RURAI, ECONOMICS 1673 



Table \'I. — Returns from the different groups of farms, arranged according 

 to the percentage of total returns that is derived from livestock. 



13s, but the corresponding reduction in working expenses was only 15s. 

 This explains why the rate of interest was only 0.8 per cent in the worst 

 group, while it was 8.9 per cent in the best. The crops provide 55 per cent 

 of the total yield in the best group of farms, and only 42 per cent in the worst, 

 while the livestock represent 31 per cent and 36 per cent respectively. 



Cost of labour. — The cost of labour per acre does not vary much in the 

 groupjs of farms, the greatest difference being onlj- alout is per acre. On the 

 other hand, when compared with the gross return the labour expenses rise 

 from 25 per cent in the group giving the greatest yield to ^8.^ per cent in 

 the group givitig the lowest yield. It is therefore clear that the great rela- 

 tive increase in the cost of labour is one of the chief causes of the poor 

 economic results of the worst group of farms. This point has not been suf- 

 ficiently considered in studying the economy of farming, and it deser\-es 

 special attention, p. articular ih' when the cost of labour is high. I,ow 

 econonnc resirlts depend chiefly on excessi\'e labour expenses in com- 

 parison v^ith the return per unit area. The profits, both for crops and Jive- 

 stock, are much too low, and the reason can onh' be that the work is not 

 properh' looked after, so that the labourers become slack. 



Relation betueen profit and intensity of cultivation. -- The intensity of 

 cultivation of a farm is indicated b\' the cost of labour and working expenses 

 together with the interest on the land, /'. e. by the total cost of production. 

 The farm.s have been arranged in order on this basis, and have then been 

 grouped in such a way that extra- ordinary factors have been eliminated as 

 far as possible. In Table IV group I comprises the first 20 farms, group II 

 contains No. 11 to Xo. 30, group III No. 21 to No 40 and so on. The two 

 groups with the lowest intensity of cultivation give the poorest results, but 

 the rate of interest reaches its maximum when the cost of production is 

 about £ 10 6.S per acre, and decreases when this limit is passed, showing 

 that the increase of intensity of cultivation beyond a certain point is not 

 advisable. 



