EXPERIMENT STATION BULLETINS. 259 



Those who rent real estate, hoping to get back what they invest at a fair 

 rate of interest, do not feel that they can take less than 10 per cent of the 

 investment in rent. When repairs, taxes, insurance and the ordinary deprecia- 

 tion in the value of property are taken into account, it naust appeal to every 

 investor that this is only a fair rate of interest on such investment. If this is 

 true of a dwelling house, it is also fair to suppose that it would be true of a 

 barn or stable investment. Ten per cent of $20,000 is $2,000. This stable should 

 have a capacity for 100 milch cows. If these are fair cows, they will average 

 at least $75* each, or $7,500 invested in cows alone. Animals are not so long- 

 lived as a building, and are likely to cease giving returns at almost any time 

 because of sickness and various other troubles which are peculiar to animals. 

 It is doubtful whether 20 per cent would be too high a rate of interest to place 

 upon these animals. This amounts to $1,500 per year. The total investment, 

 therefore, ought to bring $3,500 each year. Now what may be expected as 

 an income, under the conditions named? Each cow of the type mentioned should 

 produce at least 5,000 pounds of milk per year, or 2,500 quarts. If this is sold 

 at the stable for three cents per quart, we have an income of $7,500. Out of this 

 must be taken the cost of labor and the cost of food. The cost of food will 

 average about $53 per head, or for 100 head of cattle, $5,300. The cost of labor 

 will average about $25 per head, or $2,500. It is true that there will be other 

 small items of income, but. on the other hand, there will be other incidental 

 expenses, which we shall allow to offset each other. Our total expenses, there- 

 fore, for the year, would be $11,300, and our income $7,500 per year, leaving a 

 deficit of $3,800 per year. In order to make this good, it is necessary to raise the 

 price of milk at the stable from three cents per quart, upon which these calcu- 

 lations are made, to four and one-half cents. In order to retail milk, delivering 

 to customers in the city, it is necessary to add 100 per cent to the cost. In 

 other words, milk should cost the consumer in the city, at least calculation, nine 

 cents per quart. This assumes that all conditions are ideal, that there are no 

 profits above expenses, and that there is no high priced manager conducting 

 affairs, and further that everything is done in a very moderate way unless the 

 high priced barn he considered. If everything were to be carried on in an ideal 

 manner, it will be found that a price of twelve cents per quart is not too high 

 for the quality of milk which is sometimes furnished. It is possible and perhaps 

 desirable to reduce the investment in the stable to $5,000; this would lessen 

 the expense by $1,500, which in turn could be applied upon income for a com- 

 petent manager and profits from the business, keeping, therefore, the cost of 

 milk about the same as already estimated. Under the dairy conditions which 

 exist in Michigan, many cows do not furnish 3.000 pounds of milk per year, 

 therefore, scarcely pay for their keeping. It is safe to estimate in the face of 

 Beach's figures. $53 per head or even at $40 per head for feed, that there are 

 more cows in Michigan not paying their cost of keeping than there are which do 

 pay profit. In the advocacy of pure milk supplies, while we may have very high 

 Ideals, it is essential that we investigate conditions as they exist. Considering 

 the milk producer's side, it is easily seen that a pure milk supply cannot be 

 furnished every town or city at will, but must be a matter of growth and develop- 

 ment. The dairies surrounding a town or city should be managed for profit 

 as well as purity and also for future possibilities, since years are required to 

 get together a profitable herd of dairy cows. 



tEstimate of cost of production of pure milk, based upon: 



Time = 1 year. 

 Feed = $53— $40 per head. 

 Cow = 2.500 quarts milk. 

 Labor = $25 per head. 

 As constant factors. 



'■5* Prof. Beach's figures are used as a basis. He places the value of the cow at about J60.00. 

 Everything taken into consideration, .?75.00 will not be found extremely high. 



t Bulletin No. 166 (1899) Michigan Experiment. .Station.— -C. D. Smith. 

 Bulletin No. 29, (1904) Storris Agric. Experiment Station.— C. L. Beach. 



Director C. D. Smith in bulletin No. 166, 1899. of Mich. Station, makes the cost of feed per cow 

 $35.96. At this time, on account of higher prices for the various food-stuffs. S40.00 per cow may be 

 regarded as the lowest extreme. There should also be taken into account the relative costs of feeds 

 for Connecticut and Michigan, the latter being more favorably located for securing lower prices. 



