402 FARM MANAGEMENT 



Farmers are often tempted to invest money in build- 

 ings which are not called for by the probable returns 

 from the investment. It should be borne in mind that 

 buildings in themselves are unproductive unless they 

 house animals, crops, machinery, or products that are 

 especially benefited by the protection. Here, again, 

 the revenue to be derived or the profits to be gained 

 should be carefully calculated before the investment 

 is made. In fact, good business policy dictates that 

 in every transaction on the farm, even to the purchase 

 of a cow or the erection of a fence, the cost should be 

 compared with the increased income probable from the 

 investment. 



ANNUAL COST OF SHELTER FOR EACH ANIMAL 



Cost of barn 36 X 100 ft . $4000.00 



Provides shelter for 40 head of cattle. 



Annual cost, Interest 6.0 % 



Insurance -5 % 



Depreciation 3-% 



Paint and repairs I . <j % 



Total annual cost II. O% 



II.o per cent on $4000.00 equals $440.00, annual cost. 

 $440.00 distributed over 40 head of cattle equals $11.00, the 

 annual cost a head for shelter alone. 



The cost a head in this case is exorbitant, and only first-class cows 

 of high producing capacity can consistently be sheltered in such a barn. 

 If the same barn were so constructed as to shelter the horses and sheep 

 and to house grain, hay, and other products, the expense might be 

 warranted by the greater returns from the investment. 



It is possible to build a barn for $1500 to $2000 that will com- 

 fortably shelter 40 cows, in which case the annual cost a cow would 

 be greatly reduced. 



