36 



Further, it assumes land well adapted to alfalfa and suitably located 

 with reference to a creamery. On the other hand, the increase through 

 the saving of the heifer calves has been ignored in order to balance 

 possible loss of cows. This estimate also assumes that the owner hires 

 all labor except, of course, his own. If he has grown or growing 

 children, part of the running expenses here estimated may be kept 

 within the family. 



The objection may be raised to this illustration that good un- 

 developed alfalfa land with water rights cannot be purchased for $100 

 per acre. The reply is that if a greater price is paid for the land, 

 either one must take more time to arrive at the result here indicated, 

 or one must estimate a greater annual return. It is believed that 

 greater annual returns would not be a safe guide for a new settler, 

 although greater returns are often obtained. Another objection to this 

 plan, and a legitimate one in many instances, is that usually a mortgage 

 for $5000 cannot run without some payment other than interest. The 

 plan is feasible only where some large interest is subdividing land and 

 is willing to make this concession. Otherwise, one must take more 

 time to pay off the debt, or have more capital at the beginning.* 



It has been previously pointed out that in certain sections of 

 California a one family dairy farm is about thirty acres. Possibly 

 the larger number of dairy farms do not exceed forty acres. A person 

 with only $5000 might, therefore, find it desirable to buy a tract of 

 thirty or forty acres. After having developed this area, he may add 

 to it or he may dispose of it and buy a larger tract. 



It cannot be too strongly emphasized that the plan here outlined, or 

 any similar farming enterprise, can be successfully executed only by 

 a person who has a knowledge of the business. Persons with no 

 knowledge of farming or the special business of dairying will only 

 in rare instances succeed, and then only because they feel a call for 

 the life which it entails. 



The above discussion was submitted to Gordon H. True, Professor 

 of Animal Husbandry, who commented upon it as follows : 



"I am not familiar with the prices of land that is being offered for sale in 

 the state, but knowing that practically all the land in this vicinity is held at 

 $300 per acre without water rights, one is led to wonder where land may be 

 purchased for $100 per acre with water rights. . . .f 



"It seems to me that your estimate of $1000 for teams, machinery and tools 

 is rather low. I believe that such horses as one should have for this work 



* In Europe, land mortgages under the rural credit system generally run from thirty to 

 sixty years. It seems to be the consensus of opinion that if a rural credit system were 

 established in the United States, land mortgages should be permitted to run from fifteen to 

 twenty years. 



t For further discussion of land values see page 43. 



