The young farmer who wishes to know whether the operation of a given tract of land in a certain manner offers him a worthy opportunity will not find the interest on the investment method the best suited for his purpose. This is especially true when applied to a single product. For example, it may be shown that 50 hens will, when properly managed, in connection with other farm enterprises, return a remarkable interest on the capital employed. It does not follow, however, that a man can make a living with fifty hens or even 500 hens. If a man has an investment of $5,000, on which he obtains 10 per cent, his income would be $500. If, on the other hand, he has an investment of $25,000 and obtains a return of only 6%, his income is $1,500, or three times the former amount. In neither case, however, does this form of statement tell a man how much of his income is due to his brain and brawn and how much to the capital invested. What the young farmer wishes to know is how much will he receive for his own time, energy and skill, after deducting all expenses and a reasonable interest charge on his investment--such a rate of interest as he could get by placing his money in good securities or what he would be required to pay for his capital if he borrowed it. This is best obtained by the labor income method. With this method all expenses are subtracted from all sales and to the cash balance thus obtained is added or subtracted the increase or decrease in the inventory. This balance may be called the farm income. Thus far the procedure is just the same as the interest on the investment method. From the farm income is now subtracted a reasonable interest on the investment, the balance remaining is called the labor income. This is the return which the farmer has obtained by and for his own efforts. If this balance is zero, then he should change his methods or get into some other business.