This report analyzes income flows, asset values, and debt by economic class of farm and concludes that the rate of returns to equity capital grows as the economic size of the farm increases. For 1970, average rates of return to equity capital varied substantially among the 12 major farm types. Returns to equity were generally negative on smaller farms but increased substantially with size. A close correlation existed between farm size, farm debt, and rates of returns to equity. The range in returns was from -6.5 percent on the smallest farms to +6.8 percent on the largest farms. Additional returns due to appreciation in land values, increased the U.S. returns from 2.1 percent to 5.6 percent in 1970.