34 



Whether the figures apply to any given place or time is wholly 

 immaterial so far as the involved principles are concerned. The 

 intelligent reader will realize that yields and values will vary with 

 the locality and that what is true of prices of land and products today 

 may not be true tomorrow. The purpose of the discussion throughout 

 the circular is to state principles and methods by means of concrete 

 illustrations. Its value to the reader will depend upon his ability to 

 apply the principles and methods suggested to the particular conditions 

 which he may meet. 



First Year. The first act should be to set aside $500 for family 

 expenses during the first year. Assuming the purchase of sixty acres 

 of undeveloped land with water rights attached at $100 per acre, or 

 a total of $6000, he may pay $1000 upon the land, set aside $1000 for 

 buildings, $1000 for teams, machinery and tools, and $500 for running 

 expenses, including water charges. He may purchase a four-horse 

 team and will spend most of the first year in leveling, checking and 

 seeding his land. He has left $1000 with which to buy ten cows, a 

 couple of sows, and a few chickens. Most of these will be purchased 

 during the latter part of the year and not more than $300 cash income 

 should be assumed during this year. 



Second Year. Since the owner is now going to get his pay check 

 every month, he may pay the interest on $5000 at 6 per cent with 

 the $300 and meet his family and running expenses out of current 

 income. During this year his cows, bull calves, pigs and chickens may 

 bring in a thousand dollars, while another thousand dollars may be 

 received from the sale of alfalfa. Assuming running expenses to be 

 $700, living expenses $500, and interest $300, there is left $500. 'With 

 this sum five cows and a bull may be purchased. 



Third Year. This year the return from dairy products and live- 

 stock may be assumed to be $1500 while, on account of the greater age 

 of the alfalfa, $1000 may again be assumed from that source. Assum- 

 ing the running expenses to have increased to $1000, the family 

 expenses to $700, the total outlay will be $2000, leaving $500 with 

 which to buy five additional cows. 



Fourth Year. The returns from alfalfa may be reduced this year 

 to $800, while the other returns may be increased to $2000, making 

 a total of $2800. Allowing for increase in running expenses the yearly 

 outlay may be stated as follows : 



Eunning expenses $1,200.00 



Family expenses 700.00 



Interest ... 300.00 



Total $2,200.00 



The balance would thus be $600, with which to buy five cows and a bull. 



