Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for

$50,000 a year, and he pays workers $140,000 in wages. In return, he produces 300,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 2 percent and that the farmer could otherwise have earned

$40,000 as a shoe salesman.

What is the farmer's economic profit?

What is the farmer's accounting profit?