The Covington leader. (Covington, Tenn.) 18??-current, 1921-07-21
Farmers Must Readiust Their Bust
ness to New Level Of Economic
Conditions

The very biggest help that farm
ers can employ in the reimbursement
of their business to the new level Of
economic conditions is the keeping
of accurate and reliable records on
their expenses and receipts, say
specialists of the Division of Ex-
tension.
Farmers, as class, We're among
the first to experience the serious
effects of the depression which is
being felt all over the country and
some time ago it became imperative
for them, as it later became impera-
tive for all business, to retrench
wherever possible.
Prices have dropped, the wheels
of industry have been slowed down
or stopped, labor is out Of EMPLOY
ment or being retained at reduced
wages and the average consumer is
finding himself with less money at
his disposal.
Business in general--and agricul-
ture is included-is confronted bv
what is known as the buyers mar
ket. Instead of the demand being
greater than the supply, as was true
during the war and for short
period afterward, the supply Of
the demand. The result is that the
most products is now greater than
market is now in the BUYERS favor.
This speedy reversal from one ex-
IRENE to another has naturally been
responsible for the Reimbursement
period, about which so much has
been written and through which the
country is now passing. The one
thing about it of primary concern
to the farmer Of Tennessee and the
country over, is his ability to re-
adjust his own business to the new
level of economic conditions.
No business man worthy of the
name ATTEMPTS to conduct his bust
ness without some form of book
keeping, and farmers are coming.
more and more to realize the i'm
nortance Of similar methods in oper
ating farm. A farmer should not
be satisfied to estimate his profit
or loss at the end of the year any
more than the merchant or manufac-
turer. He should know the exact
profit he is making and how he IS
making it, or if the reverse situation
IS true, he should inform himself Of
ms exact loss and discover what con-
ditions brought it about.
A farmer Is naturally in verv
close touch with his business-closer
perhaps than either the average
merchant or manufacturer. Never
theless, record of farm onerations
for the year is the only reliable in 1
formation on which to base an ana
lysis of the years result. If he Il
to readjust his farm operations in
a business-like way, he must know
exacts costs and compare them with
exact receiuts. If he is to suppIant
one crop which he finds is not bring
ing him ADEQUATE returns with an
other, he ought to know definitely
how much the new crop will cost him
to grow.
So long as business is running
well and the price-range is wide
enough to guarantee a satisfactory
profit, production costs do not seem
to important, Now. however, there
should be every inducement for the
farmer to know the exact cost of
growing each crop and to study the
figures with view to the most eco
nomical operation.
It will, Of necessity, be an indi-
vidual proposition. No one can do
it for him because of the varying
conditions on different farms. Nor
can anyone lay down general prin-
chile that will apply to all agricul-
tural conditions at the present time.
The best that the farmer can do viii
be to pattern after the merchant, !
who has a separate cash register for
each line of goods, and thus keens
track of daily sales and compares
results with original costs and neces-
sary overhead expenses. The farm
err will not need cash register. But
Re can ACCOMPLISH the same end bv
keeping separate account for each |
rroD and at the end Of the year