THE BUSINESS OF FARMING IN SOME OF 

 ITS LARGER ASPECTS 



THOMAS NIXON CARVER, Harvard University 



HE BUSINESS problems of the farmer are of two kinds, 

 administrative and commercial. The first has to do with 

 the wise direction of the working force of the farm in the 

 production of crops, the other with buying and selling. The 

 latter grows more and more important with progress be- 

 cause fewer and fewer things are produced on the farm 

 while, at the same time, a greater and greater variety of things are 

 used on the farm or consumed by the farmer's family. This requires 

 more and more buying and selling. The farmer's prosperity will 

 therefore depend more and more on his skill as a buyer and seller. 



ADMINISTRATIVE PROBLEMS 



The administrative problems, however, are still of great im- 

 portance. These consist in the directing of the whole productive 

 force on the farm in the growing of crops and animal products. The 

 acute phase of this problem, however, consists in paying expenses out of 

 receipts. Almost anybody could run almost any business if he did 

 not have to pay the bills. Many a man can grow good crops and 

 breed good animals, who can't keep expenses down below the price at 

 which they can be sold. Contrary to a rather widespread opinion 

 among farmers, farming is not an exception to the general rule. It 

 is no harder to pay the bills out of the receipts in farming than in any 

 other business. It is inherent in the very nature of competitive in- 

 dustry that there should be failures. No matter how good a business 

 man you are, speaking absolutely, if you are much below the average, 

 speaking relatively, you will never be able to pay your expenses out 

 of your receipts. Other and better business men than you are will 

 offer so much to get labor, raw materials, machines, equipment, etc., 

 and offer their products at so low a price, that you will be unable to 

 stay in the same game with them. Your wage bill, your deterioration 

 charge, your interest and other overhead expenses will be more than 

 your receipts will cover. If your competitors were not quite so efficient 

 and would not offer quite such high wages for labor, or quite such 

 high prices for raw materials and equipment, you could, of course, cut 

 down your expenses. If at the same time, they would not offer the 

 finished product at quite so low a price, you could increase your re- 



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