THE FARM TAX PROBLEM IN MISSOURI 223
corroborative evidence for the conclusion derived from the
former, and the data for owner-operated farms all point to
the same conclusion, namely, that taxes on farm property in
Missouri are relatively low compared with those in most of
the states in the same general section of the United States.
Also, the data definitely indicate that taxes on farm property
in Missouri are lower than the average for the United States
as a whole.
Tue Nature oF Missourr’'s Farm Tax ProBLEM
Although it has been demonstrated that the general prop-
erty tax on farm property in Missouri is low as compared
with that in other states, it does not follow that the state
does not have a farm tax problem. A later table in this study
shows also that the total taxes per motor vehicle are lower in
Missouri than on the average motor vehicle in the United
States. It might be inferred from the data previously
presented and the relatively light motor vehicle taxation in
the state, that farm taxation in Missouri is not a problem at
the present time. There is a farm tax problem, however, and
an attempt will be made in this section to give some indica-
tion of its nature through an analysis of the contributing
factors.
Declining Income, Lack of Flexibility in Assessed Valuations,
and Differences in Productiveness
In the first place, there is the factor of declining net income
from agricultural operations. Since 1920 there have been
varied movements in the prices of agricultural products, but
on the whole the trend has been downward. In 1930 the net
income of Missouri farmers in many sections has been partic-
alarly small, as a result of a very severe drought which
affected many of the agricultural sections of the state. In
such a year it is only natural that a given amount of taxes
should constitute a more serious burden than in years of
good crops and fair prices.
Theoretically, the value of a farm or other property repre-
sents a capitalization of income. The income that is capi-
talized is not that for one year only, but in arriving at a
