Figure 11. Long and Short-run Consumption Functions. 



INCOME 



Taxes 



State and federal income taxes were included under family consump- 

 tion allowance. The major tax remaining is the personal property tax. 

 This tax is fixed and does not vary with the level of income so long as 

 the physical production facilities do not change. For purposes of this 

 study property taxes are considered an annual fixed cost. 



Under the contract terms used by integrators in northern New Eng- 

 land, the grower is responsible for the property taxes on buildings and 

 equipment. The integrator pays any taxes that may be assessed against 

 the broilers. The survey of contract broiler growers revealed a wide vari- 

 ation in the amount of property tax paid per square foot of house. The 

 variation is primarily explained by differences in assessed valuation and 

 local tax needs. No average figure could be derived that would have any 

 meaning in this study. 



Insurance 



The contract grower is responsible for making decisions on the amount 

 of insurance to carry on his buildings and equipment. His decisions on 



28 



