FACTORS AFFECTING RETURNS FROM POTATOES 



93 



Application of Input Data to the Individual Farm Business. 



It is often desirable to approximate rates for the different items entering 

 into the production of farm crops and work out cost statements. Such state- 

 ments are useful in comparing the efficiency of different farmers in growing 

 particular crops. For this purpose it is not necessary to have complete 

 cost statements. Minor costs frequently may be omitted. Common labor and 

 land charges may be assumed. 



Comparative Cost Statements for Txco Chesterfield Grorcers. 



On this basis comparative cost statements for potatoes have been worked 

 out for farms 1 and 10. An arbitrary rate of 40 cents an hour is assigned to 

 man labor, 20 cents to horse work, and $1.25 to tractor work. The land 

 charge is placed at $10.00 per acre. No charge is included for manure. 

 There were 15 tons per acre applied on farm 1 and 18 tons on farm 10. 

 Neither is a charge included for equipment. The other items are cash charges 

 and are placed at the same rate for both farms. Similar machinery is in use 

 on the two farms. The costs per acre of potatoes on these farms in 1926 were 

 then estimated as follows: 



Table 13. — Comparative Cost Statements. Chesterfield. 



a Interest and machine cost not included. 



As thus estimated, the cost per bushel on fann 1 in 1926 was 72 cents and 

 on farm 10, 59 cents. The price received for potatoes on these farms in 1926 

 was $1.50. Both farms had a good margin out of which to take care of over- 

 head and machinery costs and leave a profit. 



The total costs per acre were about the same; tlie chief cause of difference 

 in cost per bushel being dift'erences in yield. These farms are only a few miles 

 apart, at about the same elevation, and have about the same type of soil. The 

 fertility on farm 1 is probably somewhat less than on farm 10. Both men 

 followed the same general cultural methods and the chances are that any 

 reduction in costs would have to come from study made of the factors affect- 

 ing yield. 



