PLANNING THE FARM BUSINESS 116 



readjustments should be planned only after a careful study of the particular 

 situation. This is the best method for the individual farmer to follow in mak- 

 ing his own farm plans. It is the way in which many successful farmers plan 

 their farming systems. New types of machinery, new methods of production, 

 changes in prices of farm products and other factors are all interpreted in 

 the light of their own individual farm organizations. 



This study presents an analysis of some common types of problems for 

 which solutions have been found to fit in these particular cases. Exactly the 

 same adjustments might not fit other farms. They may, however, serve as 

 valuable suggestions to other farmers in like situations. 



A further conclusion to be drawn from this and similar studies is that some 

 method of budgeting or careful esthnating of future receipts and expenses is 

 an essential step before making any farm adjustment. Suggested changes 

 may increase receipts in one direction and at the same time decrease the in- 

 come from other sources. The only safe way of balancing the various changes 

 is to make careful estimates of each item affected by the proposed adjust- 

 ment. Records of farm receipts and expenses, crop yields, livestock produc- 

 tion, and amounts of materials used in previous years increase the accuracy 

 with which these estimates can be made. 



4M-6-'31. No. 2727. 



Publication op this Document Approved by the Commission on Administration 

 AND Finance. 



