62 BULLETIN 1421, U. S. DEPARTMENT OF AGRICULTURE 
TOTAL NET COST PER ACRE AND PER UNIT OF PRODUCT 
Net cost per acre is net operating cost per acre plus the interest 
charge. Costs were. highest in 1920 for all crops except alfalfa and 
lowest in 1921. The rainy harvest season of 1920 increased the acre 
cost of several of the crops. The cost of materials used varied most 
in the case of potatoes. The potato seed used was valued at $14.93 
in 1919, $48.10 in 1920, and $12.19 in 1921. The high value of the 
seed used in 1920 was largely responsible for high cost per acre for 
potatoes that year. In 1921 the cost of both man and horse labor 
was much less than during the two previous years. This and a ma- 
terial drop in the value of real estate (which reduced the interest 
charge) and a slight drop in the value of the materials used largely 
account for the lower total acre cost of each: of the crops in 1921. 
Net cost per unit of product is net cost per acre divided by the 
average yield per acre. High and low yields materially affect the 
cost per unit. 
VARIATION IN COST PER UNIT 
The data presented in the foregoing tables are averages. Such 
figures are likely to give the reader a misconception by causing him 
to judge the respective crops on the basis of the averages. As a 
matter of fact there were wide variations in the cost of producing 
each of the seven crops. The average is merely the “point about 
which the individual costs are scattered.” 
Tables 46 to 52 are designed to show the variation in the cost of 
producing a unit of each of the seven crops for each year of the study 
and the average yields of the respective crops on farms falling within 
the different cost groups; that is, on farms producing these crops at 
different costs. These tables present a wide variation in the cost 
of producing a unit of each crop. For example, the cost of produc- 
ing wheat during the three years varied from less than 80 cents per © 
bushel to over $3. The variation in the cost per unit for each of 
the other crops is equally striking. High average yields, these tables 
show, are very uniformly associated with low costs per unit and low 
® 
average yields with high costs. 
TABLE 46.—Variation in the net cost per bushel of producing wheat 
1919 1920 1921 
Variation in cost per bushel ; Fee. 
Number fa il ase | Number axe age | Number See 
of records | per acre of records per acre of records per acre 
- Dollars Bushels Bushels Bushels 
0:60:60: 0.7955 te Fe S58 SBS RD Seb el pe BE RCE |e BR a | Ree ape hk | ee 2 79 
SBD VEO QO te a er ee BH ree | a | a rp | 27 51 
1KOO ct O ROR eta Se el es Pe do Se Wee 1 51 3 795 30 47 
LE QONC OCR S Dire aaa os Bi eee Ses ial ee 10 50 7 47 28 46 
Ir4 ONG OMIE5O Seen ee Seen tee ete ee Oe he Oe 9 46 8 48 2 38 
TEGO CORL JOR oss See RS ee Er oe eae 16 42 1 44 6 38 
TESO TE ORIEG Dhar Reece meer 1 eaten aera Ob Sere 14 38 uf 40 oe, 36 
2:00:60) 24519 So eae ee eee Se ete 8 34 3 33 4 28 
DZ QZO EE Oi 2d ere pee pe rae ty et — chal Ld Pa 5 31 1 42 2 33 
2AODEO' 2:59) ees Ee ee CA ee a ES 1 DY NER 3 ae oo Sal ee <BR 1 30 
2460 COPD 7,9 =e es 2 29 1 30; |beeicr es b eee 
DSO £0 DOO Bee UAE Se ke REIS MASR RS SNE?) eee 8 eee ae ne 1 93, |S eeae e eee 
3/00 and loverie: 62s eek a ay eerie eee ee ie | re 2 16 
ee eS ee ee a ee ee 
