Dividing total capital by animal units gives total capital per animal 

 unit as shown in Table 1 and in Figure 2. It may be observed that total 

 capital per animal unit declines rather steeply to at least 30 animal units 

 (a 24 cow herd with replacements^) and has nearly leveled out by 70 ani- 

 mal units (a 56 cow herd with replacements). 



LABOR FORCE AND CAPITAL 



New England dairy farms are commonly organized around one or more 

 full time workers plus various amounts of part-time help. Htnce, as an 

 aid to establishing the representative farms, it was decided to study herd 

 size and capital of the survey farms after first grouping them by size of 

 labor force. The labor force was measured in "man months".^ 



Total Capital 



Figure 3 shows the scatter and the regression lines for the survey farms 

 sorted by man months and then plotted for herd size and total capital^. 



■* Assuming about a four-year herd life with enough heife-s to replace ahout 25 

 percent of the cows each year. 



5 A full-time, able-bodied man would constitute 12 man mo ith< Very young, very 

 old, and less than fully able workers were counted at appropriate fractions of an able- 

 bodied man. Man months of part-time workers were determined by adding the time 

 worked. 



"The coefficients of correlation are: 0-11 man mo. group 0.J36; i'2-23 man mo. group 

 0.864; 23-35 man mo. group 0.880; 36-47 man mo. group 0.754. 



