AN ECONOMIC STUDY OF THE PRODUCTION OF CANNING CROPS 7 



eight New York farms which cooperated with the New York State College 

 of Agriculture in keeping complete cost accounts of their farm operations. 

 This rate covers all the costs of keeping horses on these farms, among 

 which are charges for interest on the average investment, for depreciation, 

 for the use of buildings, for time spent in taking care of horses, and for 

 the value of home-grown feeds fed to horses. The use of this uniform 

 figure as the cost of horse labor on a particular farm is only approximately 

 accurate, as this cost varies between farms; but it is more nearly accurate 

 when used as the average cost 'on a group of farms. 



Use of equipment was charged on all farms at 8.2 cents per hour of horse 

 labor. This figure was the average cost on the cost-account farms for 

 1919. The reason for distributing equipment costs, which include 

 machinery and harnesses, on the basis of the hours of horse labor, is that 

 most farm machinery is drawn by horses and the cost varies approximately 

 with the number of horses driven. 



In 1920 .the cost per hour of horse labor on thirty-three New York 

 farms which kept cost accounts was 21.9 cents. The cost of equipment 

 used on these farms was 9. 5 cents per hour of horse labor. It will be noted 

 that the horse-labor rate was lower than the rate used in this study, 

 while the equipment rate was higher. The combined rate per hour for 

 these two items was approximately one cent lower than the rate at which 

 it was charged. The lower horse-labor rate was due to the reduction in 

 the cost of feed during the latter part of the year. The higher equipment 

 cost was due to the general increase in replacement and repair costs which 

 continued in 1920. 



Use of tractor, if hired, was charged at cost; if not hired, at $1.75 per 

 hour. This figure was estimated, using as a basis the data obtained in 

 a study of the costs of tractor operation for the year i9i9. 3 



Use of automobile was charged at 10 cents per mile. 



Use of trucks was charged at cost when hired, or, if not hired, at the rate 

 that would be paid for similar trucks. 



Interest was charged at 6 per cent per annum on all costs except the 

 charge for use of land and that for seed and plants which were not paid 

 for until the end of the season. Interest was computed from the average 

 date when the costs were incurred, to the date of payment by the canning 

 company. 



Use of land. Where cash rent was paid for land, the rent paid per acre, 

 plus taxes and other costs which the operator incurred, was used as the 

 charge for use of land. The charge for use of land owned or worked 

 on shares was calculated by multiplying the farmer's estimate of the value 

 of the bare crop land by 8.2 per cent. The farm expenses chargeable to 

 crop land in 1919 amounted to 8.2 per cent of the value of the crop land 

 on the New York farms keeping cost accounts in that year. This rate 

 included 6 per cent interest on the value of the land, taxes, and all other 

 costs of upkeep. The crop-land costs in 1920 on thirty-three farms on 

 which cost accounts were kept were 8.4 per cent of the value. This 

 figure was not available when the costs were calculated. If the land was 

 double-cropped, the canning crop was charged one-half the annual 

 cost of use of land. 



a Cornell University Agr. Exp. Sta., Bulletin 405. 1921. 



