90 Report of Farmers' Institutes 



COST OF PRODtrCING HAY 



1913 1914 



Number of farms 23 32 



Number of acres 823.7 1306.5 



Average acres per farm 35 . 8 40 . 8 



Average yield per acre in tons 1 . 44 1 . 28 



Cost of growing per acre Amount Amount 



Seed $1 07 . 12 bu. $0 80 



Fertilizer \ 2 78 ^ ^^'^ ^^^' ^^ 



Manure / ^'"\ .9 tons 184 



Man labor 10.2 hrs. 169 8.3 hrs. 139 



Horse labor 9.7 hrs. 140 8.3 hrs. 133 



Equipment use 49 37 



Use of land, at 6 per cent 3 67 4 11 



Use of buildings, at 8 per cent 1 00 97 



Interest, at 5 per cent 20 



Miscellaneous 01 03 



Total cost of growing $12 11 $11 19 



Cost of marketing per ton 78.7 tons 2 09 236.8 tons 2 60 



Cost of growing per ton 8 41 8 73 



Cost of growing and marketing per ton 10 50 11 33 



Profit per ton 2 80 3 83 



Profit per man hour 37 54 



These results are at variance with public opinion. Profits from 

 farming, or any other occupation, will depend upon various 

 factors, and one of the important factors affecting profits is the 

 method used in figuring. If only the cash costs of production are 

 included one conclusion will be reached; while, if all costs are 

 included, another and a widely different conclusion will be reached. 



Any person using figTires obtained from cost accounting methods 

 should thoroughly understand them before drawing any con- 

 clusions. If the results from a farm show that the profits on the 

 crops and animals have been 0, it does not mean that the farmer 

 has lost money. Before any enterprise shows a profit by cost 

 accounting methods it must first pay all cash costs — for all labor, 

 both man and horse, for use of the land, buildings and machinery, 

 and all other costs. This means that the farmer has paid wages 

 for all his time, and interest on his investment. A farmer who is 

 breaking even on his crop and animal enterprises is doing as well 

 ' as a man making a labor income of approximately $400. 



If one finds that he is losing money on any crop enterprise, it 

 does not necessarily follow that he should discontinue that crop. 

 The season may have been unfavorable, the market may have been 



