DISTRIBUTION OF AGRICULTURAL INCOME 315 



IV. PROFITS 



As already indicated, the profits of farming are what is left 

 of the farmer's annual income after allowing himself wages for 

 his own labor, rent for his own land, and interest for his own 

 capital. It is, of course, by no means certain that there will 

 be any profits unless the farmer is a good manager. In fact, it 

 is doubtful whether half the farmers of this or any other country 

 make any profits at all, while it is certain that the poorest of 

 them do not. In the growing of staple products, where there 

 is little opportunity for selling at fancy prices, profits accrue 

 mainly to those who are able to reduce the cost of production 

 below that of their less efficient competitors. In the growing of 

 agricultural specialties profits may result from reducing the cost 

 of production, but they result mainly from the production of a 

 fancy product which will sell at a fancy price, and from skillful 

 selling, which is necessary to secure the maximum price. 



It is, of course, a question whether profits as thus defined 

 should not be classed as a part of the wages of the farmer's 

 own labor. If the grower of a staple product is able to secure 

 profits only by reason of the superior management whereby he 

 increases his product above that of his competitors, or reduces 

 his cost of production below theirs, his labor is of a superior 

 order and would ordinarily command a superior salary on the 

 market. If such a farmer allows himself a superior salary corre- 

 sponding to his superior managing ability, would he have any- 

 thin g left in the way of profits, averaging one year with another ? 

 Or in the growing of an agricultural specialty, where profits 

 depend partly upon good salesmanship, if the farmer allows 

 himself a superior salesman's salary, will not this cover all that 

 is commonly called profits ? 



There is one thing which the independent farmer does, 

 whether he be a grower of a staple crop or a specialty, which is 





