IRRIGATED FARMING IN TWIN FALLS COUNTY, IDAHO 61 
OTHER OPERATING COSTS 
The total expense of maintaining the farm machinery (except 
interest) was distributed in proportion to the hours of direct horse 
labor expended on the respective crop and livestock enterprises. 
The automobile expense was first divided between farm use and per- 
sonal or family use. In 1919 and 1920 the farm use portion was 
distributed in the same manner as the machinery charge. In 1921 
the farm-automobile expense was treated as overhead expense. In 
distributing taxes and insurance the percentage of the land invest- 
ment for each crop to the total farm investment was first deter- 
mined. By applying these percentages to the total farm taxes and 
insurance, the charge against each crop was ascertained. Crop 
insurance was charged direct to the crop insured. 
In the operation of every farm there are a number of generai ex- 
pense items which, though essential, are not chargeable to any 
particular enterprise. These items are grouped under the heading 
“overhead.” This group includes such items as materials for re- 
pairing fences, buildings, and the irrigating system; the telephone; 
and the difference between the value of the labor expended directly 
on the crops and other productive enterprises at current rates and 
the total value of the labor expended per farm. Detailed cost ac- 
counts in other States indicate that the overhead expense for a given 
crop is approximately 10 per cent of the cost of labor, material, and 
threshing. This rate was used in computing overhead for the seven 
crops in 1919 and 1920. 
In 1921 the total amount of overhead per farm was computed. 
The distribution was made in proportion to the sum of three items 
charged to the productive enterprises: (1) The value of the direct 
man labor at the current rates; (2) the cost of the direct horse labor 
as charged to the productive enterprises; and (3) the cost of the use 
of machinery. The miscellaneous items of expense consist almost 
entirely of storage charges and the expense of cleaning some of the 
crops before being marketed. The sum of the charges for labor, ma- 
terials, and other operating costs equals the total operating cost per 
acre. 
NET OPERATING COST PER ACRE 
Net operating cost per acre equals total operating cost less crop 
credits. Crop credits consist of the value of such items as the pas- 
ture that is available after the crops are harvested, cull potatoes, 
cull beans, bean straw, clover straw, one cutting of red-clover hay 
and sugar-beet tops. The acre value of the crop credit of red-clover 
seed dropped from $16.56 in 1919 to $5.69 in 1920. This accounts 
for the increase in the net acre operating cost of producing red- 
-elover seed in 1920. 
INTEREST CHARGES 
The interest charge represents 7 per cent on the capital involved 
in the production of each of the seven crops. Since the average rate 
paid on farm mortgages in Twin Falls County in 1919 was 7.2 per 
cent, 7 per cent was allowed for the use of capital. During each of 
_ the three years interest was a substantial part of the net cost of pro- 
ducing an acre of each of the seven crops. 
