COST OF PRODUCTION 225 
Another difficulty arises from the fact that the varying 
nature of the soil in different localities together with 
transportation and other differences gives rise to varying 
costs of production. Many critics consider this difficulty 
as almost unsurmountable, and it is put forward as a 
strong reason why no fixed price should be stated, just 
as if this varying cost of production was itself a factor 
in the determination of prices in the immediate future. 
What, it may be asked, has been the position of pro- 
ducers in the past when at any one time there has been 
approximately one price in all markets of the country, 
irrespective of the varying costs of production ? 
5. Previous Work in Estimating Cost of Production. 
Very little reliable work has been done in this matter 
up to the present, although many farmers are ready to 
make a hazardous guess at the question, and to maintain 
with vehemence that it is unprofitable to produce and 
sell at less than 5s. or even 6s. per bushel. The New 
Zealand Farmer, a stock and station journal, in a recent 
issue,* arrives at this conclusion, in a discussion of the 
question of the fixation of price by the Government soon 
after the outbreak of war. But such estimates cannot 
be regarded as truly representative, and in reality 
are only speculative and with no absolutely reliable 
foundations. 
Two estimates of interest, however, have been brought 
under notice. These estimates are the result of wide- 
spread experience, but they do not rest on a detailed 
investigation over a series of years. Moreover, the 
method employed is to isolate the pursuit of wheat 
production from other pursuits, and argue from this 
alone, irrespective of the influence of occupations other 
*November, 1914. This was before the high prices of war 
conditions were operative in raising the cost of production, as 
is commonly alleged now. 
H 
