LAND, LABOR AND CAPITAL 59 
The proper adjustment of capital depends largely on the type 
of poultry farm, the character of the market, and the personality 
of the poultryman himself. In working out the problem of adjust- 
ment it must always be remembered that production is limited 
by the minimum of any one of three factors. With a small area 
of land, production cannot be large, no matter how much capital 
and labor one may have at his disposal. With a scarcity of suitable 
labor a large investment in land and equipment means little. 
Likewise an abundance of land and labor without suitable buildings 
and equipment will bring poor results. 
In deciding on the proportion of the original fund to invest . 
as fixed capital and that to be kept for running the plant, no 
absolute rule can be laid down; but it must be remembered that 
many failures are caused by an overcapitalization at the start. 
One-half in fixed capital is perhaps a safe rule for the beginner, 
leaving one-half for the running expenses of the enterprise. This 
should be kept constantly on the move, and each time it should 
come back with increase. After the business has become well 
established, it may be found profitable to increase the fixed capital 
so as to make a larger production possible, and it can be more 
safely done at that time. 
As the business increases in size and efficiency the proportionate 
investment in circulating capital will grow as a natural consequence, 
carrying with it greater profits. 
Land is a special form of capital. It is a natural agent, limited 
in extent. A considerable area of land is to be desired for the best 
results on a poultry farm. If sufficient land is available, it will 
be possible to give the birds an abundance of room for range and 
in that way keep the ground clean and free from disease and gen- 
eral disorders. There is little danger of having too much land. If 
there is an abundance of land, the farm can be so planned that a 
large proportion, if not the entire supply, of grain can be grown at 
home. The feed bill is the poultryman’s greatest expense and calls 
for a large reserve in circulating. capital. With the increasing 
prices for cereal feed, the more of it that can be grown at home 
the better. 
A mistake too often made is that of hiring and developing a large 
business on land which is not owned by the poultryman. This 
arrangement is almost sure to be unfortunate. The erection of 
buildings on hired land is always a direct loss, if they are of a 
permanent nature. They become a part of the property and can 
