394 AGRICULTURAL, APPROPRIATION BILL, 1924. 



Studies are also being made on the cost of producing rice on 200 

 farms in Louisiana and Texas, and the cost of producing sugar beets 

 on 200 farms in the State of Washington and on 75 farms in Colorado. 

 Studies this year for the first time are iK-ing made on the cost of 

 producing cane on 50 plantations in Louisiana. 



Mr. Buchanan. Sugar cane, I suppose? 



Doctor Taylor. Yes; sugarcane. 



FA UM-OPE RATIONS STUDIES. 



Mr. Anderson. To what extent do these studies cover the cost of . 

 farm operations and the farm as a plant unit? 1 



Doctor Taylor. They include a complete statement of the in- 

 ventory — that is, the land and the ef|uipment — and of the labor that 

 is put in, so that we have a complete statement for every one of 

 these farms showing the total expenses and total income and tlien | 

 the part of this that is expended upon the particular crop in (|uestion, 

 like rice or sugar beets or cane, and the income from these particular 

 crops. 



Mr. Anderson. What I am interested in finding out is this: Here 

 is a farmer who is running a diversified farm operation, feeding cattle 

 and hogs and producing the necessary feeil, etc. Now, is the whole 

 operation, the way he is conducting it, a profitable operation or is 

 it not? If it is, does it pay him a return on his investment and a 

 reasonable return for the labor risk and management or does it not ? 



Doctor Taylor. Well, that varies greatly. There are some farm- 

 ers who are making very satisfactory incomes in terms of dollars, as 

 good as they made before the war, while there are others now. as 

 then, who are producing at a loss, and you get a very hu'ge range in 

 cost from those who show a loss and from those who are getting a 

 very satisfactory profit. 



Mr. Anderson. Are these differences traceable to differences of 

 methods or are they due to a diflerence in managerial ability ( 



Doctor Taylor. I should say that fundamentally they are due to 

 a difference in managerial ability which manifests itself in the way 

 in which he carries on his business. 



Mr. Anderson. Have these experiments been conducted on spc- ^ 

 cific farms for some vears ? f 



Doctor Taylor. Ves. 



Mr. Anderson. Where these studies have been carried on on one 

 farm for a series of years do they show any improvement oi metlu>il 

 and managerial ability resultin«i; from the studies? In other words, 

 do they take these studies and as a result of them improve their 

 ])racti('es so as to get better results ( 



Doctor 'l\\Yi.()i{. 1 can not answer that (juestion ofl'hanil. If I 

 lia«l Mr. Wilcox here he could probably answer it. 



Mr. Anderson. I have assumed tliat information in regard to cost 

 on a specific farm ought to lead to the elimination of waste and the 

 use <»f Ix'llcr methods which would, at least, product" for the farmer 

 a more uniform income year in and year out. I sui^pose a farmer is 

 like any (tther business man and that tliere are certam consith'rations, 

 such as prices, weather cou(htions, etc., which make his net return a 

 mailer of more or less ups and (hnvns, but it wouUl be natural to 

 suppose tiuit the inv(>stigation and definite determination of costs, 



