Historic, archived document

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In Cooperation with the Agricultural Experiment Station and the Extension Service of the Oregon Agricultural College

DEPARTMENT BULLETIN No. 1446

January, 1927

COST OF PRODUCING WINTER WHEAT AND INCOMES FROM WHEAT FARMING IN SHERMAN COUNTY, OREG.’

By R. S. WAsHBURN, Assistant Agricultural Economist, Division of Farm Manage- ment and Costs, Bureau of Agricultural Economics, and H. D. ScuppEr, Chief in Farm Management, Oregon Agricultural Experiment Station

CONTENTS Page Page UNETOOCMEH ONS =e ees See ee [Ae eViriaiaonlinecost. perm bushel: -— 902 ae ease 29

Extent of study and method of procuring data_ 3

Yield an important factor in decreasing costs

PASTOAS EU GIG Geese eee ep andeineiniCreasins<pronuS= == ee 29 UL O LITE GS nse eet ae es i hrncg 3 Summary of labor practices in wheat produc- GIVES LOC Kite ate ee ee eet 4 CTO TY See a ee ee ee I es ee 31 Farm area and capitalization__________________ 5 | Suggested plans for the organization and man- Average receipts, expenses, and earnings_______ 7 agement of wheat farms in Sherman County, Family living from the STE = poset panos comer saat 10 OFC oS eat et ee es 32 Cost and utilization of important factors of Standard organization of a 640-acre farm___ 33 DEOMI CLIO Messe se ree eee Se eS fe Standard requirements for field work______ 33 SANs SHES Ea] OY OY amen ee ay eens 11 Estimated cash receipts and cash expenses_ 36 HTOUSC RW Ol keeete ee ete eee eee ee ee 13 Effect of changes in wheat yields and prices DAG G HE Omyee lee ales a yee ats 15 WUpPOH Neb cash rerurns= = 6s os es ee 36 Relation of size ef farm to man labor, horse Family living from the farm_______________ 37 Work and othertactors:— == 17 Effect on the farm organization of increasing AV ETALEICOSESSDYELCRULG == + Slee fe es 21 ENEISIZE Ole DUSIM ESS ne an ee ee 37 Cash and noncash costs of production_________ 24 Effect of introduction of a tractor on the Cost of production, 1923 and 1924______________ 26 organization of a 1,280-acre farm_________ 39 INTRODUCTION

In a region like Sherman County, Oreg., where farmers are largely dependent on the production of wheat as a source of income, factors which influence the price received or the cost of producing the crop have a direct bearing on the profits from such a system of farming. Taking 1913 as a base year, the farm price of wheat and the cost of the factors of production in this region are seen to have been subject to very decided changes.

Index numbers of the farm price of wheat, the wages of farm labor, prices paid for farm machinery, and the value of farm land show an upward trend from 1913 to 1920. These trends are shown in Table 1 and Figure 1 and indicate that during the period the farm

1 Acknowledgment is due R. V. Gunn, formerly farm management demonstratur, Oregon Agricultural College Extension Service; Clair Wilkes, Oregon Agricultural College, and P. C. Newman, Bureau ef Agricultural Economics, U. S. Department of Agriculture for valuable assistance in collecting the field data presented in this bulletin. Thanks are extended to the many farmers through whose courtesies the procuring of the field data was made possible.

17834°—27——1 1

Y BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

price of wheat increased more rapidly than the other factors. When the break in the general price level of farm products came in 1920 the price of wheat declined much more rapidly and fell to a much lower level than did the factors of the cost of production, which resulted in heavy losses to wheat farmers generally. This situation continued until 1924 when the trend in the price of wheat was again upward. For that year the index figure for wheat stood at 171, as compared with a figure of 146 for farm wages and 182 for farm machinery (Table 1).

INDEX NUMBERS OF FARM PRICE OF WHEAT AND COSTS OF IMPORTANT FACTORS IN WHEAT PRODUCTION

9s = 1924 PER CENT 1913 =100 250 Farm Price of Wheot \ { Who/esa/e Value perAcre Prices of Lond with Major Farm 200 —_\/mprovements Machinery /3. tems ( | revere" Average Monthly, Pavey Woges of | eu

y ya A XN e Farm Labor 5 5 im 150 Without Board g— Samy = es e1e e eeree ad

100 ee el ar ite cc:

1913714 15 16 ‘17 "18 ‘19 (20) rel 22 123: 24 25 Seo

Fic. 1.—The price of wheat increased much more rapidly than production costs at the beginning of the World War and declined much more rapidly after the war

TaBLE 1.—Index numbers of the farm price of wheat and costs of important factors of production, 1913-1924 '

Wholesale

Monthly F Value per

Average, | wages of |PHCES Of13 | acre otal

Year of Rae farm labor He Aaa land with

per bushel 2 without imple- improve-

board mente ments

CO UR Sea ete aie RR ae al eee Wee Be or rd Ve SNe Pe aT Se 100 100 100 100 OTA Sees SE Pe. SREY ERS ae Eee ROS Os ee De eee 107 103 101 107 TOV 2 Ses ps Se 8 AT a a ree Bat ee ge are RO 116 98 105 100 LOU GS oa Ee ve Ane 2 a Ae ee 149 104 110 93 NG fan es ge a wo is ee nS ol ae ant a 3 268 137 131 109 SLO es ES a see a SLE Bs Se ei ae ne pa ag 273 171 178 139 UOT O RR OAS PEE Soe ah ced SY a On eee URIS Opel SANE ee 272 196 188 127 NOD ONS Bess he Se ne | Bee NC Leip anit one ase phe 4 s'* 269 200 196 160 AOD TEP See SESE ONT co ae SA Ee NSO RSs Tee ae ee eee 131 142 185 180 1 AS (Peo Seg SUSE See eR Neer ie Deer or g eh ene 135 142 161 133 1 Pe ter eS etaes a hers ay Ble) BEN UNM ated em ME AND. S 119 157 176 137 O24 72 2. Ee Sie POC | ceed See fur bee Se ego 171 146 182 136

1 All for the State of Oregon except for farm implements. The implement prices are from International Harvester Co. of America and are the prices to dealers over the United States.

2 Average of prices for year beginning July 1.

3 Effective as of April 15, for years 1913-1921. For the year 1922 effective as of September, 1921, and held through 1922; for 1923 effective as of May 8 that year; and for 1924 effective as of November 15, 1923, and remained in effect throughout 1924..

COST OF PRODUCING WINTER WHEAT IN OREGON ee

This study was begun early in the summer of 1921. Detailed information was obtained relative to the earnings on these farms as well as the cost of the factors of production. These have been reported in terms of physical requirements wherever possible. An attempt has been made to analyze the quantity requirements of labor and materials in the operation of these farms and to measure the effect of differences in methods and practices on costs and returns.”

EXTENT OF STUDY AND METHOD OF PROCURING DATA

The data on which this bulletin is based were obtained by personal interviews with actual farm operators in a study of the cost of winter wheat production and farm organization for 1920, 1921, and 1922. The study is based on 450 farm records, of which 145 are for the calendar year 1920, 153 for 1921, and 152 for 1922. The number of farms included in the tables is dependent on the data to be shown. Certain farms have been omitted from some of the tables because of incomplete data or other irregularities, ren- dering them incomparable with other farms included in the study.

AREA STUDIED

Sherman County, Oreg., is located in an upland area of the south- western portion of the Columbia River basin. The average annual precipitation at Moro, in Sherman County, is about 11.5 inches. Practically all of the rainfall occurs during the period from Sep- tember to June, inclusive. The topography is characterized by nearly level to very rolling slopes and is broken by canyons. The more rugged portions of the area are devoted principally to grazing purposes. The agricultural history of the region shows a gradual transition from a grazing country to one of wheat production by haphazard methods, followed by the present system of good summer fallow practice. Dry-farming methods are well established (fig. 2).

TENURE

Owner and share-rent systems are the only tenure systems used on the farms studied. Of the total number of farms represented, for all years, the number of farmers who owned the entire acreage farmed was about 27 per cent; the number who owned a part and rented additional land was about 31 per cent; and the number who rented all of their land, about 42 per cent. In all tabulations those farms of which a part of the acreage was owned and additional land rented have been combined with the owner group.

The two-thirds share system is the common method of rental. The landlord receives one-third of the crops produced and, with very few exceptions, he maintains the buildings and fences and pays the insur- ance and land tax. The tenant-operator usually receives free use of

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.2 The details relative to the cost of using horses, tractors, and combines, and the relative efficieney in the use of horse and tractor motive power on these farms, are reported in Department Bulletin No. 1447, entitled “‘Cost of Using Horses, Tractors, and Combines on Wheat Farms in Sherman County, Oreg.”’

4. BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

the native pasture and all proceeds from the sale of livestock and livestock products and two-thirds of the crops produced. He furnishes all livestock and equipment, pays all cash operating expenses and delivers the landlord’s share of the wheat to the local elevator or warehouse.

LIVESTOCK

The distribution of the different kinds of livestock, and their equivalent in animal units? per farm is shown in Table 2 and Figure 3. On most farms sufficient colts were raised to maintain the supply of

Fic. 2.—General view of the region studied showing a portion of the land in summer fallow and the remainder in grain crops. The common practice is to leave the land in fallow one year and follow with a crop of grain the succeeding year

work stock. The number of colts per farm averaged about 27 per cent of the number of horses kept. A majority of the farms kept enough milk cows, hogs, and poultry to supply the family needs and a little more. The small surplus was sold on the local market. Dur- ing the period of the survey there was a slight increase in the number of farms reporting cows, hogs, and poultry. The advisability of keeping more of these classes of livestock is considered later.

An animal unit is a mature horse or cow, or as many other animals as consume the equivalent quantity of feed. Two colts, 2 head of young cattle, 5 hogs, 7 sheep, or 100 poultry constitute an animal unit.

COST OF PRODUCING WINTER WHEAT IN OREGON ao

TABLE 2.—Distribution of livestock; averages for all farms studied, 1920-1922

1920 (145 farms) 1921 (153 farms) = 1922 (152 farms)

Ries ok r _ | Average | parms Average | Parms Average

LUESEOE = soon g Average | animal reporting sn Neraee animal reporting Average | animal per farm | units per | ,~ per farm | units per | .. per farm | units per

each class Rca each class ean each class ar

Number | Number | Number | Number | Number | Number | Number | Number | Number Horses_____ 1144 15.8 15.8 153 16.7 16.7 152 17.4 17. 4 Colts____.- 109 4.6 Po 121 4.6 2.3 113 4.2 2 Cattle: = 141 6.6 Deh 150 dao 6.1 150 7.6 6.2 Hogs. = 92 3. 5 .6 99 3.9 .6 102 4.7 .8 Sheep-_-_-__ 35 4.8 Sak 30 Path .4 24 1.8 ay Poultry = 140 64. 4 .6 149 67.8 suk 151 Voa0 ak

1 One farm reported no work stock.

DISTRIBUTION OF LIVESTOCK

ANIMAL UNITS PER FARM

a 6 8 10 12

CLASS OF (@) LIVESTOCK

I a a a a an OL I I a a a) eC el ene Sn ee es ete ee > 10S en tae ie gl! ete me oeicel wet sale als ets hemes sie; ee se. ee

| 921 WLLL LLL LLL 1922

192015 VLLLLLLLL

Horses

1921 1922

Poultry

1I920F.) Sheep ie 1922 1920 |."] ya Z rele

Fic. 3.—With the exception of horses and colts, only a limited amount of livestock was kept on these farms

FARM AREA AND CAPITALIZATION

The distribution of the farm area and farm capital is shown in Table 3 and Figures 4 and 5. Winter wheat production after summer- fallow was by far the chief enterprise. Of the average area per farm in 1922 on 152 farms, approximately 36 per cent was in winter wheat, 39 per cent in summer-fallow, 4 per cent in other crops, 19 per cent

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BULLETIN 1446, U. 8. DEPARTMENT OF AGRICULTURE

6

The crops, other than

were oats and barley which were

ivestock.

ture, and 2 per cent in waste land. produced on these farms

in pas wheat,

lized mainly as feed for |

util

DISTRIBUTION OF FARM AREA

ACRES-.PER FARM

500

1,000 1,250

750

250

S

OWNED FARM

ED

RENT

SHARE-

7) = o if

ies] Waste

=| Pasture

£.Fic. 4.—The area per farm was somewhat greater on owned than on rented farms. The acres in

Other Crops

[-°.] wheat

Summer Fallow

~ ‘seek

a

O

summer fallow were slightly less than those in crops, since on some farms a part of the crop area

was on nonsummer fallow land

DISTRIBUTION OF FARM CAPITALIZATION

DOLLARS IN THOUSANDS

TOTAL CAPITALIZATION

70

60

50

40

30

20

10

0

PER FARM (DOLLARS)

63,755

BSY Lond and Buiidings [<2] Mechinery PA Livestock FE] Feed ang Supplies JB cosh to run Form

Fic. 5.—The total farm ca

‘RENTED FARMS

pitalization was somewhat greater on owned than on rented farms.

The differences were mainly in the items of land and buildings, machinery, and cash to run farm

id pln eS bo OS =the a 2 pee aad CER ee oe

O38 eas os Garg SoS m™ bo oH a Us =e) ©

Cia) a ep g 2 aS (2

k, The average tota

On rented farms the landlord furn

and the tenant furnishes the livestoc

and cash to run the farm.

COST OF PRODUCING WINTER WHEAT IN OREGON vb

farms was $75.88 and on rented farms $72.91 per cultivated acre, 1920-1922. The average value of real estate per cultivated acre on owned farms was $65.92 and on rented farms $62.90. The average value of machinery on owned farms was $4.45 and on rented farms $4.20 per cultivated acre.

TABLE 3.—Disiribution of farm area and farm capitalization, 1920-1922

Owned farms | Rented farms

Item

1920 1921 1922 | 1920 1921 1922

Number | Number | Number | Number | Number | Number SAL ITIS Se = ees tee eens nes SNS rere a0 86 87 87 59 66 65

Acreage per farm in— Acres Acres Acres | Acres Acres Acres eV Gea Gee ise ees Se eee te 379 399 402 | 338 334 372 OthermCrO pS =e eee ee 43 63 54 | 37 40 39 Summer fallowes= = aa se ee 391 420 459 | 364 382 359 ‘Potalkewltivateds= | = =. ee 813 882 | 915 739 756 77 Pasian Stet eon eters eer en 8 Meee oes 237 234 240 | 138 146 | 161 IVWiASLG seo op ee eee ee a ee Sat ae 20 17 17 | 13 15 14 Pofaléper farmi=seeae oe Se Lae 1, 070 1, 133 ates 890 917 | 945 Farm capitalization: ! Dollars | Dollars | Dollars Doilars | Dollars | Dollars Band and buildings 1.2 = se 54, 528 69, 018 57,503 | 48, 526 47, 887 | 46, 208 ST VCS OC Keo ee matte Ret ee ae 2, 805 2D» 2,619 | 2, 740 2,717 | 2, 496 WMachineny=s2ai == seen an oe ea oe 4, 048 4,170 3, 388 | 3, 265 3, 480 | 2, 782 Heed andjsup plies ese ee ee 1, 473 1, 531 918 | 1, 366 1, 400 | 782 Cash topmunfarnte > - re aoe 901 960 42] | 806 687 | 198 Rotalgper fayaMes tera. c 2 a teee: eer 63, 755 69, 434 64,849 56, 703 56, 171 52, 466

1 On rented farms the farm capital, with the exception of land and buildings, was furnished by the tenant.

AVERAGE RECEIPTS, EXPENSES, AND EARNINGS

In Table 4, all farms are grouped according to tenure to show the average receipts, expenses, and earnings per farm. The rented farms are tabulated to show the business of the landlord and tenant separately, and for the farm as a whole. Of the total cash receipts for all years on both owned and rented farms, about 90 per cent was from wheat. Cash receipts from other sources were mainly from livestock sales and outside work with horses and equipment. The sale of work that had been done on summer-fallow land was a con- siderable item on some farms. Receipts of this kind might occur, for example, when a man moved to a new location or when he decided that he would reduce the acreage of wheat grown.

On rented farms the total receipts to tenant and landlord were approximately in the proportion of two-thirds to the tenant and one- third to the landlord. Receipts to the landlord for items other than wheat represent, in the majority of instances, money paid by the tenant for the landlord’s share of the wheat hay produced or cash rent paid by the tenant for the use of pasture land.

4 Averages shown throughout for both single and groups of years are weighted. Thus, averages per acre were obtained by dividing by the total acres of the farms studied; averages per bushel, by dividing by the total production, etc. In many cases the weighted and unweighted averages were the same, the difference between the results obtained by the two methods rarely being of much significance.

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8 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

TABLE 4.—Average receipts, expenses, and earnings, 1920-1922

Owned farms Rented farms !

Item Total for farm Tenant’s share Landlord’s share

1920 | 1921 | 1922 1920 | 1921 | 1922 | 1920 | 1921 | 1922 | 1920 | 1921 | 1922

MARIN G sees eae number _- 86 87 87 59 66 65 see |e

Cash receipts per farm: Wheat________- dollars__|10, 806|10, 239) 5, 961/12, 699) 9,410) 5, 925] 8, a4 6, ue 3, 783] 4,200) 3, 232} 2, 142 20) 1

Other crops-__---- Gos22 81 70 54 83 43 44 62| 145) 109 Live stock products Seek eS dollars__| 140 93) 132 77 86] 106 77 86 )n501 06 Sates tae ee Livestock sales_._.do....| 472] 252} 205} 284] 303} 169) 284) 303) 169)______}______]____-_ Outside labor__..do____| 294} 305) 345) 506) 327) 428) 506) 327; 428/______|______|______ Summer fallow sold ?

Aah EN Se dollars_- 45; 118 28 31 11 9 31 11 Of eee | ler eave Epes Other2e2 eee dos 3 18 2 3 2 4 3 2 4 13 23 15

——|| {_|“_)\ “|X| | “—| “|__| |

Total cash receipts Mees Relat 28h! dollars__/11, 841]11, 095] 6, 727/13, 683/10, 182] 6, 685] 9, 430] 6, 915} 4, 519) 4, 375) 3, 400) 2, 266

Cash outlay per farm: Man labor___-dollars__| 2,030} 1, 601] 1, 192] 1,912] 1,361] 1,108) 1,912} 1,361] 1, 108 Contract labor__.do___-| 288] 279} 273) 333) 257} 1738) 333) 254) 173 Normal repairs on ma- z

chinery, buildings, and fences___.dollars__| 593] 588) 448) 507} 469) 386) 449) 410) 328 58 59 58

Fuel and oil______ do 602) O13) 27393 |e ASS ae Stile 4 ee cA SS fees aie | eager | esate | eee DCCC S ewe earn dow l=). 120/52 192 67 96 83 71 96 83 CAL eh a spl era Heeger teas doz 277 155 126 398 184 163 507 294 248

Sips Oni area dollars: =|) 230|= 174|". 2164) = 3072 AS7| e129 | ae S07 ee L879 | eee | enero | eee Sacks and twine_do____ 516} 376} 282) 601) 370) 290) 588) 368] 286 13 2 4 Taxes and insurance

pS ee ee dollars__ 797| 820) 826) 785) 708) 743) 186) 160) 156) 599) 548) 587

Se ee poaroea —=dollarsss > (219}° 202); 3165/2) 180) 22186 |ae 137 SO a1 86 ae 3 7 | es | ee ee eee

Spat ea ee ~=- dollars. 2|) ~122|" -341|" 7133) (63712 290|=, 108 6375 290 |= NOS) merece eat eee eee Interest on borrowed working capital ee Mow Nes see dollars__ 127 164 91 118 114 68 118 114 (5) Meee GT tne ane (crs Pe Other! eee I dows 123 121 96 167 105 122 175 128 137 5) oS Secale ee Total cash outlay ee, _---dollars__| 5, 994] 5, 526] 4,256] 6, 529] 4,671] 3, 752| 5,976] 4, 192] 3, 203 675 612 649

LENS OSS RET” Dy) dollars__| 236) 191) 200 72| 120) 103 C2 gl 20 | ee 1 OS | eareeee | eee | ee Inventory decrease 3 pee eee dollars__| 1,216] 972] 1,575| 462} 746] 1,541| 328] 594] 1,395] 134) 152! 146

a | | | ed | | a | | ene | rs | ee |

Total expense__do____| 7,446] 6, 689: 6,031| 7,063] 5, 537| 5,396] 6,376] 4,906] 4,701] 809| 764) 795

Earnings per farm: 4 Farm income 5___do____| 4,395] 4,406} 696] 6, 620! 4, 645' 1,289) 3,054! 2,009) —182| 3, 566) 2, 636} 1, 471 Interest on farm capi- talization at 6 per cent_-.-.-_._dollars__| 3, 825] 4, 166] 3, 891| 3, 402] 3,370| 3,148} 491] 497| 376|____._|__--__]__--__ Labor income___-do____| 570) 240/—3195) 3, 218) 1, 275|—1859| 2, 563) 1, 512) —558)______}__-____|------ Operator’s labor_do____| 1,179] 1,098] 833] 1,214] 1,067] 840) 1,214] 1,067; 840 Return on farm capi- talization ¢__per cent_- 5} 4.8! —.2} 9.5) 6.4 291 (22.5) #1041163) 49% 3) | dole dee Family income’ Bae cia do dollars__| 4, 631] 4,597] 896] 6, 692] 4,765] 1, 392] 3,126] 2,129] —79 Family living from farm esr dollars__| 711) 588) 569} 550} 496) 439} 550} 496) 556)______}______]_-_.-_ Adult equivalent RP Pe ne number__ 4 4 Ale BS Olt 7OeO lone fe O| olde |b Oe Old a ids0 [ees eal See | pero

1 Receipts and expenses to landlord and tenant when combined are in some instances more than the total for the farm. ‘This is due to transactions between landlord and tenant which are not considered as a receipt or an expense for the farm.

? Refers to work on summer-fallow land which was sold or bought before the crop was planted.

; . Difference in inventory values of feed and supplies, livestock, machinery, and buildings, and summer allow.

Minus sign denotes loss. 5 Difference between the farm receipts and the farm expenses. Siete income minus the value of the farmer’s labor and management divided by the total farm capital- ation. 7 Sum of the farm income and unpaid family labor. ® Value of farm-produced food and a rental value for the farm dwelling.

COST OF PRODUCING WINTER WHEAT IN OREGON 29

Cash outlay per farm for most items of expense, especially in 1921, was somewhat less on rented than on owned farms. Hired-man labor was the largest single item of expense-on all farms. Others of the more important items of cash outlay were taxes and insurance, repairs, fuel and oil, sacks, and twine. The sum of the cash outlay, unpaid family labor, and inventory decrease constituted the total expense and, for all years, was somewhat higher on owned than on rented farms.

Receipts on owned farms exceeded the expenses by $4,395 in 1920, by $4,406 in 1921, and by $696 in 1922. These are the farm-income figures and represent the combined earnings of the farm capital

FARM EARNINGS ON OWNED AND ON RENTED FARMS (On basis of total Farm)

DOLLARS 1920 192] 1922

6 5 ee ey 3 7 : ] | | y : V > Qe aig. Fi ye Bee Yj oo Ge 7 : A | BQaiwe Y : ; Oe Zeca Cave _€Vboe 0 Zi Zi BZ Vo YG Y i iZ “2 ae | =| 7 Ge eee YG e eee / ee | | == 7 Y, é ae Bae 0

FARM LABOR FAMILY FARM LABOR FAMILY FARM LABOR FAMILY

INCOME INCOME INCOME INCOME INCOME INCOME INCOME INCOME INCOME V/A Owned Farms <a Rented Farms

Fic. 6.—There was a decided decline in the farm earnings for both owned and rented farms over the period 1920-1922

and the farmer’s labor and management. After deducting 6 per cent interest on the farm capital there is left for owned farms in 1920 a labor income of $570, in 1921 a labor income of $240, and in 1922 a minus labor income of $3,195. These figures represent what was left to the farmer for his labor and management, in addition to a house to live in and products furnished by the farm toward the family living. On rented farms after deducting 6 per cent interest on the farm capitalization there is a labor income which was some- what larger than for owned farms. The larger labor income on rented farms was due mainly to a higher yield of wheat on these

17834°—27——2

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ooo “wea 4 , ck ace

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10 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

farms, which in 1920 sold at 18 cents per bushel more than on owned farms. In addition, the farm capitalization and most items of expense on rented farms were lower than on owned farms.

The percentage return on farm capitalization determined by deducting the value of the farmer’s labor from the farm income and dividing by the total farm capital varied on owned farms from an average of 5 per cent in 1920 to an average of minus 2 per cent in 1922. The percentage return on rented farms ran somewhat higher than on owned farms.

The family income, or the amount of money available to the farmer and his family to pay living expenses, interest on farm capital and for savings, was also somewhat higher on rented than on owned farms.

The farm income, labor income, family income, and percentage return on farm capitalization are shown graphically in Figure 6.

Fic. 7.—A good farm garden. On many farms in the region much more attention might profitably be given to the production of home supplies, not only as a means of raising the standard of living but to supplement the farm earnings

FAMILY LIVING FROM THE FARM

In areas of specialized types of farming, in many instances little attention has been given to the production on the farm of home supplies. A majority of the farms in Sherman County are no ex- ception to this tendency. On the other hand, there were a few farmers who had very good gardens (fig. 7). During the period of the study two of the farms contributed no home-produced supplies. In addition there were 6 farms on which no cows were found, 87 farms on which no hogs were kept, and 5 farms which kept no poultry.

The value of the house rent and the quantities and value of the farm-produced food contributed toward the living of the farmer and his family are given in Table 5. In general, the quantities per farm of the items of food furnished by the farm were as large in 1922 as in 1920, or larger but lower prices for the year 1922 resulted in a tot Seer value per farm which was $129 less for that year than in 1920.

COST OF PRODUCING WINTER WHEAT IN OREGON © 11 TABLE 5.—Family living from the farm, 1920-1922

Quantity and value of farm-produced food

| Farms

Year studied Fruits and vege- Butter Milk Beef Pork tables | Seragernpee ie No. Dolls. | Lbs. | Dolls. | Gals. | Dolls. | Lbs. | Dolls. | Lbs. | Dolls. 1920 kee eee aa 145 Stall 112 67 | 289 112 27 5 475 70 192i se 153 40,119 49 | 306 76 64 6 536 54 1922582. 2k 5 eee 152 36 | 115 39 316 76 102 8 433 45 Quantity and value of farm-produced food Val

Value | Value Kadalt sae

Year of house] of all Tit adult

Poultry Eggs Nigrigred| BOE Seteeia | Slain unit

5 88 | value

No. | Dolls. | Doz. | Dolls. | Dolls. | Dolls. | Dolls. | Dolls. No. | Dolls. 192022 Sees eee ee 20 14 202 100 1 406 236 642 3.8 169 ODI eet eas 22 17 212 63 | 1 306 240 546 3.8 144 [G22 eae me ee 46 | 25 180 45 | 1 275 238 513 3.8 135

Of the total average value of all items the value of house rent constituted about 42 per cent, dairy products about 25 per cent, poultry and poultry products about 16 per cent, pork about 10 per cent, and fruit and vegetables about 7 per cent. The total value of the family living contributed by the farm varied from an average of $169 per adult in 1920 to $135 per adult in 1922. The average family consisted of an equivalent of 3.8 adults.

There was a wide variation on individual farms in the value of the family living furnished by the farm. In 1920 on 19 farms the total value per farm of farm-produced supplies was less than $200, on 60 farms it was from $200 to $400, and on 65 farms it.was $400 and over. In 1922 this value on 37 farms was less than $200, on 97 farms it was from $200 to $400, and on 18 farms it was $400 and over.

Taken as a whole, however, the value of the family living fur- nished by the farm was rather significant. For all years it was somewhat higher on owned than on rented farms. In 1920 the total value per farm of the family living furnished by the farm amounted on owned farms to $711 and on rented farms to $550. In 1922 on owned farms it was $569 and on rented farms $439 per farm.

COST AND UTILIZATION OF IMPORTANT FACTORS OF PRODUCTION

MAN LABOR

Human labor was the largest single item of expense on these farms. The amounts and cost of hired man labor, unpaid family labor, and the operator’s labor will be found in Table 6, for the years 1920 to 1922 inclusive. The total man labor per farm in 1920 amounted to an average of 26.5 months, in 1921 to 28.1 months, and in 1922 to 26.4 months. In the latter year the range in months of man labor on individual farms was from 12.2 to 91.4 months per farm. Approxi- mately 44 per cent of the total months of man labor was hired, 11 per cent was represented by unpaid family labor, and 45 per cent by

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12 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

the operator’s labor. The number of months of man labor expressed in terms of number of men shows an equivalent, in 1922, of slightly more than two men per farm.

TaBLE 6.—Amount and cost of man labor per farm, 1920-1922

1920 1921 1922 (67 farms)! (114 farms)! (152 farms) Item Za RATS

Labor Cost Labor Cost Labor Cost

Months | Dollars | Months | Dollars | Months | Dollars Hiredslabors sas 5 eee eee ees ie 7/ 1, 623 1355 1, 399 11.6 1, 155 Unpaidtfamily, laborts= 3a) ee) eee 2.8 213 2.6 173 2.8 153 Operator’s la bor wee eee err 12.0 1, 088 12.0 1, 070 12.0 836

Total at ae ek penne | 26. 5 2, 924 28. 1 2, 642 26. 4 2, 144

1 Certain farms have been omitted for the reason that the data on the months of hired man labor were incomplete.

The cost of hired man labor for all years was somewhat greater than the estimated value of the operator’s labor, although the average months of hired man labor was slightly less for all years, except 1921, than the months of labor of the operator. This is mainly because a large portion of the hired labor was employed during the harvest period at a high wage rate.

The months of man labor used on tractor and nontractor farms of specified sizes (table 7) indicates that there was some saving in man labor on farms where tractors were owned. This saving in man labor per farm owing to the use of the tractor was as follows: 0.8 months on 640-acre farms, 0.6 months on 960-acre farms, and 0.9 months on 1,280-acre farms. In selecting these farms for comparison care was taken not to include any which had an undue influence on the months of man labor used, such as farms on which there was an

appreciable amount of contract work or where outside work was done.

TaBLE 7.—Amount of unpaid family and hired man labor used on tractor and nontractor farms of specified sizes, 1921

Tillable acreage

a; ; pera ize. of |e OO Loa Number and class of farm fan labor Wheat Other |Summer- Total used crops fallow Tractor farms: Acres Acres Acres Acres Acres Months SFE See, Sad ey oR rere 640 219 36 294 549 10. 4 Spe Se oN EN Sh el a er a 960 335 32 406 773 12.5 epee male nN NUR eg ee WR S plien 1, 280 396 49 457 902 15.9 Nontractor farms: 14 oe eee De eae eeei 640 275 32 262 569 52 ene Ba CONmaEE TIL ane ins Wes Galen) poe: 960 294 81 383 758 13.1

62 SF a a ea | 1, 280 402 65 433 900 16. 8

COST OF PRODUCING WINTER WHEAT IN OREGON 13

HORSE WORK

The number of work stock per farm, hours of horse work per farm and per head of work stock, the cost of keeping work stock and the cost of horse work for the years 1920 to 1922, inclusive, on tractor and nontractor farms are given in Tables 8 and 9.

TABLE 8.—Utilization and average cost of keeping work stock on tractor farms,

1920-1922 1 s 3-year 1920 (23 | 1921 (27 | 1922 (20 Item farms) farms) farms) ieoeieee SS TZ Ne ATT ere sp re gees a ee ee nee acres __ 1,175 1, 105 1, 296 1, 183 ‘Pallabletareaupertfarna ee See eee eee dor 909 882 998 924 Work stock per farm__-___-__ Serio) ee Dee oe a Se ee number_- Re 14.6 16.2 |. 14.6 Tillable acres per horse per farm_______________________-=- GOn= t= 69 60 62 63 Acres in wheat per horse per farm____________________ doe: 31 26 29 28 Acres in other crops per horse per farm_______________ dol = 2 3 4 3 Acres in summer fallow per horse per farm___________ dows 36 31 29 32 Value ofawork-stock persfarm <2 a dollars__ 1, 736 1, 756 1, 596 1, 704 NWaliwe-ofeworkestock per Mead as dons 132 120 98 117 Cost of keeping work stock per farm_____________________ doze 1, 543 1, 361 1, 373 | 1, 424 Grain and mixed feed fed per head of work stock______ pounds__ 971 871 771 869 Hay and roughage fed per head of work stock____________ do 8, 624 8, 979 8, 108 8, 597- Cost of keeping work stock per head__________________- dollars__ 117 93 85 97 Hours worked per farm per year_____________________- number __ 8, 336 10, 692 9, 155 9, 479 Hours worked per head per year_________________________ dors 632 731 564 649 Cosiz per HOul: Olen OrsenWiOhKes= = ssa eres ee cents__ 19 13 15 15

1 Certain farms have been omitted from this table for various reasons, such as: More than one tractor per farm, an excessive amount of contract horse work, a large amount of horse work done outside, and other irregularities, which makes them incomparable with the farms included in Table 9.

TABLE 9.—Utilization and average cost of keeping work stock on nontractor farms, 1920-1922 }

|

a 3-year 1920 (56 | 1921 (79 | 1922 (72 | ~ Item | average farms) farms) farms) | 1920-1922 |

SS IZ. C VO lel ATTY eee ee ee ees oe OE Nee NIN acres__ 1, 004 992 1, 022 | 1, 006 Pillaplerareayperctar mir os53 see ee ere Fe eee douse 740 756 755 751 WWiOrksStOCK ger far = 5s sen es te oe a number -__ 17.9 18. 4 18.6 18.3 Tillable acres per horse per farm_________________________ dors: 41 41 41 41 Acres in wheat per horse per farm____________________ dol 19 18 18 18 Acres in other crops per horse per farm_______________ dos 3 3 3 3 Acres in summer fallow per horse per farm___________ does: 19 20 20 20 Walueiotsworkesiock perilarm: ssc = ie a eS dollars__ PEGE AP 2, 034 1, 863 2, 006 Value of work stock per*head’ = 22: 1355) ss = ets dors 120 111 100 109 Cost of keeping work stock per farm_____________________ does 1, 751 1, 521 1, 460 1, 562 Grain and mixed feed fed per head of work stock _____pounds__ 584 664 SAT 602 Hay and roughage fed per head of work stock____________ doz: 6, 742 7, 896 7, 060 7, 298 Cost of keeping work stock per head___________________ dollars_ 98 83 78 85 Hours worked per farm per year______________________ number__ 14, 154 15, 627 12, 927 | 14, 289 Hours worked per head per year____._______________ doe = 791 849 695 | 780 Cost per hour of horse work ______.___-__-_-________=___-_ cents__ 12 10 Ee 11

1 Certain farms have been omitted from this table for various reasons, such as: An excessive amount of contract horse work, a large amount of horse work done outside, owning self-propelled combine, and other irregularities which makes them incomparable with farms included in Table 8.

For these years the total area per farm averaged 177 acres larger and the tillable area averaged 173 acres larger on tractor than on nontractor farms. Notwithstanding the larger size of tractor farms, an average of 3.7 less horses per farm were kept than on nontractor farms. The tillable area per horse on tractor farms averaged 63 acres

5 See Department Bulletin No. 1447 for a detailed analysis of the cost of keeping work stock on Sherman County (Oreg.) farms,

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14 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

_as compared with an average of 41 acres on nontractor farms. The hours of annual work on tractor farms averaged 131 less per head than on nontractor farms.

The net cost of keeping work stock averaged $97 per head on tractor farms as against $85 on nontractor farms, although on tractor farms the hours worked per head per year were materially less than on nontractor farms. The greater cost of keeping work stock on tractor farms, together with the lesser hours worked, resulted in a cost per hour of horse work which was 4 cents higher than on non- tractor farms. The cost per hour of horse work for each farm was computed by dividing the total cost of keeping the work stock by the total annual hours of horse work for each farm.

Studies of the cost and utilization of work stock on tractor and on nontractor farms in other regions have, in many cases, shown a smaller number of hours of horse work per head on tractor farms, together with a lower cost of maintenance per head. There appear, however, to be several reasons why the cost of maintenance of work stock on these tractor farms, as well as on those in a number of other regions, should be greater than on nontractor farms, even where the number of hours of horse work per head was smaller on the tractor farms.

In the case of Sherman County farms on which tractors wereowned the quantities of grain fed, the hours of human labor spent in the care of work stock, and the charges for depreciation were somewhat greater than on nontractor farms. Likewise, the average value per head of work stock on tractor farms was higher than on nontractor farms, which in turn entailed an interest charge greater than on nontractor farms. On nontractor farms surplus work stock kept for harvest work with the combine was not of as good a grade as the smaller numbers kept on tractor farms. These horses on nontractor farms were fed larger quantities of wheat hay, especially during the harvest season, and lesser quantities of threshed grain and mixed feed than those on tractor farms. On tractor farms larger quantities of grain and chaff and straw were fed to take the place of the reduced hay ration. From these comparisons it would appear that a better grade of work stock was kept on tractor farms which received relatively better care than that kept on nontractor farms. The grain ration fed as grain on both tractor and nontractor farms was relatively low, because much of the grain consumed was fed as grain hay.

A comparison of the number of head of work stock kept on tractor and on nontractor farms of specified sizes and the hours worked per head per year is given in Table 10. Care was taken not to include any farms in these comparisons which influenced unduly the num- ber of head of work stock kept on the farm or the hours worked per head per year. No farms were included on which more than one tractor was owned, on which there was an appreciable amount of contract work, or where outside work was done. On 640-acre tractor farms the number of head of work stock averaged 5.6 less and the hours worked per head per year averaged 18 hours less than on nontractor farms of the same size; on 1,280-acre tractor farms 5.2 less head of work stock were kept and the hours worked per head per year averaged 112 less than on nontractor farms of the same size, -

COST OF PRODUCING WINTER WHEAT IN OREGON

15

TasiE 10.—Number of work stock kept and amount of horse work done on tractor and nontractor farms of specified sizes, 1921

Tillable acreage : Work Aron Number and class of farm Size of stock ee work farm Wheat Other |Summer- Total | Per farm aoe Sa 2) crops fallow NE } ‘Tractor farms: Acres Acres Acres Acres | Acres Number Hours Rie his Sie See Re eee ee eSB 640 219 36 294 | 549 10. 0 731 Bef ED Spe eee en arene 960 335 32 406 | 773 13. 0 524 Fy ete a eM e ea cer S s E aera Tee 1, 280 396 49 457 | 902 18. 0 199 Nontractor farms: 1 eee eee ee eS ee 640 Zo 32 | 262 | 569 15. 6 749 Ab aS OS he Se Le ee ee ee 960 294 81 383 758 17.4 75) Ge ee PS a ee 1, 280 402 65 433 900 2a, 911

In general, as the hours worked per head per year increased, there was some increase in the cost per head of keeping work stock but a greater decrease in the cost per hour of horse work. This relationship is clearly shown in Table 11 which serves to illustrate the importance of keeping only sufficient work stock to perform the farm work and of getting the maximum amount of profitable work out of the work stock. On those farms where horses worked less than 500 hours per horse per year, the cost of horse work amounted to an average of 16 cents per hour, but in the group where the hours worked per horse per year were 950 and over, the cost per hour of horse work was only half as much.

TABLE 11.—Relation of hours worked per head to cost per year of keeping wori: stock and cost per hour of horse work on 72 nontractor farms, 1922}

Tillable acreage [Sareea Net cost | Average of keep- Hours worked per head | Farms Average | aroun’ ing one Cost 10F x : size of | of work : hour of See ALE studied farm Grane Summer- Total | Pe head | heat horse PS | fallow "per year | POE work Number Acres Acres Acres Acres | Hours Dollars Cents essithanro0Qz ee 9 954 316 267 583 429 68 16 EHOOECORG SOs Seg 27 920 354 328 682 | 588 75 13 GO LORS OO meet ce kere a 19 1,011 375 351 726 | 731 | 79 | 11 SOO 0900 Bee 10 1, 306 513 533 | 1, 046 | 855 | 86 | 10 O50Fan diOwer aeons ee a 1, 122 410 514 | 924 | 1,098 | 92 8

1 The number of farms contained in this table has been made to conform to the number of nontractor farms shown in:Table 8.

FARM MACHINERY

The farms included in this study are of a type requiring a rela- tively large amount of farm machinery. The inventory value per farm of all classes of farm machinery for the three years of the study was as follows: 1920, $3,730; 1921, $3,872; and 1922, $3,129. The value per farm of general farm machinery—that is, all machinery except tractors, combines, and stationary threshing machines—varied from an average of $2,342 per farm in 1920 to $1,666 per farm in 1922. In the latter year the value of general farm machinery on different farms varied from $370 to $7,393 per farm and amounted to an average of $1.99 per tillable acre.

The items constituting the total annual charge for use of general farm machinery as given in Table 12, include fuel, oil and grease,

16 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

repairs, depreciation, and interest. The total annual charge for use of general farm machinery to wheat was made on the basis of the number of horse hours of use on the wheat enterprise. Deprecia- tion was the largest single item in the annual charge for use of gen- eral farm machinery and amounted to 58 per cent of the total. The other items of cost in the order of their importance were repairs, 20 per cent; interest, 16 per cent; and fuel, oil, and grease, 6 per cent. The annual use-cost of general farm machinery per farm over the the period 1920 to 1922 was from 38 to 43 per cent of its inventory value. The annual use-cost of tractors, combines, and stationary threshing outfits include fuel, oils and grease, repairs, insurance, depreciation, and interest. Charges were made according to actual hours of use® (Table 13).

TABLE 12.—Average value and use-cost of general farm machinery, 1920-1922 }

1920 1921 1922 Item (140 (149 (147 farms) farms) farms)

"Tllable-area: per farm = <.% ose oe re ee eee acres __ 766 810 837 Mverage- value per farm s5 <= aaa eres ee setae eee eee dollars __ 2, 342 1, 975 1, 666 ‘Use=cost:per farm 222202126 | See ees Go ae ee eee doles 899 820 713 idse-cost: per:tillable:acte=: 3 == 52 ee ee ee ee eee don iGalys 1,01 . 85 Wse-cost per: horse-hourioMuses 28s see ee eee dows . 082 . 065 . 061

1 All farm machinery except tractors, combines, and stationary threshing machines. Because of incom- pleteness of detail machinery cost data certain farms have been omitted from this table.

TABLE 13.—Average value and use cost of tractors, motor-drawn combines, and stationary threshing machines

1920 1921 1922 Item 42 72 6 45 82 8 40 80 7 trac- com- |thresh-| trac- com- |thresh-| trac- com- |thresh- tors bines ers tors bines ers tors bines ers

Average value per machine | Se epee ye eel dollars__| 3,469 | 2,140 | 2,607} 2,771} 1,872] 2,087 | 2,348 | 1,637 1, 820 Use cost per machine__do____| 2,359 1, 017 922} 2,080); 1,011 874 1, 892 941 756 Days of use per year | Sar ey ea es ee number-__ 63 24. 3 19. 2 55 23.9 PAST 51.8 23 23 Use cost per 10-hour day | Se Seep Me pT pa dollars__| 37.44 | 14.85 | 48.17] 387.82 | 42.32 | 33.941 36.55 | 40.87 32. 87

The most economical use of farm machinery is obtained. when it is used the maximum amount of time on profitable work. This fact is illustrated in Table 14, which gives the average value and the charge for use of general farm machinery on farms of specified sizes. These data indicate that, while the tillable acreage per farm was about 65 per cent greater on the farms of the larger size the machinery use-cost per tillable acre was 32 cents less on the farms in this group, and the cost per horse-hour of use 2 cents less. Under actual farm conditions a machine used only a few days each year lasts only a little longer than the same machine used a much longer time. Therefore from the standpoint of good management a farmer should attempt so to organize his business as to obtain, annually, the maximum of profit- able use of his farm machinery.

° See Department Bulletin No. 1447, for a detailed analysis of tractor and combine costs in Sherman County, Oreg., 1920-1922.

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COST OF PRODUCING WINTER WHEAT IN OREGON ‘17

TasBLe 14.—Average value and use cost of general farm machinery on farms of specified sizes, 1922

Size of farm

Item 640 acres 1,280 acres |

DS GOSS a op ee Eee tee ee Sees RS oe We ere oe number_- 24 16 AN ELAC CLVallilespeltanim= 2s iare women ue Sa eRe yer eet Fee See dollars__ 1, 295 1, 840 (ISCICOSE Dele hatiae a see vie ae es Ry NP OWS Te ca ee ee eee Go 601 690 sercostepertillable:a cre = sae ee a ee ee ey ee ee do==2 1. 04 BPA Wseveost, per, horse-hour of uses ts s2 = tse iss Sta Sry ee iii doe 06 | 04

The numbers of the principal farm tools represented on farms of specified sizes and the estimated years of useful life of this farm equip- ment are given in Table 15. The number of the various implements per farm was only slightly greater, and in many instances no greater on the farms of the larger size, and the estimated years of useful life, in most instances, nearly as oreat on the farms in this group. From the standpoint of economy the farms of the larger size were better able to obtain the maximum of profitable use annually from the farm equipment, thereby reducing their machinery cost per tillable acre and per horse-hour of use.

TABLE 15.—Kind, number, and years of useful life of principal farm tools on farms of specified sizes, 1922

| 24 farms—640 acres 16 farms—1,280 acres

Implement Rarns Hist Wars Bee report- |Machines weet report- |Machines Tisotal ing : ing : life life | =

| Number | Number Years Number | Number Years Walkin osplowes2s eter iy er 2 ag 13 14 9.0 14 20 8.0 SHilksyapl Owes apes tee eae ee ee ee Ss | 1 1 10.4 1 1 10. 2 Grea 1010 Waste eee ew ee ie Sea eee 24 47 1253 16 39 9.4 Spike-tootheharko writes sees ee Sees ees | 24 42 9.4 15 30 9. 2 Spring-Loophiharrow= 2.2 = ie 4 4 11.0 4 4 10.0 IDISkan arr O weeeecs oe ee wets et ee eer 7A} 27 9. 6 16 23 9.3 GUSIen Cinema Sc = ae net eee ee 16 19 11.8 9 12 12.0 RACK ass Sages ys gre eee 9g il 13. 4 6 9 10.8 Wieed era ssaeaes yank, ee roe it 20 26 15. 2 14 22 9.1 VEO yar Oe 110 @ Wm Gs eens ree ee 8 9 10. 0 1 1 10.0 ebay. TAKGr: ee aie Ea as Soa Biase iel est 4 4 15. 0 2 2 15.0 Grains d ile ee ge. ee EE 24 47 10.5 16 33 8.4 1 8 VESGYG Vo) ae saree ag eee er he, Sap te te ae peers Se 11 11 9.5 10 ll 10.0 GAT) Crees eee se ee a tke ee 8 8 10. 4 6 6 10. 0 Grant bind era is ee ee 2 10.0 1 1 8.0 GRA Clean ers= 252 ie eae ese ee i 19 19 10.3 12 13 9.0 Heavy farm wagon________-_ pple Beets Sid Gear 24 78 13.9 16 74 9.8 SUE ORG TU CKoaegee aah eee Se er LL 7 7 7.9 5 8 Tees SETA CTOL ego a ea Se ee RL ee 5 5 6.8 6 6 5.9 Oma TITS sree rae re aie aight De 19 19 8.1 12 12 Ted HRN eESWCTate nases see oe RS a SIGS te be hey 2 2 5. 0 5 5 7.1

! |

|

RELATION OF SIZE OF FARM TO MAN LABOR, HORSE WORK, AND OTHER FACTORS

It is impossible to obtain a large return from farming where the business is of small volume. On the other hand, while an increase in the size of the business may result in a larger income, there is always the possibility of large losses in unfavorable years. The data

17834°—27——3

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18 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

grouped according to tillable acres per farm shows that man labor, work stock, and machinery are used more effectively on the larger farms.

Growing wheat by the summer-fallow method in this region permits the farmer to operate a relatively large acreage, since by this system a relatively long period of time is provided in which to plow and prepare the land for seeding to wheat. In addition, a favorable climate allows the wheat to stand for a period of two or three weeks after it is ripe without shattermg and thereby provides a much longer harvesting season than in the more humid areas.

The question of the best size of farm unit for these wheat farms is dependent to a large extent on the experience and managerial ability of the farmer. It can be said with a fair degree of assurance, however, that these wheat farmers can not hope to make a comfortable living on less than a section of land. It is difficult to lay down a general rule as to the best size of farm, but it is safe to say that the farm should not beso large as to prevent the performance of the various field operations during the normal time for these operations. The in- fluence of size of farm on the cost of the factors of production and on the income from farming in this region is shown in Tables 16 and 17 for tractor and nontractor farms separately.

TABLE 16.—Relation of size of farm to cost of important factors of production and to returns on 79 nontractor farms, 1921

Tillable acres per farm Item 550 and 551 to 801 to | 1,051 and under 800 1,050 over

ENE) ch 0 Dk eo Ue ie ee rsa ee een Re beg ctor ees So PS number_- 19 33 13 14 PARV CTA CISIZE Ole TAT Ices he oc) oreo a Mn SENN a ecg eee acres__ 594 891 1, 146 1, 651 Average tillable area per farm-_-____________________-____-_- do 450 651 927 Nepal Months of hired-man labor per farm________-_-_-____- number_- 5.4 10. 5 15.4 19.9 Months of unpaid family labor per farm_________-_-____- domes 2a M3) 2a 3.8 Hired and family labor expense per tillable acre_______- dollars__ 1.44 1. 83 1.81 1.80 Total man-labor expense per tillable acre including operator_do___ 3. 50 3. 44 2. 87 PATS) Tillable acres per 12 months of man labor (including the oper-

ALOT! SNGIIITE) eles tae ys alae eee Wa reciente number-_-_ 277 315 372 429 Wiork stock perfarmis ten 35 2 egies alee ee anes dosan 183 7 16.9 19.8 26. 4 Tillable acres per head of work stock______-..-_---------- doses 32 38 47 49 Wiork-stock-cost per tillableracrem 2. ners Se dollars__ 2. 22 2.14 1. 78 1.83 Wost pershour of: horsesworke- oo. sees ee cents__ 9.1 9.8 8.8 Sa General farm machinery cost:

Per’ ferrite ic ei tetra gee oe ad ho cae dollars__ 404 475 683 905

‘Per/tillableacre ite sree 2 a Ee Nan Sa ee dows . 90 5 U3} 74 70 Net cost per acre of winter wheat________-.._._----_____. doves 27. 15 27. 18 26. 43 26. 33 Mield ‘per acre of winter wheat 5 si)! ) iia iene s bushels_ - 24.8 25.2 25. 6 25.6 Net cost per bushel of winter wheat _--__.___---.-__--- dollars__ 1. 10 1. 08 1. 03 1. 03 arm income)! . os Cri a ieee ene Be ae domen= 1, 930 3, 276 Dy) 7, 925 Interest on farm capitalization at 6 per cent_____.._-____- dou 1, 699 2, 767 3, 770 5, 433 Habor income 00... WSOP ane aie eee tee eae ee doze 231 509 1, 482 2, 492 Operator’silabor se) ay ih aS eae ae Eee ee aaa dona 928 1, 047 983 12om Return on farm capitalization_______.._.________-__-- per cent_- 3.5 4.8 6.8 7.4 Wnpaidsfamily labors (eee kien eee dollars__ 120 | 147 211 299 Returns per farm to capital and unpaid labor____________ doa 2, 050 3, 423 5, 463 8, 224

COST OF PRODUCING WINTER WHEAT IN OREGON 19

TaBLe 17.—Relation of size of farm to cost of important factors of production and to returns on 27 tractor farms, 1921

| Tillable acres per farm | Item |

| 550 and 551 to | 801 to | 1,051 and

| under | S00=. -|"*=1-050)— |-2 Over Marine: Sos hat Ste Seek ees Beet 2s obs FE number_- 6 8 6 7 AVGLAGCISIZE) OF [ARN iS i Soe te EL ee acres__| 560 921 1, 238 2, 032 Averacetilableares periarm= n= oe ee ee doses 458 680 890 | 1, 595 Months of hired-man labor per farm_________________- number-_| 5.8 Ig 0 13.8 21 Months of unpaid family labor per farm________________- Goss: ARs | see ete 23 3\saa aoe Hired and family labor expense per tillable acre_______ dollars__| 1. 46 1.80 1. 83 2. 24 Total man-labor expense per tillable acre including oper-

AOR Soe Sete ee ee eee ee ee ae ees dollars__ 3. 66 3. 39 3. 10 3.19 Tillable acres per 12 months of man labor (including the oper-

AEOT SHEMITC teat ee patie Sok we SE ge number_- 296 344 380 482 Wriorksstock: perifarimastts 28 nt Sep Poet eee Bee fee dol 10.3 12.0 16.8 17.9 Tillable acres per head of work stock_____________________ do 3 44 57 53 89 Work Stock- costspermbitlableacre==- === eens es dollars__ 2. 44 1. 63 1. 63 1.20 Cost-per hour:of horse: worke49 3 sete ees | cents_- 14.4 14.5 La 12.6 Tractor cost:

RG resins eee he ee = a ey Pee ee dollars__ 784 912 919 2, 225

OSG LE TOS Cle eer ne a eer eee Go ile 7A 1. 34 1. 04 1.39 General farm machinery ccst:

dee ea ON ahd 0S a sea ee nce ee RG Sees Aa ae do=_== 585 692 800 1, 358

Rem tillaibleacrezeses se en See ee eR doss2 itz, 1.02 . 90 . 85 Net cost per acre of winter wheat___-..______-___=______- dos2es 34. 34 35551 32. 98 28. 68 Wield: per acre of. winter wheats. 2 2 bushels__ 22.3 2555) 23-1 28.5 Net cost per bushel of winter wheat___________________ dollars__ 1. 54 1. 39 1. 42 1. 01 IRATATISLH CO MNG =e ees eels yen ee re a eee ee eer doses 1, 120 2, 996 5, 471 9, 353 Interest on farm capitalization at 6 per cent_____________- Gdozea. 2, 473 2, 793 4, 069 6, 744 aborsinco mie = ae ee re Ba ee eae en Se eee do____| —1,353 203 1, 402 2, 609 Operatowssabors ose gae Se ee eer CS ee dos 1, 010 1, 082 1133 1, 500 Retum-onfarny eapitalization=-— = 22=2 = ee per cent__ On| 4,1 6. 4 7.0 LOSE ya TCG Tesi oa id hye BY Oo) pieces * a PT eee eee se een dollars__ Ey Dell cei near 1502 eee ee eS Returns per farm to capital and unpaid labor___________ do Tel72 2, 996 5, 621 9, 353

1 Minus sign denotes loss.

As the size of farm increased, the tillable acres per 12 months of man labor and per head of work stock increased. This relationship is reflected in the cost of man labor and the work-stock cost per tillable acre. The total cost of man labor on tractor farms for those farms in the smallest tillable-acre group (550 acres and under) averaged $3.66 per acre, and the cost of man labor for those farms in the largest tillable-acre group (1,051 acres and over) averaged $3.19 per acre. Likewise, the work-stock cost in the lowest tillable-acre group was $2.44 as compared with $1.20 per acre in the highest tillable-acre group.

For all size groups there was a slight saving in man labor on tractor farms as measured by tillable acres per 12 months of labor.

The number of work stock per farm was somewhat greater on non- tractor farms, with the result that the tillable acres per head were considerably less on these farms. The fact that there was a smaller number of work stock on tractor farms resulted in a work-stock cost per tillable acre which was slightly lower than on nontractor farms of the same average size for all except the group of from 550 and under tillable acres per farm. On the other hand, because the hours worked per head per year were lower and the cost per head of keeping work stock somewhat higher on tractor farms, the cost per hour of horse work on farms of the same average size was higher on tractor than on nontractor farms.

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20 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

-_

The advantage of a large farm as measured by the cost of farm machinery per tillable acre is well illustrated on these farms (fig. 8). The cost of general farm machinery per tillable acre was decidedly lower on the farms of the larger sizes. The tractor cost per tillable acre decreased with an increase in size of farm. The high tractor cost per tillable acre in the largest tillable acre group was mainly because of an abnormally high expense for cash repairs for some trac- tors in this group. The influence of the size of farm on the cost of the factors of production is, of course, reflected in the net cost of producing wheat, and here again there appears to be a distinct advantage in favor of the large farm.

On the group of tractor farms having the smallest tillable acreage per farm (550 acres and under), the net cost of producing winter wheat was $34.34 per acre, which decreased to $28.68 per acre for the group having the largest tillable acreage (1,051 acres and over) per farm. A comparison of the same size groups for nontractor

Fic. 8.—Large fields requiring a minimum of turning at corners and at irregular places make these farms well adapted to the use of large-size machinery. Three 16-inch plows with packer attached behind hauled by 16 horses. An outfit of this size will plow and pack about 10 acres per day

farms shows a cost of $27.15 per acre for the small farms as against a cost of $26.33 per acre for the large farms.

A comparison of earnings shows that the farm income, labor income, percentage return to capital, and returns per farm to capital and unpaid labor were considerably greater on the largerfarms. Though size of business was not the sole reason for the large earnings on the larger farms, the greater efficiency in the use of man labor, work stock and equipment, and the larger volume of sales on these farms were the factors mainly responsible for the increased earnings on the larger farms. The slightly larger yield of wheat on the farms in the larger tillable-acre groups for tractor farms was responsible for some of the increased returns on these farms, and the abnormally high ex- pense for hired man labor and a high capitalization on one farm in the lowest tillable-acre group for tractor farms (550 and under) was a contributing factor explaining the minus labor income for this group. The price received for wheat averaged about the same for all groups.

COST OF PRODUCING WINTER WHEAT IN OREGON A!

AVERAGE COSTS BY TENURE

The principal items entering into the cost of wheat production are man labor, horse work, seed, sacks, taxes, insurance, use of land, and equipment. These and other costs have been summarized to show the average itemized cost per acre of winter wheat to owner and to tenant operators. From the total gross cost a deduction was made for the value of stubble pasture and insurance received for damage to the crop, leaving the net cost of producing wheat. The average acre cost of each item of expense is a weighted average com- puted by dividing the total cost of each expense item by the total harvested wheat acreage. The net cost per bushel to owner opera- tors for a given year was determined by dividing the total net cost by the total yield for that year.

The acre cost to tenant operators represents only those expense items furnished by them and includes all expenses incident to the wheat crop except interest on land and buildings, taxes on land and buildings, and fence overhead. The average net cost per bushel to these operators is based on their share of the total cost divided by their share of the total production.

Averages of the man-labor and horse-work rates and values for seed wheat and grain sacks, which were used in computing the cost of producing winter wheat are shown in Table 18.

TABLE 18.—Prices of labor and materials, 1920-1924

Item 1920 1921 1922 1923 1924 Man-hour rate: Pre-harvest— Dollars | Dollars | Dollars | Dollar | Dollars Mitte LOTZOPCEALOES <= 2 shen oe es ek 0.80 | 0.50 0. 35 0. 40 0. 35 Other shores een eae ene ee a . 45 S00) . 30 AO) . 30 Harvest and market— NGATE Cs CRO WISH eer eetse eee eker = CGahie eae te on Fee ree. ENF io . 50 . 50 BOD . 45 TM AUECKOW Shes ete Melee, Sao Re ae ee ee . 65 . 45 . 45 . 50 . 40 EOESC=NOUTELAbesS Sew ee ie a See Be Rites .14 lit: A cl? 11 Seed per bushel, including seed treatment_____________________ 2.16 2. 20 1. 03 . 86 1. 30 Grain sacks, including SCAT Cup wAnemea st teens ea a eee 22, -10 5 lit els . 105

The man-labor rates represent the prevailing wages paid for farm labor at the period at which the work was done, including board when furnished. The man-labor rates for harvesting and market- ing work were weighted according to the number of men employed and the wages paid. On each farm the total cost of man labor was determined, including the value of the labor of the farmer and his family, as well as the cost of hired labor and the value of board when furnished. The direct man-labor cost to wheat for each farm was arrived at by multiplying the hours of man labor spent on wheat by the man-labor rates which prevailed for the year under consideration. This cost of direct man labor to wheat was subtracted from the total farm-labor expense for the year and that portion of the remainder chargeable to wheat was carried as an overhead labor expense against the wheat crop.

The 1920, 1921, and 1922 horse-hour rates were computed, for each farm, by dividing the total cost of keeping work stock by the total horse hours worked during the year. The horse-hour rates for 1923 and 1924 were adjusted to conform to changes in prices for horse feed and on higher or lower horse values for those years.

22 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

The value of seed wheat per bushel is an average of the prices paid by those farmers who bought high-grade recleaned seed and the farm sale value at planting time for those farmers who used their farm supply for sowing. The figures given include the value of any

materials used for seed treatment. ; Sr The prices for grain sacks are averages of the estimates of indi- vidual farmers visited and include the value of sack-sewing twine.

TABLE 19.—Summary of the average net cost per acre and per bushel of winter wheat to owner operators, owned farms, 1920-1922 }

1920 (69 farms)

1921 (77 farms)

1922 (72 farms)

Item | Amount Cost | Amount Cost Amount Cost Dollars Dollars Dollars Winter wheat per farm____________- acres__ SOTE ese so eines BY Gia pete en es 301; | Sawer eee Average yield per acre__________- bushels__ 20i9a|beee see 2158222 oe dy Ai Ie Se ee Operating expense per acre: Man labor and horse workK— Summer fallow and seeding— Mantlabor. ===. saa hours__ 3. 1. 61 3. 14 1.55 3. 04 1b 9 IETOTSC kw Ol kage eee does 18. 72 2500 16. 71 2. 12 16. 63 1. 69 Gontract works 2222 2359 RAs, | ees O48 he eae 18) Rees ES . 04 Harvesting and marketing— INManwWa bores] == ee hours__ 2. 88 2. 07 3. 12 1. 51 2. 04 .99 Horse work ee do____ eae 1.02 | 9. 12 . 88 6. 41 . 67 Contract sworkss22 ss abe eae oO 4H ek ieee ee 5034 (= eres 58S Summer fallow, purchased = = ss | eee 2ooy eee eae OOS Stee ees ol Material costs— Seed, including seed treatment etal eee ay ET bushels__ 1.14 2. 46 si 8: 2. 45 aa iff i 2i! Sacks, including sewing twine SR be aS 2s a eee number__ 72 1. 56 9.8 . 99 6.3 72 Other costs— Special*eropansurances-=) 22) se |S Bis Je ae eae US 2 | Str erate .14 Taxes and insurance, two years___|__________ 6S | at ener 1 oS ne oe eee 1. 65 Uscioftractors2 = hours__ - 46 eT, = Be 1. 56 -47 1.55 Wse-oficombines ===) =. ns. dona . 46 ibs - 43 1. 37 . 36 1.14 Use of other farm machinery i RO tree hebben hours 2__ 26. 04 2.05 25. 83 1. 63 23. 04 1. 22 Overhead— Mi aris] ab Ore eta Sat aes teas | eo pee ee 3) 85 a| Lams Sees S28) ence eee 2. 02 Building-and fence=-=2 22 2 | SS ae S60 s|Eer 365.[2-2 ete aay OGRE eee ar ee | eee a5 Stil ees a oe SORT ae hee ae . 69 i BOY Fa fee ee ee ew Dane re es ore REAR Son tS ASD cleus ee 2G), | Eaters 16. 38 Less value of stubble pasture and insur- | ancCetomadalMage daw Nea pees: ceed a ee | em ea JSD ye eee OSs ee aes 42 Net operating expense per acre______|__________ 23d G2 NE ae Pato (hl fer aar se Se 15. 96 Interest on: Land tworyears..-.= Shes: She er Poe | aoe eee 7O98) (pce ss TBA cae ee 7. 42 Combinesand *tractorte2 aera ee ASS Vda be E29) isa el 25 Other farm machinery and work stock_| (ceo Sees BOON he 6p e52 ee .49 Net costper acre-<8 e242) Few ae 1b eee SO2GF | euch} aatst B0555y |: o beeen 24.12 iNet. cost per: bushel? 75!Sii 4 tse Sassi ee (RDS RE Ss SEH TEF1O a] See. Cee 1. 41 Net operating expense per bushel_________|_________- ISS pleas ee Gifts} v| Webra Spe . 93

1 Certain farms were omitted from Tables 19 and 20 because of incompleteness of cost data. In these tables a farm on which all or a majority of the wheat crop was on rented land was included in the share rent group. For this reason the number of farms in the owned and share rented groups are not the same as those shown in the same groups in Table 3.

2 Reported in terms of horse hours of use.

Cost items expressed as money units are subject to considerable

change, especially during periods of wide price fluctuations.

The

same items when expressed in terms of quantity requirements, such as hours, bushels, and the like, are more stable and lend themselves

COST OF PRODUCING WINTER WHEAT IN OREGON es

better to analytical study. These quantity cost factors in the case of winter wheat in this region are shown in Figure 9.

The data have been itemized so that the amounts and cost of any one item can be readily compared one year with another. The acre cost of most items of expense for both owners and renters (Tables 19 and 20) declined somewhat over the period 1920 to 1922. On rented farms in 1921 the high acre cost for use of tractor was mainly due to a greater number of hours of use on winter wheat, whereas the higher cost for use of combine in 1921 as compared with 1920 and 1922 was mainly due to a greater number of hours of use on winter wheat at a higher cost per hour of operating.

TABLE 20.—Summary of the average net cost per acre and per bushel of winter wheat to tenant operators, share-rented farms 1920-1922

1920 (71 farms) 1921 (72 farms) 1922 (75 farms) Item Amount Cost Amount Cost Amount Cost Dollars Dollars Dollars Winter wheat per farm________-____ acres __ 32 eee Ses aA ig ss Sep 368|p suena Average yield per acre__________- bushels__ 2056" |e eer es FAD ial cle ie tines 16397 cS eee Operator’s share of yield per acre__..do-_-___ TS y=) ee gee kS/s See | 1123) Sees Operating expenses per acre: Man labor and horse work— Summer-fallow and seeding— Man-labors2= 45052 hours_-_ 3. 01 1. 41 3. 23 55 3. 26 1.18 ETOESGEW.OGK=*—2> ate ee domes 19. 23 2:32 18. 74 2. 09 19. 76 1. 68 Contractework ss ee |S Sen FAY o)ud| ee gee ee 13 p)So eee 02 Harvesting and marketing— Manslaborss =.= = == hours__ 2. 49 1. 76 3.19 1. 54 2. 39 aL 115) elorseswork=-~_--= 1. 5 dopa (erp! 88 10. 40 . 93 7. 38 UB Contractiwork== 222s. oon eae EO (ie | seer eee PAGE erp teers st . 50 Summer-fallow purchased_____________]_________- NEY Ei baker ere se Pay 6) | See ee . 26 Material costs— Seed, including seed treatment 2 oo Se ee eee bushels __ 1. 06 2. 29 1.13 2. 48 1.19 GPR: Sacks, including sewing twine a ee ee number__ WES 1. 66 11.6 1. 08 6. 7 74 Other costs— Special crop insurances = is eae ee AY tape eseeeh ge sete Pel Kolpi ra vere se ere 512 Taxes and insurance, two years___|__________ ey AOA NS ee alae es yl aa Ween ete eae a Sales Useotitractor= a hours__ oO. . 94 . 36 1.18 oo i ales Use of combine___-_-.--___-_- do___ - 40 115 44 1, 44 35 eal: Use of other farm machinery Zee at aac aura es ee hours 1__ 26. 94 a 7. 29.17 1. 58 27.17 1. 30 Overhead— IWianrlab ors temeete sa eramali ee eee Sclipo es 32.05: paseo ee 1. 86 IB Gin gyan defen Ceneseeet ane | eee Ee, tee ee SEE ee ne O(erpeeeeeeet es eae ree pean are itl beh) cea Ss aa NOOR |Reea es . 62 Ob alge ae es es Ean ae | a DOSSS gaara 19 59)c| Gees eae ese 13. 82 Less value of stubble pasture and insurance fordamacediwhea t=: =e 2 Se IE SGow|eas oe. S407 ate Sek. . 42 Net operating expense per acre______|_________- QONQSE Exists ONTO. Bs Be Neen: 13. 40 Interest on— WANG ALWOLY COIS> ees: meres setae be iy eee Pees ok: |e ELEN Ce Palle aS i ee as pes a Combinevandstracton a es at) oman, Sone OO | eee Seek B23 Other farm machinery and workstock_|__________ (NS a i ee GiA ate Ae 54 IN (eG COSTEDEL: ACN Set 42 seesaw waa |e ote 2126 | eee ee DO SuIGy Beare wecee 14.17 INeticostpenbushelesce 2 sear eee Le eS 104 | es aee en INOS |p eee 1. 26 Net operating expense per bushel__________|_________- iA Zilli ORES Sak HOSs | aia eS 1.19

1 Reported in terms of horse hours of use.

ee ee ee

24 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

An analysis of what has been termed “operating expense”’ (that is, all costs except the charge for interest on land, machinery, and work stock), grouped together under the following headings, shows for owner operators a division about as follows: Man labor and horse work, 32 per cent; summer-fallow purchased, 2 per cent; materials, 15 per cent; and all other costs, 51 per cent. The division of the oper- ating expense to tenant operators was about as follows: Man labor and horse work, 36 per cent; summer-fallow purchased, 5 per cent; materials, 17 per cent; and all other costs, 42 per cent.

The total operating expense per acre for all years was relatively lower to tenants than to owners. Much of this difference was due to the lower overhead, tax, and insurance expense to tenants on rented farms. On the other hand, because the cost to the tenant was - based on his share of the expense divided by his share of the yield, the operating expense per bushel was relatively higher to tenants

WINTER WHEAT QUANTITY COST FACTORS PER ACRE

OWNED YIELD . USEOF USE OF USE OF OTHER FARMS PERACRE MAN LABOR HORSE MORK SEED SACKS TRACTOR COMBINE FARM MACHINERY YEAR BUSHELS HOURS HOURS BUSHELS NUMBER HOURS HOURS HOURS 5 ito. SS) Ole is* 20, 257500 ! 20 5 10 15:0 50 50 S10 tS: 320n eo enlORa ec

1920

192

1922

SHARE!

Fic. 9.—Differences in yields and in the practices of growing and handling the crop caused some variations in the quantity requirements of wheat production on these farms. The greater use of the tractor on owned farms was mainly responsible for the smaller number of hours of horse work as compared with rented farms. ‘The items shown as quantity cost factors represent for owned farms from 63 to 67 per cent and for share-rented farms from 68 to 74 per cent of the total operating expense of producing an acre of winter wheat.

than to owners. The average net cost per bushel to both owner and tenant operators was materially lower in 1921 than in 1920 and 1922, which was mainly due to the exceptionally good yield in 1921.

CASH AND NONCASH COSTS OF PRODUCTION

In astudy of costs it should be kept in mind that many of the cost items are noncash. A division of the cost of winter-wheat production into cash and noncash items (Table 21) may explain why some men are able to continue in the business of wheat growing for a time when producing at a cost higher than the market price. In many instances much of the labor is performed by the farmer and his family, and when his land, machinery, and work stock are clear of indebtedness a large part of the expense that correctly enters into the cost of produc- tion is not an actual cash outlay (fig. 10),

COST OF PRODUCING WINTER WHEAT IN OREGON 2d

PERCENTAGE DISTRIBUTION OF CASH AND NONCASH COSTS TO OWNERS PER ACRE OF WINTER WHEAT 1920-1922

PERCENTAGE DISTRIBUTION OF CASH AND NONCASH COSTS sie AO Oe, Oe IO rts 30-40 AO! 20: . .307 840

|

| gard

f Man dab d % 4 ,

os WL Wa Summer fallow

bought

| Materials ----- | oes |

Other costs --- ; [eee -se. |

Za |

a ma | Interest ------- | |

Bs Cash Costs Noncash Costs

Fic. 10.—For all years approximately 47 per cent of the total gross acre cost of producing winter wheat to owner operators was represented by money actually paid out, while the other 53 per cent was not an actual cash outlay

TaBLE 21.—Summary of the gross cash and noncash cost per acre of winter wheat to owners, 1920-1922

1920 (69 farms) 1921 (77 farms) 1922 (72 farms) | | _| Noneash | Noncash Noncash Cash costs Casts Cash costs Costs Cash costs awe Item | | Per | | Per Per Per Per Per Per cent Per | cent | Per | cent | Per | cent | Per | cent | Per | cent acre | of | acre| of | acre} of | acre| of | acre; of | acre} of total | total total total total | total Dolls Dolls. Dolls. Dolls. Dolls Dolls.

! WEA ahorn = a PASI: 6.9 | 1.37 4.1 | 1.68 Gy. 9) pe Rte 4.4|}1.15 |} 4.7 | 0.96 3.9 @ontract worke= =. ae-22 3 AS bce bes: rel [een fo ei 7f3 | EDIT | le eee [eae ee GO D> Bs) sen ne eee Horse work:

COR cere Fin E Ba ee .59 1.8 | 2.91} 8.8 47 1.5 | 2.29 7.4 . 24 ba otte- 76 42 Oj Ai) ee eee ee ees sete ae! 3 . 08 2 11 4 13 4 Be a A la-2 26 1 a! Summer fallow bought_____ sy YS aed BA | | (Se cae Fae G65 2228 Ate = se Pics oad fs Es Say re roe eee Materials: S00 Ge soe ae .16 Ba | aS 6.8 . 29 .9 | 2.13 6.9 .1l 4/107} 4.4 Seed treatment-_.-______ . 04 ee is bee oo jess 03 eC eel Pee | .02 1 eee jor Sacks, including sew- | ae TROALWING: ae td 1G? Wes Tso ene os SOG eS Sn2 0 ts ere 72 DQ | Sys Ae aE Other: Special cropinsurance__}| .32] 1.0 [------|------ 2S Og ese | ee .14 Greets | ae Taxes and insurance-__| 1.68 | 5.0 |_-.---|__-__-- PRHSa ee ele Ba pee ee Ne G5reeGaa eo ee et ee Useofdractor== == = OFS 2 Sateen Ge [tO sie Oo 1 ond SOlins2 OS: 2950) 32921-- 60 4 Use of combine---______ it 2.2 . 64 1.9 7 2.4 363 2.0 53 Dates .61 2aD Use of other farm ma- CHineEy = ee 1. 20 3.6 . 85 7054 . 87 2.8 76 2D 44 1.8 78 ah Overhead: Lahore 2 = eee 2. 43 (Ot ed iee Fo 4.3 | 1.79 5.8 | 1.49 4.8 | 1.10 4.5 92 SEY Building and fence-___- 24 ay . 36 EE 7A! Stale 244 1.4 . 20 .8 37 15 Diiprt eee SdotestaGape = Exe e2 (ee mORs eibetiee ae |e SOOn i 28, ese he Interest on land, machin- | ery, and work stock._____ | 2.15 6.5 | 6.85 | 20.6 | 2.35 2.65156. 395) 20-2 1-2. 55. [1024 | 5.61 22.8 Motals ise sos l15.89 | 47.8 [17.38 | 52.2 14.68 | 47.5 (16.25 | 52.5 [11.60 | 47.3 [12.94 | 52.7

26 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

The percentage distribution of the more important noncash costs was about as follows: 4 per cent for unpaid man labor performed by the operator and family; 8 per cent for horse feed grown on the farm; 6 per cent for home-grown seed; 21 per cent for interest on debt-free land, machinery, and work stock; and 4 per cent for overhead labor. Approximately 9 per cent of the total cost to these operators was for depreciation on work stock, machinery, buildings, and fences.

COST OF PRODUCTION, 1923 AND 1924

In Table 22 an estimate is given relative to the 1923 and 1924 cost per acre and per bushel of producing winter wheat. In computing these costs the 1923 and 1924 man and horse hour rates, and value of seed wheat were applied to the three-year average requirements for these items, as shown for the years 1920 to 1922, inclusive. The average hours of man and horse work were adjusted to care for the increased or decreased yield of wheat hauled to market in 1923 and 1924. The 1923 and 1924 requirements of sacks and sewing twine were charged at the prices paid during those years.

The 1923 and 1924 hour cost of operating tractors and combines was applied to the average tractor and combine hour requirements over the period 1920 to 1922, inclusive.’ The 1923 and 1924 charge for other farm machinery was made in proportion to the increase or decrease in the value of general farm machinery in 1923 and 1924, as compared with 1922

TaBLE 22.—Computed average net cost per acre and per bushel of winter wheat, Sherman County, Oreg., 1923 and 1924

1923 | 1924

Item Amount Cost Amount Cost per acre | per acre | per acre | per acre Dollars Dollars FANVCL age -Vieldsperacre nec aa. ee ae aoe eee bushels__- BO) | bens Seer 122 | eee eee Man labor and horse work: Summer-fallow and seeding— AAV, Bes al 2) OY 0) pees ae Sly eon ereetie ee Soon ir TOT pr i hours_- 3.2 Beals 352 . 98 TEV OTSC aWiO Ge se Sg etc sh Pa or oer ee ane done 17.5 2.10 17. 5 1. 92 Contract wank: oiot foe Sa ee ee are eee eee 032|P ese . 03 Harvesting and marketing— NWanrla boris esr 0 Ee eee Ste sire he hours_- 1. 56 Ph 7 In P76 EVOLSO WOT ke sat as 2a ERS 5 SRR Oma 1. 06 6. 2 . 68 Contract:work 222 Satu Sea ee er ok ee ‘60-225 e222 nOz SUMTME Rafal O wah POUT CLAS © Ce eset ee ree 30) eevee . 30 Material costs: ; Seed, including seed treatment -___________________ bushels__ 1. 03 1.2 1. 56 Sacks, including sewing twine____________________ number_-_ 1. 43 4 42 Other costs: SPECLALECT OP wa SUA Ta Cece en 1Qe|5ss-0 Sle Ho axes andinsurances tWOryeansia anes oes See eee 1-60 s|=2ss2s85=2 1. 58 WSC .ORtLACTORRaeke 2 Fee ee eee ek eee hours_-_ 1. 64 5 Teal Use:okcombines. => a= Sale ei eee ee (oyeegean 1,55 4 bit iUse_of other farmimachinerys 2) anon a eae do.¢__ 1 Bis 23. 7 1,45 Overheads 225 Jel Ree ee ee a eee ee DASA 5 Ree Se a es 3.41 MOtalS 52a ae Ss OSS ee cree Sees iene ORT aoe LG Reais sees ee 17. 53 Less value of stubble pasture and insurance for damaged wheat__|__________ 542 Soc . 42 Net operating expense per acre... @ oe ls ee eee 19.135) Seer: Testa Interest on— Land; twoyearss =. 228 5 es ee a eee ee ee al ence FEdiGu i aoe obo Hoe Combine and! tractor: Hasek ee ee ere | ee DRC |Cab eat cosets 25 Other farm’ machinery and “work stock. 1. 2250.0 ees eee Oe es AQy | aa fees GP 49 Net cost-persacre sooo Se ae er 278O3N| D2. eae 24. 87 Net, costper. bushel: #3 S22 3 Gee oae Be Sa ee ee ‘eliboteee ere 2.07

2 Reported in terms of horse hours of use.

__' From Department Bulletin No: 1447, “Cost of Using Horses Tractors, and Combines on Wheat Farms in Sherman County, Oreg.”

COST OF PRODUCING WINTER WHEAT IN OREGON DT

The 1923 and 1924 charge for contract work, summer-fallow pur- chased, special crop insurance, land taxes and insurance was made in proportion to the percentage increase or decrease in the cost of these items in 1923 and 1924, as compared with 1922.

The overhead man-labor charge was increased or decreased in pro- portion to the increase or decrease in the cost of man labor in 1923 and 1924 as compared with 1922. The other overhead charges, inter- est on all items except land, and the deductions for value of stubble pasture and insurance for damaged wheat, were allowed to remain the same as in 1922. Interest on land in 1923 and 1924 was calculated in proportion to the increase or decrease in the value of the land in these years as compared with 1922.

VARIATION IN COST PER BUSHEL

It is a matter of common observation that varying amounts of labor and materials per acre are used in a community and that yields vary greatly. These differences cause a wide range of costs (Tables 23 and 24). Costs vary not only from farm to farm during the same crop season but also show a considerable range on the same farm from year to year.

Variation in cost to owner operators in 1920 was from $0.91 to $4.16 per bushel. Average net cost was $1.58 per bushel. Approxi- mately 40 per cent of these operators grew about 48 per cent of the harvested acreage and produced 57 per cent of the total yield on such farms at or below the average cost per bushel for this group. Varia- tion in cost to tenant operators was from $0.92 to $3.28 per bushel. Average net cost was $1.55, or 3 cents less than for the owner group. Forty-one per cent of the tenants producing 54 per cent of the total tenants’ yield on such farms had costs at or below the average for this

group.

TABLE 23.—Variation in net cost per bushel of winter wheat to owner operators,

1920-1922 | | Acreage in wheat Production Variation in net cost per bushel | paras an Cumula- Cumula- iy SF OUD. Total | tive per-| Total | tive per- | centage centage 1920 : | Number Acres Per cent | Bushels | Per cent DOS DIUE ORS MEE QE he 2M as eI sigh ae Fa a SS ae Bel 1, 557 6.3 44,177 8.6 DUAN TORp ea) aa ees SPS BAS A SO ORS VE OSE 10 | 4, 256 23.6 | 113, 339 30. 6 HlESISOPSIE HO ees ees ye re ey gs eye AG Bc ewes | 8 | 3, 897 39. 4 96, 896 49.5 SIE TEC Obey Leet () ears meena et ie ee Pune Bk a leer 15 | 5, 1380 60. 2 94, 232 67.8 SU TiPiOsS GOtite. -t2e' TNE Peat Ay Tey WSs 335511 74.4| 68, 835 81.2 plOU Org 2 10) eee a Se ee om eR | 8 | 2, 656 85. 2 38, 682 88. 7 PZT COr $2.00 Seah = eed SI A es AES AR EOS 6 2, 092 93. 7 35, 204 95. 6 OV EI $2 BOE ee iy en ON Cee a O50 EN Pore ee Soe | 6 1, 550 100. 0 22, 745 100. 0 1921 | SOR ARCORS (EO 0 he atone enc oa aie ANE Se Pele Ss 13 4, 464 15.5 134, 448 16.8 SOOTELO MDI 1 ORAS A EAS Si as SEP RS Se AS | 30 14, 135 64.8 427, 578 | 70. 4 Set toro ll 30 aue ois BO Ay ele Sn ee Dh I 16 5, 388 83. 5 129, 337 | 86.5 pI AE COR Db Utena tate acne ar aoe ee rr eo eet 4 1, 583 89.1 41, 756 91.8 SieolalorolssOneen a eaes eee cl bee By ey es a 6 1, 633 94. 7 37, 258 96. 4 : SDS MEL OU Dl OU re eeepc eee, Mes eas eee Dt ee 5 878 97.8 16, 860 | 98. 5 Overs $l-90 ss 9 ake ed IU: PA ee EOE | 3 630 100. 0 11, 651 100. 0 1922 SASAMEOSDO 00 seo tem Bae eee ye ee oul Ce hs ee Pe a 1 215 .8 6, 653 1.4 $0.91 to nD Se sees eee ee Se neta 5 L551 6.3 32, 878 | 8.2 SIAUE LOA. SOAS TRE AAT ARG 289 PRT AST a «3 18 7, 826 34. 0 144, 438 38. 2 DEST G pl. 0c rte wee a pee BE reo oy Slee ee | 19 7, 971 62.3 | 145, 950 | 68. 5 SUE SLO RD x Qsre inet ae im ere ee ee eee 15 5, 495 81.8 92, 514 87.8 Didi EO: S100 7 Lee eee were peti hs Oo eriniieg: | | 8 3, 460 94.1 37, 841 | 95. 6 OV.ETEDIEOO eek mice ae ease Set 2 tea oe Fare 6 1, 654 100. 0 21, 110 | 100. 0

>

28 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

TaBLE 24.—Variation in net cost per bushel of winter wheat to tenant operators, 1920-1922

Production 1

= at eee Fa.ms in Variation in net cost per bushel group @amulas Total | tive per- centage. 1920 Number | Bushels | Per cen $0:91°t0-$1.10 2.22.2 5s 2 eee ee tae ee eee ee 4 38, 292 12.0 S1A1(0'$1.380 ses oe Sos. SS Sen eee eee ee 9 48, 328 PAGAL $1:31:t0 $1. 50.23% - sb ts EES ee a Ee ees ee ee eee 14 80, 484 52. 4 $151: t0:$1.70 2 ~ 2- ese So a ee ee 16 66, 399 (Bea $1.71 to:$1.90--. 2 ee re eee eee 8 21, 994 80. 1 $191to $2102 ee oe ea ee ee ee 8 25, 904 88. 2 $2:11-t0- $2.30: 2.2225 ee ee a eee eee 3 12, 121 92. 0: Ower'$2:30 2 2-8 se ea ree eee ee 9 25, 572 100. 0 1921 $0:70'and, under: = = 2s Fee Se apr a a =e 1 7, 139 1.5 $0879 GO-GO 90a Ee ane a Ne ed RE ea ere em eee ee eR 19 153, 360 34. 5. $0:91 to $1.10. 32.2207 ee Se aly ceo ee 23 | 157,141 68. 3 SITE t0 $180.0 22 bo a Se a LIE eee ee eee ee 16 97, 538 89. 2 $UBEt0 $1502 Se ee Ee oe a eae eee 9 32, 942 96. 3 S151 tO $1. 70-8 = os Be NS ee nee ee ee a 2 8, 804 98. 2 SEETL tO $1902 Oe es eS eee) ee a eae Pe 8, 366 100. 0 1922 S071 £0°$0.902. 3-2 2222 RE Oe ee a ee eee ee 5 26, 402 8. 5 $0:91-to'$1.105 = 2c) 2 se ea RE Sires Been ee ne 16 94, 772 38. 9 SIEVE to $1,802 eo i i Sie eee ee a ee 16 64, 713 59. 7 SLSEEtO $1505. 2 oe ee ee 19 68, 396 81.7 SIESUGO $1. 7025 ne ee re ee pee ee 7 28, 706 90. SETO $100 22822 SEL a ee See ee a eee ee 6 14, 312 95. 5 Over $i. 90202 2c 2 SS Re a a ee ree 6 13, 890 100. 0

1 Only the tenant operator’s share of the production is shown in the above table.

Variation in cost to owner operators in 1921 was from $0.71 to $2.47 per bushel. Average net cost was $1.10 per bushel. Approxi- mately 56 per cent of these operators grew 65 per cent of the harvested acreage and produced 70 per cent of the total yield on such farms at or below the average cost per bushel for this group. The variation in cost to tenant operators was from $0.62 to $1.90 per bushel. Aver- age net cost was $1.03 or 7 cents less than for owner operators. Fifty-four per cent of the tenants produced 60 per cent of the tenants’ yield on such farms at or below the average cost per bushel for this group. :

Variation in cost to owner operators in 1922 was from $0.71 to $5.46 per bushel. Average net cost was $1.41 per bushel. Forty- .four per cent of these operators grew 49 per cent of the harvested acreage and produced 54 per cent of the total yield on such farms at or below the average cost per bushel for this group. The varia- tion in cost to tenant operators was from $0.71 to $2.42 per bushel. Average net cost was $1.26 or 15 cents less than for owner operators. Forty-seven per cent of the tenants produced 54 per cent of the tenants’ yield on such farms at or below the average cost per bushel for this group.

All tenant and owner operated farms have been grouped together in Figure 11 to show the net cost per bushel to the men who grew the wheat regardless of tenure.

The wide variation in the cost per bushel of producing winter wheat suggests that there must have been a similar variation in the profits therefrom. It is essential, especially during periods of low

COST OF PRODUCING WINTER WHEAT IN OREGON 29

prices, that wheat growers produce their crop at a low cost per bushel. To do this, careful attention must be given to the expense incurred per acre and to the importance of obtaining good yields.

VARIATION IN NET COST PER BUSHEL OF WINTER WHEAT

1920 =1922 ( All Farms Regardless of Tenure )

iMiEE coe NUMBER OF RECORDS

PER BU. O 8 16 0 8 16 24

$.61- .70 5

71- .80 LLLLLLLLLLLA

.BI- .90 MMLLLLLLLLLLLLLL LLL LZ

.91-1.00 LLL LLLLLllllllillL lle VLLLLLLD 1.01-1.10 WLLL LLL LLLLLLLLL VLLLLLLLLLLL I.tt- 1.20 f VALLI LLLLLLD VLLLLLLLLLLLLL LLL 1.21-1.30 Wy VLILLLLLLLLLLLLL Ll VLLLLLLLILLLLL LL 131-140 YYZ MLLLLLLL VLLLLLLLLLL LLL LLL LLL 1.41-1.50 7 4 Z VLLLLLD 1.51- 1.60 LLL LLLLLLLLLLL. 1.61-1.70 Lif VZA_| 1.71-1.80 % VALLLLLLL 1.81-1.90 L/)

1.91-2.00

2.01-2.10

2.11-2.20 2.21-2.307

2.31-2.40

2.41-2.50 F

2.51- 2.60

ZO 22710 2.71-2.80 2.81-2.90 Y OVER 2.90 ,

Fic. 11.—In 1920 the average net cost was $1.57 per bushel. Forty-three per cent of these growers produced at or below the average cost per bushel for this group. In 1921 the average net cost was $1.07 per bushel. Fifty-four per cent of these growers produced at or below the average cost per bushel for this group. In 1922, 50 per cent of these growers produced at or below the average cost, or $1.35 per bushel

YIELD AN IMPORTANT FACTOR IN DECREASING COSTS AND IN INCREASING PROFITS

Yield per acre is the factor exerting the greatest influence on the cost per unit of product, and is a factor of great importance in deter- mining the profits from wheat farming. The available information on the yields of wheat for Sherman County is given in Table 25. For the years of this study the average yields of wheat for the farms surveyed followed closely, the average county yields.

TABLE 25.—Annual winter wheat yields

Average yields on farms visited

County Year average Owned | Rented farms farms Bushels | Bushels | Bushels SOQ epayr ires BS Aes fiek ee eee WE eee pie ee oe AN te WLU We eens uri Caen wl a Gs eten ee a a3 3 oe ee NO Epa ee esa are ER ES Ta GEG ae UN Ace cp LAMAR React CSE ese ER WALD e | Sc oe is Cae ae AOTORS: Cee. ee Si RaRL eae INS Ee LOE A 8S Tee eae ee ees Sea et NOTIG beers eae ee Wank eS £1 QQ Pith oinmenee oe) Ra er) WNT soe Lak Maan ee Ne age Sel OT Ah 2 Soe age oar a S21 Qe [tee eho | Oo nore SiS PAD) aN SARIN NS Rca 2A or ey gd Me Re a ye 222 20. 9 20. 6 TO A Pe RE Se EFI, gh CS VR SEI DIC ona Ps RAE A Oe ie a 227 27.8 29.5 DPA a ee A I IEE SA AE TS UREN UE ee eV OID FSI Noes GUN ee eat OM 218 eat 16.9 TRAY Wh Te SBR SD Rieti ois Ce es ae AOL OR Aan ie eee Mee 28 Ree AS) ee Lee Se 2°30. | Shree Se eas BTU, Se 9B SAN EA Nol PDO a SME Ob Ry De a Piss 17 4a fie npr teat Pane Sek = 2

! All wheat, from census reports. ts Winter wheat, from reports of Bureau of Crop and Livestock Estimates, United States Department of griculture.

30 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

The influence of yield per acre on the cost per acre and per bushel and on the profits from wheat farming is shown in Table 26. With few exceptions an increase in yield resulted in some increase in cost per acre, but in a proportionately greater decrease in cost per bushel. With an increase in yield from an average of 13.3 bushels to an average of 32.8 bushels per acre, the cost per acre increased from an average of $25.79 to an average of $33.69 per acre or 30.6 per cent, and the corresponding cost per bushel decreased from $1.94 to $1.03 or 47 per cent.

In the production of any given crop a point will be reached beyond which an increase in the product will result in an increasing cost per unit of product. In the case of wheat on these farms the cost groups do not indicate that the methoas of production have resulted in an increasing cost per bushel.

TABLE 26.—Relation between yield, the cost of producing winter wheat and the profits from wheat farming on 77 owned farms, 1921

Average cost

Return

Farms ae Variation in yield per acre (bushels) in eben aE BxonD Per acre ee ization

| Number | Dollars Dollars Dollars | Per cent

Gira erga. Fay Ci = 209 - ciel Ree ae ee IE eee eh eae 5 25. 79 1. 94 —2, 065 —4,1 eet R OD MeO. c= an oe tae ee ge ie ee ee | 9 25. 68 1.41 | —1,078 3 DD OR ID ae Ore ie a ee te alee eee 1 pee DART 1.12 84 4.7 7A OO) | Sea fae NT ante yar) We ee aye Peers ce 23 | 30. 96 | 1.12 400 4.8 BOGGS spk ws step tg re weg lee oe ee | rill Peper ecm 1. 03 115 4.7

6.3

BOVE CR OVC Lap ce ae a CE ee ele Bee ee | 8 36.95 | 1. 01 1, 644

In 1921 the average yield on owned farms was 27.8 bushels per acre. Fifty-seven per cent of these men had yields equal to or below the average of all owned farms. As in the case of cost per bushel, the yield of wheat was emphatically a deciding factor in determining the profits from these farms (fig. 12). For those farms falling in the lowest yield group, or under 15 bushels per acre, the labor income was minus $2,065 per farm and the percentage return to capital minus 4.1; for the group with the largest yield, or 35 bushels and over per acre, the labor income averaged $1,644 per farm, and the percentage return to capital was 6.3. |

The following summarizes the experiments conducted at the agri- cultural experiment station at Moro, Oreg., with respect to the effect of different methods in preparing the soil for wheat, and of the han- dling of the crop, on the yield of wheat obtained.®

Fall disking of stubble and spring disking before early spring plowing reduced wheat yields.

Spring disking before late spring plowing killed weeds, saved moisture, and increased yields.

Highest yields and best quality of wheat were produced on early spring-plowed summer-fallow. Careful experiments at Moro for nine years have proved that the average yield of winter wheat after early spring plowing was 6.3 bushels per acre more than after late spring plowing and 2.3 bushels per acre more than after medium-early

spring plowing.

* STEPHENS, D. E.,and Hystop,G.R. Wheat Growing After Fallow in Eastern Oregon. Bull. No. 190, Oreg. Agr. Exp. Sta.

COST OF PRODUCING WINTER WHEAT IN OREGON 3l

The total increase in yield for early over late plowing in nine years was 56.7 bushels per acre, or the equivalent of two and one-half years of crop on late plowing.

The yield of winter wheat after early spring plowing exceeded the yield obtained after fall plowing.

Late spring plowing for fallow produced low yields and soft wheat.

The nine-year aver- age yield of 10-inch over 5-inch plowing at Moro was only 0.9 bushel of wheat per acre.

Moldboard plowing in the fall gaveslightly higher yields of winter wheat than disk plow- ing in the fall.

The use of the sub- surface packer at Moro did not increase wheat yields. Thesur- face packer gave only slightly increased yields.

Early sowing of win- ter wheat at the rate

be Fic. 12.—A good stand of winter wheat. Ina region like Sherman of 5 pecks of treated County where over 88 per cent of the receipts are from wheat the > seed per acre gave the profits from farming depend to a large extent on the yield of wheat

obtained

highest yields.

Harrowing winter wheat in the spring generally reduced yields. The nine-year average yield of winter wheat at Moro was reduced 1 bushel per acre by spring harrowing. In three of these years an increased yield was obtained from the harrowed grain and in the other six years a decreased yield.

SUMMARY OF LABOR PRACTICES IN WHEAT PRODUCTION

The prevailing farm practice in Sherman County is to leave the land in fallow one year and follow with a crop of grain the succeeding year. In the case of winter wheat the land is broken as early in the spring as practicable, and kept in a state of clean cultivation until seeding time in the fall. The tillage operations on summer fallow and in the preparation of a suitable seed bed were fairly uniform. The chief implements used were the plow, disk harrow, weeder, and spike-tooth harrow. Table 27 shows by operations for all farms the relative use of horse and tractor motive power in 1920 and the rela- tive hours per acre required by each class of power.

The use of the tractor was most general for plowing, disking, and harvesting with the combine. Thirty per cent of the total acreage was tractor plowed, 18 per cent tractor disked, 13 per cent tractor drilled. Harvesting with the combine was the most common prac-

32 BULLETIN 1446, U. 5S. DEPARTMENT OF AGRICULTURE

tice. Ninety-four per cent of the total acreage was harvested in this - manner, and 6 per cent was harvested with headers. Tractors were

used on 35 per cent of the acreage that was cut with the combine.

Twenty-seven per cent of the total production was marketed with

motor trucks.

- TABLE 27.—Summary of labor practices in wheat production on 145 farms in 1920

|

Man labor and horse Man labor and tractor work work : Times Times Operation over | Percent’ Hours per acre | over | Percent) Hours per acre

of total of total :

a | BCLCALCs| See ee acreage |=

covered!| Man | Horse covered! Man | Tractor

| Number Number | Number | Number Number | Number

Remove trash 28a ee eens 2 0.2 OTS Ee Soe] See a Peer ey a Burn stubbless2s2 = ene ae ee Secs 7 od on (Ca cl nema LU Bes AES Sit te ee ee IPlOWIN Ges ee ee 1.0 70 1.4 12.5 1.0 30 0.9 0.7 ID iSkin sets ee ae ae ree 1.0 47 .6 4,8 1.0 18 3 2 Harrowing (spike) __________- 2.8 89 ae | 4.4 ee 11 2 42 Harrowing (spring) _____-____ 1.8 3 4 3.4 13 9 4 574 Wiced in gies See ieee 1.2 66 50 seal 1.0 6 2 nD ‘Weeding (man only)-— === |e 42 A ac errno a | een ai a i 9 eae | Mianliseegis 225-22 eee aig ee |S 33 sll Ci | Vineet | erate an aa Ee Tee Seika 8 SAA Clean‘and' treat seeds == 222A) se 99 Bi EY | acento aye well ne 8 Be | YS Drilling@ saa = eee ee 1.0 87 .5 2.3 1.0 13 3 ay) ‘Tillage after seeding__________ eal 22 3 1145) | eam ee ear kD 2 2 a2 Weeding after seeding_______-|-_-_____- 6 DS ar | pear 1 aera PUR eemeips ly Sty | emer E ai|S e aul fuel ee ae ae ee Se 20 wil 2 a eis 7 1 1 @utting<(combine) 3222s eae 59 1.3 GORE Sets 35 OL) 4 Cuttine<(header) =e ee 6 2.4 OS 98 |Be Sooo Sc Se ke cl ee toe | ee ‘Threshing <7 ss ate eee | Bee eee 6 3: Oa|has s-eee | Feed po Ena YE a Ae. | es 2 PE ae Picking up and piling sacks__|__-______ 37 .4 Ogee a es eer ae Sete a ba Se le IVEArK etn G =< oe = eee eee | SAV RIS use 73 .8 | 3. 6 | oe ee DOTS) 8 6

i Marketing percentages are based on bushels. 2? Hauled with motor truck.

SUGGESTED PLANS FOR THE ORGANIZATION AND MANAGEMENT OF WHEAT FARMS IN SHERMAN COUNTY, OREG.

In the dry-land area of eastern Oregon both natural and economic factors limit the agriculture to a much larger extent than in more humid regions where there are greater chances for diversification. Because of these natural and economic conditions, wheat growing is now and doubtless will continue to be the dominant factor in the agriculture of the area. A good grade of wheat is produced on these farms, and of all cash crops it appears to offer the best opportunities for success.

-For this area, then, it is not so much a matter of introducing new enterprises as a problem of improving the present farm organization. Perhaps the greatest improvements may be made in the reduction of production costs through a more efficient management of the labor program, the employment of the right size and proper type of machinery, and the proper choice of motive power. The problem also involves the production of the feed crops for the livestock and the production on the farm of a larger proportion of the family food supplies. .

Each farm presents its own problem, and each farmer must decide for himself what course he shall pursue in an effort to realize the greatest returns from his available resources. For this reason the details for the general plan of organization of these farms are not applicable to all farms in the region. It is believed, however, that a majority of the farmers in Sherman County will be able to use to good advantage the data presented and the method outlined in analyz- ing their farm-management problems.

ray

COST OF PRODUCING WINTER WHEAT IN OREGON 33

Basic data such as that presented in this and in Department Bulletin No. 1447, ‘‘Cost of Using Horses, Tractors, and Combines in Sherman County, Oreg.’’ were used in planning the organization of these farms. Such data must of necessity be used in connection with normal yields and probable future prices.

STANDARD ORGANIZATION FOR A 640-ACRE FARM

The farm resources, such as work stock, equipment, and man labor, as indicated, are in such proportions as provide for their efficient utilization, and the organization calls for the minimum of hired labor and other cash expense.

The proposed division of the farm area provides for a maximum acreage of the wheat crop after making provision for the farm produc- tion of most of the feeds for the livestock. Table 28 shows the division of the farm area, prospective yields, and proposed disposition of the crops grown. The livestock to be kept, together with the feed requirements, are shown in Table 29. Fourteen head of work stock are sufficient to perform the farm work. A majority of this work stock should be good mares, and they should be sold while they are still young enough to command a good price on the market.

To carry out this plan 3 colts should be foaled each year, which, after taking into consideration deaths, injuries, and colts which are not good enough to keep, should result in a yearly average of about 2 yearling colts, two 2-year-old colts, and allow for the sale of 2 work stock each year. At the age of 3 years the colts may be broken and allowed to do some light work that year. The following year they should be ready to take their regular places in the farm work with the older horses. All of the feed consumed by work stock should be produced on the farm and would consist, for a mature horse, of 3,000

pounds of wheat hay, 4,200 pounds of wheat chaff, 600 pounds of

barley, together with native and stubble pasture and a limited amount of wheat pasture.

The ration for a 2-year-old colt would consist of about two-thirds of the wheat hay and chaff and for a yearling colt about one-half of the wheat hay and chaff that would be required for a mature work animal.

The ration for the cows would consist of 2,000 pounds of wheat hay, 6,000 pounds of chaff, and 1,000 pounds of rolled wheat, and for young cattle about 500 pounds of wheat hay and 3,000 pounds of chaff. Both cows and young cattle would receive native pasture, stubble pasture, and wheat pasture.

The hog ration would consist of about 1,000 pounds of rolled barley together with a small amount of grain pasture. This quantity of feed should be sufficient to produce a 250-pound hog, live weight.

Seven thousand pounds of feed is sufficient for 100 head of mature laying hens and for the pullets and cockerels produced during the year. The poultry should be allowed to forage a considerable portion of this feed which, together with the wheat screenings, would amount to about 2,000 pounds. This feed, supplemented by the barley and wheat as shown in Table 29, would necessitate the pur- chase of only 1,280 pounds of chicken feed.

STANDARD REQUIREMENTS FOR FIELD WORK

The suggested plan calls for the preparation of 275 acres of sum- mer-fallow land, including plowing, harrowing three times, and

ee ee, Ce ELE eee

34 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

weeding once; drilling 266 acres of this land to winter wheat in the fall, 9. acres to barley in the spring; plowing, harrowing three times, and drilling in the fall 10 acres of wheat for pasture purposes on nonsummer-fallow land. In addition there would be grain harvesting and marketing, hay harvest, and picking up and storing chaff.

TABLE 28.—Division of farm area, production and disposition of crops; standards for a 640-acre farm

; Disposition Farm | Normal yield : Item aren per acre Production Feed Seed Sold Acres | Bushels | Bushels | Bushels Winter wheat, grain-___________- 238 | 20 bushels____- 4,760 bushels _- 110 345 4, 305 Wamnteriwheat. chat sese ei Re Seta ee pee eee yn Aub ONS sepa SA ee ede ee Winter wheat, hay____._______ =| QSe SSC OMe ees 28 Ons 24 eee NU a eee I ace Winter wheat, pasture__________ LOG | See hve ee Si ee eee eae rare ae JAN S| erare 2 ea 55] 22 he canine IB aTleyen eee wile Utena | 9 | 28 bushels_____ 252 bushels____ 240 fy eee ta sumyer-fallow2. 24 <2 32h es ie QT oso k = ee RE ES OR a 25-0 ee all eek: ee rae eee INJATIV erp aS GUC se tee ge ee Gi Ve eae esa ey | a Sr Se era A pele ILE a a Te AS LOU eer ey wee yt Scene LQ): |S re RO oI coe Seen 2 ee ee et |e ea |----------|----------

TABLE 29.—Livestock and feed requirements; standards for a 640-acre farm

| Feed requirements

Livestock ses | : bee Chaff | Barley | Wheat | CHicken _ Pounds | Pounds | Pounds | Pounds | Pounds

14-head of work stock. 273.24! 2 2 ease! 2!) sen ee as | 42, 000 58, 800 97600 )n| Ste ee ee cee 2 two-Vvear-old’ colts! e822. fei 1 ee ee | 4, 000 DF O00 |SFLLE es Say OP a ee eee DEV OALlINES, COLLSE 23s Rak Re RiP Ne es ee oe, eee 3, 000 4200 ol a 5s ape | eee Ss | eee ae SS ATTA CO WS eee me ao ra Eee | 6, 000 TS HOON Sas kee | 3) G00) ee ane 2youngicattlebesi eee tists 37 eee eee, 1, 000 6; O00 22 AE ee. | eevee ein ee ee SALT OBS pete eis tae Fai a bens oN lad NG oh pice as | Ree ge a | Me 3: O00) | sa 5 2 eae 100:¢hickens Hae sili ads FSET a ek AS ce eee eS See a |e ies oe 120 3, 600 1, 280 TO Galle tei Te nee ac 2 Cae ee a 56, 000 101, 000 11, 520 | 6, 600 1, 280

1 In addition to quantities shown about 2,000 pounds of feed would be foraged.

The farm operator should be able to do the summer fallow and seeding work and haul the wheat to market. This would necessitate the hiring of very little extra man labor except during the period for harvesting and marketing wheat, hay harvest, and picking up and storing chaff. In a normal season all of this work would be completed not later than August 25. Standards with respect to size of crew, size ae ne of implements used, and amount of work done are shown in

able 30.

Under normal weather conditions the ground should be sufficiently dry to allow the plowing to start about March 15. ‘The importance of early plowing on these farms can not be overemphasized. Experi- ments conducted at the Agricultural Experiment Station, at Moro, to determine the effect on the yield of wheat obtained after early and after late spring plowing, have shown a very decided advantage in favor of early plowing.

Plowing should be completed not later than May 1 and usually the cultivation of the summer-fallow should start, especially if the acreage is large, before all of the plowing has been completed and should be continued often enough to keep the ground free from weeds. The season for harvesting is during the month of July, and wheat seeding should be done from September 15 to October 30 when moisture con- ditions are most favorable for seed germination.

Kind and amount of work

Plowing 285 acres_______-_|

855 acres.

Weeding 275 acres_______

|

Drilling 285 acres____-__-

Hay harvest and storing | 28 tons.

Harvesting and thresh- ing 247 acres.

Picking up and piling 2,228 grain sacks.

Hauling wheat to mar- ket, Iniles.

Hauling grain to gran- ary, 597 bushels.

Picking up and storing chaff, 47 tons.

Miscellaneous work (haul, clean, and treat seed, hand hoe, and haul fuel).

Spike-tooth harrowing |

4,305 bushels 5 |

Size of crew and size and type of implement used

1 man and 12

horses, 16-inch 3-bottom gang plow.

1 man and 6 horses, 24-foot harrow.

1 man and 6 horses, 12-foot rod weed- er.

1 manand6 horses, | 10-foot hoe drill.

| 3menand 12horses, |

12-foot combine. 1 man and 4 horses_

1 man and 6 horses, 2 wagons.

1 mau and 4 horses-_

2 men and 4 horses-

COST OF PRODUCING WINTER WHEAT IN OREGON

TaBLe 30.—Standard requirements for field work on a 640-acre farm

Work accomplish- | ed per 10-hour day

QracreSe a2 te

Six-1,500-p ound loads.

Total Man | Horse | labor | work | Hours | Hours

317 3, 804 171 1, 026 138 828 142| 852 172 | 304 336 | 1,344 45 180 166, 996 10 40 208 | 416 112 24 1,817 | 9,814

| Usual season for do-

ing field work

Mar. 15 to May 1.

Usually should be started before all plowing is com- pleted and contin- ued often enough to keep weeds down.

@

Sept. 15 to Oct. 30 when moisture conditions are fa- vorable to seed germination.

June 20 to July 1.

July 4 to Aug. 1.

No provision is made for time required for disking land before plowing or any tillage work on the crop after seeding. Experiments conducted at the agricultural experiment station at Moro have shown that disking before plowing and tillage work on the crop after seeding

is of doubtful value in increasing crop yields in this area.

The

equipment requirements, however, include a disk harrow which may be needed at times for pulverizing clods on the fallow ground, or to kill weeds when there is an excessive growth which can not be con- trolled through the use of the spike-tooth harrow and rod weeder. A disk harrow may also be needed occasionally in the spring to work up ground for reseeding where winter wheat has frozen out.

A single set of equipment, aside from wagons, wagon beds, and harness, would suffice for the effective operation of a farm of this size and would be about as shown in Table 31.

TaBLE 31.— Machinery and equipment; standards for a 640-acre farm

ber

Heavy wagons.

3-bottom 16-inch

12-foot weeder. 10-foot hoe drill.

Se ee eee bob)

Item

| Num- ber

Wagon beds for hauling sacked grain. Hay and straw rack. 14-inch walking plow.

gang plow.

24-foot spike-tooth harrow. 8-foot double-disk harrow.

7 set

sie

Item

12-foot combine. Grain cleaner. 5-foot reaper. Double work harness. Saddle. Cream separator. Miscellaneous small tools, hitches, etc.)

equipment

(including

—w 7 = 2 ee en Ne eee anebeseesenee

s . - ~

36 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

ESTIMATED CASH RECEIPTS AND CASH EXPENSES

Receipts from the sale of wheat at $1.25 per bushel amount to $5,381, and from the sale of livestock and livestock products to $579. The plan calls for the sale of all wheat not needed for feed and seed, 2 horses each year and all excess poultry, butter, and eggs, 2 veal calves and a small quantity of dressed beef.

The cash expenses provide for the hire of 64 days of man labor. The expense for man labor, feed, fuel, oil, and grain sacks was ar- rived at by multiplying the requirements by the rates that were paid. during 1925 for these items. The other expense items are averages of a group of farms of the 640-acre size. After subtracting the cash expenses from the cash receipts there is left a net cash return of $4,020, and in addition a considerable quantity of farm-produced supplies contributed toward the family living. (See Table 32.)

TaBLE 32.—Estimated cash receipts and cash expenses on a 640-acre farm

Cash receipts Cash expenses Wheat, 4,305 bushels at $1.25....-.-_________- $5,381, Sua born G4 daysee sss ae eae mone cee $304 HOrses2 at $7b=2 a ee ee 150 | Repairs: Butter, 384 pounds ati HO sb.ssc as eee 134 General farm machinery-.....-_-______- 90: Eges.663) dozen\ at $035 See eae 232 Combine. 220i see ee ees 150: Cockerels? 25vat $0:50Ue ae ees 12 Building. = 2.2552 els eee ae eee 40: Oldshens'2hiati Oi Gs awe soe eee cere ee 16 i As) acs hee i a to aS Tas eg aN a Caper oP 25 Dressed beef, 160 pounds at $0.08....._______- 13 | Chicken feed, 1,280 pounds.__-___________- 26 Wealccalives:/2' atiGl 1. at eeis Ss Svea eee eee ae P77 -4eal (atsye | eS oe Rt Te GT Rees We a NO 6 Rolling barley and wheat......--_-______-- 14 (HOrses hoe B= oe ee Tienes ee eee 10 Breeding fees: fori3!COlts- =. sno 5) 60 WiOUNPsp1 IS 343 9 se ae ee ee ral Sea eee et 15 Grain sacks including sewing twine, 2,228_ 267 Automobile for farm use....-__-__-.__-__-- 300 Telephone: S222 {so 5. 28 ee Qe te eee 10 Fuel and oil: Generallifarmis ssa 50) oe ie eee 15 Combine. eee ee cea sacs 45 Insurance: IBWiI Gin pate ee ee eee ee re 18 GCombinett 26422: eee er ree 76 Cho pigec sae taser ee oe ee eee eee 25. its 6. tc pelereteieee dea eNed ocitee te lorsme Sa Nea fe 450) TOtaleoen sot ees eT BAe ee oe ees 1, 940: Difference between receipts and expenses... 4,020: 5, 960 5, 960

EFFECT OF CHANGES IN WHEAT YIELDS AND PRICES UPON NET CASH RETURNS

With a yield of wheat of 15 bushels per acre, and the same quan- tities kept out for seed and feed, and prices received for wheat and quantities and prices of other products the same as shown in Table 32, the results would be as follows:

Decrease in cash*receipts ij.) e Uattan 4) ia is ke tee lee $1, 487 Decrease in cash expenses 63

Decrease in net cash returns owing to lower yield of wheat __-_-_--- 1, 424

_ With a 25-bushel yield of wheat the net cash returns would be increased by $1,424.

On the basis of a 20-bushel yield of wheat sold at $1 per bushel, and other receipts and expenses the same as shown in Table 32, the total net cash returns would be decreased by $1,076. With a 20-bushel yield of wheat sold at $1.40 per bushel, and other receipts and expenses the same as shown in Table 32, the total net cash returns would be increased by $646,

COST OF PRODUCING WINTER WHEAT IN OREGON 37

FAMILY LIVING FROM THE FARM

The quantities of farm-produced dairy, poultry, pork, and_ beef products (Table 33) are sufficient to care for the needs of 2 adults, 2 children under 16 years of age, and 64 days of hired labor which it is assumed would board in the farmer’s family. In addition, these farms should contribute a considerable quantity of garden products toward the family living.

TABLE 33.—Farm-produced food for home consumption on a 640-acre farm }

Item Quantity} Value

Dairy products:

JEAN A eye Sees wen PN GE ECE 2 ok wn ek CTS IO et OO ae REED OT gpm a ele See ae ee pounds__ 124 $43

Who leanilikeas eee abies aren ee eee on ete ne ange ta Roe eo gallons__ 213 36 Poultry and poultry products:

COCK CTE] S era ee ht en ah es ict RNS Ee ess state eee et number_-_ 25 15

COVE CS ee ee on ee re ee ee Mere ne meer cgay en cet WE ee yO LETS ol doz: 25 12

ERS pepe ca TR a gL en eed Ss AOD Napier ie en ane dozens__- 170 60 PE TESSE Gl gO Take tere ater eae ieee ee pe eri. etme ren en Mg pounds__ 560 95 BID TESSCCLECC faery ate te ie see ere ec Sune nna Rune te ee eee ae dos 200 16 arden: producei==---2—— = Gis as Sa nS PNR os CRRA ORG Sy cr i Ne He SY ie oe ea 75

‘Rotals =a ee Reger RO erent es ei noe eee oe eee oF AS eee a es 352

' 1 Family consisting of 2 adults and 2 children under 16 years of age, and provides for 64 days of hired man labor.

EFFECT ON THE FARM ORGANIZATION OF INCREASING THE SIZE OF BUSINESS

A 1,280-acre farm, operated with horses, has been taken to illuse trate the effect on the farm organization of increasing the size of business. The organization of this farm would be similar to that of the 640-acre farm operated with horses. The division of the farm area would be as follows: Winter wheat, 412 acres; wheat hay, 51 acres; wheat pasture, 15 acres; barley, 17 acres; summer-fallow, 480 acres; waste, 15 acres; and native pasture, 290 acres.°

Provision has been made for the farm production of the feeds required for the livestock with the exception of a small quantity of chicken feed as well as all of the dairy and meat products required for the family and hired labor. The number of work stock would be increased from 14 to 28, and the 2-year-old and yearling colts from 2 to 3 each. This would allow for the sale of 3 young horses each year. The number of hogs kept would be increased by one to take care of the increased requirements of pork products for home consumption, and the other livestock would remain the same as on the smaller farm.

Practically a double set of most of the tillage implements would be required and a 16-foot combine and a 6-foot binder would take the place of the 12-foot combine and 5-foot reaper which were suitable for the smaller farm.

Standard requirements for the field work and the season at which this work should be done are shown in Table 34.

As in the case of the smaller farm the requirements for field work provide for the fullest utilization of the work stock and equipment, and require the minimum of hired labor. The program calls for an extra man to help with the summer-fallow and seeding work and also extra labor during the harvest period. One man would start hauling wheat to market with a 6-horse outfit about one week after wheat

® The percentage shown as nontillable acreage is considerably larger than for the 640-acre farm. Some large farms favorably situated may have a larger acreage of cultivated land than shown in this example.

38 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

cutting begins. As soon as the cutting is completed another 6-horse outfit would be added. With these crews all of the wheat could be hauled to market by August 4, and with an extra man to help pick up chaff this work would be completed by August 17.

Some farmers reduce the number of work stock and the expense for hired-man labor by exchanging work with their neighbors during the period for harvesting and marketing wheat. Also during recent years the horse work has been reduced on some farms by the use of the motor truck to haul the grain to market. On most farms, how- ever, it is doubtful if the use of motor trucks will allow any appreciable reduction in the number of work stock.

TABLE 34.—Standard requirements for field work on a 1,280-acre farm }

Total

Size of crew and| Work accom- |

size and type of plished per 10-

implement used hour day Man | Horse | labor | work

Usual season for do- ing field work

Kind and amount of work

Hours | Hours Plowing 495 acres____-__- 2 men, 24 horses, | 18 acres__-______-- 550 | 6,600 | Mar. 15to May 1. two 16-inch 3- | bottom gang plows. Spike-tooth harrowing | 2 men, 12 horses, | 100 acres________-- 297 | 1,782 | Usually should be 1,485 acres. two 24-foot har- started before all rows. plowing is com- Weeding 480 acres_____-_- 2 men, 12 horses, | 40 acres______-___- 240 | 1,440 pleted and contin- two 12-foot rod ued often enough to weeders. keep weeds down. Drilling 495 acres_______- 2 men, 12 horses, | 40 acres_____.___-- 248 | 1,488 , Sept. 15 to Oct. 30, two 10-foot hoe when moisture con- drills. ditions are favor- able to germination of seed. Hayaharvest angdestonimg. Saat eae eee es Rao eee ee 300 450 | June 20 to July 1. 51 tons, Harvesting and thresh- | 4 men, 21 horses, | 30 acres_________-- 572 , 3,003 | July 4 to Aug. 1. ing 429 acres. 16-foot combine, Picking up and piling | 1 man, 4 horses___-_| 500 sacks________-- 77 308 3,874 grain sacks. Hauling wheat to market,| 1 man, 6 horses, 2 | 260 bushels______-- 290 | 1,740 7,532 bushels, 5 miles. wagons.? Hauling grain to gran- | 1 man, 4horses__-__|_______-_-_-_-_--_-- 20 80 ary, 1,184 bushels. Picking up and storing | 2 men, 4 horses____] Six 1,500-lb. loads__| 346 692 chaff, 78 tons. Miscellaneous:work« (nal Soe ses sae ae ee aes eee eee ence 184 46 clean, and treat seed, hand hoe, and haul fuel). HS 0) 2) Lace ain a Lipae Bice woy pani Anna ees vpn SV Ty Si | 8,124 | 17, 629

1 The proper use of eveners and hitches would allow the spike-tooth harrowing, weeding, and drilling to be done by 1 man driving a 12-horse team. The use of teams of this size for these operations would release 1 man for other work about the farm, or, if not needed all of the time it would allow some reduction in the hire of man labor during these periods. No doubt the use of large teams has a place on the 640-acre farm. However, if used on the smaller farm an additional harrow, weeder and drill would need to be purchased. See Mont. State Col. Ext. Serv. Bul. No. 70 for suggestions with reference to hitches and eveners and the - use of big teams on large dry-land farms in the Northwest.

2 On completion of the wheat cutting another 1-man and 6-horse crew would be added.

Using the estimates of cash receipts and cash expenses as shown in Table 35, the larger farm should result in an increase in cash receipts of $4,097 over the smaller farm and in an increase in cash expenses of $1,614, resulting in an increased net cash return of $2,483. See Table 36 for quantities and values of farm-produced food for home consumption. :

It is impossible to receive a large return where the business is of small volume. On the other hand, while an increase in the size of

COST OF PRODUCING WINTER WHEAT IN OREGON 39

the business may result in a larger income there is always the possi- bility of larger losses in unfavorable years. Success or failure de- pends to a large extent on the experience and managerial ability of the farmer. If he is capable and ambitious, and if he possesses sufficient capital, his chances for success are decidedly better in most cases on the larger farm.

TaBLeE 35.—Estimated cash receipts and cash expenses on a 1,280-acre farm

Cash receipts Cash expenses WWiheat..7-502-pushels:at-oleJons $9,415 | Month labor, 6 months at $75-_-___________ $450 EV GTSESS Siebel pieteers = ee eee ee 225) Other labor el oda sea oe a 590 Butter, 340-pounds at $0.35__-_____-________- 119 | Repairs:

Hoss 620 COZEM. ab: Udo === 5s Se 220 General farm machinery__-___________- 125 @ockerelss35 ot $0-502* = 3 te Se Be 12 Conitbineh=s ai she. Seri reese 250 Oldshens=- 25; ata 90! Goes ee ee 16 d SNOURIG Liha y= ceemenre ea at ape me RS ey ae aS ee 40 Dressed pork, 115 pounds at $0.17___-________ 20 Hen Ces. 8 oko et oes ers eS Ree 25 Dressed beef, 105 pounds at $0.08____________ 8 | Chicken feed, 1,280 pounds_______________- 26 WealecalvieSs2iab oll mess = oe eee oe 22a OAL ee ao aye ee en ae AS 9 Rolling barley and wheat _--_____________- 29 VOTSESHOCIN Geek el are era ee 20 Breeding fees for’4 colts——: =. - 222-22 80 YiGUNEEDISS gACs San ee Ey es 20 Grain sacks, including sewing twine, 3,874 465 Automobile forfarm uses _- =.=. -2=-- 222-2 350 RelepWON es = sa hee See oe ee 10

Fuel and oil: Generalsfanmeer rs ses) fel es 20 GOI pies are ee oer Eee ee ae 120

Insurance:

FS art TA see ee em ac SoS Fe eee ee 20 | Compineei Eales ta ee ees 90 (OY ee ea Se eels Se ra 40 TRAX CS ose eee we rnp Sao nae aint Der ee A 775 Te tel Serpe eh Ss an ean bey eye So 3, 554 | Difference between receipts and expenses__ 6, 503

10, 057 | 10, 057

TABLE 36.—Farm produced food for home consumption on a 1,280-acre farm }

Item Quantity) Value Dairy products: ; IS Uitte eee soe ten A eerie ere ee od eed Pe Pa ED pounds__| 150 $52 Whole pin keemeies cet ee oe ee na hae ae ey Se gallons__) 255 | 43 Poultry and poultry products: | Woeckercisw ee ne ee SS oe I Oe number-_| 25 | 12 Oldshieri see neeee see Bee eee Ca er ee tee ne ee Ge eek AY domes 25 16 CE Cie pee a ieee Ye Sae ee oie Peres Pet ee See soy bee ph © A ee dozens__ | 204 71 HD TESSC CaO 1 Kemer ean os eri. Ce ee ee oe oe ye eee pounds__| 635. | 108 ID TESSE CRD emma ere Soe ei ee ee et ea ee I eG eee dome] 255 | 18 Gardenyprodivcete- oe Ss AEA Dh ey Ee ah a eeetees | at bo Lease {GR Merion Sy 75 PAD NOY eee Se Be ca eal cays Tr lg Rae Meo CG | ip eer 395

1 ee consisting of 2 adults and 2 children under 16 years of age, and provides for 295 days of hired man labor.

EFFECT OF INTRODUCTION OF A TRACTOR ON THE ORGANIZATION OF A 1,280-ACRE

It is believed that as a general rule a 640-acre farm in this region is not of sufficient size to warrant the purchase of a tractor, and therefore no figures are given on the effect of the introduction of a tractor on the organization of farms of this size. If a 28-drawbar horsepower tractor was purchased, the following changes could be effected in the organization of the 1,280-acre farm: After the purchase of the tractor the 16-inch 3-bottom gang plow could be sold and a 16-inch 6-bottom tractor gang plow purchased. It is assumed that in normal years all of the plowing, all of the home harvesting and threshing work, and about 200 acres of custom harvesting and

40 BULLETIN 1446, U. S. DEPARTMENT OF AGRICULTURE

threshing could be done with tractor motive power. This would allow a reduction in the number of work stock of from 28 to 14 and in the 2-year-old and yearling colts of from 3 to 2 each.

This change would make it possible to reduce the acreage of .

wheat hay cut for feed by 21 acres, and of barley by 6 acres. This acreage planted to wheat would produce an additional 540 bushels of wheat for sale. The reduction in the number of horses kept would result in the sale of one less head of work stock each year. The reduced requirements of chaff for horses and colts would result in a saving in man labor and horse work of the amount required to pick up about 32 tons.

Records obtained in this area show that on tractor farms after the purchase of a tractor there is some saving in total months of man labor for the year. The amount of man labor saved, however, is slight, and it is assumed that the extra man labor on account of the 200 acres of custom harvesting and threshing would about off-set any saving in man labor that might have been possible had no out- side work been done after the tractor was purchased.

The total annual tractor repairs and cost of fuel and oils, as well as the additional cost for combine fuel and oils because of the outside work, are shown in Table 37. After taking into consideration the in- creases and decreases in current cash receipts and in current cash expenses after the purchase of the tractor there is a total increase in net cash returns of $167. The increase in net cash returns is slight, and if set aside each year the amount saved will not be great enough to buy a new tractor when the old one is worn out, but all of the benefits from the ownership and use of tractors on these farms can not be accurately measured in dollars. The opinions of tractor owners relative to the use of tractors are discussed in Department Bulletin No. 1447, ‘‘Cost of Using Horses, Tractors, and Combines on Wheat Farms in Sherman County, Oreg.’’ Of the points to con- sider in the purchase of a tractor probably the one of greatest import- ance is the mechanical skill of the tractor operator. Unless the tractor owner is mechanically inclined and operates the tractor himself or is able to hire a thoroughly competent tractor man he is almost certain to find his tractor an unprofitable investment.

TaBLE 37.—Changes in current cash crop and livestock receipts and in current cash expenses on a 1,280-acre farm after the purchase of a tractor

Increase inswheat receipts; 540 Ushels: at plea me eee oe ee coe eae cg eee $675 Decrease'in Sale-of horses; tsi: Vanes ee Ce isl a a NEE ee Serene ii ae aee ke Mn ral onaed fee Saree apie ie 75 Netsinerease:in crop andilivestocksr@cen pts eee eee tee nna de seer 600 Custom work harvesting and threshing wheat, 200 acres, at $3...____._._____._._.-__-__----_-------- 600 Net increase’ initotal Cashier cepts sae eee ee ee ue 1, 200

Increase in current cash expenses: For 52 days of tractor drawbar work—

Gasoline;.2,392 gallons:ati$O20 28s yeaa es PT eS are Sea Da ia a lee cae eee NE 478 Cylinder oil; 104 gallons at. SO Soe ees eta tie, TA mae pe em 92 Other'oil; 151 galions:/at’ $0442. Se SE a ae es Bad eee meee 21 Hard grease, 120’ pounds; at SOs Ono aoe a ed de 12 542) 01 5b a peed ne aeRO EN MC re nE aru ian DUO Ne ey Tce aes mr ema ie RAEN eC Ns 375 For 7 days of custom combine harvesting—

Gasoline; 210 gallons: at: SOl20. 2 2s ose ed Se hl as les hearer em rE 42 Cylinder oil;10 gallons, at $0:88. 22-20) Fee A ee ek ae ee eee 9 Other ofl,.1.1 -gallons; ‘at: $014 ee 508 os Eh A eT SI SN Cala eee eee ee cd 2 Hard grease, 15pounds, at $010) 22 oe Ea ae a a 2 Toten no ag ea gees I es Sco Sa ge 1, 033 Neetreb am ge eg ye EL IR eR gh tc cr Sg aR a 167

WASHINGTON : GOVERNMENT PRINTING OFFICE : 1927