May, 1932] 



Economic Study of Poultry Farms 



1 



flocks between 800 and 1000; approximately $10 for flocks between 

 1000 and 1400 ; $8 for flocks of 1600 to 1800 ; and $10 for flocks above 

 1800 layers. As the size of flocks increased, total investment increased 

 but the investment per bird tended to decrease. 



Table 3 — Capital investment <t»<1 size of flock 



Depreciation Charges 



Depreciation on special poultry equipment and buildings was 

 assumed to be 10%. This was set fairly high in order to put earnings 

 on a more conservative basis. Commercial poultry farming has become 

 a factory proposition in which large amounts of purchased feed are 

 converted into a product that has enjoyed a special premium. Yet dis- 

 ease and lack of production due to causes beyond the control of the 

 individual have in certain instances turned the profits of apparently 

 skilled and experienced operators to heavy losses. Moreover, new meth- 

 ods and better equipment are constantly making other equipment obso- 

 lete. An individual may find it difficult to dispose of his holdings, if for 

 any reason he is forced to give up the business. Under these conditions 

 the operator should hesitate to invest in fixed capital unless the princi- 

 pal can be drawn out within ten years. In the case of the producer who 

 remains in business and is successful over a period of years, 10% depre- 

 ciation is probably higher than the actual. In the case of the producer 

 who is forced to quit or is not very successful, it may be too low. The 

 successful man with large income will not object to a 10% depreciation 

 charge ; the beginner will do well to make estimates on at least this 

 basis. As shown in Table 4, the depreciation of special poultry build- 

 ings averaged $365 per farm, and depreciation of equipment averaged 

 $204 — a total of $569 for buildings and equipment. 



Receipts 



The average farm cash receipts were $9,636 (Table 5). When includ- 

 ing the increase in inventory of $453, the total receipts averaged 

 $10,089. This is a gross income of $7.82 per bird housed, or $10.13 per 

 bird when based on the average number of laying birds through the 

 year. 



It is well to note that only 44% of the gross income was from sale of 

 market eggs and 11% from hatching eggs. The remaining 45% was 

 made up of several items, including live and dressed fowl 11%, broilers 

 11%, day-old chicks 6.7%. In a group of five farms which specialized 



