The profits as shown above have very little relation 

 to the profits likely to be made during the present year 

 or in the immediate future, as costs are much higher 

 than they were in 1918. The labour alone will be 

 increased by about 300 for the present year, and still 

 more for next year. 



The farmer should have a clear return after paying 



rent of at least 10 per cent, interest upon the capital 

 he has invested in his farm. 



This farm has been worked on a strictly commercial 

 basis, and all produce used for the Hall or estate has. 

 been charged at current market values and the labour 

 and skill of the owner and bis agent have not been 

 charged for in the accounts. 



"B" FARM. 



DR. 



PROFIT AND Loss ACCOUNT FOR 10 YEIRS, FROM OCTOBER, 1908, TO OCTOBER, 1918. 



LIGHT LAND FARM IN NORFOLK. 



Area775a. 3r. I6p. 



OR. 



SUMMARY OF PROFITS. 



This shows an average balance of profit of 479 

 per annum to recompense the farmer for his own time 

 and skill and pay interest on his capital. 



I estimate the capital required to work this farm 

 to-day is 9,000; interest on which at 5 per cent, is 

 450 per annum. 



Showing a loss of 111 to the farmer and no return 

 for his own labour. 



The profits shown in 1917 are due to the extent 

 of about 1,000 owing to realising part of the capital 

 by selling the flock of ewes which hud been taken in 

 the previous valuation at a very low figure. 



The profits for 1919 will probably be much lower 

 owing to the increased expenses and the poor harvest 

 resulting from the long drought in the early summer. 



