REPORT OF THE CHIEF OF THE OFFICE OF FARM 

 MANAGEMENT AND FARM ECONOMICS. 



I'xiTED States Department of Agriculture, 

 Office of Farm Management and Farm Economics, 



Washington, D. G ., October 7, 1920. 

 Sir : I am submitting herewith the annual report of the Office of 

 Farm Management and Farm P'conomics for the fiscal year ended 

 June 30, 1920. 



Respectfully, 



H. C. Taylor. 



Chief. 

 Hon. E, T. Meredith, 



Secretary of Agriculture. 



The work of the Office of Farm Management and Farm Economics, 

 as outlined by the committee on reorganization in February. 1919,* 

 has been vigorousl}' pushed during the fiscal year just closed. Two 

 important preliminary studies in the cost of production have been 

 completed (wheat and cotton), a third (beef cattle) has been brought 

 to the i)()int of final tabulation, and a fourth (sugar beets) is now 

 well untler way. A study of the Iowa " land boom "' has been com- 

 pleted, also an investigation of hail insurance. Field work has been 

 <l()iie in over a score of surveys of different kinds, including business 

 analysis surveys, farm life surveys, and studies of the economic 

 aspects of ownershij) and tenancy. A study of the use of motor 

 trucks on eastern farms has been completed. While important re- 

 sults have been secured, a number of projects outlined by the com- 

 mittee on reorganization, n<^tably faTin hd)or, rural credit, and 

 taxation, have not as yet received ade(|uate attention, owing to lack 

 of funds. 



COST OF PRODUCTION AND FARM ORGANIZATION. 



Studies in the cost of producing farm jiroducts have emphasized 

 the wide vaiiation that exists on individual farms in the cost of jii'o- 

 du<ing any ])ro(hict and the danger that exists in using the average 

 as an exi)ression of cost results. P^or example, the average cost of 

 wheat per bushel on the 481 farms studied during the year was $'2.51, 

 but more than 50 j^er cent of the farmers concerned jiroduced wheat 

 at a cost above this figure, ranging up to an extreme of ^S.20 per 



' Cirnilnr 132. Offlco of tlip Rocrolmy. 

 •J44n,'— A«;u 1 !••_'(> -Xl 569 



