1928] THE AGRICULTURAL SITUATION IN CALIFORNIA 21 
Whether we. are to lean upon organized (community) effort or 
stress what the individual can do, we start with the premise that farm- 
ing is a business. This means that it is subject to the same test as any 
business—namely, profits stated in terms of dollars and cents. It is 
the business farmer’s task to use his resources for profit-making. His 
resources consist of land, its improvements and equipment; labor— 
that of himself, his family, and hired; capital —owned or borrowed; 
and management—that is, brains. Successful farming today is more 
a test of one’s knowledge, intelligence, and administrative ability 
than of mere chores and musele. The income, if it is to meet the 
business test, must not only pay the expenses of the farm, e.g., cash 
outlays for seed, feed, taxes, labor, ete., and depreciation (to offset 
wear and tear), but also a sum sufficient to pay for the operator’s 
time, to pay a fair rate of interest for use of capital, and to pay a 
reasonable profit. Any farm business which does not meet these 
obligations may be satisfactory to the individual. but it fails to meet 
the business test. 
The farmer who raises products primarily for his own use is not 
greatly concerned with either markets or profits, because he does not 
sell what he raises. There are undoubtedly many farmers in Cali- 
fornia who would find it both possible and profitable to raise more of 
the products required for consumption on the farm, such as dairy and 
poultry products and vegetables, and doing this would materially 
amprove their financial situation. In the main, however, our agricul- 
ture is based on producing food and raw materials for market, making 
«t necessary to apply to farming ordinary business principles. 
Improvement Through Organized Effort—Community efforts 
toward improvement in agriculture are today largely centered on 
means of improving and extending the markets for California 
produets. This is slow work, but ultimate success is reasonably sure. 
The markets of the Orient and South America are more easily access 
ible today than the Eastern markets were to our fathers a generation 
ago. Success in establishing these markets, however, demands well 
planned, consistent and eontinuous work by cooperative efforts. No 
individual farmer or small group of farmers can finance the adver 
tising, demonstration, and other pioneer work necessary to estab- 
lish such over-seas markets. Community or industry cooperative 
organizations are necessary. 
In all these efforts the necessity for honest grading, good pack and 
strictly enforced standards are obvious. The use of trademarks on 
quality goods usually results in increased returns. All these sugges-