MILK PRICES 20I 



make up the total feed and other costs of milk production 

 remained constant in a given district, only the values of 

 the different items changing from time to time. The 

 formula adopted was based on a study, covering a period 

 from 1908 to 1915, inclusive, of 36 Illinois farms, including 

 873 cows.' This study showed the following average costs 

 of producing 100 pounds of 3.5 per cent milk in terms of 

 feed and labor: 



22 pounds home-grown grain 

 22 pounds purchased grain 

 50 pounds hay 

 188 pounds silage 

 39 pounds forage 

 2.42 hours labor 



These were subsequently rearranged into four groups, as 

 shown below. 



Knowing the quantity of each of the various items 

 entering on the average into the production of 100 pounds 

 of milk, and having ascertained the average price of each, 

 as well as the average price farmers received for their 

 milk during the basic eight-year period, the Commission 

 proceeded to determine what should be the current value 

 of milk at the new feed and labor value. It was assumed 

 that prices of milk had been sufficient to cover costs and a 

 profit during this basic period, for "it would appear from 

 the testimony that the dairy industry in the Chicago 

 District had been a reasonably successful industry during 

 a normal period of eight years preceding the war period. 

 Lands had increased in value — improvements had oc- 

 curred. The financial worth of those engaged in the 

 industry had materially improved. That profits had not 



' Hoard's Dairyman, Mar. i, 1918, p. 238. 



