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1} BULLETIN 963, U. S. DEPARTMENT OF AGRICULTURE. 
mortgaged. Since on the farms studied the beet land was given a 
higher land valuation, sugar beets assumed a greater proportion of 
the interest cost than the remaining crop enterprises. 
Land rent is directly related to interest charges; but it should be 
borne in mind that the share or cash payment for the rent of land not 
only covers interest on investment in such land, but also takes care of 
land taxes, insurance, and assessments for irrigation water. 
On farms where the greater part of hand labor is on a contract 
basis it is the custom for the sugar company to advance the operator 
sufficient money to pay approximately one-half of the total cost of 
hand labor as soon as the thinning and hoeing have been completed. 
The amount of this loan, with interest, is deducted from the beet 
receipts in the autumn. This interest is a part of the cost of raising 
beets, and it has been so charged in this study. 
INSURANCE AND TAXES. 
Figures on farm imsurance, taxes, total real-estate investment, 
and value of the land per acre, were obtained from each operator. 
From these data the investment in beet land was computed and from 
this the percentage of the beet-land investment to the total real- 
estate Investment was determined. By applying this percentage to 
the total farm insurance and taxes the charge against sugar beets 
was ascertained. This method was employed where the operator 
owned the land. Where the operator was a renter the insurance and 
taxes were usually negligible. 
MACHINERY. 
The annual cost of machinery includes such expenses as repairs, 
fuels, lubricants, labor of upkeep, depreciation, interest, and insur- 
ance, minus credits for machinery hired out. A part of the equip- 
ment used in the preparation of beet land is required in caring for 
other crops, hence the annual machinery charge must be distributed 
as equitably as possible over the enterprises involved. An arbitrary 
plan was employed in assigning the machinery charge to the crop 
enterprises, but in doing this an attempt was made to give each crop 
its proper weight so that the expense would be distributed propor- 
tionately. The machinery charge was fairly uniform throughout all 
districts. A separate charge of a few cents per acre is included for 
the hire of rollers by some operators in all of these districts. 
OVERHEAD. 
There are certain other costs which are not chargeable to any one 
enterprise in particular, but have to be carried by the farm as a 
whole, as overhead, a certain share by each enterprise. To make 
a 
