214 WHEAT PRODUCTION IN NEW ZEALAND 



farmers have attained such a high standard, their 

 efficiency in organisation must be regarded as relatively 

 high. 



(d) General Lay-out of Farms. A question of organ- 

 isation connected closely with the problem of combining 

 a good rotation of crops with efficient methods of culti- 

 vation, arises from the problem of "laying out" the 

 farm in such a manner as to obtain the maximum of 

 efficiency in production. Under this particular line of 

 investigation a consideration of the whole question of 

 mixed farming is strictly relevant, as well as a general 

 discussion on matters such as the most convenient size 

 and shape of fields, the relative position of the fields, the 

 site of the homestead, implement sheds, stables, grain 

 stores, etc., the provision of an adequate water supply 

 and the whole question of irrigation or distribution. 



In pursuing any one line of action, the farmer is 

 guided by the consideration of the relative degrees of 

 profit which the various pursuits offer. Consciously or 

 otherwise, it is this principle of "substituting" a higher 

 profit for a lower one, of so distributing his energy that 

 he obtains equi-marginal returns, that guides the farmer 

 in his choice of occupation. The recent transition from 

 agriculture to pastoral farming affords certain phe- 

 nomena undoubtedly confirmatory of the economic law 

 of substitution. Irrespective of what reasons farmers 

 offer for their change in attitude towards agriculture, 

 there still remains the fact that the predominant motive 

 in the economic world is that of self-interest, widely 

 interpreted. Individuals pursue that line of occupation 

 which offers the greatest relative advantages, and 

 obviously farmers would not be partially giving up 

 wheat growing, were it not for the fact that pastoral 

 farming still affords a relatively higher profit. 



But New Zealand of comparatively recent years has 

 developed a great industry, the inception of which 



