COST OF PRODUCTION 235 



by the farmer for agricultural work was regarded as 

 being used for the production of this particular crop, in 

 relation to the total work on the farm to which it is put, 

 in the proportion of 1 to 3. It is evident that this 

 estimate, if anything, is in error on the side of being 

 too liberal, for while it is true that a small part of the 

 total stock, such as the reaper and binder, is used for 

 a few operations only, a great many items are devoted 

 to a wide range of uses, such as horses, ploughs, drays, 

 etc. Thus, the total fixed capital is in reality the simple 

 interest at 3J per cent, on the capital sum invested in 

 implements. 



The circulating capital is the actual amount paid for 

 the various items which are required from year to year, 

 such as horse-feed, twine, etc. 



In the miscellaneous group are various items, the 

 expenses of which cannot easily be divided into the 

 several parts. Thus, threshing is paid for at a rate of 

 a few pence per bushel ; but an estimate of the amounts 

 due to capital, fixed and circulating, and to wages, would 

 necessitate an enquiry into threshing accounts. 



7. Observations on the Relative Costs. 

 The items B and C are in agreement throughout, but 

 the average production per acre for B is more costly 

 than that for C. Thus, both wages for labour and horse- 

 feed are higher in amount, and interest on capital is 

 also higher. Similarly, rent and all the items of circu- 

 lating capital are higher for B. The chief reason for 

 this is that the land in the case of B was tilled more in- 

 tensively than that of C, with the result that the increase 

 of yield from B over that of C was higher than the 

 difference in soil fertility would lead one to expect. 

 On account of the higher yield, the cost per bushel is 

 very much smaller in B than in C, and it is evident that 

 the farmer of B is adequately repaid for his intensive 

 culture and careful husbandry. 



