COST OF PRODUCTION 235 
by the farmer for agricultural work was regarded as 
being used for the production of this particular crop, in 
relation to the total work on the farm to which it is put, 
in the proportion of 1 to 3. It is evident that this 
estimate, if anything, is in error on the side of being 
too liberal, for while it is true that a small part of the 
total stock, such as the reaper and binder, is used for 
a few operations only, a great many items are devoted 
to a wide range of uses, such as horses, ploughs, drays, 
etc. Thus, the total fixed capital is in reality the simple 
interest at 34 per cent. on the capital sum invested in 
implements. 
The circulating capital is the actual amount paid for 
the various items which are required from year to year, 
such as horse-feed, twine, ete. 
In the miscellaneous group are various items, the 
expenses of which cannot easily be divided into the 
several parts. Thus, threshing is paid for at a rate of 
a few pence per bushel; but an estimate of the amounts 
due to capital, fixed and circulating, and to wages, would 
necessitate an enquiry into threshing accounts. 
7. Observations on the Relative Costs. 
The items B and C are in agreement throughout, but 
the average production per acre for B is more costly 
than that for C. Thus, both wages for labour and horse- 
feed are higher in amount, and interest on capital is 
also higher. Similarly, rent and all the items of cireu- 
lating capital are higher for B. The chief reason for 
this is that the land in the case of B was tilled more in- 
tensively than that of C, with the result that the increase 
of yield from B over that of C was higher than the 
difference in soil fertility would lead one to expect. 
On account of the higher yield, the cost per bushel is 
very much smaller in B than in C, and it is evident that 
the farmer of B is adequately repaid for his intensive 
culture and careful husbandry. 
