COST OF PRODUCTION 237 



of the yields per acre to approximate closely to the ratio 

 of the fertility of the land as measured by their prices 

 per acre, after allowing for differences due to situation. 

 The discrepancy between these ratios suggests that the 

 efficiency of methods of farming is unequal in the two 

 cases. The amount spent in cultivation, that is, the items 

 wages and capital, differs by some 6s. 8d. per acre. This 

 shows that degrees of the intensity of cultivation are not 

 wholly in agreement, but the difference is not sufficient 

 to explain the difference in yield. The real explanation 

 is that in the one case there was much better adminis- 

 tration of the cultivation, and, moreover, the observer 

 is struck by the general superior efficiency of farmer B. 

 Farmer C happens to be young and comparatively in- 

 experienced, and his land has not yet had time to show 

 the effects of good farming such as is the case with B. 

 In particular, land C was not ploughed until late autumn, 

 and cultivation was proceeded with until seeding time 

 without a break. Land B, however, was fallowed in the 

 summer, and in this condition it remained for some three 

 months until autumn, when cultivation for the crop was 

 commenced. Obviously, other things being equal, we 

 should expect a higher yield from the latter land. 



The high cost of production in the case of C must 

 be looked upon with the reservation, then, that better 

 administration would yield a higher return. Be it noted 

 that the same land has yielded 30 bushels per acre quite 

 recently, and, generally speaking, crops here have been 

 considerably above 20 bushels per acre. 



8. Cost of Production and Market Price. 



If any error has been made in making these estimates, 

 it has undoubtedly fallen on the side of exaggerating the 

 importance of expenditure. There is no necessity to con- 

 sider this matter in detail, for a glance at the estimates 

 themselves will show at once that such is the case. For 



