14 BULLETIN 501^ U. S. DEPARTMENT OF AGRICULTURE, 



preciation per cow for each year was determined by dividing the total 

 for the herd by the average number of cows. 



On the Wisconsin farm there was no charge for depreciation, and 

 only a small charge on the Michigan farm. The average value per 

 cow increased from year to year in both of these herds during the 

 record period. Grade cows were sold while still valuable for dairy 

 purposes, and their places were filled by pure-bred heifers of home 

 raising. The highest depreciation charge, $5.13 per cow, is on the 

 Pennsylvania farm, and, considering the average valuation per cow, 

 this is a small charge. It is probable that, owing to the herd manage- 

 ment, the charge for depreciation is lower on each of these farms 

 than may be expected for a period of years on most dairy farms. 



MISCELLANEOUS ITEMS. 



There are a number of minor expenses in connection with the 

 maintenance of every dairy herd, and for convenience these may be 

 grouped under the heading of " miscellaneous items." These include 

 veterinary services, fees to cow-testing association, registration fees, 

 ice, and other dairy suppHes. The total of these varies on each of 

 the four farms, ranging from 66 cents to $2.93 per cow, which is from 

 one-half of 1 per cent to nearly 3 per cent of the total cost. 



OVERHEAD. 



There are a number of items of expense in the operation of a farm 

 business that can not be charged directly to the individual enterprises. 

 Important in this group are expenses for the general upkeep of the 

 appearance of the farm, interest on money borrowed for general 

 working capital, farm share of telephone rental, postage, and sta- 

 tionery. The importance of this item may be expected to vary 

 greatly with the efficiency of management of the fawn business. 

 On these farms the overhead expenses were distributed to the pro- 

 ductive enterprises on the basis of total cost for labor and materials. 

 The dairy being the most important enterprise, it is made to carry 

 its proportionate share. Overhead on these four farms varies from 

 $4.84 to $7.64 per cow, and is 5 to 6 per cent of the total cost. 



CREDITS OTHER THAN MILK. 



There are certain credits apart from milk and milk products, such 

 as value of manure, calf, and in some cases an appreciation in value 

 of cows, which must be considered in determining the net cost of 

 milk. While these credits affect the net cost of nulk, they in no way 

 change the proportion of any of the factors entering into the gross 

 cost per cow; because, were the credits subtracted from each factor 

 rather than from the total, the amount subtracted would be pro- 

 rated to each item on the percentage basis. The total credits other 



