SEED, FERTILIZER AND EQUIPMENT 207 



the Indiana Experiment Station the value given to a ton of manure is 

 approximately $2.25, which represents the amount of fertility con- 

 tained in the manure at the prevailing market prices. At any rate all 

 fertilizer used should be charged to the succeeding crops. 



EQUIPMENT. This includes first of all the machinery used in the 

 production of the crop. In considering the depreciation in the value 

 of machinery much depends upon the care given and the extent to 

 which it is used. The rate of depreciation will vary from 5 to 20 per 

 cent. Probably from 7 to 12 per cent would be approximately correct 

 for most farms. This can be figured from the inventory taken in the 

 spring. Any new machinery purchased is charged to "Improvements" 

 and only the interest and depreciation charged to cost of production. 

 Adding to the depreciation, the interest on the average value of the 

 machinery for the year gives the total cost of machinery use. In order 

 to distribute this cost, it may be assumed that for every hour horses 

 were worked machinery was used. Knowing then the number of 

 hours spent in the care of each crop and the total cost of machinery 

 use the cost per "machinery hour" may be figured. Multiplying this 

 by the number of hours given to any crop gives the amount to be 

 charged against that crop for machinery use. Any labor in repairing 

 and keeping up the machinery is also charged to this account and ap- 

 portioned among the various crops. This account also includes har- 

 ness, etc. 



INTEREST, TAXES AND UPKEEP ON LAND. This may be 

 called the "Real Estate Account," which includes the value of land, 

 buildings, fences and water supply. Normal farm values should be 

 used. It includes also the upkeep of the land and improvements, in- 

 terest, taxes, depreciation of buildings, etc. The proportion of this to 

 be charged to each crop may be determined according to the acreage 

 devoted to the same, and buildings used, as barns, cribs, etc. 



In case the land is rented, the rental charge is considered instead 

 of interest on land. 



OVERHEAD EXPENSES. In addition to the interest on land 

 the interest on the cash required to run the farm should be charged. 

 This may be apportioned among the various crops, live stock, etc. It 

 should represent the average amount of money the farmer is obliged 

 to have on hand at all times during the year for the purpose of paying 

 current expenses. 



There is still left a great variety of items which plainly come under 

 the head of expense. Taxes on personal property, current expenses, 

 telephone, insurance, etc., must be apportioned among the different 

 crops, live stock, etc. 



