APPENDIX No. I. 



Evidence-in chief of the National Farmers' Union of Scotland in connection with the evidence given by Representatives 



of the Union on 15th October, 1919. 



A. Evidence in-chief handed in by Mr. J. ALLISON, Jr., Chartered Accountant. 



1. I am a Chartered Accountant, being a member of 

 he Institute of Accountants and Actuaries in Glasgow, 



and a partner in the firm of Craston, Thomson & Allison, 

 C.A. in the course of my practice I have been responsible 

 during the past year for the audit of the accounts of 

 many firms, and as Auditor to the National Farmers' 

 Union of Scotland, I was responsible for designing a 

 simple system of accounts for use of farmers, and assisted 

 the Union in introducing the same among its members. 



2. Abtence of Accountn. In this work I have come into 

 touch with many farmers and I have come to the con- 

 clusion that there are no accounts available from which 

 the deductions as to costs of production can be made. 

 Cost Accounts are unknown. In three farms where a 

 costing system was introduced the same was discontinued 

 during the war. Such accounts as are available are not 

 prepared on any uniform plan, and in the absence of an 

 audit cannot be used for the purposes of this Commission. 

 It has not been possible to obtain accounts covering a 

 period of years except in two instances given later. 



3. Method of Enquiry. The National Farmers' Union 

 of Scotland appointed a Special Committee to inquire 

 into the Costs of Production of food stuffs and I was 

 appointed to collate the results obtained. The first step 

 taken was to prepare Cost Statements for the various 

 crops. These were circulated among representative 

 farmers in all districts of Scotland, who were asked to 

 give an estimate of the cost of production as experienced 

 on their farms. It will, therefore, be noted that the 

 figures given in the statements are prepared by experienced 

 farmers, working independent of each other, and are 

 bise-1 on their knowledge of the cost of each operation, 

 the material required and the working costs applicable to 

 each crop. The figures have been prepared under great 

 difficulty. This is the harvest time and all farmers are 

 very busy and the time granted by the Commission has 

 been too short to allow the enquiry to be extensive 

 enough to secure a proper average in each district, or in 

 different types of farms. It has not been possible in the 

 time available to enquire into many items in tha Costs 

 submitted which might raise controversy. 



It has been felt by my Committee that the farmers 

 approached have not grasped the purpose of the enquiry 

 or owing to lack of experience in preparing these figures 

 they have omitted to take into account factors which were 

 given due consideration by other farmers The enquiry 

 has been further complicated by the fact that it has 

 not been possible to obtain costs from what might !> 

 termed the less successful class of farmer. The figures, as 

 already stated, have been obtained from the best class of 

 agriculturist. This is sliown by the fact that in the 

 returns for potatoes the average crop is given as H tons, 

 whereas in the figures prepared by the Board of Agri- 

 culture for Scotland for last year (not yet published) 6.44 

 is the average return in Scotland. It is further felt that 

 in the case of the Turnip Crop no cost* have been given 

 by those farmeri who had a poor return. It is well known 

 that last year the crop was a failure. The returns sub- 

 mitted are apparently from those farms which were 

 successful with this crop, and it is submitted t Uit the 

 figures do not represent the true cost of produ jtion. The 

 farmer who -has been unsuccessful through causes beyond 

 his control has a natural objection to giving figures show- 

 ing the failure of his efforts. The costs submitted, 

 therefore, must be considered with these facts in mind. 



4. Statements. The following statements are submitted 

 herewith : 



I. Cost of Production of Potatoes. 

 II. Turnips. 



III. Hay. 



IV. Oats. 



V. Barley. 



VI. Wheat. 



VII. Fat Cattle. 



VI [I. , Store Cattle. 



IX. Trading account and balance sheet of 



Arabia Farm of 500 acres. 

 X. Production Account of same. 

 XI. Production and Cost Statement of same, 



5. Potato Costs. The Units in the Crop Costs are : 

 Potatoes and Turnips, 1 ton ; Oats and Wheat, 1 quarter ; 

 Hay, 1 cwt. 



It will be noted that the Board of Agriculture figures 

 for the whole of Scotland show the return per acre for 

 1909 to 1918 to be 6'44. It has not been possible in the 

 time available to enquire into the production per acre. 



6. Turnip Costa. 



The experience in Scotland was disastrous last year, 

 and in many cases the crop was a total failure. 



7. Iloy Costf 



* This cost appears to my Committee to be exceptional. 

 In their opinion the low cost is quite unusual, and a 

 statement to reconcile this has been asked for and will 

 be submitted 



8. Oat* Costs 



9 Bui-lei/ Costs 



10. Wheat Costs 



11. Ful Cattle 



