ANNUAL REPORT, 1938 7 



reduced, providing a greater net return from the dairy enterprise. The poultry 

 business is supplementary and will be maintained at the present size. 



Farm C was called a well-managed farm having large dairy and fruit enter- 

 prises which were of equal importance in the farm organization. This farm was 

 the largest of the three in acreage and in total size of the farm business. The 

 dairy enterprise was a purebred Guernsey cattle business, and in 1937 income 

 from cows and calves sold amounted to $1095. The fruit and dairy enterprises 

 are well organized and operated at optimum capacity. No changes are con- 

 templated in either enterprise. Farm C was an excellent example of a dairy-fruit 

 farm which was well managed and showed a high labor income. 



Enterprise Relationships and Farm Organization on Selected Farms in Massa- 

 chusetts. (C. R. Creek and J. E. Donley.) During the summer of 1938 farm 

 records were taken from farm account books and cash records on 114 poultry 

 farms in the seven eastern counties of Massachusetts. On the basis of percentage 

 of receipts these farms were classified into groups of 71 wholesale, 34 retail, and 

 9 breeding (baby chicks and hatching eggs) farms for detailed analysis. 



The breeding farms showed the highest labor income, the largest size of flock, 

 and the highest egg production per bird. Sales of baby chicks and hatching 

 eggs contributed materially to income. 



Retail farms received the highest average price per dozen for eggs, but showed 

 the lowest labor income per farm and per bird. Factors which contributed to low 

 incomes on retail farms were (1) small flocks of laying birds, (2) low egg produc- 

 tion per bird, (3) inefificiency in the use of labor, and (4) high capital investment 

 per bird housed. Because of lack of diversification, retail farms were more 

 adversely affected than the two other types by the unfavorable feed price — egg 

 price ratio (7.3 dozens were required to purchase 100 pounds of feed) in 1937. 

 The time spent in delivering eggs on retail routes was not available for supervision 

 and management of the farm. This factor apparently was responsible for the 

 smaller average number of layers and for lower egg production. 



The wholesale farms were larger than the retail, had higher egg production 

 per bird, and were operated more efficiently. More broilers and baby chicks were 

 sold than on retail farms. Some of the wholesale farms had crop and fruit enter- 

 prises which contributed to the farm income. Such enterprises are especially 

 important when the egg — feed price ratio is unfavorable. 



In the wholesale classification, the 12 highest income farms were larger in size 

 of flock and number of men working than the 12 lowest income farms. Labor 

 was used more efficiently as shown by 300 more birds per man, higher cash re- 

 ceipts per man, and lower labor cost per bird. Investment per bird was $4.83 

 less on the high profit farms. Egg production was 185 eggs per bird, which was 

 38 eggs more than on the low profit farms. On the most profitable farms labor 

 income per bird was $1.83, while the lowest profit group showed a labor loss of 

 $1.03 per bird. 



In the retail classification, the lowest income farms were larger in size of business 

 than the highest income group. However, egg production was lower, labor was 

 used less efficiently, and the investment in the farm was not used to capacity. 

 The average price per dozen received for eggs was 3.5 cents higher on the most 

 profitable retail farms. The various factors of efficiency, production, and price 

 oflfset a smaller size of laj'ing flock to bring the labor income per bird to $2.72 

 on the high farms. The low income farms showed a loss of $0.83 per bird in labor 

 income. 



In the breeding farm group the three high farms were much larger than the 

 lowest farms, had a higher egg production per bird, and were more efficient in 

 utilizing labor and investment. Labor cost per bird was $1.03 greater on the 

 three lowest profit farms. 



