22 CALIFORNIA AGRICULTURAL EXTENSION SERVICE [Crre. 18
tions call for quality in production rather than quantity, and to the
maintenance of uniform and honest standards. To secure these it is
necessary to have whole-hearted cooperation between all the farmers
in the pool or community.
Cooperative organizations are already in existence, and others are
being formed. It is possible that these may follow the examples of
chain stores and branch banking enterprises and link themselves into
super-cooperatives of sufficient strength to handle the work of market
extensions abroad. Undertakings of this magnitude require the most
capable direction. The cooperatives or corporations need the service
of the very best men available, men who by training and experience
are peculiarly fitted to visualize and direet this difficult work. And
when such men are obtained, they should be adequately paid and
loyally supported so they can give their full attention to the work
in hand.
Improvement Through Individual Effort.—There are many sepa-
rate factors to take up when we consider the best use of the farmer's
land, operating capital, and time. Only the more important can
be referred to here. These are: (a) the net income; (5) the size of
the farm; (¢) the amount of labor required in connection with each
farm product.
When a farmer’s goal is to increase his net income he faces the
job of finding out what are the factors that influence his net income.
Net income is the sum remaining to pay a farmer for his work, for
use of his capital, and to give him possible profits. It is that sum
which can be applied to payments of interest and installments upon
loans. Net income is determined by the three factors of (a) yield,
(b) price, and (¢) expense of doing business. These can be resolved
into a simple formula: YIELD times MARKET PRICE (resulting in Gross
Income) less EXPENSES equals NET INCOME. }
The first requisite is to find out just what the farm is doing and
what factors are affecting the yield, the value, or the expense. This
means keeping full records of all farm operations, of keeping books
which will show the yields, costs and returns on all farm enterprises.
Bookkeeping is not a direct way of making money, but does so
indirectly, by showing what enterprises are profitable and what are
not. Cow testing is but a form of record keeping. The sale of
unprofitable ‘‘boarder’’ cows has decreased cost and increased returns
for many dairymen. Poultrymen who grade and cull their flocks tend
to obtain the best returns per hen and to make the biggest profits.
One.of our most successful orange growers has determined the indi-
