CAPITAL 313 



rent or interest paid. This is one of the reasons why 

 tenants change to owners when they do not have money 

 enough to farm to the best advantage. The loss from 

 farming with too little capital must be balanced against 

 probable rises in value of land in order to tell just when to 

 change from tenant to owner. 



The time to take risks is when one is young enough to 

 start over if he loses by the venture. A young man may 

 buy a farm when it would not be wise for an older person 

 with the same amount of money to do so. Of course no one 

 should buy a farm unless he has a reasonable chance of 

 paying for it. 



199. Cash and share rental. When the landlord 

 takes part of the risk, particularly if he owns any of the 

 stock, he has to give the place considerable attention. He 

 must be paid for his risk of crop failure, risk of a poor ten- 

 ant, and for his oversight. For these reasons, share rent 

 has to be higher than cash rent. It usually pays the tenant 

 to rent for cash and so assume these risks. The risk of a 

 poor tenant and the cost of oversight can then be elim- 

 inated, so that the pay for these is added to the tenant's 

 profit. Even the risk of crop failure due to weather is 

 sometimes slightly reduced when one owns all the crop. 



Table 69 shows the results for two counties. Tenants 

 who share the crops have a little less capital and make less 

 than those who share the animal products. Those who 

 rent for cash have more capital and assume more risk, but 

 get much more for their labor. Landlords who share the 

 crops or animals have more risk and get a higher interest 

 on investment, but much of this higher return is pay for 

 the extra oversight. 



200. Farming as a part-owner. The opportunities 

 of farming as a part-owner seem to have escaped public 



