54 MILK PRODUCTION COST ACCOUNTS 



A further analysis may be made: Let us assume that the 

 cows are kept in a building worth only $i,ooo, that the cattle 

 are kept on pasture and fed chiefly straw and stover during 

 the winter, that the bedding could not be marketed, that much 

 of the hay could not be sold at $i6 per ton on account of 

 being damaged by rain, that the equipment is relatively in- 

 complete and inexpensive; also assume that the cows are fed 

 less grain, producing most of the 3,000 pounds while on pas- 

 ture, and only given stover, straw, and perhaps a little grain 

 in the winter. The item of labor under this system would be 

 less. Under these conditions the annual cost of keeping cows 

 could be decreased to $60, or the sale price of the milk. Some 

 dairymen would continue under these conditions for the pay 

 of $27 per cow per year for labor. 



With the data in the preceding chapters comparisons can 

 be made of each item of cost, so that they may be taken as 

 a guide to cost under any condition of management or prices. 



An application of the formula warrants the following con- 

 clusions: 



1. Under present prices of feed and labor a herd of high- 

 producing cows will when properly managed return 5 per cent 

 interest on the capital invested in a good plant, and an addi- 

 tional 5 per cent for services of the manager not included in 

 regular labor charge. 



2. The average cow of the United States does not produce 

 enough milk to pay the cost of production when managed 

 under the same conditions and equipped to produce high-grade 

 milk. 



3. Where the herd uses feeds that can not be marketed, 

 where a cheaper system of management is used, and where the 

 cows are housed in cheaper buildings and given less care, they 

 may pay the cost of production of milk. 



4. Under some conditions, summer dairying would be more 

 profitable than the all-year practice. 



5. It does not pay to use intensive methods or winter grain 

 feeding with low producing cows. 



6. The value of pasture for dairy cows has been under- 

 estimated. 



