906 THE farmers' handbook. 



Simplifying the Work. 



The following suggestions may assist in simplifying the work at the out- 

 set; : — 



1. The house, farm, buildings, &c, may be treated as one property, 



whether rented or owned by the farmer, unless the house (as in a 

 few cases) is detached from the farm and forms a separate property. 



2. No salary is drawn by the owner or his family for services rendered. 



All farm products used by the household need not be charged, but 

 all definite expenses incurred debited to a house account. 



3. Interest charged at 5 per cent, per annum on capital invested, and 



any further profit is his net return. 



4. Inasmuch as few farmers have many cash or bank transactions, the 



cash book may be dispensed with to reduce the number of booka 

 required. All entries may then be made through the journal. 



The First Essential— an Inventory. 



The man who starts a system of book-keeping with his capital in cash, 

 and then purcnases the farm, stock, &c, has a much simpler task than the 

 one who for years perhaps has been engaged on the land. The latter must, 

 as a preliminary, " take stock," — i.e., discover what he is worth at any par- 

 ticular time. The season of the year for inaugurating the system needs some 

 judgment. Other things being equal, January 1 or July 1 would be the 

 best; but with certain classes of farming, this might be inconvenient. For 

 instance the end of March might be most suitable for a wheat-grower, as in 

 December he would have wheat unsold, or even unharvested. The end of 

 September might be best adapted for a summer fruit and citrus orchardist, 

 inasmuch as that would probably be the only time when there was no fruit 

 for sale. A tenant farmer would probably find it better to take his inventory 

 on the anniversary of the day he entered into occupation, and the holders 

 of conditional purchases and homestead selections on one of the dates on 

 which their payments became due. Low stocks and slackness of work may 

 govern other cases. In general, however, as income is calculated for 

 taxation purposes for the year commencing July 1, this may be regarded as 

 the most suitable date on which to commence the work. 



In making this valuation, much judgment must be exercised, and this in 

 turn will tend to develop the business faculty. The memory will be called 

 upon, old receipts and pass books looked up, and current values considered, 

 to ensure some amount of accuracy. Over-sanguine estimates may in some 

 cases be made, but a wide-awake farmer usually gathers from the prices 

 obtained at local auction sales, &c, a very fair idea of values. 



Numberless instances might be given of the problems which confront the 

 farmer at such a time. For instance, with the financial year closing on June 

 30, he has several tons of seed potatoes intended for his own planting next 

 season. To buy them would cost £6 per ton; whereas if sold they would 

 realise but £4 or £4 10s. per ton. At what should they be valued? As an 

 enhancement of the value in the " growing " year means a lowering of profit 

 in the " sowing " year, the middle course would be wisest, with a strong 

 leaning towards a low estimate. 



The list must then be classified under separate headings, of which the 

 following are the most important : — 



1. Land (either with or without house, buildings, &c, which, with fences, 

 dams, clearing, &c, may be placed under the heading of " improve- 

 ments").. If the place has been bought as a going concern, with 



