EXPERIMENT STATION BULLETINS. 403 



hauled in large routes by hired milk haulers under the direction of 

 the milk plants, it is impossible to give this item in terms of hours. 



(e) Hauling Milk. 



As stated in the preceding paragraph, nearly all milk was hauled by 

 large route wagons under the direction of the milk plant. The cost of 

 hauling was deducted from the farmer's monthly milk statement. 



3. Other Costs. 



Other costs cover a number of items and are listed under the following 

 headings : 



(1) Taxes, Interest and Depreciation on the Herd. 



An inventory was taken of each herd at the beginning of the year, and 

 if any changes were made as to the number of cows with their values, 

 it was noted by the accountant and correction was made. Pure-bred 

 cattle were charged as high grades, for the pure-bred business was not 

 considered in this work, due to the fact that only the cost of milk pro- 

 duction was under consideration. The charges were divided as follows : 

 Interest, G% ; taxes, 1%, and depreciation, 5%. The tax rate is lower 

 than the average assessed tax rate, but the valuations are higher than 

 most assessors value cattle, and so balances in the end. 



There are different methods of determining the depreciation of cattle. 

 One is to take an inventory at the beginning and again at the end of 

 the year, the difference of these two values being depreciation or appre- 

 ciation. Another method is to take the average productive period of 

 the cow's life, which is from six to -seven years, and divide this into 

 the difference between her dairy value and beef value, which would 

 give her yearly depreciation. The following expresses this as a formula. 



Dairy value — beef value 



Depreciation = 



Productive life of cow 



The average productive life of the dairy cow is affected in many ways, 

 such as by udder troubles, abortion, failure to breed, accidents, sickness, 

 etc. The average value of the cows in the Howell territory was |107.74 

 and the average beef value was |70.00. The average cow's beef value 

 was, tlierefore, 1^37.74 less than their dairy value. One-seventh of .f37.74 

 is |5.39, the depreciation for one year per cow, and amounts approxi- 

 mately to .5% of the inventory value. This compares very closely witli 

 the data taken at Grand Rapids, (Bulletin No. 277). The Webberville 

 data were also figured at this same rate. This makes a total charge 

 of 12% for taxes, interest, and .depreciation on the herd. 



In the above figures no account has been taken of losses due to death. 

 These are entered under a separate item. 



(2) Losses Due to Death. 



No herd is immune from death losses. Accidents, tuberculosis, and 

 other diseases help to increase the death rate. The difference between 

 the inventory value of the animal and the amount received for hide or 

 carcass was charged under losses due to death. 



(3) Taxes, Interest, Insurance, and Depreciation on Buildings. 

 The valuation of the dairy plant on each farm was determined by a 



committee of three men who placed values on the portion of the dairy 



