CHAPTER XVI 



BEAL COST OF OPERATION, SHIPPING AND MARKET- 

 INQ PRODUCTS 



THE market values of farm products are, un- 

 fortunately for the farmer, fixed in the mar- 

 kets of the world. The farmer has little, if any- 

 thing, to say about what price his farm products 

 shall bring. Generally the manufacturer can, and 

 does, fix the market price of his manufactured 

 goods. 



The market values of farm products are regu- 

 lated generally by supply and demand. When 

 there is a plethora of farm products, or any one 

 of them, no amount of organization or cooperation 

 among farmers will boost prices. It may help 

 increase the price for select products, or correct 

 certain market conditions, and in a limited way 

 increase consumption, but a bountiful supply of 

 farm products always has and always will bear 

 down and reduce prices. 



Then, if the farmer is unable to fix the price of 

 his farm products, he must, to make a profit, see 

 that his operating expenses are reduced to the 

 minimum. 



The manufacturer, in figuring cost of operation, 

 figures not only cost of raw material and labor in 

 working up same, but he also takes into considera- 

 tion the items of interest, taxes, water rents, lights, 



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