PROBLEM OF CROP PRODUCTION 363 



concerned with the problem of greater production only 

 in so far as it tends to increase his own net profits. He 

 has been forced to recognize that larger crops do not 

 necessarily mean larger net returns, partly because the 

 larger crop usually costs more to produce, and partly 

 because a bountiful crop tends to reduce the selling price. 

 Profit is measured by the difference between the cost of 

 production and the selling price and farmers are con- 

 cerned with maintaining, if possible, a reasonable and 

 constant spread between the two. 



Intelligent and timely cultural practices, hard work, 

 good management and frugal habits will lower the unit 

 cost of production and increase the unit value. But the 

 cost of the farmer's machinery and other equipment, the 

 cost of his money and, to a considerable extent, the cost 

 of his living are all fixed by conditions and institutions 

 over which he individually has no control. It is coming 

 to be realized, however, that those factors which cannot 

 be controlled by individual effort may be very consider- 

 ably modified by collective and co-operative effort. Far- 

 mers' organizations seem to be in a fair way toward hav- 

 ing tariff schedules, particularly those on implements of 

 production, reduced, thereby reducing cost of produc- 

 tion. Farmers' business organizations in the handling 

 of agricultural implements and supplies in general have 

 had considerable to do with keeping down the costs of 

 these supplies. The cost of money to the farmer has also 

 been redticed by organizations, such as rural credits 

 societies and farm loan associations dtesigned to meet 

 the needs of the agriculturist. In general the cost of 

 production seems to have been materially reduced where- 

 ever farmers' organizations have made a determined 

 effort to compete in the handling of farmers^ business. 



