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The average value of 2,060 acres of farmland with improvements was $70,102, 

 or $34.03 per acre. This ranch is typical of irrigated ranches on which ap- 

 proximately 85 percent of the meadowland is found. The typical ranch has 

 approximately 200 acres of hay meadows. This acreage is used as the basis 

 for cost analysis. 



Fixed Costs 



A large part of the total cost of producing hay is fixed, that is, regard- 

 less of whether the production per acre is 1 ton or 3, these costs are about 

 the same. Items included under fixed costs are: 



(1) Depreciation and interest on the investment in 

 machinery, machine sheds and stackyards, and 

 housing for hired help; 



(2) Interest on the investment in meadowland and its 

 improvements (this does not include other land); 



(3) Taxes; 



(4) Maintenance costs of ditches and fences on 

 meadowland. 



Depreciation on machinery is the only item included in the fixed costs that 

 varies appreciably as production per acre changes. In reality, this varia- 

 tion is insignificant because most of the depreciation on equipment is 

 accounted for by obsolescence and age. 



Ranchers with 200 acres of hay meadow have about $5,115 worth of equip- 

 ment. Of this amount, $3,305, or $16.50 per acre, is invested in equipment 

 for producing twine-tied hay (table 7). The remainder, or $1,810, is invested 

 in machinery for other purposes. Compared with the value of production per 

 acre, this investment in machinery per acre of meadow is relatively high. 

 Average meadowland is valued at $150.00 per acre. Therefore, the 

 average rancher has $166.50 invested in land and machinery per acre of 

 hay meadow. 



