Dec. 1894.] WHEAT GROWING IN THE AHGENTINE 



REPUBLIC. 



171 



cost of living, and interest on capital ; while a colonist farming 

 in Santa Fe calculated the outlay- per acre in 1893 at 14^^. 2cZ. 

 per acre, not including expenditure for seed, rent, living, carting, 

 interest on capital, and depreciation. Another colonist in Santa 

 Fe estimated the cost of production at 17s. ^d. per acre, ex- 

 cluding the charges for bags and carting. If allowance is made 

 for the items omitted from these several statements, on the 

 principle adopted in dealing with the estimates referred to 

 above, it will be found that the cost per acre would again 

 represent an outlay of from 21s. to 25.9. per acre. It would 

 appear, therefore, that the mean cost of producing and market- 

 ing wheat in the Argentine Republic under present conditions 

 would be equivalent to a sum of about 23s. in gold. In some 

 districts the amount would be slightly increased by a wheat 

 tax, which, in Santa Fe, is actually about Qd. per acre on an 

 average yield of 15 bushels. 



The price obtained in September and October last for a 

 quarter of wheat delivered at the railway station is said to 

 have been from $4*70 to $5 per fanega, or roughly 12s. Qd. 

 to 13s. 4(i. a quarter. This price would represent on an average 

 yield of 15 bushels a return of only 23s. Qd. to 25s. per acre, a 

 sum barely sufficient to cover the outlay. It must be re- 

 membered, however, that the past harvest in the Argentine 

 Republic is reported to have been exceptionally abundant, the 

 yield per acre having been estimated at 20 bushels, or five 

 bushels in excess of the average of previous seasons. This in- 

 creased yield, though accompanied by an enhancement of the 

 expenses of marketing and of other outgoings, appears to have 

 left a fair margin of profit to producers. But, from the 

 statements shown above, it will be seen that an all round 

 price of 13s. 4cZ. per quarter would not pay producers in an 

 ordinary season, and it would seem to be clear that, although the 

 exceptional yield of the past season may have rendered it possible 

 for Argentine wheat to be sold in this country without loss at 

 20s. or something less per quarter, it would not be profitable for 

 the growers to continue to produce the cereal for sale at this 

 price, other conditions remaining unchanged, unless the yield per 

 acre approached that of the last harvest. It is expected, how- 

 ever, that with improved methods the average production on 

 the rich soils of the Republic will be considerably higher than 

 20 bushels. 



