This table shows that the farmers who had an average of 35% of their total 

 tillable area in pasture made the greatest average labour income. (The meaning 

 of the term "tillable area" should not be mistaken; see "Explanation of Terms" 

 of this bulletin.) The farmers who had a greater or lower percentage in pasture 

 did not do so well. The greater error appears to be that of a percentage in 

 pasture greater than 35 rather than smaller. As different soils and locations are 

 more suitable for pasture than others, every farmer cannot apply this definite 

 rule to his farm. Yet many farmers would be well advised to give this question 

 of proportion of tillable area in pasture their serious consideration, and to make 

 provision for good summer feed, either in good pasture or by means of silage. 

 This would enable many to cut down on acreage devoted to pasture. Though an 

 excellent feed, pasture does not in many cases give the feed necessary per acre 

 for most economical dairying on the high-priced farming land of British 

 Columbia. 



THE COST OF PRODUCING BUTTER-FAT. 



For the purpose of determining the cost of producing butter-fat, only those 

 farms could be used where at least 50% of the total farm receipts came from 

 the dairy cattle through the sale of milk, milk products and dairy stock. In other 

 words, the farms which could be used in calculation were those where the 

 operators had specialized in the dairy business. On such farms the side lines 

 would have the effect of decreasing or increasing the cost of production of 

 butter-fat according as the production of the side lines themselves was profitable 

 or otherwise. The returns from these side lines, then, may be correctly credited 

 to the cows, seeing that the farms were in effect rented to the dairy, and all 

 effort was directed towards the economical production of butter-fat, the side 

 lines contributing their part to this end. The method of arriving at the cost of 

 producing butter-fat may be illustrated by the following example: 



Farm, No. 3 2 A. 



Size, 45 acres. 



No. of cows, 20.5. 



Lbs. of butter-fat sold, 5,289.5. 



Total farm capital, $24,053.85. 



FARM EXPENSE. 



Labour hired $1,472.55 



Feed bought 509.35 



Seed bought 43.95 



Repairs to machinery 80.05 



Taxes 181.60 



Other farm expense 305.25 



Depreciation on buildings 



and machinery 479.41 



Livestock purchased 350.00 



Decrease in livestock values 53.50 



Breeding fees 7.00 



Interest on total farm capital 



at 7% 1,683.77 



Operator's labour 960.00 



Total farm expense $6,126.43 



Revenue from side-lines . , . 2,244.25 



Cost of producing butter-fat. $3,882.18 



REVENUE FROM SOURCES 

 OTHER THAN MILK. 



Crops sold $ 478.00 



Eggs sold 12.09 



Livestock sold 1,005.96 



Increase in feed and supplies 686.70 

 Miscellaneous receipts 61.50 



Total receipts from side- 

 lines . . $2,244.25 



5289 Ibs. butter-fat cost $3,882.18 



1 Ib. butter-fat cost 731/3 cts. 



In the example shown, it should be noted that wages at the rate of $80.00 per 

 month were allowed to the operator. As previously stated, he had also the use 

 of a house, and, with the exception of meat, secured farm products for the house 

 without charge. 



Of all the farms considered In the investigation, sixty-three were used for 

 the purpose of determining the cost of production of butter-fat. On these sixty- 

 three farms the average cost of producing a pound of butter-fat for the year, as 

 determined by the method shown, was $1.06. The extreme range in the cost of 

 producing a pound of butter-fat between the farms producing at highest and 



15 



