The rate of profit made by the farms as a whole, in the year ending September 30, 1912, was 13.1 per cent. The rate of profit made by all the farms for the year ending September 30, 1910, was 9.4 per cent. The greatest rate of profit made by any form increased from 23.2 per cent. to 37.5 per cent. during this period. The State has 30 profitable farms and 2 farms that are losing money. It should be noted that the 2 farms which were losing money two years ago are now making a profit. One of the farms that lost money last year is a new place, which is not yet under good headway; the other farm is considering moving to a new location. These figures are certainly very gratifying and they prove that farming at our institutions is very profitable to the State of New York. This splendid increase shows what interest in farm work has done. It shows that this land is a most valuable investment to the State of New York, both from a financial standpoint and for the general good of the inmates of the institutions. We read that only forty per cent. of the consumers’ dollar goes to the farmer. On institution farms this is not true. Our people are stirred up from one end of the country to the other on account of co-operation. Our institution farm work is the best possible type of co-operation. We hear our farmers complain of overproduction. On the carefully run institution farm this is practically overcome. Various cold storage laws have been passed to protect our people. If the institution farms produce their own food, the cold storage problem is reduced to its minimum. I am unable to secure in Albany for my own table as good vegetables as I eat at the different institution farms. While the above may be, and is, gratifying, I cannot resist pointing out to you some of the opportunities that are ahead of us. _We are still buying $258,711.00 worth of milk per year._ The freight and dealers’ profit on this milk is certainly $50,000. If we should take up all the items purchased by our institutions that could be produced on their own farms, it would total a very large sum. I believe that a great prison like Auburn should have its own farm, and it should be conveniently located. The quality of food would be greatly improved, and I feel perfectly sure that out of that great body of 1,500 prisoners I could select enough men who could be trusted to do the work on this farm under reasonable supervision. The farm would be an ornament to that part of the country, a profit to the State and of great benefit to the prisoners.