APPENDIX 



stock and farm crops are such as to make them applicable to 

 the conditions cited for hogs and corn. Therefore, livestock 

 raised for profit should be charged with farm crops consumed 

 at market price in order to apportion fairly the advantages 

 caused by the juxtaposition of the productive elements on the 

 farm. 



(B) Livestock Kept for Work. In crediting the several 

 crop accounts and debiting work horses witli the commodities 

 fed, market price of the commodities should be used. Thus, 

 it might be stated that all entries for the quantities shown in 

 the feed record should be calculated at the market price of 

 the crops concerned, regardless of whether they are fed to 

 livestock kept for profit or for work. 



The only reason for treating the two classes of livestock 

 separate in this discussion is that different principles govern 

 the use of market price in the two cases. 



In the case of horses, market price for feed is supported 

 by the first two reasons inven under "Livestock Kept for 

 Profit" above, namely, to permit a comparison of results with 

 other farms with respect to the livestock and the crop. The 

 third reason named, that of -liannu- the effect of the juxtapo- 

 sition of the elements on the farm, does not necessarily apply 

 as between the horses and the crops fed. It does apply, how- 

 ever, as between the crops that are fed to horses and the crops 

 that are not. 



For work horses, a third reason for using market price for 

 t'ee.l is based on the fact that some crops that get the benefit 

 of horse labor do not contribute anything to the upkeep of 

 the hoiM's. If cost price were. used in valuing the crop- 

 to horses the cost of keeping horses would be less than if 

 market price were used. Accordingly, the cost of horse labor 

 to be charged to the farm elements would be less. Such con- 

 dition would permit the wheat, barley or other crops not 

 usually fed to horses to share in the benefits of the cheaper 

 horse labor without contributing anything to make such labor 

 cheaper. 



If, on a given farm, only one crop were raised, it would 

 not make any difference in its net profit whether it was fed 



