232 



FARM MANAGEMENT 



INTEREST AND DEPRECIATION ON Cows OF DIFFERENT VALUES, 

 WITH BEEF VALUE OF $34 



The depreciation on $100 cows can be determined as 

 follows : of 7000 such cows, the loss from death would be 

 84 per year. The remaining 916 of the 1000 that would 

 be replaced every year would be sold for beef. At $34, 

 these would bring $31,144. This would leave a loss of 

 $68,856, or nearly 10 per cent. 1 



No matter how valuable the cows are, the depreciation 

 could not exceed } or about 14 per cent, so long as the 

 average period of usefulness is 7 years. 



The depreciation and interest on $40 cows is $4 per year. 

 On $100 cows it is $16, and on $300 cows, it is $57. 



The care given to pure-bred animals is also much more 

 than for grades. It will be seen at once that the statement 

 that it costs no more to keep a pure-bred than a grade 

 is far from correct. Pure-bred stock costs much more 

 and usually gives very much higher returns. 



In 1910, there were 33,662,194 cows and heifers born 

 before 1909 in the United States. Most of these were two 



The exact formula for depreciation, when animals have a meat value 

 in old age or other value at death, is : 



Value / 1 Deaths per 100\ timeg 



: (NO. 



of years of use 



100 



No. of years of use 

 moat value. 



The depreciation on stock that has no meat value or value at death 

 is always the same per cent for animals living to the same age. 



