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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

ee ee a eee ee ee ee

.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

each class Rca each class ean each class ar

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

ee ae

eee eee

BULLETIN 1446, U. 8. DEPARTMENT OF AGRICULTURE

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

OWNED FARM

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

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

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

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.

SS ee

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

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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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

Value | Value Kadalt sae

Year of house] of all Tit adult

Poultry Eggs Nigrigred| BOE Seteeia | Slain unit

5 88 | value

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

a eee

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

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,

a a ely or Cs re es

ar eer th

—— er PF aa ee ee

eee

—— ee ee

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

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}

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

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.

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

EEO eee

———————————————aa—eEa——EeEeEeEeEeEeEEEEeEeOoO7rtrr

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.

ee ae ee ee eee eee eee

a fe

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

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.

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

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