tipo como en productividad. El número de personas por familia promedió 7.8 en Aibonito, 9.5 en Barranquitas y 9.6 en Corozal. La edad promedio de los jefes de familia fué de 56 años, en Aibonito; 52 en Barranquitas y 49 en Corozal. La instrucción promedio de estos fué


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GUILLERMO SERRA AND MANUEL PIÑERO

2 años en Aibonito; 3.6 años en Barranquitas y 2.3 años en Corozal. Un gran número de los jefes de familia nunca asistió a la escuela. La mayoría de los prestatarios eran agregados antes de hacerse cargo de las fincas. Para el 30 de junio de 1945 los nuevos agricultores habían estado explotando las fincas por poco más de 5 años en Aibonito y Barranquitas y por poco más de 4 años en Corozal. El año antes de instalarse en las fincas las familias recibieron un ingreso promedio de $620 en Aibonito, de $751 en Barranquitas y de $638 en Corozal. Para el primero y segundo año del estudio este ingreso había aumentado respectivamente a $932 y $2,022 en Aibonito, a $2,646 y $2,667 en Barranquitas y a $1,636 y $2,316 en Corozal. El haber neto de las familias al ser seleccionadas para convertirse en dueñas de fincas promedió $429 en Aibonito, $609 en Barranquitas y $582 en Corozal. Para el 30 de junio de 1944 este haber neto había aumentado a $1,816 en Aibonito, a $3,436 en Barranquitas y a $3,031 en Corozal. Los préstamos para la compra de las fincas promediaron $4,348 en Aibonito $4,938 en Barranquitas y $4,878 en Corozal. A mediados del 1944 los prestatarios habían pagado el 4 por ciento de estos préstamos en Aibonito, el 11 por ciento en Barranquitas y el 15 por ciento en Corozal. Para esta misma fecha las familias habían adquirido un promedio de 5.5 préstamos de rehabilitación en Aibonito, 3.6 préstamos en Barranquitas y 3.8 en Corozal. El promedio por cada uno de estos préstamos fué $390 en Aibonito, $459 en Barranquitas y $393 en Corozal. El tamaño de las fincas estudiadas promedió 35.6 cuerdas en Aibonito, 65.1 cuerdas en Barranquitas y 42.1 cuerdas en Corozal. El número de hombres empleados por finca en el primero y el segundo año fué respectivamente, 3.9 y 3.2 en Aibonito, 4.9 y 4.8 en Barranquitas y 3.4 y 3.2 en Corozal. El trabajo alquilado, en el primero y el segundo año constituyó respectivamente el 39 y el 44 por ciento del trabajo total en Aibonito, el 55 y el 50 por ciento en Barranquitas y el 35 y el 41 por ciento en Corozal. El resto fué trabajo del agricultor y su familia. El área neta cultivada fué 21.6 y 19.0 cuerdas en Aibonito en el primero y segundo año respectivamente, 26.9 y 22.0 cuerdas en Barranquitas y 16.5 y 15.3 cuerdas en Corozal. Más de 13 cosechas diferentes se cultivaron en las fincas. De éstas, las más importantes fueron: en Aibonito, tabaco, caña y maíz; en Barranquitas, tabaco, maíz y plátanos; y en Corozal, plátanos, caña y yautía. Los animales promediaron alrededor de 6 unidades por finca en Aibonito, poco más de 9 unidades en Barranquitas y 10 unidades en Corozal. El


ECONOMIC STUDY OF FAMILY-SIZED FARMS

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valor de estos animales fué alrededor de $625 en Aibonito y alrededor de $1,100 en Barranquitas y en Corozal. El capital invertido promedió alrededor de $5,600 en Aibonito, alrededor de $6,400 en Barranquitas y poco más de $6,200 en Corozal. Alrededor del 80 por ciento del capital estaba invertido en bienes raíces. Los ingresos por ventas de cosechas, en el primero y el segundo año del estudio ascendieron respectivamente a $1,240 y $1,727 en Aibonito, $2,894 y $2,682 en Barranquitas y a $1,546 y $1, 884 en Corozal. En el primer año del estudio el valor de los productos animales promedió $133 en Aibonito, $305 en Barranquitas y $262 en Corozal. En el año siguiente los promedios fueron $132 en Aibonito, $281 en Barranquitas y $271 en Corozal. Las aportaciones de la finca al sostenimiento de la familia alcanzaron a $436 y $480 en Aibonito en el primero y el segundo año respectivamente, a $819 y $825 en Barranquitas y a $577 y $689 en Corozal. Durante el primero y el segundo año del estudio los ingresos por conceptos misceláneos promediaron respectivamente $290 y $444 en Aibonito, $108 y $118 en Barranquitas y $303 y $353 en Corozal. En el primer año el total de gastos en efectivo promedió $1,030 en Aibonito, $1,349 en Barranquitas y $1,083 en Corozal. En el año siguiente estos gastos promediaron $1,368 en Aibonito, $1,756 en Barranquitas y $1,374 en Corozal. Cerca de la mitad de los gastos en efectivo fueron invertidos en trabajo alquilado. Los ingresos brutos promediaron $1,632 y $2,256 por finca en Aibonito en el primer y segundo año respectivamente, $3,547 y $3,091 en Barranquitas y $2,160 y $2,517 en Corozal. Los gastos totales correspondientes fueron $1,592 y $1,814 en Aibonito, $2,025 y $2,123 en Barranquitas y $1,552 y $1,941 en Corozal. En el primero y segundo año, la retribución del agricultor en estas fincas fué respectivamente $296 y $108 en Aibonito, $1,142 y $580 en Barranquitas y $235 y $200 en Corozal. El ingreso del agricultor correspondiente a estos años fué $140 y $588 en Aibonito, $1,961 y $1,405 en Barranquitas y $812 y 'I.:89 en Corozal. De los tres grupos de fincas, Barranquitas tuvo las ganancias más altas y Aibonito las más bajas. Esto pudo deberse a que en Barranquitas los negocios eran los más grandes, los rendimientos de las cosechas por cuerda fueron los más altos y el coste del trabajo humano por cuerda fué el más bajo. Además, las fincas en Barranquitas no dependían de la caña para sus ingresos y estaban administradas por el grupo de agricultores con el mayor grado de instrucción. En cambio, en Aibonito, los negocios fueron los más pequeños y los rendimientos de las cosechas por cuerda los más


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GUILLERMO SERRA AND MANUEL PIÑERO

bajos. Además, estas fincas estaban administradas por el grupo de agricultores con menor instrucción y dependían en un mayor grado de la caña de azúcar para sus ingresos. Las fincas organizadas por la Administración de Seguridad Agrícola en Puerto Rico han sido un éxito. A pesar de que las familias seleccionadas no se consideraron como buenos clientes para las agencias privadas de crédito, las mismas, sin embargo, han cumplido hasta la fecha con los compromisos de las fincas y han mejorado su nivel de vida. Como es de esperarse, no todas las familias han tenido el mismo progreso, pero en general éstas se encuentran hoy en mucho mejores condiciones que antes de haberse instalado en las fincas. Si consideramos que el éxito en este tipo de organización agrícola depende de la eficiencia y habilidad del agricultor y de la cooperación de la comunidad en general, es lógico esperar mayor éxito a medida que los agricultores se relacionan mejor con sus vecinos y desarrollan mayor destreza en el manejo de sus finca. Las familias seleccionadas para ocupar las fincas carecían de los recursos necesarios para la mejor explotación de las mismas y carecían además de instrucción y de experiencia en el manejo de negocios agrícolas. Por estas razones, hay que concluir que el éxito del programa de tenencia de fincas se ha debido en gran parte a la ayuda que la Administración ha brindado a estos agricultores en forma de crédito y de consejos técnicos. La finca individual ofrece las siguientes ventajas sobre otros tipos de organización: (1) el administrador, por ser el dueño, tiene mayor interés en el negocio; (2) la mano de obra es más flexible—en casos de emergencia los miembros de la familia ayudan y (3) los dueños pueden tomar decisiones con más rapidez. Por estas razones, en regiones en que la explotación agrícola es del tipo general, la finca individual de tamaño adecuado para una familia tiene mayores posibilidades de éxito que otros tipos de organización. El interior de Puerto Rico se adapta mejor al tipo general de explotación agrícola. Por esta razón la finca individual de tamaño adecuado para una familia es la que ofrece mayores posibilidades de éxito en esas áreas. Aún más, este tipo de finca ofrece una solución al problema obrero y a la pobre utilización de los suelos en las fincas grandes de esa región. La Autoridad de Tierras de Puerto Rico debería dar énfasis a la organización de la finca individual de tamaño adecuado para una familia al implantar el programa de reforma agraria en el interior de la Isla.


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An Economy Study of Family-Sized Farms in Puerto Rico 1943-1945, 1944-1945 by La Colección Puertorriqueña - Issuu