PLANNING THE FARM BUSINESS 107 



^ist, althoiifiii automotive cx})ense,s and gas and oil when added together 

 amount to more. I'.xjienses for new niaehinery and for jjermanent improve- 

 ments are not ineluded in this statement as tiiey are eonsidered to be eaj)ital 

 investments. 



Tlie net return of •"^t-'iKf is tiie difl'erenee between tiie total reeeipts and ex- 

 penses. If an interest allowance of -5 jier cent is made on the estimated 

 capital investment of .¥;J5,(i()() a deduction of ^1750 would be made, leaving 

 .^27()(i to l)e divided between ]Mr. C and his sons as a return for their lal)or 

 and management. In addition, of course, tlie farm furnishes them such items 

 a.s house rent, fuel, garden produce, milk, and eggs. 



Advantages of this Type of Organization 



A farm of this t\pe has certain definite advantages as compared with 

 smaller farms similar to A and B. The two principal advantages are econ- 

 oiiues resulting from the more complete utilization of machinery and etpiip- 

 riient and the greater possibility of realizing increased labor efficiency. 



The only equipment on Earm C that is not also found on Farm B is a 

 tractor and a larger ap})le grader. In every other way the two farms are 

 practically identical in equii)nient. Both have a milking machine, an electric 

 milk cooler, a motor truck, an aj)ple sprayer, wagons, manure spreader and 

 other machinery. "\Mtii the much larger volume of business on Farm C tliis 

 means less equipment investment j>er imit of product. On Farm B the tend- 

 ency is to continue using some machines after they have depreciated :*) much 

 as to become relatively inefficient in operation. On Farm C such e(|ui])ment 

 is replaced nnich sooner. This situation keeps Ijotii machinery and men work- 

 ing at a higher state oi efficiency. 



Tiie tractor and the larger apj)le grader on Farm C are investments which 

 pay their way in labor saving and quality of work. On Farm B they woidd 

 prol)abIy add more to the farm expense than to the receipts. Almost every 

 time the purchase of a new ni;ichine is considered it is easier to make it pay 

 for itself on Farm C than on B. Of course, this is most true of the larger 

 types of machinery. In some cases it is possible to secure a smaller machine 

 of lower caj)acity to fit the needs of the smaller farm. 



Planning the Efficient Use of Labor 



The outstanding achievement in the oj>eration and management of this farm 

 has been the careful planning of an efficient labor program followed u]) by 

 efficiency in actually doing specific jobs. Figure 3 shows the distribution of 

 man labor by weeks throughout the year on the croj) and livestock enterprises. 

 Witli the exception of the slack period in August and the high ])eak of a]>]ile 

 picking in September and October, it is a fairly regidar distribution. F"all 

 freshening brings the period of least work on cows during the sunuuer w lien 

 the greatest load of crop work occurs. Notice how the croji and li\estock 

 work fit together. Although the adjustment is not perfect, the greatest 

 amount of the livestock labor comes in the winter and the crop work in tiie 

 summer. 



The peak in apple picking is taken care of partly by working longer hours, 

 but chiefly by hiring extra help. The .slack period in August is used to good 



