THE COST OF CATTLE 37 



that die or those that can not be sold for beef; in general the 



relatively small number would have little efEect on the average. 



With a figure for the probable length of usefulness of a cow 



to determine the depreciation per year, all that is necessary 



is to subtract the final sale price of the cow for beef from the 



cost upon entry, and divide the result by 5, the average length 



,,.,.,, , rr,, ,• , 111 first cost — final price 



of life m the herd. The formula would be ; • 



length of life 



With a cow weighing 1,000 pounds, and cows selling for 4 



cents per pound, and with a first cost of the cows of $65, the 



65—40 

 depreciation per year is =$5. The depreciation would 



be quite different if $200 cows were bought. In that case it 



200-40 

 would be =$32 per year. A few good calves may soon 



pay this extra cost, but when it is charged to the cost of milk 

 it is an important factor. Depreciation is least when large, 

 common stock is kept, for at the present high price of beef 

 large cows can be sold for almost as much for beef as they 

 could be raised for or bought as dairy cows. Some make it 

 a practice to be constantly buying and selling cows, but this 

 encroaches upon another business and should not be included 

 in the cost of producing milk. 



Interest, taxes, and insurance are other charges in the cost 

 of cows. Interest may be figured at the same rate as above, 

 S per cent, and taxes also at the same rate, although in many 

 sections it is a common practice to base the taxes on the land, 

 no greater taxes being charged where 50 cows are kept than 

 where there is only one. Dairy cows are seldom insured 

 against death by disease, except in the case of particularly 

 valuable animals. Insurance against fire and storm is a small 

 item. The total annual cost of cows is, therefore, as follows: 



65-40 



Depreciation, $S-oo 



S 



Insurance, $65 at 0.3 per cent 31 



Taxes, $32.50 at 2 per cent 65 



Interest, $65 at 5 per cent 3.25 



Total cost per cow per year $9.21 



