MEANS OF ACQUIRING LAND 



in agriculture as a means of acquiring landowner- 

 ship. 



Section III. Savings. The process of saving 

 from the earnings of many years and making a 

 purchase, is a means of acquiring landownership 

 which is of especial significance in the considera- 

 tion of the conditions which make it possible for 

 tenant farmers to become landowners. The ma- 

 jority of the tenants are able to save from their 

 earnings, because their net returns are more than 

 enough to cover the expenses of living. When 

 long periods of time are taken into consideration, 

 the prices of agricultural products tend to be such 

 that the total product of the least capable farmer 

 who can remain permanently in the business will 

 equal his cost of living and all other annual ex- 

 penditures, including rent and normal returns on 

 permanent investments. This is true partly be- 

 cause long-time-average prices are a most impor- 

 tant factor in determining the degree of efficiency 

 which is necessary for making a living by farm- 

 ing, and all who do not prove themselves efficient 

 to that degree must leave agriculture to those who 

 are more capable ; again, it is true partly because 

 the long-time-average price must be' such as will 

 encourage the production of sufficient produce to 

 supply the effective demands of the people, and 

 the least capable farmer who is required to pro- 

 duce this supply must receive prices which will 

 enable him to live in accordance with his idea of 

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