26 MILK PRODUCTION COST ACCOUNTS 



erable. By storing the hay on the ground floor the cost of the 

 storage barn is greatly reduced. The cows can then be housed 

 in a separate one-story barn, which can be kept more sani- 

 tary and in which the cows are in less danger from fire. 



The number of cows to be kept in a herd is a factor in 

 unit cost of building. The cost per cow is less in a 50-cow 

 barn than in a 20-cow barn of the same construction. The 

 cost per cow for the barn varies in good dairies from $25 to 

 $100 or more per head. A 50-cow barn of modern construc- 

 tion, such as a hoUow-tile or concrete barn with concrete 

 floors, walls, and ceiling, can be built for about $80 per head. 

 This is for a good barn with proper ventilation system and 

 modern sanitary arrangement, for a specialized dairy capable 

 of meeting all requirements for the production of a high grade 

 of mnk. 



Interest on investment may be figured at 5 per cent. The 

 insurance will be from 0.2 to 0.4 per cent, depending on the 

 relation to other buildings, etc. The taxes will vary consid- 

 erably, depending upon the locality and method of assessment, 

 and especially upon whether the enterprise is taxed separately 

 or included in the whole farm tax. If assessed at one-half 

 value, at a rate of 2 per cent, the item of taxes would be 80 

 cents per cow per year. The depreciation and annual repairs 

 of a building of this kind would not amount to more than 4 

 per cent. A summary of the cost of building under these 

 conditions would be as follows: 



Interest, $80 at 5 per cent $4.00 



Insurance, $80 at 0.3 per cent 24 



Taxes, $40 at 2 per cent 80 



Depreciation, $80 at 4 per cent 3.20 



Total unit cost of housing $8.24 



