It will be useful, when we come to discuss how profits may be estimated, to divide the capital into three general groups: (1) The plant, which in addition to the real estate, will include the machines and tools, horses used for labor, and other animals used for breeding purposes or for the production of animal products, such as butter, wool or eggs; (2) materials, which will include animals which are to be fattened for sale, and all seeds, fertilizers and foods intended to be turned into products to be sold; (3) supplies, which may include foods for teams, and money with which to pay labor, be this labor that of the farmer or his employees. The purpose of this classification is to bring sharply into view the fact that the nature of different kinds of equipment varies. All the things named under the plant are in the nature of an annual charge against income. The charge under materials may or may not be an annual charge. If a man invests $2,000 in 50 head of cattle, which he intends to feed and sell for $3,250 at the end of one hundred days, he does not have to calculate interest on $2,000 for a year, but only for 100 days. Cattle paper is held in large quantities by banks in the cattle feeding districts of the United States. The farmer would, in fact, be unwise to keep $2,000 in the bank nine months in the year in order to use it three months. Like any other business man, if he has the money, he invests it and borrows the money to buy his cattle. The same thing applies to food and fertilizers. If the food is fed to cattle, some of the money invested in the food must pay interest during the fattening period. Food fed to dairy cattle and chickens may be paid for out of each day's income. In practice, the amount of money invested in food for dairy cattle and chickens is dependent only upon the most economical unit of purchase. One may apply fertilizers to buckwheat, give a three months' note for the fertilizer, and pay the note out of the proceeds of the crop. If the fertilizer is applied to one-year-old apple trees, this investment may be required to pay interest for fifteen years. The same principle applies to supplies. If one starts into raising horses for sale, he needs to have some money or other income on which his laborers and his own family can live, say for five years, this being the age at which a horse is supposed to become salable. More people would raise apples and horses if they could afford to wait for the return on the investment. While this is a serious handicap, it is an advantage to the man who arranges his farming methods so that he can secure an income from some other source in the interim. The young farmer will do wisely to so arrange his farm methods that a portion, perhaps the major portion of his farm, will give him quick returns while making some long-time investments, which later in life will give him a greater return because so few people are sufficiently forehanded to make them.