This study was initiated because of the interest shown by people of Adams County in the opportunities for increasing income on farms in the locality-especially with respect to the role of dairying in the county. It is one of several studies of adjustment opportunities open to farm families being made in southern Iowa. The purpose of the study is to determine the income consequences of certain actions which might be taken by individual farm families on soil types similar to those found in Adams County-not to pass judgment on whether these actions are beneficial or harmful to other persons or the community structure.

This study has been made for Adams County where Sharpsburg and Shelby soils make up most of the cropland. Owner-operation of a 240-acre farm with 152 cultivated acres is used as a basis for the analysis. Analysis is made of returns from different plans, when farms are operated under either average or superior management. Special attention is given to the role of and returns from a grade B dairy enterprise under the two levels of management. For comparative purposes, situations were studied which excluded grade B dairy under average management and which excluded both butterfat cows and grade B dairy under superior management.