BER FARM PRICE BY
PREVIOUS DECADES COMPARED WITH
AVERAGE OF FIVE YEARS, 1906-10.

1866 1875 1886 1896 1906
to to to to to
1875 1885 1895 1905 1910
cts. cts. cts. cts. cts.
Maize, bu. 40 33 33 35 49
Wheat, bu. 103 87 64 71 87
Oats, bu. 30 27 26 27 39
Potatoes, bu. 57 48 49 53 68
Hay, ton 902 799 704 700 875

An examination of the last column shows that the average price of
these staple farm products has been considerably greater during five
recent years than during the previous thirty years. Will this increase
in price continue, or will there be a series of years of unusually low
prices which will bring the average price of the decade down to that
of the previous three decades? Few persons will care to venture an
answer to this question, which is of the utmost importance to all
farmers and especially to the beginner.

(4) The figures employed are taken from the yearbook of the United
States Department of Agriculture and are the estimated farm price on
December 1 of each year. Can the commodities be sold for the December
farm price? Will potatoes sold at the time of digging bring less than
the December price? Will wheat or maize held until May bring a higher
price? To what extent, by the judicious holding of products, can
advance in price be obtained?

(5) Will the products be sold for cash, or may they be turned into
animal products at an increased profit? In some sections of the United
States animals are reared primarily because of the increased profit
due to manufacturing soil products into animal products; in other
regions, however, they are kept primarily for the purpose of
maintaining the fertility of the soil and only incidentally on account
of the increased profits.

COST OF PRODUCTION

For a number of reasons it is difficult to determine the cost of
growing farm crops. One reason deserves to be especially emphasized. In
any business enterprise it may be necessary to run at a loss, because
to stop would entail a still greater loss. This is particularly true in
farming, where men are employed by the month in order that they may be
had when needed. Since they are receiving pay, it is better that such
men should be e