24 



BULLETIN 1455, U. S. DEPARTMENT OF AGRICULTURE 



CASH AND NONCASH COSTS 



Farm products vary greatly in the demands they make upon the 

 farmer while they are in the course of production. Some of them 

 demand relatively large amounts of labor, but distributed through- 

 out the year so that it can be performed by the operator and members 

 of his family, with little need for cash expenditures for wage labor. 

 Some farm products make little demand for materials and supplies 

 other than those raised on the farm. In the production of apples 

 there is considerable demand upon the operator for direct cash 

 expenditures for both hired labor and materials. 



Upon the 48 orchard farms cash costs averaged for the five-year 

 period, 1916-1920, 63 per cent of the total cost of production and 

 amounted to $5,170 per orchard. (See Table 22.) This amount 

 was the total outlay for 12 major items, the most important of 

 which had to do with the harvesting of the apples. The four items 

 of expense required in harvesting — that is, picking, packing, barrels, 

 and hauling — required a cash expenditure per orchard of $3,223, or 

 62 per cent of all cash costs. 



Table 22. — Summary of production costs per farm, ^8 orchard farms; average for 



1916-1920 



Item 



1916 



1917 



1918 



1919 



1920 



Average 

 1916-1920 



Cash costs: 



Regular hired labor.. 



Dolls. 

 720 

 1,164 

 1,256 

 73 

 127 

 132 



38 

 54 

 16 

 137 

 104 

 104 



Dolls. 

 875 

 732 

 485 

 53 

 109 

 180 



50 

 57 

 17 

 63 

 105 

 123 



Dolls. 



987 



1,715 



1,728 



78 

 155 

 226 



96 



76 



16 



226 



114 



186 



Dolls. 

 1,018 

 1,462 

 850 

 165 

 189 

 302 



73 

 130 



17 

 113 

 126 

 302 



Dolls. 



1,159 



2,446 



3,471 



255 



237 



260 



15 

 116 



17 

 265 

 190 

 296 



Dolls. 

 952 





1,504 



Barrels . . ... ... 



1,558 



Fertilizer 



125 





163 



Purchased grain, horseshoeing, and veterinary... 

 Repairs: 



220 



54 



Machinery.. _ ._..____.- 



87 





16 



Hauling apples (part hired) . . 



161 



Taxes and insurance . ... 



128 





202 







Total cash costs 



3, 925 



2,849 



5,603 



4,747 



8,727 



5,170 







^Noncash costs: 



Reserves for depreciation- 

 Buildings and fences 



96 

 117 



747 



102 



1,524 



105 

 134 



751 



79 



1,535 



113 

 193 



868 



50 



1,534 



120 

 273 



921 



52 



2,032 



149 

 329 



967 



64 



2,318 



117 



Mac hiner v 



209 



Deductions from profits — 



851 



Family Iqhnr 



69 



Interest on farm valuation at 5 per cent 



1,789 



Total noncash costs .. 



2,586 



2,604 



2,758 



3,398 



3,827 



3,035 







6,511 



5,453 



8,361 



8,145 



12,554 



8,205 





Credit deductions: 



Sale of bulk apples. . . 



574 

 817 



993 

 1,177 



745 

 611 



2,109 

 705 



871 

 373 



1,058 



Miscellaneous farm receipts. 



737 







Total deductions 



1,391 



2,170 



1,356 



2,814 



1,244 



1,795 







Gross cost less deductions (net costs) 



5,120 

 114 

 1.53 



3,283 



67 



2.48 



7.005 



140 



2.88 



5,331 



95 



3.78 



11,310 



188 



3.70 



6,410 



Net cost per acre.. ... . ........ 



121 



Net cost per barrel . . . 



2.87 







For the five years, 1916-1920, the average cost of barrels was 

 $0.67 each. The average yearly price over this period varied from 

 $0.37 to $1.13 each. During periods of such wide variations in 

 prices it is difficult for the grower to know just what attitude to 



