378 BOARD OF AGRICULTURE. [Pub. Doc. 



greater profit. The greater profit almost invariably accom- 

 panies the higher rate of production. 



By these comparisons between average and extra cows is 

 brought out the apparent advantage of keeping the latter, 

 and yet the difference in value between them is generally 

 very much underestimated. Consider for a moment the 

 average cow, making an annual product of 1,700 quarts of 

 milk, worth $42.50, the cost for her keeping being $40. 

 Another cow consumes $50 worth of feed and produces 2,500 

 quarts of milk, worth $62.50. A still better cow, at a cost 

 of $65 for maintenance, produces 4,000 quarts of milk, worth 

 $100. Two dollars and fifty cents, $12.50 and $35 represent 

 the respective profits earned by these cows. If we assume 

 the value of the cow in each case to be her beef value (say 

 $30), plus the additional sum upon which she will pay 8% 

 per cent interest, taxes and insurance, and 25 per cent de- 

 preciation, then cow No. 1 is worth $37.50, No. 2 is worth 

 $67.50 and No. 3 is worth $135. These values are real, 

 provided the useful period of the cow in question is four 

 years. If the period is longer or shorter than that, a pro- 

 portionally greater or less value would obtain. If the use- 

 ful period of a cow is three years, the depreciation factor 

 should be 33% per cent ; or if it is five years, 20 per cent. 

 While these values are in no sense fictitious, they are not 

 commensurate with the market prices. The $37.50 cow will 

 probably cost $40, and allow her purchaser to lose $2.50 on 

 the trade. The $67.50 cow will cost from $50 to $55, and 

 leave a fair margin for the risk taken. The $135 cow will 

 cost possibly $70 to $80, and prove the best bargain of the 

 three. 



Carrying out these comparisons for herds of 20 cows of 



each grade, each herd to be bought at the foregoing prices, 



kept for four years and then sold for beef at $30 each, we 



have the following : — 



Dr. 



No. 1 . To 20 cows at $40 each, $800 



To keeping four years at $40 per cow per annum, . 3,200 



To interest, taxes and insurance on purchase at 8 per 

 cent, 256 



$4,256 



