total mill investment. It is assumed that any county taxes incurred are 

 included in the above rate. 



4. Insurance — A number of factors affect the insurance rate for 

 a feed manufacturing plant. Those having to do with the plant itself 

 include building materials, type of electrical motors and type and quan- 

 tity of installed fire prevention equipment. The location of the mill in 

 relation to the location of the housing of the community's fire fighting 

 equipment, and the quality and quantity of fire protection services pro- 

 vided by the community also affects the rate. 



A rate of $1.00 per $100 of investment in buildings, equipment, and 

 all facilities except the rail siding was used to estimate the annual cost 

 of insurance. The same rate was also used to determine the insurance 

 cost on the average quantity of ingredients being stored by the model 

 mills. 



5. Maintenance — Maintenance is a fixed cost for keeping Iniild- 

 ings, equipment, and facilities in operating condition. An assigned rate 

 of one percent of the initial investment was used to derive the annual 

 maintenance costs. 



6. Total Ownership Costs — The ownership cost per ton of annual 

 capacity decreases from a high of $2.78 for Mill A to a low of SI. 50 for 

 Mill F. The cost per ton decreases with increasing size except at Mill B' 

 where a major change in manufacturing technology is incorporated. 



Administrative and Supervisory Personnel Costs 



A number of administrative functions must be performed in a feed 

 mill including management, ingredient purchasing, nutrition and formu- 

 lation analysis and quality control, typing, bookkeeping, and supervision 

 of personnel. Requirements for these functions were derived from data 

 provided by mills. The man-equivalents required for each function in 

 the model mills are given in Table 8. 



Figures across are tons manufactured daily. 



22 



