L8 



Total ... 190,562 1 6 a lo-94% 



The figure of 190,562 represents the surplus of the 

 receipt* or income plus ending valuation, over the pay- 

 ments or expenditure and the commencing valuation. 



The number of accounts here dealt with is extremely 

 small com|>ared with the number of holdings in the 

 country, ami it is not possible to say from these limited 

 figures whether the results shown are typical of the 

 industry generally. 



The intention in tabulating these accounts was to 

 arrive at the figure of profit on the basis detailed below 

 and question 5 of Schedule B was designed in ord;r to 

 enable this to be done. Only a comparatively small 

 amount of information was obtained in reply to this 

 question, and it is consequently impossible to say how far 

 the special items detailed below have been adjusted in 

 arriving at the figure of pro "it shown. 



As stated above the profit was to be arrived at after 

 allowing all the usual and proper expenses including rent 

 ami depreciation, but baton allowing anything to be 

 included in the expenses for : 



Interest on farmer's capital or on loans or over- 

 drafts. 



Income Tax or tithes. 



Any charge for the farmer's own labour or 

 management. 



Any charge for unpaid family labour. 



Private and personal expenses of the farmer or 

 his family. 



A M v payments of a capital nature, or for improve- 

 ments, &c. 



Any special writing down of implements &c., 

 over and above the customary depreciation 

 found to be necessary, and similar items. 



and after the farm had been credited with items such as: 



Rant and rates of the farmhouse. 



Farm produce, fuel, .V-<-., consumed by the house- 

 bold. 



Supplies to, or work don.- fur. the owner or the 

 estate. 



So far as the required information eould IK? obtained 

 from the accounts and from the replies to the sptfifir 

 questions in Schedule " It." the profit has been arrived at 



on the above basis. 



It is probable that in many cases where farm accounts 

 have in the past been prepared merely for the farmer's 

 own use, it has not been found necessary to draw any 

 strict line of demarcation in the account* with regard to 

 these special items. This will also apply to the rent of 

 the farmhouse and farm produce consumed by the house- 

 hold, which may have been regarded as being roughly set 

 off against the value of the unpaid labour supplied l>y tin- 

 family to the farm. 



If it be the case that during the year under review, 

 necessary work of hedging and ditching, repairs, \-e., has 

 had to be deferred owing to lack of labour ami other 

 causes, and if the standard of fertility of the land has 

 decreased, then the profit shown will be to this extent in 

 excess of its true figure, and future years will have to bear 

 these expenses. 



The remarks in paragraph 4 above as to the basis of 

 valuation adopted and the omission from the valuation in 

 certain cases of tillages, stocks of feeding stuffs, &c., should 

 also ba borne in mind when considering the surplus 

 shown. 



In view of the fact that the accounts submitted rover 

 only one financial year, only limited deduct ions must I..- 

 drawn from the results shown, and it is m>i possible to 

 draw any conclusions as to what the profits might be on 

 these farms over a term of years. 



In some cases farmers, when sending their account*. 

 submitted statements showing the profits or losses made 

 over a term of years, an 1 stated they were not willing for 

 the one year's" result to be considered by itself. The 

 results shown by these statements will be submitted in 

 due course to the Commission. 



In other cases farmers have sometimes commented that 

 this year had been for them an exceptionally favourable 

 one, while on the other hand others have stated that their 

 profits were abnormally low for tho year. Among the 

 reasons given for the favourable results are : 



that good crops were obtained, or that owing to the 

 requirements of the Food Production Department, 

 a larger acreage of corn than usual was sown, which 

 it was stated was done at the expense of future 

 crops. 



As explaining the reduced profits, attention was called 

 to the wet weather during harvest, the inferior quality of 

 the labour during that year, li sses in cattle owing to tin- 

 indifferent quality of feeding MutV*. and 1. .**,-* incurred 

 through compulsory ploughing of pasture. 



a'" />li 7. 



RF.CEIPTS on Ivn\ir. 



The chief items making up the total Receipts or Income are shown in the following Table : - 



TABLE D. 



The aggregate receipts amounted to 8 10*. W. per acre. During the period covered by these accounts the prices 

 of -i iiiiinlH-r of farm product.. w< re controlled. 



In many cases, only the cash actually received is shown in the accounts and no account has been taken of the debts 

 ow in/ lo the farm at th beginning and end of the year. 



