230 PRINCIPLES OF RURAL ECONOMICS 



land, even in barren New England, which could not be made 

 to support a dense agricultural population if the standard of 

 living were reduced to a low enough level. 



Our immediate problem, however, is whether the farm man- 

 ager would better own or rent his land. No general answer can 

 be made, since it depends upon circumstances of time and place. 

 Of course, if there is a good prospect of land rising in value, 

 the advantage of buying is obvious. Many an indifferent farmer 

 in the United States has found himself carried along on the 

 general current of prosperity merely because of the fact that 

 he became the owner of land when it was cheap and held onto 

 it while it rose in value. But this has nothing to do with his 

 success as a farmer ; his prosperity arises from his success as a 

 land speculator. Of course, if the land should decline in value 

 after he bought it, the disadvantages of ownership would be 

 equally obvious. 



Aside from the factor of land speculation, there are other 

 considerations already hinted at. The terms upon which land 

 can be leased is a most important factor in the problem. Where, 

 under the customary terms of tenancy, the farmer has little 

 control and a very short tenure, every capable farmer will try 

 to become an owner as soon as possible, if for no other reason, 

 merely because it gives him fixity of tenure and freedom from 

 interference. Where a favorable lease can be secured, the problem 

 will turn largely upon the ratio of the price of the land to its 

 rent. Where the price of land is so high in proportion to its rent 

 as to yield an abnormally low rate of interest, it will be better to 

 rent ; that is to say, a capable farmer can make his capital yield 

 him a larger return when he invests it in tools, machinery, live 

 stock, etc., than when invested in the land. Where there is a 

 good landlord who understands farming and takes an intelligent 

 interest in the land and his tenants, the advantages of this 

 system reach their maximum. However, the social results of 



