In connection with the economic advisory work of the College, the accounts of 13 smallholdings have been completed for the year 1932-33. With only one exception the holdings were brought into existence under the smallholdings scheme of the Department of Agriculture for Scotland; five of them are "demonstration holdings" selected for the purpose of the educational and experimental work of the College, for which the smallholder receives a monetary grant, but for comparative purposes these grants have been excluded from the accounts analysed herein. Although the holdings are widely scattered geographically, and work under very diverse conditions of soil, climate, and situation relative to markets, they may be conveniently classified into two main groups according to their production