METHODOLOGY 
Firms Surveyed 
All firms contracting with Commodity Credit Corporation to handle, process, 
and/or store loan tobacco were contacted in this study. This procedure was | 
developed in consultation. with the Statistical Reporting Service, U.S. Depart- 
ment of Agriculture. 
Data were obtained from each plant by an economist or an auditor assigned 
to the Economic Research Service from other USDA agencies. The cost data and . 
related volumes for each service performed were summarized and tabulated by 
plant, type of facility, and area, according to the plan outlined below. 
Depreciation and Interest 
To minimize the effects on cost of variations among plants in depreciation 
allowances and interest on investment, data were summarized using standardized 
rates’. 
The following depreciation allowances were used for buildings and equipment: 
Item : Rate : Years : se fvaec 
: : value 
: Percent Number Percent 
Tobacco storage warehouse ........: 4 2 -- 
BUS EAS 6 Oe pera ters) psones oye "a oe ear re : 5 20° a b> <I 
REGPYERS: 25914 fee tG5s ster aie ieee 6 2/3 SS) -- 
Threshing equipment ..... § wm eralenn eae : 10 10 -- 
job SREY Seeraeee weet eer re inter ares eee Sites 5 20 ay 
PEIZING PYSSS: ws «e4sce oe se ee ae eeu es 5 20 -- 
SCAIOS (ged «ogee weirs bree sire etmeiers = 3 20 == 
DACIG. a svete oicioverae ease oi oer ey + aleve ea ave : 20 s) =5 
SELCKS Giaeai- alene Siara.pie el ete we ote wee 20 5 -- 
Office equipment and furniture .... 10 10 -- 
AE OS) tie oe oaleieers wastes ae are 5 eS os 25 4 20 
OT ELC GCS vena vee are ts we ek a chee oe Pp) 4 20 
ThUGKS) ein ies = a eine oe # exe ie 2 yet aie : a5) 4 20 
SROGIKEOOM: lacie aysvaudie trae oa oe sin toe eee es 10 10 -- 
SHOP weGuIpMent % 5 S60 ce we sie een at . 10 10 -- 
Pie EQULpment 1s<.9 5 oes © ocidiet oe a bias 5 20 -- 
Interest was allowed at 7 percent on the average investment in buildings 
and equipment. 
Buildings, I = Building aequasi tion COSE TOF 
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