Annual Running Exi'enses. 



Labor, (3 men @ $500.00), in barns, . , $1,500.00 



Labor, (i man and boy), in dairy, . . 750.00 



Labor, (2 men with teams), .... 1,000.00 



Depreciation in value of cows, 10^, . . 310.00 



Depreciation in value of horses, 10^, . . 150.00 



Depreciation in value of tools, implements, etc., 200.00 



Taxes, insurance, and depreciation in buildings, 150.00 



One-half cost of feed, ..... 1,720.00 



$5,780.00 

 Interest on capital @ 5 percent, . . . 805.00 



Total annual expense, including interest, $6,585.00 



In making the estimate for cost of feed no charge is included for 

 :all that is produced upon the farm, this being cared for in expense of 

 labor and teams. 



Allowing 7500 pounds of milk as the average product per cow, he 

 figures that 100 pounds cost $2.20 and a quart 4.83 cents. He 

 -further figures that the owner regards himself as a full hand and 

 makes no charge for supervision. 



REMARKS ON THE RESULTS. 



It is very evident from our own figures and from those derived 

 from other sources that under present conditions it is not a satisfactory 



'business to attempt to produce reasonably clean milk under the most 

 ordinary conditions for less than 5 to 5 1-2 cents per quart at the 

 farm. In fact, it is doubtful if practical business men would con- 

 sider it as a business undertaking unless they were able to secure 



■ a price per quart for their milk at least 10 to 20 percent in advance 



• over the cost of production. 



The cost of production naturally would be considerably increased 

 if the producer invests capital in a modern barn and well equipped 



• dairy house, if his farm is located where taxes or labor is high, if he 

 purchases nearly all of his feed, if he employs a superintendent or 



• charges a reasonable sum for supervision, or if he makes ah inspected 

 ■or certified product. 



IV/i}' has the producer received so low a price ? It is the belief of the 

 vwriter that in the past a great deal of milk has been made and sold 



