44S 



FARM FINANCE 



It is wealth employed in production. Let us use a common 

 illustration to show how capital differs from mere wealth 

 with which it is often confused. You may own a fancy 

 chicken, ornamented with feathers of an unusual design. 

 You did not breed this chicken in order to make money 

 out of it, but merely for the pleasure its presence gave 

 you. This chicken is a form of wealth. If, however, you 

 are raising this fancy stock for profit, it will then be capi- 

 tal, since it is used for production of more wealth. The 



/SLV ' 



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SUCCESSFUL FARMING REQUIRES CAPITAL 



essential feature of capital then, whether in the form of 

 money, tools, machinery, stock, or land, is the use to which 

 it is put, rather than the form which it takes. 



Farm capital is sometimes regarded either as fixed or 

 circulating. By the term fixed capital is meant such forms 

 as land, bridges, and roads, which may be used many 

 times in production. Circulating capital consists of such 

 articles as fuel, fertilizer, and feed, which lose their value 

 or are consumed when used. 



