Stock and stalks : $b A book for the dairy farmer — John Shaqi
Stock and stalks : $b A book for the dairy farmerRoberts, James Russel
Science
Stock and stalks : $b A book for the dairy farmer
Roberts, James Russel
Dairying
But although we are all up against the same general laws that govern
business there is a difference between farming and most other business.
A contractor will build a building for us if we agree to pay a price
that he figures will pay his cost plus a profit. Otherwise he will
not do the work. Contracting is supposed to be a somewhat hazardous
business but it is not so risky as farming for the builder knows before
he starts what price he is to get. A farmer can not tell until he is
ready to market his crop what the market will be. The farmer must pay
the cost, hoping. Weather has a great deal to do with results in
farming operations and that makes the business more risky.
Business men in cities as a rule can work much closer to their pay
checks. This makes it possible for them to come much nearer a system of
always getting cost plus a profit. Manufacturers usually aim to take
orders ahead of their output so that knowing their cost and having
their goods already sold at a profit leaves them comparatively clear
sailing. How the farmer can get on the same basis I do not know.
But city business is not all a round of pleasure, for city competition
is keen. If one farmer raises forty bushels of corn per acre and
another can raise sixty, each receives compensation in proportion
to his crop. But if one merchant had that much advantage over his
competitor the unfortunate one would be put clear out of business.
Customers to a merchant are as valuable as pigs are to a farmer and
it is perfectly legal to get the other fellow’s customers in broad
daylight. So we in competitive business keep busier than some people
think.
I have often been asked what I think of farmers’ organizations. Well,
most business men in other lines of business have associations. They
usually result in some good. It is those who expect too much that are
disappointed. So simple a thing as an organization can not cure all
of the difficulties in farming. Some farmers in Kentucky organized to
boost the tobacco market by agreeing among themselves to plant fewer
acres. After the agreement many expected a high price for tobacco and
planted more acres. This is about the kind of co-operation we all have
learned to expect in associations where money interests are involved.
These farmers were right, however, in realizing that in order to boost
the market they had to limit the supply of the product. The law of
supply and demand always works. It works to the advantage of him who
can limit the supply or can increase the demand.
Public-domain text, read in full here on John Shaqi.
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