ALL business undertakings are ventures. Under the best of conditions
there are fat and lean years, and the possibility of failure, due to
poor management, lack of capital, or adversity, is always present.
Farming is no exception. It is in essence a business proposition, and
should be so regarded.
A knowledge of crops, of soils and tillage, of livestock breeding
and feeding and other purely agricultural subjects constitutes but
one side of the farming industry. On top of this come the important
matters of business management—the buying of seeds, fertilizers, feed
stuffs, livestock and general equipment and supplies; the erecting
and maintenance of buildings; the arrangements for necessary credit;
keeping in touch with market conditions and prices; the hiring of
help, and finally the establishing and operation of an accurate
cost-accounting system.
Yet when all is said and done, records indicate that farming offers
more chances of success than almost any other line of business
endeavor. A retail merchant, according to statistics, has from two
to four chances in ten to conduct his business successfully for
fifteen years; a manufacturer has from two to seven chances to do the
same. Farming is conspicuous for its small percentage of out-and-out
failures. Living is practically assured, which gives the farmer a
distinct working advantage to begin with. He enjoys a cash market and
is not called upon to suffer bad debt losses. He is in an industry that
is absolutely essential, which cannot be destroyed by any shifting of
circumstances.
The greatest need is doubtless for cost-accounting systems which will
serve as a guide, not only to prevent unwise purchases, but to indicate
wise expenditures in improvements that will bring a good return on
investment, and to show definitely the amount of profit obtained on
each transaction. Next to this in importance is perhaps the need
for a thorough understanding of crop rotation and the principle of
diversified farming as a means of offsetting losses in one line with
gains in another. The securing of credit to enable expansion, and the
adoption of labor-saving devices are also essential.
Profits and losses in farming must be reckoned, as in all other
businesses, on averages over a term of years. But the future
offers better assurance than ever before to the man who is a good
agriculturist and at the same time a skillful business manager.