42 



BULLETIN 994, U. S. DEPARTMENT OF AGRICULTURE. 



machines, with the farmer's estimate of the approximate length of 

 time they will lastj and the amount spent for repairs during the year. 

 Buildings. — Figures are obtained on the present value of the farm 

 buildings, usually divided as fu,rin dwelling, tenant houses, and other 

 farm buildings. This information is of value in arriving at the over- 

 head charge which is to be carried by the productive enterprises of 

 the farm. 



SUMMARY OF ENTERPRISE DATA. 



The following summary gives the items and principal elements of 

 cost which should be obtained in an enterprise study for the particular 

 enterprise in mind and also for the entire farm business: 



For the enterprise. 



1. Normal yield and acres of crops or 



normal number of live stock by 

 years for a three -to five year period. 



2. Direct labor requirements. 



3. Feed and material quantities and ex- 



pense. 



4. Proportion of total labor chargeable to 



enterprise. 



5. Proportion of equipment expense 



chargeable to enterprise. 



6. Proportion of overhead. 



7. Special marketing notes. 



8. Special enterprise notes. 



For the entire farm. 



1. Area, value, and distribution of farm 



area. 



2. Live-stock inventories. 



3. Inventory of equipment. 



4. Inventory of buildings. 



5. Cash receipts from all sources. 



6. Cash expenses. 



7. Inventory of feeds and supplies. 



8. Total amount of all labor, with rate 

 of wages for hired labor. 



Estimated expense of maintaining 



work stock. 

 Total amount of horse labor. 



9. 



10 



Data as above outlined will permit the working out of the basic 

 requirements for producing enterprises and will provide a basis for 

 the distribution of fixed charges, including overhead expense. With 

 the data from the entire farm business, the relation of the enterprise 

 to the farm is shown by its proportionate use of land, labor, and 

 equipment, and by its costs and earnings; as compared with those 

 for the whole farm. It is also possible to compute from these data 

 labor income and interest on the farm investment, which are of value 

 in considering the status of the enterprise studied. This is especially 

 true if the product in question is by far the most important, such as 

 cotton on cotton farms and wheat on wheat farms. 



ENTERPRISE STUDIES WITHOUT COMPLETE BUSINESS ANALYSIS. 



A number of separate studies of farm enterprises have been made 

 by the Office of Farm Management and Farm Economics without 

 attempting to obtain a complete business analysis of the farm. 

 Similar studies have also been made by various State institutions, 

 but usually the enterprise in question has been of an outstanding, 

 special type, and of considerable commercial importance. Among 

 these studies may be mentioned those of the cost of producing sugar 

 beets, apples, potatoes, beans, sweet corn, cabbage, onions, and 

 tomatoes. This manner of studying the enterprise does not permit 

 taking into consideration the relation of the enterprise to the entire 



