MEANS OF ACQUIRING LAND 



a month and one-half the net proceeds, or, 

 what is called in Chapter XI, the farm 

 income. In considering a contract of this 

 kind it is necessary to make a careful dis- 

 tinction between: (i) Gross sales, (2) net 

 proceeds, viz. : the gross sales less the ex- 

 penses of running the farm, and (3) profits, 

 which may be defined for the purpose of 

 this discussion as the net proceeds less the 

 interest on the investment.* 



Assuming 160 acres of land, all tillable, 

 devoted to dairy farming in eastern United 

 States, gross sales may be estimated at $20 

 an acre, or an annual gross income of $3,200, 

 and the net proceeds at $10 an acre, or 

 $1,600. Under these conditions the young 

 man's income would be $240, received as 

 wages, plus $800, as his share of the net 

 proceeds, or a total of $1,040 a year. 



Generally speaking, probably a more 

 satisfactory method, both for landlord and 

 the farm manager, would be to pay the 

 latter as nearly as may be what his services 



*Profit is sometimes defined as that part of the product 

 which the producer can consume without reducing his means 

 of production. 



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