Tht RURAL NEW-YORKER 
1299 
Explanation of the Warren Formula 
What is this so-called “Warren formula” for deter¬ 
mining the price of milk? I hear it talked about, but do 
not understand what it is or how it is applied. J. B. 
The Warren formula was worked out by Prof. G. 
p. Warren of Cornell, as a basis for estimating a 
fair price for milk. Prof. Warren sought to work 
out the cost of producing 100 lbs. of milk, this cost 
including the grain, fodder and silage, the labor and 
all overhead expenses. His figures run as follows: 
The average annual quantities of feed stuffs, 
labor, etc., to produce 100 lbs. of market milk of 
average test is as follows: 
Grain . 
Hay . 
Other dry forage.... 
Silage . 
Other succulent feed 
Labor . 
33.79 lbs. 
43.3 lbs. 
10.8 lbs. 
92.2 lbs. 
8.3 lbs. 
3.02 hrs. 
When current values are applied to the above 
quantities, the sum of such values is 79.7 per cent 
of the annual cost of producing 100 lbs. of milk. 
The remaining 20.3 per cent is for bedding, pasture, 
use of buildings, cans and other equipment, bull ser¬ 
vice at cost, horse labor at cost, depreciation of 
dairy cows, cash paid for milk hauling, fire and light¬ 
ning insurance on cows, veterinarian fees and medi¬ 
cine, louse-killers, ice, salt and other minor and mis¬ 
cellaneous expenses. From the total value of these 
is deducted the value of calves, manure, feed bag9 
sold and a few other miscellaneous credits. In the 
above way, average annual costs are determined. 
To determine cost for any particular month, a table 
of percentages, known as Prof. Warren’s scale, is 
used, by the application of which percentages to the 
average annual costs, the cost for each month is as¬ 
certained. Taking 100 per cent as the average an¬ 
nual cost of producing milk, the following percent¬ 
ages indicate the cost by months: 
January . 
February 
March ... 
April ... 
May. 
June .... 
July. 
August .. 
September 
(ictober . 
November 
December 
119 per cent 
114.7 per cent 
10G.1 per cent 
93.9 per cent 
79.1 per cent 
70.6 per cent 
SI per cent 
90.S per cent 
96.9 per cent 
110.4 per cent 
119 per cent 
120.2 per cent 
HOW THE FORMULA IS USED.—With the above 
figures as worked out by Prof. Warren, using as a 
basis first-hand data collected from hundreds of 
dairy farms, any farmer or organization like the 
Dairymen’s League can determine the cost of milk 
production on any date by simply applying market 
values on that date to the quantities of labor, feed 
and forage. Of course, there is always room for 
disagreement as to market value. In practice, there¬ 
fore, organizations like the Dairymen’s League have 
agreed upon certain well-recognized measures of 
market values. For example, in using the formula to 
figure on the present scale of prices on which the 
Dairymen’s League sold its milk, June grain prices 
were determined on the wholesale price of Prof. 
Savage’s monthly balanced ration, with $5 a ton 
added for local distribution costs. The United States 
Crop Reporter’s price for hay was taken; the 1919 
figures of the Department, of Farms and Markets 
rate per hour for labor, and the United States Crop 
Reporter’s price for silage, figuring 100 lbs. of silage 
as worth lbs of hay and 8 lbs. of corn. The per cent 
in Warren’s scale for the month of June was then 
applied to these values. Following are the actual 
figures used: 
THE APPLICATION OF THE FORMULA 
The Grain Ration, June Price 
200 lbs. wheat bran, wholesale. $5.86 
300 lbs. cornmeal, wholesale. 11.01 
300 lbs. ojlmeal, wholesale... 10.08 
200 lbs. gluten feed, wholesale. 7.72 
$34.67 
2.000 lbs.$69.34 
Profit . 5.00 
,, $74.34 
Feed (the most economic ration avail- 
abb 1 for dairy cattle as recommended 
by Prof. E. S. Savage of the Bureau 
of Animal Industry of the New York 
State Agricultural College)....... $3.72 percwt. 
Corn (United States Crop Reporter). 1.78 perbu. 
Hay (United States Crop Reporter).. 26.60 per ton 
Labor (farm wages as paid during 
1919, as determined by the New 
York State Department of Farms 
and Markets) . 38.5c. per hr. 
33.79 lbs. of feed at $3.72 per 100 lbs.$1.2569 
inn- " )S - °f bay at $26.60 per ton.6716 
199.5 lbs. of silage, represented by value of 
8 lbs. of corn and 16 lbs. of hay to 
100 lbs. of silage.4694 
3.02 hrs. labor at 38.05c per hr. 1.1627 
$3.5606 
100 per cent, 
$4.4675 
HE EXPRESSES POPULAR THOUGHT 
Applying percentage spread for June, i. 
70.6 per cent. 
Less 8 points butterfat at 4c. 
e., 
$3.15405 
.32 
Remainder being net cost for producing 
milk in June.$2.S3 
July Price 
Feed, estimated . $3.72 per cwt. 
Corn, estimated. 1.7S per bu. 
Hay, estimated . 18.00 per ton 
Labor (farm wages as paid during 
1919, as determined by the New 
York State Department of Farms 
and Markets) . .3S14 per hr. 
33.79 lbs. of feed at $3.72 per cwt.$1.256988 
50.0 lbs. of hay at $16 per ton.4040 
100.5 lbs. of silage, represented by value of 
8 lbs. of corn and 16 lbs. of hay to 
100 lbs. of silage.3S4191 
3.02 hrs. labor at 38%c per hr. 1.1627 
Total, being 79.7 per cent of entire cost. .$3.207879 
100 per cent.$4.02494 
Applying percentage spread for July, i. e.. 
81 per cent.$3.2602 
Less 8 points butterfat at 4c.32 
Remainder being net cost for producing 
milk in July.....$2.9402 
—or $2.95. 
August Price 
Feed, estimated. $3.72 
Corn, estimated. 1.7S 
Hay, estimated . 16.00 
Labor (farm wages as paid during 
1919, as determined by the New 
York State Department of Farms 
and Markets) . 38.5 
per cwt 
per bu. 
per ton 
per hr. 
33.79 lbs. of feed at $3.72 per 100 lbs.$1.256988 
50.5 lbs. of hay at $16 per ton.4040 
100.5 lbs. of silage, represented by value of 8 
lbs. of corn and 16 lbs. of hay to 100 
lbs. of silage .3S4191 
3.02 hrs. labor at 38.05c per hr. 1.1627 
Total being 79.7 per cent of entire cost.. $3.207879 
100 per cent 
$4.02494 
Applying percentage spread for August, i. e.. 
90.8 per cent— .$3.6546 
Less 8 points butterfat at 4c.32 
Remainder being net cost for producing 
milk in August.$3.3346 
—or $3.34. 
It will be observed that the application of the 
formula to current prices for labor and supplies is 
what determines the price. If prices of labor and 
supplies are under-estimated, or if the prices in a 
locality are higher than the estimate, the price of 
milk will be comparatively low there. On the other 
hand, if prices of labor and material are over-esti¬ 
mated, then the price of milk will be comparatively 
high. Estimates made by the United States Depart¬ 
ment of Agriculture are general, and estimates on a 
year back may vary to a considerable extent from 
current prices. Some of the estimates used seem low 
for the present season. Road builders through the 
State pay $7 a day to common unskilled laborers. 
This is 87.5 cents an hour, compared with 38.5 cents 
for the skilled dairy farmer, who in many cases is 
superintendent, business manager and laborer all in 
one. These estimates also assume that all milk 
averages 3.8 per cent during the year. If the actual 
average for liquid milk is two or three points lower 
the reduction for extra fat would be S to 12 cents 
less and the price so much more per 100 pounds. 
The advantage is always with the buyer in rich milk 
converted into cream, because the fat bought for 
40 cents per pound is worth more than double for 
cream, and usually for butter. It will also be 
observed that these estimates are based on net cost. 
Every other business adds a profit to the net cost 
fo determine price, and the economy of things will 
never be right until the farmer receives a profit on 
his net cost of production. 
Any farmer may take this formula and the cost 
of his local supplies and a fair labor cost averaged 
on his own and his family’s services, together with 
hired help, if he employs any. and figure out fairly 
accurately the cost of producing 100 pounds of milk. 
But, at best the cost will vary on different farms. 
With different men and different dairies. In any 
case the dairyman is entitled to his percentage of 
profit, and we may as well begin now to insist on 
the principle. 
Farmers and the Referendum Vote 
We could easily fill a complete issue of The R. 
N.-l r . with strong and militant letters from farmers 
regarding this vote for a candidate for Governor. 
We can give only a few. but they are typical of many: 
Inclosed please find our vote on your ballot and refer¬ 
endum. What’s the use of the primary, anyway? What 
effect did it have on the nomination of Presidential can¬ 
didates? Isn’t the whole thing, as far as “the people” 
are concerned, a humiliating farce? And “the people” 
pay for it. The Old Guard (?) twists a majority of 
the delegates “into line.” and there you have it. I have 
talked with scores of Republicans and Democrats, and 
they are disgusted. A new party with some common 
sense and an honest purpose is needed as never before. 
Ontario Co., N. Y. a. b. k. 
The trouble is not in the primary itself, but in 
the way it is handled. We should not abolish it, 
but make it more useful. The New Jersey law is 
much better. The damage is being done in the “un¬ 
official convention” by the wire-pullers who are try¬ 
ing to destroy the independent power of the primary 
by using a rubber stamp to identify their candidates. 
That destroys the “honest purpose” which our friend 
wants. 
AN ENTIRE FAMILY VOTES 
We arc inclosing our choices for candidates. This 
referendum is a fine thing. It may not put a “dirt 
farmer” in the Gubernatorial chair, but it ought to 
help, and it is a fine service to us all. You are doing 
a wonderful service in more ways than this. We feel 
that The R. N.-Y. is a sort of echoing breath of farm 
sentiment and farmers, and that is what a farm paper 
should be—a scout that keeps its ears close to the agri¬ 
cultural situation. Wo think, however, that it would 
encourage a more intelligent vote to give the political 
affiliations of the candidates alongside of their names 
on the ballot. A good man might easily fall by the 
wayside as far as helping the agricultural interests of 
the State if he happened to be tied up to certain of the 
parties. 
OLIVER W., CELIA M., MRS. W. S. AND W. S. LAWTON. 
Monroe Co., N. Y. 
In organizing this referendum we tried to give 
our readers a chance to vote for the man without 
regard to his party. It is quite well understood how 
these various candidates “line up” politically. The 
fine thing about it is that many families are acting 
just like this Lawton family. Great! It makes us 
think of Garfield’s speech, in which he said that 
great public questions are finally settled around the 
fireside. 
A 35-CENT DOLLAR VICTIM 
It is with great interest I note the mighty effort The 
R. N.-Y. is putting forth to arouse the farmers to the 
proper consideration of their right and welfare. For 
20 years myself and my people before me struggled 
along on one of those Southern New York hill farms. 
No doubt many a middleman is now on “easy street” 
spending the profits of our labor and sweat. As for 
ourselves, we are now in the big city, still the victims 
of this same vicious system. I say anything that can 
be done to relieve the situation will be a blessing for 
thousands of poor, half-starved children in these big 
cities and countless numbers of poor and oppressed 
farmers. You are doing fine work in showing our 
farmers in this State “the way.” I only hope that they 
will get together and kill this vicious market system 
once and for all. The vote is the best power at hand, 
and I hope that they will have vision to use that power 
honestly and fearlessly. The opportunity is now at 
hand to organize themselves into a solid body that shall 
dominate the situation and put the professional politi¬ 
cians out of business. This is the result we hope for. 
The farmers have got to “do it themselves.” Will they? 
Westchester Co., N. Y. E. A. A. 
Such men know the real issues of this campaign, 
which are bread, meat, clothing and shelter. That 
is why they want men in office who are responsive 
to the people and not to politicians. “Got to do it 
ourselves /” You are right, and the first step along 
the way is to pile up a vote that will make the 
politicians stop and think. 
The ballots are coming in well, and the results 
will be announced in good time. We ask you to pay 
no attention to any “suggested ticket.” but tell us 
frankly just who and your frieuds and neighbors 
prefer. The ballot is printed on page 1292. 
Smashing Mail and Express Packages 
There is a serious epidemic of breakage in the ship¬ 
ment of produce, possibly most noticeable with us in 
relation to eggs. Nothing is certain to escape the ven¬ 
geance of the wrecker, however. In the case of eggs 
it makes little difference whether they are sent by mail 
or express. Most of our local men are considerate, but 
every now and then we find some one right in our little 
towns who seems to take delight in helping to smash 
things. This liue of destruction is undoubtedly willful 
iu many cases. Eggs and other produce are better 
packed than in years gone by, when care was taken to 
carry things through without injury. The same destruc¬ 
tion is noticed in the goods brought in by our merchants. 
One of our dealers had a crate of glass jars just the 
other day well crated, apparently, that came to him 
with a third of the articles broken. This is only a 
sample. 
We have seen some of the men throw packages about 
as was never done in former days. They act mad about 
something, and occasionally say that they do not care 
how much is broken. In time claims are usually paid, 
hut even at that the shipper or receiver loses, and the 
transportation company has to add to the rates to make 
up for claims paid. Many think it is the result of 
returning the roads by the Government, as the men 
frequently said they preferred that the Government keep 
them. The men thought they would get better pay 
from the Government than from the railroad operators. 
That is very likely part of the cause, hut uot all of it. 
(Continued on page 1305) 
