28 

 26 

 24 

 22 



20 

 o 



c 



O 



1 14 

 < 



I 12 

 o 



o 

 o 



o 8 



o 



^ 6 



LABOR FORCE, HERD SIZE, AND TOTAL CAPITAL 

 Figure 4. PER ANIMAL UNIT, SURVEY FARMS 



FARMS WITH — 

 0-1 1 Man-months of labor 



12-23 



J I I L 



5 10 15 20 25 30 35 40 43 50 55 60 65 70 75 80 85 90 95 100 



Animjl Units 



F^quipment Capital 



Machinery and equipment is the category in which capital supposedly 

 would be most substituted for labor. Figure 5 shows the scatter and re- 

 gression ' lines for the survey farms sorted bv man months of labor and 

 then plotted for herd size and equipment capital. The same information for 

 equipment capital may be read off Figure 5 as could be read off Figure 

 3 for total capital. 



Table 3 and Figure 6 show equipment capital per animal unit under the 

 different labor forces. The same comparisons may be made as were made 

 with total capital. The most interesting feature here is that, except in the 

 largest herd sizes, the 24-35 month group uses more equipment capital per 

 animal unit than the 12-23 month group. This suggests a tendency to equip 

 men rather than substitute capital for labor or vice versa. The 12-23 month 

 group may have shown no tendency to reduce equipment capital per ani- 

 mal unit in the larger herds because of a necessity to add large amounts 

 of capital in equipment to attain the larger herd sizes. The 36-47 month 

 group may have been severely limited in equipment at the lowest herd 

 sizes and may have been encountering diminishing effectiveness of manage- 

 ment at the upper herd sizes. A feature common to the 12-23 and 36-47 

 month groups may be transition to larger size with equipment investment 

 leading the way. 



"The correlation coefficients are: 12-23 man month group 0.660; 24-35 man month 

 group 0.504; 36-47 man month group 0.581. 



