Under complexity of present-day agriculture, it is only through sound business practices, and by use of a keen and alert intelligence on part of agricultural entrepreneur, that profits can be made and business kept in a flourishing condition. It is necessary for farmer, if he is to be successful, to maintain a constant watchfulness over his business and to take advantage of every opportunity which offers itself. He must exercise, constantly, technical knowledge which he has gained during his experience as a farmer, as well as his personal resourcefulness and ingenuity in avoiding losses, great and small, to which business of farming is peculiarly liable; losses from storm, drouth, disease, and economic mischance. It is only as he exercises an intelligent supervision over his farm that he can expect to gain any income above wages for his manual labor, and interest on capital which he has invested in business. Further, it is only through intelligent management en part of majority of farmers, that rest of society can expect to obtain, cheaply, a supply of foodstuffs, and produce of agriculture in general. Wages of management arise because something is necessary to successful management of a business beyond mere putting forth of physical effort, and presence of physical factors of production. It is necessary that there be some guiding intelligence to co6rdinate efforts of laborers, some person who is willing to absorb shocks of economic changes and to bear the losses in order to have gains. This function is performed by entrepreneur, and his remuneration consists in three principal parts which are distinct in their derivation, though difficult to separate in any particular business.