422 STATE BOARD OF AGRICULTURE. 



veutory value of those particular auimals. Whenever a cow died from 

 other causes, and a few did die, the inventory value less the sum received 

 for the hide, was charged to this account. 



10. Added Earuiug I'ower of the Owner in Excess of that Possessed 

 and Exercised by other Labor. 



It was explained under Expenditures, Item No. 1. "Man Labor" that 

 the rate of pay allowed the owner or proprietor, was the same as that for 

 which ordinary help could be secured on the farms of the neighborhood. 

 Obviously this rate does not compensate the owner for his supervising 

 ability, or the added value of his services due to the fact that he as owner 

 possesses a double interest in the outcome of his undertakings. The 

 truth expressed by the old adage "The eye of the master fattens his cat- 

 tle" is especially applicable to the care of a dairy herd. 



On those farms where this sort of supervision and ability was hired 

 and paid for, the portion of the manager's wage which could be charged 

 to this item alone, amounted to 50c per month for each cow in the herd, 

 or 16.00 per cow for the entire year. 



11. Added Kisk due to Possible Loss of Market. 



If the City of Grand Kapids had been able to use as whole milk all the 

 milk produced in its natural milk producing district, this item would be 

 reduced to its minimum; but since there was produced within the dis- 

 trict a much larger supply than the city could consume, a considerable 

 portion of the milk produced had to go to market in forms other than 

 as market milk. It was frequently noticed that a milk dealer would se- 

 cure a farmer's milk supply at a rather low price, telling the farmer that 

 as soon as he improved his stable and herd and had better facilities for 

 cooling and storing the milk, he could pay him a better price for the 

 same. But, after the producer had properly equipped his dairy and 

 asked for the better price which he had a right to expect, he often found 

 that the dealer could not use his milk because he could buy of other be- 

 ginners at the lower price and tempt them with the never-to-be fulfilled 

 promises. 



It was also commonly remarked that the producers who were most 

 active in organizing and promoting the interests of the Milk Producers' 

 Association were most frequently left without a market. Be this as it 

 may, the investigators found that about one-fifth of the surrounding 

 farms lost their market each year and were compelled to sell their cream 

 for buttermaking on the regular butterfat basis. The risk, therefore, 

 that each of these farmers sustained, would be represented by the dif- 

 ference between the price which their product would have brought as 

 whole milk and what it did bring when the cream was sold for butter- 

 making and the skimmilk used on the farm. If all the milk produced 

 each year had been sold on the butterfat and skimmilk basis it wonld 

 have brought approximately 70% of the price which it did sell for. The 

 loss of market for a single year amounted, therefore, to 30%, and since 

 it was estimated that this market loss would occur one year out of every 

 five, only 1/5 of 30%, or 6% should be charged yearly to represent this 

 added risk. 



