12 BULLETIlsT 963, U. S. DEPAETMENT OF AGBICULTURE. 



mortgaged. Since on the farms studied the beet land was given a 

 higher land valuation, sugar beets assumed a greater proportion of 

 the interest cost than the remaining crop enterprises. 



Land rent is directly related to interest charges; but it should be 

 borne in mind that the share or cash pajmient for the rent of land not 

 only covers interest on investment in such land, but also takes care of 

 land taxes, insurance, and assessments for irrigation water. 



On farms where the greater part of hand labor is on a contract 

 basis it is the custom for the sugar company to advance the operator 

 sufficient money to pay approximately one-half of the total cost of 

 hand labor as soon as the thinning and hoeing have been completed. 

 The amount of this loan, mth interest, is deducted from the beet 

 receipts in the autumn. This interest is a part of the cost of raising 

 beets, and it has been so charged in this study. 



INSURANCE AND TAXES. 



Figures on farm insurance, taxes, total real-estate investment, 

 and value of the land per acre, were obtained from each operator. 

 From these data the investment in beet land was computed and from 

 this the percentage of the beet-land investment to the total real- 

 estate investment was determined. By applying this percentage to 

 the total farm insurance and taxes the charge against sugar beets 

 was ascertained. This method was employed where the operator 

 owned the land. Wliere the operator was a renter the insurance and 

 taxes were usually negligible. 



MACHINERY. 



The annual cost of machinery includes such expenses as repairs, 

 fuels, lubricants, labor of upkeep, depreciation, interest, and insur- 

 ance, minus credits for machinery hired out. A part of the equip- 

 ment used in the preparation of beet land is required in caring for 

 other crops, hence the annual machinery charge must be distributed 

 as equitably as possible over the enterprises involved. An arbitrary 

 plan was employed in assigning the machinery charge to the crop 

 enterprises, but in doing this an attempt was made to give each crop 

 its proper weight so that the expense would be distributed propor- 

 tionately. The machinery charge was fairly uniform throughout all 

 districts. A separate charge of a few cents per acre is included for 

 the hire of rollers by some operators in all of these districts. 



OVERHEAD. 



There are certain other costs which are not chargeable to any one 

 enterprise in particular, but have to be carried by the farm as a 

 whole, as overhead, a certain share by each enterprise. To make 



