50

The first step, then, in the solution of the problem would seem to be in
the extension of improved acreage on existing farms to the minimum indicated
by the study. Since the farm capital to a large extent already exists on these
farms much of the labour return from additional acreage would be net. On
those grounds the extension of improved acreage could be justified even at a
fairly high cost.

With respect to the creation of new farms the physical factors of forest
cover and soil need to be considered more carefully. From the study soil type
appeared to be lesser in importance. No significant differences in farm income
were found associated with different arable soil types. Cost of clearing, how-
ever, and its relationship to probable farm surplus are obviously major con-
siderations. As a sound basis for settlement probable farm surplus should be
sufficient to offer a reasonable return on the capital invested in land development
and farm equipment.

It is probable, too, that some outside employment can continue as part of
a sound agricultural program. If wages can be earned off the farm at a time
of the year when outside employment does not seriously interfere with farm

operations, then it is equivalent to an increase in farm surplus by the amount
earned. :

With respect to the second factor, it may be that a solution worthy of
consideration would be a search for a product in which the area would have
definite production advantages. The success achieved by the few forage crop
seed producers suggests that this enterprise has some of those advantages.
The fact is, however, that throughout the area the acreage devoted to forage
crop seed is not large. Nevertheless, the clovers and timothy grow well in
the area and it seems that this natural adaptation could be more fully exploited.
It may be that production problems are the limiting factor. In that case
intensive research in those problems probably would be well repaid.