AGRICULTURAL ECONOMICS. 43 



of each branch is known and the difference is the profit or loss. 

 The aggregate amount of these profits or losses should agree 

 with the over-all profit in the financial accounts. 



Farm cost records require care, and while the regular records 

 to be kept through the year are fairly simple, the closing work 

 to get at the final cost is more difficult. The natural harmony 

 of the rotation introduces difficulties, as does the analysis of 

 the " internal " transactions between the different branches 

 and the rotation course, and questions of principle arise which 

 affect the basis of the cost records. 



It must be admitted that many farmers have not the requisite 

 time or ability to keep costs without assistance. But if, as is 

 hoped, groups of farmers in the near future combine to employ 

 a clerk or accountant to keep their records this difficulty will 

 be overcome. 



To enable the farmer to apply his practical knowledge in the 

 fullest and most efficient manner, he must have the relevant 

 facts before him, from which to adapt and vary his policy to 

 meet the constantly changing conditions of markets, prices, 

 seasons, etc., within the limits of his rotation. 



The essential advantage of farm costs is as a means of informa- 

 tion ; they are a means and not an end. There is no virtue 

 in the figures unless they are used. Unless they are carefully 

 studied and the information they contain is practically applied, 

 they are of little use. They cannot take the place of practical 

 farming knowledge, but they enable that knowledge to be applied 

 to the farm more fully and accurately. They bring to light 

 the detailed inner working of each branch of the farm. 



So far .from stereotyping any system of farm management, 

 they should facilitate the most elastic methods and assist hi 

 obtaining full efficiency in all the operations, and they become 

 of increasing value when several years' costs are available for 

 comparison. 



Farming is a complex industry. In the coming days competi- 

 tion will be keen, and margins of profit fine. Each item of 

 expense incurred, in every department of the farm, will assume 

 importance and require oversight. The whole economy of 

 the farm will need to be organised and controlled on the basis 

 of reliable information, and cost accounts provide the material 

 for this purpose. In the rush of changing conditions which 

 affects every factor in the farm working, accurate information 

 will be essential. 



In cases where cost accounts have been instituted, they 

 have upset preconceived notions as to the relative advantage 

 of different branches of the farm. Stock that, in the absence 

 of cost accounts, were thought to be paying well, have been 

 found to be yielding little or nothing. 



