METHODS OF CONDUCTING COST STUDIES. 23 
knows that there is an appreciable return from his total farm opera- 
tions, and to tell him that he suffered a loss on every live-stock unit 
he marketed is confusing to him. The confusion here lies in the 
analysis of the business. In one case it should be realized that the 
profits from growing the crops are returned in the form of live-stock 
products, and it might be equally true that were the field crops sold 
at their local market prices there might have been a still larger 
amount left in the bank after the expenses were paid. The farmer 
is primarily interested in comparing profits on the separate enter- 
prises as well as knowing the total profit from the entire business. 
For the nonsalable crops the common basis used by the Office of 
Farm Management and Farm Economics, and by most experiment 
stations, is that of the cost of production, as nearly as it can be esti- 
mated. In taking the opening inventory on a farm it is sometimes 
difficult to estimate the cost of production of such products as fodder, 
wild hay, roots, and other crops that have no ready sale value. 
Usually a very close estimate can be made, however, on the basis of 
the yield, the seed-bed preparation, the cost of harvesting, and other 
cost factors of the particular crop. With regard to corn silage, 
when the yield can be fairly accurately estimated in terms of bushels 
of marketable corn, it is quite satisfactory to estimate the value 
per acre of the corn crop at time of harvesting, minus the cost of 
husking, plus the cost of putting the corn in the silo. The cost of 
the latter operation is estimated on the basis of the approximate 
amount of time and the force necessary to fill the silo, and the engine 
and equipment charge in the operation. 
Another basis that has been used in estimating roughage values is 
that of the comparative feeding value, taking from experimental data 
the comparison of the feeding value of wild hay, silage, corn stover, 
corn fodder, and similar feeds as compared with the feeding value of 
marketable hay grown by the farmer or of a commercial feed, such as 
bran. 
The basis for valuing perennial or growing crops in the field at the 
time of inventory should be that of cost of production to the date of 
inventory, taking into consideration land preparation, value of seed, 
and any labor spent on the care of the crop chargeable to the current 
year's expenses. In the case of a crop like alfalfa, where no nurse 
crop has been used and where no crop has been obtained the previous 
year of seeding, it is necessary to include land rent and taxes for the 
previous year, but this charge should be distributed over the number 
of years which the crop will last with the original seeding. 
ITEMS IN QUESTION IN COST ACCOUNTING. 
Supervision. — In computing the cost of producing a farm product 
the point has been raised repeatedly as to the value of the operator's 
