404 STATE BOARD OF AGRICULTURB. 



barn, yardage, milk house, ice house and water supply, that was used 

 for dairy purposes, including the silo and sufficient space to store all 

 dairy feeds. A charge of 10 ^o was made on the inventory value of these 

 items which is divided as follows: Interest, G% ; taxes, 1%; insurance, 

 0.4%, and depreciation, 2.6%. 



(4) Interest and Depreciation on Equipment. 



Under this heading comes milking machines, gasoline engines, sepa- 

 rators, cans, pails, coolers, heaters, shovels, forks, carts and many other 

 small items used in the dairy. Six percent interest was charged on the 

 value of this equipment. The rate of depreciation varied greatly on 

 different items of equipment. Milking machines, engines, and sepa- 

 rators last much longer than milk cans, pails, coolers, etc., and were 

 allowed a proportionate rate. The rate of depreciation charged at 

 Howell averaged 12.6% which, combined with 6% interest, makes a 

 total charge of 18.6% for interest and depreciation on equipment, while 

 at Webberville the total was 18%. 



(5) VeterinaiT^ Services and Drugs. 



Fees for veterinary services and the cost of drugs, including disin- 

 fectants used in the dairy, come under this heading. 



(6) Sire Costs. 



Sire costs are less tangible than general herd costs. Such data as 

 were kept showed that tlie cost, of keeping the sire was approximately 

 equal to the value of the calves at four days old. In the Howell district 

 nearly every farmer kept a hull, thus making the cost higher than it 

 is in some sections where fewer bulls are kept. In this bulletin sire 

 costs and value of calves at birth are allowed to balance each other. 



(7) Miscellaneous Costs. 



Under this heading come a large number of items such as gasoline, 

 lubricating oil, fuel for the boiler or heater, w\ashiug powder, ice, re- 

 pairs, dairy literature, association fees, and many other small expenses. 



(8) Managerial Ability and Business Kisks. 



No enterprise can be operated successfully without skilled super- 

 vision. The dairy business is of such a nature that it requires the 

 closest of attention at all times throughout the year. A few hours' 

 neglect means a lessening of production, and in time, a failure of the 

 business. The manager must keep in close touch with each and every 

 operation. He must look after the rations for the dairy herd, the se- 

 lection and purchase of feed, the selecting of the herd sire, the breeding 

 records, the buying and selling of cattle and the general supervision of 

 all help. While in many cases the manager does all or a part of the 

 ordinary dairy work sucli as milking, feeding, cleaning barns, etc., his 

 time has not been figured in for managerial operations on the time 

 unit basis. 



The dairyman should also be entitled to a sufficient amount to cover 

 all business risks such as a temporary loss of market due to the short- 

 age of material in the manufacture of the finished products, strikes, 

 and in some cases where plants discontinue the business for the time 

 being. For this added effort and ability expended over that of ordinary 

 labor and unavoidable risks, 10% of all other expenses have been al- 

 lowed. 



