The year books of the United States Department of Agriculture contain the annual estimate of the yields, and the average December farm price of staple crops by states. These figures may serve as a basis for making estimates. If the natural conditions are about the average stated, one may properly assume that he can obtain an increase of 50%. He may even hope to double the yield, although it is not safe to assume such an increase in making an estimate of profits. If the natural conditions are more favorable or less favorable than the average, he must take the fact into consideration in his estimates. In the same way he may consider whether the average December farm price represents fairly his expectation of the price, or whether because of favorable location or superior quality of the article purchased he can expect higher remuneration. It is here assumed that the young farmer is himself going to be more than an average farmer. If he is not he will only get average results, in which case his labor income will be only that of the ordinary day laborer. To repeat the idea in concrete terms. If the young farmer is located in central Pennsylvania and finds that the average yield of wheat for the state is 17 bushels an acre, he may safely estimate that his improved methods will bring him 25 bushels of wheat to the acre. He may even hope for 34 bushels per acre. At the Pennsylvania station several varieties of wheat have, during the past 18 years, averaged over 30 bushels per acre. One year one variety produced 43 bushels. It would not be safe, however, to use such figures in estimating profits. Having outlined the cropping system and made a careful estimate of the total annual production of each crop, the next step is to determine the amount of food and bedding required for the live stock. From this data it may be determined what products will be available for sale, and what foodstuffs must be bought. Thus, it may be found, for example, that the amount of oats raised just meets the requirement, while more maize must be purchased, together with nitrogenous concentrates, and that a portion of the hay is available for sale. In the farm under consideration there will, of course, be wheat, potatoes, tomatoes, cabbages, garden peas and the animal products previously mentioned for sale, and later there will be apples and some lumber from the wood lot. The data are now at hand by which to estimate the total receipts. Having made the estimates of receipts, the expenses are estimated, and the difference gives the cash balance, if there is any. The most important items of expense will be labor, feed, seeds, fertilizers, harvesting and threshing expenses, spraying material, shipping packages, blacksmithing and repairs. After all expenses that can be thought of are included not less than 10% should be added for incidental expenses.