28 FARM MANAGEMENT 



because his supervision is of no value, but because the 

 system of rental is so adjusted that he gets paid for the 

 supervision. If the tenant has the ability, he should 

 .supervise himself. If a tenant secures a good farm, he 

 may hope to get ahead enough to buy a farm and make 

 a part payment before many years. (See also Chapter 9.) 



FARM INVESTMENTS 



22. Land as an investment. Persons who do not 

 desire to be farmers often invest money in land. This is 

 the very common outlet for surplus money in the Middle 

 West. The rise in land values has greatly stimulated this 

 movement. Under such conditions it is possible to have 

 inflated prices, but, in general, land wisely purchased is a 

 conservative investment. It usually pays a moderate 

 rate of interest. In a new country the rental system is 

 simple, and little attention is given to keeping up the land. 

 As the country develops, farm property requires con- 

 siderable attention from the landlord or his agent. Those 

 who wish investments that will not call for much attention 

 then prefer stocks and bonds. The most satisfactory way 

 to handle farm property held as an investment is to rent 

 it. It is rarely so profitable to hire a manager unless the 

 owner understands farming and lives on the place or can 

 give it constant attention. 



One must never expect so high returns when he invests 

 money as when he goes into business with his money. 

 Money lent on farm mortgages is usually safe, and calls 

 for very little attention, hence the rate of interest is mod- 

 erate at the present time, about 5 percent in the North 

 Atlantic States, 6 per cent in the Middle West, and 8 per 

 cent in the South and on the Pacific coast. These rates 



