COST OF PRODUCING WHEAT. 3 



APPLICATION OF COST DATA TO FARM ORGANIZATION. 



The farmer is primarily interested in the total net profit from his 

 farm as a unit. The determination of the best possible combination 

 of enterprises that provides the proper balance in the use of land, 

 labor, and capital is a constant problem with him. Complete cost 

 studies aid in analyzing seasonal demands for labor and capital and 

 provide basic data of great value in planning farm reorganization. 



The wide range in the costs computed for the wheat farms covered 

 in this study suggests that considerable variation must have existed 

 in the profits from producing wheat. It is not an easy matter to 



SUMMARY OF RESULTS. 



(197 spring-wheat records, 284 winter-wheat records.) 



Cost per acre: 



Spring wheat, $12.98 to $47.84; average, $22.40. 



Winter wheat, $10.55 to $50.23; average, $27.80. 

 Cost per bushel: 



Spring wheat, $1.15 to $14.38; average, $2.65. 



Winter wheat, $0.96 to $8.24; average, $1.87. 

 Yield: 



Spring wheat, 20.8 bushels per acre to less than 

 1 bushel; average, 8.4. 



Winter wheat, 30 bushels per acre to 2.2 ; average, 

 14.9. 

 In the spring-wheat area about 33 per cent of the 

 production was on the farms having costs above the 

 average ; in the winter-wheat area about 40 per cent 

 of the production was on farms having costs above 

 the average. 



overcome the handicap that may be imposed by unfavorable weather 

 or by certain diseases, or, perchance, by insect enemies. These are 

 risks that demand the constant attention of the grower. Partly 

 because of these risks, the progressive wheat farmer is intensely inter- 

 ested in the development of methods which will reduce his costs 

 per unit of product and increase his profits. 



A study of production costs on several farms will provide many 

 suggestions with respect to practices that are more economical than 

 the customary methods on the majority of farms in the community. 

 Detailed analysis brings striking illustrations into the foreground. 

 When a better plan or a more economical practice is displayed, 

 farmers in general will appropriate the idea and will profit thereby. 



