PLANNING THE FARM BUSINESS 101 



Ills present a<ie tlie bt)y, who does about half a man's work, makes tlie work 

 easier and leaves him more time for planning. Most jobs on the farm are 

 fairly well j)lanned and efficiently carried out. There seems to be little chance 

 of improving anything enough to do without the boy. 



During the 1929 season, Mr. B built a small apple storage, which has 

 greatly increased his efficiency in harvesting apples. The apples can be rushed 

 into the storage just as they come from the trees without sorting, and grad- 

 ed later on when there is more time. This has greatly increased labor effici- 

 ency and sa\ed money spent for extra help. Mr. B estimates that there is 

 a chance for some further imjirovement in later years on these o])erations. 

 At the best, however, there does not seem to be an opportimity to increase 

 the farm income \ erv inucii by changes in efficiency. 



Suggested Reorganization Plan 



After going o\er the xarious suggested changes and discarding them .inc 

 after another, Mr. 1? liiially reconsidered the possibility of increasing the size 

 "•I the dairy herd. If he could make room for more cows and provide more 

 ha_\', he could certainly increase his net income. One way to nud<e more barn 

 room would be to dispose of the yoimg stock and depend on buying cows for 

 rej)lacements. This would also release hay and silage which could be fed to 

 the extra cows. 



Mr. B hesitated to disjxise of his yoiuig stock because he had always raised 

 calves and did not like to break up his breeding ])rogram. Ilis hesitation 

 disappeared, ho\\e\er, after liguring up his average annual milk jiroduction 

 per cow for several years back. He discovered that it was only .5()0() pounds 

 of 3.5 per cent milk. He knew from herd imj)ro\ement association records 

 that several of his neighl>ors had herds averaging 1()(H) to 1.500 pounds higher. 

 They have surj)lus stock for sale which he is able to l)u\' at reasonable ))rices. 



Mr. B estimates that disposing of the young stock woidd iiermit him to 

 kee]t 24 milk cows. Figuring on this basis and using the amounts of feed ])er 

 head and other data from his present organization, Mr. B arrived at the 

 following budget or estimated financial statement for the proposed organiza- 

 tion. 



TahLK 10. ESTIMATKU FINANCIAL lillTTniXS FROM PliOI'OSEl) OuGANIZATlON 



Faum B. 



Receipts 



Whole milk 1.54,(J19 lbs. @ $2.(;0 .$4-020 



6 old cows Or. $50.00 300 



20 calves ® $7.00 140 



Broilers and fowls 293 



Eggs : „...„ 884 



Apples, 1500 boxes 3022 



Work off the farm 104 



Total Receipts - $8763 



