26 



irrigating a meadow will produce more hay than a poor job and may cost 

 more, but this is not a part of the present problem; it is assumed that a 

 comparable job of irrigation is done. 



The other major item under variable costs is the cost of twine. For all 

 practical purposes, this cost is determined by the number of tons baled. A 

 rancher who buys a large rather than a small lot of twine can make certain 

 savings. But when these savings are computed on a per ton basis, the 

 difference is very small. 



The estimated costs of producing 400 tons of hay - 2. tons per acre from 

 200 acres of meadow on a typical Colorado mountain meadow ranch - are 

 $4, 991. 00, or $12. 53 per ton (table 8). 



Table 8 shows the basic data on costs, but adjustments must be made 

 for yields other than 2 tons per acre. As yields vary, the ratio between 

 fixed and variable costs changes. For example, costs per ton are estimated 

 to be $14 with a yield of 1. 75 tons and as low as $10 with a yield of 2, 5 tons, 

 assuming that no changes in practices and costs are required to obtain the 

 higher yield (table 9). 



Table 9. - Percentage distribution between fixed and variable costs in hay 

 production, and average cost per ton at specified levels of production 

 with one cutting, on a 200 -acre meadow 



Production 



Percentage of total costs that are ~ 



: Average cost 



per acre 

 (tons) 



Fixed ' Variable 



per ton 



1 75 



Percent Percent 



63.7 36.3 



62. 8 37. 2 ^ : 



62.0 38. ' : 



61.1 38.9 : 



Dollars 



: 14.06 



12. 53 



, 11.24 



10.26 



2 00 • 



2. 25 • 



2. 50 : 



Based on time and cost records of 14 Colorado ranchers for year 1957. 



Costs for Twice -Cut Meadows 



One naanagement practice considered is that of cutting hay meadows 

 twice a year. What effect does this have on average cost of production? The 



