682 Cost of Producing Farm Products. [feb., 



local prices, cause a relatively small gross product from the 

 cattle, the greatest net profit will be obtained by the use of 

 cheap fodder crops. On the other hand, when high prices for 

 products prevail, when cattle are highly productive and where 

 good markets are close at hand, the gross product from cattle 

 may be increased by feeding the maximum number of cattle on 





Cows of high productivity. 



Cows of low productivity. 





Ten cows 

 fed on the 



produce 

 of lo acres 



of clover 

 and timothj 



at 2 tons 



per acre. 



Fifteen cows 

 fed on the 

 produce of 



10 acres 

 of maize at 

 4 tons per 

 acre. 



Ten cows 

 fed on the 



. produce 

 of 10 acres 



of clover 

 and timothy 



at 2 tons 



per acre. 



Fifteen cows 

 fed on the 

 produce of 



10 acres 

 of maize at 

 4 tons per 

 acre. 



Interest charges on capi- 

 tal value of cows at 

 5 per cent 



(Sost of labour for 6 

 months 



Cost of grain given to 

 cows 



Cost of producing hay 

 or fodder ... 



Total cost 

 Cash received from pro- 

 duce of cows 



£ s. d. 



2 I 8 



21 17 6 



14 15 10 



14 10 5 



£ s. d. 



326 

 32 16 3 

 22 3 9 

 25 8 5 



£ s. d. 



I 9 2 

 20 9 7 



5 211 

 14 10 5 



£ s. d. 



239 



30 14 4 

 7 14 4 

 25 8 5 



53 5 5 

 70 12 6 



83 10 II 



105 18 9 



41 12 I 

 43 5 5 



66 0 10 

 64 18 I 



Difference = profit qr 

 loss 



+ 17 7 I 



+22 7 10 



+ I 13 4 



- I 2 9 

 (loss) 



a given acreage with relatively expensive fodder crops. In 

 short, the increase in the product must be proportionately 

 greater than the increased cost of production. 



One result which has been obtained from these investigations 

 has been the introduction of improved methods of farm book- 

 keeping, and in this connection the report observes that the 

 fact that many farmers have made money without the aid of 

 systematic plans for field management and farm accounts does 

 not mean that they could not have made more money had their 

 business been more systematically conducted with the aid of 

 well-kept accounts, and the failures of many farmers to make a 



