LAND, LABOR AND CAPITAL 59 



The proper adjustment of capital depends largely on the type 

 of poultry farm, the character of the market, and the personality 

 of the poultryman himself. In working out the problem of adjust- 

 ment it must always be remembered that production is limited 

 by the minimum of any one of three factors. With a small area 

 of land, production cannot be large, no matter how much capital 

 and labor one may have at his disposal. With a scarcity of suitable 

 labor a large investment in land and equipment means little. 

 Likewise an abundance of land and labor without suitable buildings 

 and equipment will bring poor results. 



In deciding on the proportion of the original fund to invest 

 as fixed capital and that to be kept for running the plant, no 

 absolute rule can be laid down; but it must be remembered that 

 many failures are caused by an overcapitalization at the start. 

 One-half in fixed capital is perhaps a safe rule for the beginner, 

 leaving one-half for the running expenses of the enterprise. This 

 should be kept constantly on the move, and each time it should 

 come back with increase. After the business has become well 

 established, it may be found profitable to increase the fixed capital 

 so as to make a larger production possible, and it can be more 

 safely done at that time. 



As the business increases in size and efficiency the proportionate 

 investment in circulating capital will grow as a natural consequence, 

 carrying with it greater profits. 



Land is a special form of capital. It is a natural agent, limited 

 in extent. A considerable area of land is to be desired for the best 

 results on a poultry farm. If sufficient land is available, it will 

 be possible to give the birds an abundance of room for range and 

 in that way keep the ground clean and free from disease and gen- 

 eral disorders. There is little danger of having too much land. If 

 there is an abundance of land, the farm can be so planned that a 

 large proportion, if not the entire supply, of grain can be grown at 

 home. The feed bill is the poultryman's greatest expense and calls 

 for a large reserve in circulating capital. With the increasing 

 prices for cereal feed, the more of it that can be grown at home 

 the better. 



A mistake too often made is that of hiring and developing a large 

 business on land which is not owned by the poultryman. This 

 arrangement is almost sure to be unfortunate. The erection of 

 buildings on hired land is always a direct loss, if they are of a 

 permanent nature. They become a part of the property and can 



