June. 1940] 



Farm Management in Colebrook 



31 



Nrr RETURN FOR EACH ADDITIONAL 

 UNIT APPtlCATION OF RESOyRCES 



VNITS OF RESOURCES 



Figure 17. Proportion in enterprises. 



The two curves in figure 17 indicate the net returns from additional applications 

 ot resources m the protluction of potatoes and milk. Since additional units applied 

 to either enterprise beyond a certain point result in net returns successively less 

 than for the preceding units, the best combination of the two enterprises is indi- 

 cated where the horizontal line intersects the two curves. At these points the net 

 returns from the last unit of resources applied to potatoes is the same as that re- 

 sulting from the last unit applied to dairying. The sum of the resources used on 

 dairy and potatoes (AB + AC) is approximately equal to the total resources (AF). 



able resources on all four enterprises. These curves are not supported 

 by detailed data but represent the situation in a general way. The 

 diagram over-simplifies the problem and does not fully accoitnt for 

 competing rec|uirements for labor, for the use of different grades of 

 land, and for the use of different proportions of labor and capital on 

 the various enterprises. 



The curve indicating returns on replacements is high at the be- 

 ginning becattse if the replacements were not raised the operator 

 would have to purchase approximately one heifer annually for each 

 five cows in the herd. And, of course, if all of the farmers in the 

 area followed a similar practice of not raising their own replace- 

 ments, the value of heifers would be high. A deficit situation, other 

 conditions being ecjual, will always result in higher values than a 

 surplus situation. Production of replacements beyond the needs of 

 local herds brings problems of salesmanship and of declining possi- 

 bilities for selection and culling. A curve for a few of the farms 

 which have high quality cattle and good opportunities for marketing 

 would not decline as rapidly. Based on the situation now existing 

 on most of the farms of the area, the curve would decline after the 

 needs of the herd have been satisfied. Of course, the extent of this 

 enterprise is limited b}' the number of heifers available. 



The curve for woodland products in the area varies greatly on the 

 various farms. A typical situation of low merchantable timber in- 

 ventories is described in the curve in figure 18. A moderate return 

 for fuel wood for home use and a declining curve beyond these re- 

 quirements are indicated. Where merchantable timber resources are 

 available, the curve would be higher all along the line. 



While the returns per hour on woodland products under these 

 conditions are not high, the available labor could not be applied to 

 better advantage on the other enterprises because of diminishing 

 returns. 



It should be noted that these curves expressing the returns from 

 successive applications of labor and capital to the various enterprises 

 are influenced by seasonal crop recjuirements. For this reason the 



