THE YOUNG FARMER 



how profits may be estimated, to divide the 

 capital into three general groups: (i) The 

 plant, which in addition to the real estate, 

 will include the machines and tools, horses 

 used for labor, and other animals used for 

 breeding purposes or for the production of 

 animal products, such as butter, wool or 

 e gg s ; ( 2 ) materials, which will include 

 animals which are to be fattened for sale, 

 and all seeds, fertilizers and foods intended 

 to be turned into products to be sold; (3) 

 supplies, which may include foods for 

 teams, and money with which to pay labor, 

 be this labor that of the farmer or his em- 

 ployees. 



The purpose of this classification is to 

 bring sharply into view the fact that the 

 nature of different kinds of equipment 

 varies. All the things named under the plant 

 are in the nature of an annual charge against 

 income. The charge under materials may 

 or may not be an annual charge. If a man 

 invests $2,000 in 50 head of cattle, which he 

 intends to feed and sell for $3,250 at the end 

 of one hundred days, he does not have to 

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