234 WHEAT PRODUCTION IN NEW ZEALAND 



The similarity noticeable in these tables is remarkable ; 

 but a few points of difference require explanation. 

 Equally imperative is it that the basis of the calculation 

 of each item should also be made clear. 



The "rent" of the land is in reality: first, interest on 

 capital invested in improvements ; secondly, the economic 

 rent; and a third element springing from the scarcity 

 value of the land. This "rent" has been calculated by 

 taking the interest on the capital value of the land, 

 interest being at 5 per cent. It will be noticed that land 

 A has the highest rent, and C the lowest. 



The wages for labour are the actual amounts paid 

 during the whole of the time during which labour was 

 applied to the land for the specific purpose of "putting" 

 in and harvesting the crop. The amount includes an 

 estimate of the expenses incurred by the farmer in giving 

 his labourers board and lodgings. 



The wages for managing are calculated on a basis of 

 3 7s. 6d. per week during the whole year, and it is 

 assumed that the management necessary for the pro- 

 duction of the crop is equivalent to one-fourth of the 

 management necessary for the whole farm. This pro- 

 portion may appear too high, but it must be remembered 

 that 3 7s. 6d. per week is not a high estimate for 

 managing capabilities. 



The only item of fixed capital is interest on money 

 invested in machinery. The value of the implements 

 used in each case was carefully calculated, the prices 

 being what the farmers paid for the implements. For 

 such items as harness and general equipment a liberal 

 estimate was made. Thus, harness for a four-horse team 

 was reckoned at 40. 



The total sum thus invested was calculated, and de- 

 preciation on the whole was taken at 10 per cent. That 

 is, during ten years the whole of the farmer's stock 

 is replenished. The total stock of implements thus held 



