148 AGRICULTURAL ECONOMICS 



advance the extent to which corn cultivation and clover harvest 

 will conflict ; neither can he know exactly how much time there 

 will be for field work. Having made his general plan for the 

 year, he must, from day to day and week to week, distribute 

 his labor where it will count for most. If more labor can be got 

 temporarily, that will be distributed on the same basis, i.e. 

 put in where it will count for most. Under these conditions 

 the area has already been determined, but unusual weather 

 conditions may put the farmer ahead or behind his regular 

 schedule. In either case the correct policy is to make such use 

 of the available resources as will add most to the total profit 

 of the farm regardless of the assumptions made in projecting 

 the plans at the beginning of the year. Plans are valuable 

 but emergencies often demand their readjustment. 



Standpoint 3. The problem as it confronts the farmer in 

 action is found in standpoint 3 . How can the amount of business 

 under a given farm organization be increased, i.e. how can the 

 gross income be increased in such a manner as will add most to 

 the farmer's net profit? Take a dairy farm, for example, 

 where the sale of whole milk is the principal source of income. 

 To increase the gross income means essentially to increase 

 the milk check, (i) The milk check can be increased by im- 

 proving the sanitary quality of the milk so as to secure a higher 

 price for the product. This requires greater expenditure for 

 labor in the dairy and on the milk route, but makes no increased 

 demand for feed or land. (2) The milk check may be increased 

 by producing a greater quantity of milk of the same quality. 

 This may be done by : 



A. Securing cows of greater efficiency and capacity. This 

 increases the investment in cows and makes some change in 

 the demand for feed, which may be produced as a result of more 

 labor on the farm on the same area or the feed may be pur- 

 chased. 



B. Securing more of the same quality cows, building greater 

 barns, hiring more laborers, buying or raising more feed. 



Which of these things to do depends on relative costs. If 

 more feed is raised it can be done by more intensive culture or 



