METHODS OF CONDUCTING COST STUDIED. IB 
Table 1. — Beef-cattle loss and gain (actual farm figures). 
Number of steers -• - - 48 
Farm income $8, 398. 00 
Labor income $2, 996. 00 
Book loss (feed at farm price plus interest on cattle capital) $1, 103. 63 
Book loss per head $23. 00 
Gain (feed at cost of production, no interest) $659. 62 
Gain per head $13. 76 
Table 1 illustrates the point from a beef-cattle enterprise. On 
the farm in question, which yielded a farm income of over $8,000 and 
labor income of approximately $3,000, the book record on 48 steers, 
with feed at market prices and interest included as a cost, showed a 
net loss of over $1,100, amounting to $23 per head. Viewed from this 
angle only, a man having this experience might be considered quite 
speculatively inclined if he were to continue to feed steers. 
Charging the feed to the steers at the operating cost of production, 
however, with no interest on land charged as a cost, there is a gain for 
the cattle enterprise of $659, amounting to $13.76 per head. This 
approximates what the farmer actually received from feeding cattle. 
In other words, while he did not receive fully quoted farm prices for 
all the feeds consumed by the steers, he pocketed what might be 
termed a fairly satisfactory return for his handling of the cattle if 
there is no thought of what might have resulted if he had perchance 
done otherwise. It would not be surprising if this farmer were to 
continue his feeding operations. 
Carrying the comparison of opportunity and operating cost into the 
feeding of hogs, Table 2 illustrates the returns from the feeding of 
hogs for three years on a Minnesota farm. 
Table 2. — Hog profits on a Minnesota farm. 
1913 
1914 
1915 
Cost per 
bushel. 
Farm 
price per 
bushel. 
Cost per 
bushel. 
Farm 
price per 
bushel. 
Cost per 
bushel. 
Farm 
price per 
bushel. 
Corn 
SO. 39 
.16 
.29 
SO. 48 
.40 
.56 
SO. 32 
.28 
.28 
$0.53 
.32 
.54 
Soft 
SO. 18 
.34 
Oats 
/ SO; 42 
Barley 
. 45 
Hog profit per head 
10.62 
5.52 
10.24 
.84 
4.30 
2 20 
This table presents the comparison of the operating expense per 
bushel of corn, oats, and barley produced on the farm and the average 
farm price, which was used as the charge for the feed consumed by 
the hogs under cost-accounting procedure. It will be noted that the 
profit in 1913 in charging the feed at farm prices was fairly satis- 
factory from a cost standpoint, amounting to $5.52 per head. Charg- 
ing the feed at actual operating expense to the farmer showed a profit 
