May, 1935] Economic Study of Poultry Farms 47 



Depreciation of Stock (Including Mortality Losses) 



Assuming a value for pullets at housing time based on the market 

 for good healthy pullets ready to lay, there is a considerable loss dur- 

 ing the year from mortality and in shrinkage to a merely meat value 

 when they are culled from the flock. 



This loss or depreciation when based on per dozen eggs is influenced 

 by the time of culling and the time of the mortality losses. If heavy 

 mortality or heavy culling occurs early in the season, there are fewer 

 dozens of eggs and a smaller average number of hens to absorb the loss. 

 Hence, the depreciation charge per dozen eggs would be higher. As 

 estimated in Tables 18 and 19, the losses from depreciation averaged 

 $1.25 per bird and 10 cents per dozen eg^s. Farm K, with lowest depre- 

 ciation cost per dozen eggs, had low mortality, culled regularly and 

 sold fowl mostly at retail prices. 



Use of Buildings 



The estimated cost for use of buildings averaged 40 cents per bird 

 and 3.3 cents per dozen eggs. The high costs on some of the farms re- 

 sult from operating at low capacity due to mortality and severe culling 

 as well as to use of new or expensive buildings. The very low costs 

 of Farms B, E, D, H and M were due to the use of moderate-value 

 buildings held at near capacity. Farm A used expensive buildings, but 

 on account of holding the flock at almost full capacity and securing 

 high production, its building cost per dozen eggs was about average. 



The data in Tables 18 and 19 indicate wide variations in each item 

 of cost, and a careful study suggests that a poultryman may secure a 

 combination of good production and low costs in all the items. Suffi- 

 cient number of layers to keep the men employed to the best advantage, 

 layers housed to capacity in low cost buildings, and fed on good but- 

 low cost rations is a combination which should bring success. 



Old Hens for Market Eggs 



The question of keeping over old hens for market-egg production in- 

 volves a comparison with pullets as to costs and income. 



The practice of retaining the best of the flock for the second year 

 means that ordinarily about 80% as many pullets must be raised to 

 replace the flock, as when only pullets are kept. Since the costs of 

 housing, labor and feed, seem to be approximately the same for old 

 hens as for pullets, the difference in annual cost of keeping birds is 

 mainly a difference in depreciation in value. Actually on most farms 

 this is a question of the cost of raising pullets as compared to the sale 

 value of old hens for meat. For instance, if old hens will sell for $1.25 

 each and if pullets can be conveniently raised in view of other possible 

 options for time and equipment for $1.50, the difference in cost of keep- 

 ing old hens or pullets will be this difference in depreciation of 25 cents 

 per bird. That is, with the same rate of mortality the old hens woidd 

 shov\r 25 cents less depreciation between inventory at the beginning 

 and sales of fowl during the year. 



