ORGANIZATION OF THE FARM 



given number of the composite units of the other 

 factors until the final increment of land adds just 

 enough to the total product to pay the fixed rent 

 which must be paid to secure the use of said incre- 

 ment of laid. 



The conditions are practically the same if the 

 farmer owns the land which he cultivates as if he 

 pays a fixed rent, the only difference being that 

 he has paid for the perpetual use of the land, 

 whereas the tenant pays annually for its use. 



The payment of a share rent does not tend to 

 increase the intensity of culture. The share rent 

 increases as the total product increases; and it 

 may be thought of as taking some fixed portion, 

 say one-third, of the product of each succeeding 

 unit of labor and capital-goods applied, so that 

 the farmer gets only two-thirds of the product 

 of each unit, and his share reaches the highest 

 average return per unit with the same degree of 

 intensity which yields the highest average gross 

 return per unit. Hence, where the share tenants 

 follow their own self-interest, they will farm no 

 more intensively on the best land when less pro- 

 ductive grades of land have been resorted to than 

 when only the best grade was cultivated. 



To illustrate this point, draw a curved line 

 from A to B in Fig. 2, at such a distance from 

 lines A I' B and A B as to leave two-thirds of the 

 area of each section between the lines A B and 

 A I B. Then draw a line through the points of 



109 



