48 A STUDY OP FARM EQUIPMENT IN OHIO. 



steel-wire fences is rapid, and often excessive, while many of the 

 old rail, wire, and picket fences are in good condition after years of 

 service. The ordinary farm usually has from 3 to 10 kinds of 

 fence, hence, the gathering of data of this sort was found to be too 

 complex for the present study. Building depreciation varies with 

 the construction and subsequent care, as well as with the use to 

 which different structures are put. The increase in the cost of con- 

 struction during the last generation has equaled if not exceeded 

 the depreciation from the original value; hence, the determination 

 of interest and depreciation involves more study than could be given 

 at this time. The amiual deterioration in condition probabl}^ ranges 

 from 2 to 5 per cent of the original standard in buildings and from 

 6 to 20 per cent in fences. If no change occurs in the cost of con- 

 struction the amiual depreciation, repair, and interest charges could 

 be added and the total charge apportioned to the various units. 

 But further investigation is necessary before averages can be pre- 

 sented in this connection. 



Regarding machinery costs the problem is simpler. Prices have 

 not changed so materially, the annual rate of depreciation is more 

 easily obtained, and the proportion of use each year more easily 

 reduced to a unit basis. Table XV shows in detail the data on 

 machinery costs, either on the annual or acre basis. The number 

 of machines mcluded in the final average is first shown. On many 

 farms unit costs were clearly out of the usual range of probability, 

 and these were discarded in taking the average. The "First value" 

 at time of purchase by the farmer reporting is shown, this average 

 including many secondhand machines. The "Second value" is that 

 of the inventory rather than the sale value. The "Average invest- 

 ment" is computed by averaging the first value and the value at 

 the begmning of the last season, which is obtamed by adding to the 

 value at the close of the last season, as shown by the inventory, 

 the average depreciation. This method produces the same result 

 as would be obtained by assuming that the rate of depreciation was 

 constant throughout the period of use of the machine up to date 

 and averaging the values at the beginning of each season. The 

 method involves a slight possibility of error, due to the fact that 

 the repairs are not put on at a constant annual rate; the actual dif- 

 ference in inventory would be somewhat affected, but the discrepancy 

 would be negligible. The average "Years in use" up to the last 

 date of inventory is shown, and from this and the difference between 

 the first and second values the annual rate and percentage of "Depre- 

 ciation" are obtained, the percentage bemg based on the first value. 

 The " Repau's " are from actual records or careful estimates. " Inter- 

 est" is calculated at 5 per cent on the average investment. The 



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