These principles apply in all classes of business; thus we find woolen factories in Philadelphia, silk factories at Paterson, N. J., cotton factories at Lowell, Mass., plow factories at Moline, Ill., and steel mills at Pittsburg. Many of these centers possessed originally some natural advantages which caused the location of the first factory, but others have been drawn there on account of the principles enunciated. The farmers of a given region have a community of interest as well as railroads. The young farmer should recognize this fact and if necessary should exert himself to develop such interest in his community, both for his own benefit and that of his neighbors.
There are two classes of farms for which the purchaser is in danger of paying too much, one on which there are extensive improvements and one on which there are none at all. A farm with just barely enough improvements for the conduct of the type of farming it is proposed to develop can usually be purchased most advantageously. The purchaser should understand clearly that the previous cost of the improvements has no necessary relation to their present value, any more than the value of a second-hand suit of clothes is dependent upon its original cost. All depends on how badly they are worn and how well they are adapted to present conditions. The value of farm improvements is not unlike those in other business enterprises in this respect. Their value depends upon present and prospective earning capacity and not on former cost.
No rule can be laid down as to the relation which should exist between the value of land itself and the value of the improvements. In practice it varies greatly. In the United States the farm improvements constitute on an average 21% of the total value of land, being as high as 45% in Massachusetts and as low as 15% in Texas. The young farmer may well consider, therefore, whether he can earn interest on his investment when the improvements cost more than 25% of the total value of the real estate. Certainly when it becomes one-half it is excessive. The man who runs a farm as an avocation usually errs in putting too much money into permanent improvements for the farm to be a paying investment.
If it is admitted that the farm unit is limited because of the physical difficulties of managing large areas, then it must at once be seen how important the arrangement of the farmsteading must be to the successful conduct of the farm. In the older farming communities where the present farm holdings are the result of several purchases or sales the shape of the farm, the arrangement of the fields and the place of the farm buildings become an extremely important matter. Sometimes satisfactory rearrangements are easily made, at other times they are quite impossible. No attempt will be made to discuss this subject in detail here, but the young farmer should bring to this question all the experience and study possible.
When the young farmer goes to inspect a farm it is to be assumed that he will be conducted over the farm by the owner or his authorized agent. It is proper to give respectful attention to everything that is told him, provided he follows carefully the California adage to believe nothing you hear and only one-half what you see.
If a farm consists of 200 or 300 acres of land, it is possible for the agent to convey the purchaser over the farm in such a way as to prevent the least desirable portions being seen. If the farm has attracted the seeker of land, he should not purchase until he has made another visit, preferably some days or weeks after the first one. He may then very properly visit the farm alone, passing over quite a different course from that pursued hitherto. Sketches and notes will be found very helpful, and if the use of the soil auger is understood it may be well employed to study the character of both soil and subsoil. During the interval between visits some casual inquiries may be made among those who know the history of the farm in question, because the past history of the farm obtained from unprejudiced witnesses is of prime importance in arriving at a conclusion concerning its value.
A farm is much more attractive when a crop is growing upon it than when it is without active vegetation. Poor land looks relatively better than good land during or just after a rain. Many matters concerning the selection of a farm can only be learned by some years of practical experience. The young farmer will do well, therefore, to secure the help of some more experienced person. If he has among his acquaintances a successful farmer of mature years he will be fortunate if he can secure his advice.