VALUE OF FARM LAND 



The theory of capitalization is especially use- 

 ful in the consideration of the value of farm land 

 because the value of a given piece of land has no 

 particular relation to the cost of bringing such 

 land under cultivation. The income received by 

 the landlord is largely a surplus which is credited 

 to land because it is scarce, rather than because 

 it costs any definite amount to improve the land. 

 Land is also much more permanent in character 

 than are capital-goods, and for this reason, also, it 

 lends itself with more facility to the above method 

 of capitalization. 



These are some of the most important principles 

 and conditions which should be kept in mind in 

 the consideration of the values of farm land, and 

 of farm live stock and equipment. The prospec- 

 tive buyer of land will do well to bear in mind the 

 advice of Cato, a Roman agricultural writer, who 

 is quoted by Pliny 1 as saying, "Do not be too 

 eager in buying a farm. In rural operations 

 never be sparing of your trouble, and, above all, 

 when you are purchasing land. A bad bargain 

 is always a ground for repentance." 



LITERATURE 

 Frank A. Fetter, The Principles of Economics, Chapter 15. 



1 Pliny's Natural History, Book XVIII, Chapter 6 ; "Bonn's 

 Library" edition, Vol. IV, p. n. 



197 



