A FAIR COMMERCIAL RETURN 87 



;^90 a year for interest on capital and living for the 

 tenant. The labour item has been fairly maintained at 

 from 22s to 19s 6d an acre.^ 



Various estimates may be given of the minimum 

 r.eturn for which it may be to the interest of a capable 

 farmer to go on working his farm. 



^en per cent, on capital, taking one year with another, 

 is assumed by many to be a fair return for a farmer to 

 count upon. And, in general, a farmer expects, ijp 

 Addition to interest on capital, about 2s 6d an acre 

 return for management, and it is only after these two 

 heads are provided for that " p rofit s " ar^^uppose(i**to 

 Begin. But, if 5 per cent, is takerTSs* about the minimum 

 which would keep a man going, and enable him to 

 prevent his capital from melting, away, it is plain from 

 this survey of typical accounts — all presumably from 

 farmers of more than average prudence and capacity — 

 that nothing like even this modest standard is being 

 attained. On the other hand, it seems plain from the 

 accounts that, except in the cases of complete collapse 

 where no available margin any longer exists, landlords 

 are still drawing rents, out of which a reasonable though 

 small profit might be made for the tenant. In the worst 

 cases the landlord continues to place the entire loss upon | 

 the tenant, and is obviously living upon the capital and I 

 the labour of the tenant, who receives no return whatever. | 

 In the best cases the larger share of economic loss is f 

 being borne by the tenant, and in nearly every instance, | 

 while the tenant is clearly trying to secure the best -s 

 returns by keeping up a high standard, both of labour ^ 

 and manuring, a rent is being drawn which completely |: 

 excludes any possibility of the tenant obtaining, as the ^ 

 result of his loyal work and ample expenditure, anything t 

 like a reasonable commercial return. % 



So far as the accounts collected can be depended on ■* 

 to illustrate the general position, they indicate that it is 

 indispensable for the future of agriculture that rents 

 not already reduced to an equitable figure should be 

 further reduced without delay, so as to secure, where 

 1 Rew, Dorset, App. B.'6, p. 60. See pp. 17, 18. Farm Accounts, p. 84. 



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