THE FARMER'S MEANS OF ACQUIRING LAND 225 



by tenants until some farmer is able to acquire its ownership by 

 transferring to the city owner an equivalent amount of wealth. 



Thus while gift and inheritance are economic conditions of 

 great importance in determining the status of farmers with 

 respect to landowner ship, and make any rapid change in their 

 status in this regard impossible, some other means of accumu- 

 lating wealth must be available if the present percentage of land- 

 owning farmers is to be maintained. This leads to the investi- 

 gation of savings in agriculture as a means of acquiring land- 

 ownership. 



Savings. The process of saving from the earnings of many 

 years and making a purchase is a means of acquiring land- 

 ownership which is of especial significance in the consideration 

 of the conditions which make it possible for tenant farmers 

 to become landowners. The majority of the tenants are able 

 to save from their earnings, because their net returns are more 

 than enough to cover the expenses of living. When long periods 

 of time are taken into consideration, the prices of agricultural 

 products tend to be such that the total product of the least 

 capable farmer who can remain permanently in the business will 

 equal his cost of living and all other annual expenditures, 

 including rent and normal returns on permanent investments. 

 This is true partly because long-time-average prices are a most 

 important factor in determining the degree of efficiency which is 

 necessary for making a living by farming, and all who do not 

 prove themselves efficient to that degree must leave agriculture 

 to those who are more capable ; again, it is true partly because 

 the long-time-average price must be such as will encourage the 

 production of sufficient produce to supply the effective demands 

 of the people, and the least capable farmer who is required to pro- 

 duce this supply must receive prices which will enable him to 

 live in accordance with his idea of a living, to pay rent, wages 

 (unless he and his family do all the work, in which case this 

 item is included in a living), wear and tear on machinery, and 

 normal returns on permanent investments. 



It is true, certainly, that, at any given time, there are those 

 who are producing at a loss, others who are just able to make 

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