HOW TO ESTIMATE PROFITS 



method. From the farm income is now sub- 

 tracted a reasonable interest on the invest- 

 ment, the balance remaining is called the 

 labor income. This is the return which the 

 farmer has obtained by and for his own 

 efforts. If this balance is zero, then he 

 should change his methods or get into some 

 other business. 



This statement of his income, whatever 

 it may be, enables him to compare his pros- 

 perity with that of the man who is employed 

 upon a salary. Here, again, however, it is 

 difficult to make comparisons because of the 

 differences in expenses of living. The chief 

 difference, however, in the expense of the 

 wage earner in the city and the farmer is in 

 the matter of house rent. For example, if 

 the wage earner pays $300 a year house rent 

 that must be deducted from his income in 

 comparing it with the labor income of the 

 farmer. It is often stated that the farmer 

 also has his living from the farm. This was 

 much more true formerly than it is at pres- 

 ent. Under present methods of distributing 

 food products and with modern types of 

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