The comet. (Johnson City, Tenn.) 1884-1916, 1914-12-17
TO THE FARMERS
OF TENNESSEE
BY CAPT. T. F. PECK,
Commissioner of Agriculture.
PROFIT AND LOSS.
By Hoyt N. Hardaman.

What has the farmer achieved dun
ing the past year? What were his sue
cesses or failures? How may each in
dividual farmer best profit by the mis-
takes and failures of the year tina
has just gone in the coming year
. Such questions naturally occur to tn
thinking man at this season of tn
year.
There are various ways of answer
ing these questions. Business mel
generally take stock at the beginning
of each new year and check up on thu
results of the years work. Books ar,
kept throughout the year detailing re
ceipts, expenditures, etc. then at tn,
opening of a new year the books are
examined, an inventory of stock is
taken and in this way the merchant is
enabled to figure out his net profit OF
loss, as well to determine where he
has made mistakes. While the ma
jority of farmers do not have the time
to keep an elaborate set of books, nor
is it necessary to do so, yet it is nee
essary to keep a simple set of books.
1t is unfortunate that so few farmers
practice the wise custom of taking an
annual inventory. There is nothing
difficult about this. No bookkeeping
required. No special form need be OBJ
served in taking the inventory. All
that is necessary is merely to list
what is owed. Any farmer can do this
without any trouble and in very
short time.
The inventory is an important docu-
ment among farm records. 1t should
be accurate. Weigh and count do not
estimate. Then assign the actual mar
ket value to the property taking due
account of depreciation. Old tools as
well as old horses are not worth as
much as new ones. The same old
holds true, with few exceptions, of
all equipment, animals, buildings, and
improvements.
The inventory enables the farmer to
determine his net profit, but it gives
no clue as to the result of individual
enterprise. One may have been profit
able, anothed Improbable. This cam
be determined only be keeping sim
pie set of books so that the leaks In
the business may be discovered. There
is difference which is not always
recognized by farmers between the in
come and profit excess of expenses
and necessary outlay. A very little
income will often double the profit; |
this is especially true of farm crops |
and dairy cows. On the other hand, a |
very little expense and outlay will |
bring proportionate decrease in pro-
fit.
A slightly larger yield of a crop
will greatly increase the profit. 1t
costs a certain amount to produce a
crop and this expense must be over
balanced from the sales Of the crop
If any profit is to be realized. There
is no profit until all expenses have
been deducted. An increase in yield
of one or more bushels of corn or
wheat per acre means just that much
extra profit money, minus the extra
expense of choice seed or additional
labor invested in the crop.
1t does not often pay to be too
economical in producing a crop. A
very little extra outlay will often pay
exceptionally good dividends on the
Investment. 1t is never profitable to
endanger whole crop in order to save
1 few dollars, as is sometimes done.
Profit is lost by not caring for the
attention. Not only is profit lost, but
)ften the whole crop, as result of
Neglect or carelessness in manage
nent. If work is pressing and there
s shortage of help it will usually
BAY to give hands high wages for a
ew days, If hands can be had at all,
'ather than to endanger the yield of
he crops for the want of little time
y attention. Farm records fo7 past
seasons enable the farmer to figure
his matter out to fairly definite con-
,lusion and to make plans for avoid
ng certain mistakes of the past in his
work for the coming year.
One can never make money as long
IS the income just equals the outlay
or expnses. A slight increase In
'ield of farm crop while it may not
eem to affect the profit much, will be
lear money and gain. On the other
and, a smaller yield that just barely
'ays expenses will keep a man at al
tandstill financially and he will
either be making Roadway or seem
o be losing money. Many men fail
0 see that they are losing all their
rofits by being too economical in try
ng to cut down expenses, by feeding
took only maintenance rations, and
y getting along without help, or by
lanting inferior grade seeds because
hey are cheaper in cost price. The
rops cannot receive attention at the
roper time and as consequence
hey do not yield enough to produce
ny profit. Again many farmers try
, do too much and do not make much
( a success of any of their work. 1t
better to put sufficient work on one