The transportation of $2,000 worth of maize to a railway station ten miles distant is a laborious and expensive operation, but when this same maize is turned into beef or pork, it will transport itself to the station with comparatively little trouble. Notwithstanding the excellent transportation facilities which the farmers of the United States enjoy, 80% of the maize is consumed in the county in which it is raised. Cereal production demands better transportation facilities than cotton farming, tobacco growing or the rearing of domestic animals.

(5) Capital must lie idle much of the time. The self-binding harvester or the hay rake is only used a few weeks, or perhaps more often only a few days, each year. A cream separator or a churn may be used every day in the year. In the first instance, there is not only interest on unemployed capital, but the capital is actually deteriorating through nonuse.

(6) The production of hay and grain does not give continuous employment. The slightest consideration of the following table must show that unless live stock is kept, there are considerable periods of the year in which very little labor is required, while at other times considerable work is necessary to prevent loss.

TABLE SHOWING THE AVERAGE ACREAGE PER FARM OF PRINc.i.p.aL CROPS.

New York Ohio Wisconsin Virginia Maize 3 13 9 11 Wheat 2 12 3 6 Oats 5 4 14 1 Barley, rye or buckwheat 2 -- 5 0 Hay and forage 23 11 14 4 Potatoes, beans or other vegetables 3 1 2 1 Fruits 2 2 0 1 Miscellaneous crops 2 1 0 2 Pasture, wood or unimproved land 58 45 70 93 --- -- --- --- Total size of farm 100 89 117 119

(7) Much depends upon natural forces. While there is opportunity for the use of knowledge and judgment in the production of high-grade seeds and even of large yields, there is not the same scope for skill that there is in some other lines of agricultural enterprise. Skill means the capacity to do something difficult, and the more effort required to produce an object the more value it has, provided its utility is unlimited. The farming which requires the most skill pays the best if one has the skill to apply to it. This is because those who do not have the requisite skill are usually unsuccessful.

CHAPTER XIII

THE COST OF FARMING OPERATIONS

Several millions of the inhabitants of the United States, not to mention those of other countries, are engaged each year in the preparation of the soil for the cereal and forage crops and on the work of seeding and harvesting them. The welfare of one-third the population is directly and that of the other two-thirds, although less directly, is quite as surely dependent upon the effectiveness of this effort. If, for example, as sometimes happens, one-third the population receives on account of untoward seasonal conditions but four-fifths of the usual product, everyone must suffer on account of this unrewarded labor. Many, perhaps most, financial panics have their origin in crop failures aided, doubtless, by an improper financial system.

Although widely and sometimes bitterly discussed, little is really known concerning the relation between the effort expended and the returns obtained in producing the great staple farm products; yet one of the most important and vital considerations in the organization of a farm enterprise is the income, both gross and net, which may be expected from the different crops contemplated. Obviously the yield and price of the several crops will vary with the locality and with the season. It is, therefore, impossible to predict for any year either what yield may be obtained or what price will be secured. If, however, a sufficient number of years are selected, an average may be found which will form a basis for calculating the probable result for another series of years. The following table gives the yield and the average farm values per acre for five staple crops for five years, 1905-1909 inclusive, for the United States and for four widely separated states, viz., Pennsylvania, Iowa, Texas and Oregon.

AVERAGE YIELD PER ACRE, 1905-1909.

Pennsylvania Iowa Texas Oregon Maize, bu. 36.6 33.4 21.1 27.3 Wheat, bu. 17.8 15.5 9.6 20.6 Oats, bu. 28.9 28.9 26.6 32.8 Potatoes, bu. 84.4 85.8 67.0 119.0 Hay, tons 1.39 1.56 1.32 2.11

AVERAGE FARM VALUE PER ACRE, 1905-1909

Pennsylvania Iowa Texas Oregon Maize $22.59 $13.80 $12.17 $19.58 Wheat 16.61 12.42 9.11 16.10 Oats 13.33 9.28 12.97 15.20 Potatoes 55.87 44.75 65.15 71.18 Hay 18.74 10.13 13.92 19.60

Such figures as the above may be compiled by anyone at any time for any year or series of years from the yearbooks of the United States Department of Agriculture. They form a fairly sound basis for calculating the gross income which may be expected from the staple farm crops, particularly for the cereals, potatoes, hay, cotton and tobacco. Five questions, however, present themselves, which should, as far as possible, be settled before applying them to an individual problem.

(1) How nearly do the conditions, especially those of soil and climate, of the given location correspond to the averages of the state? The question can be settled only by a thorough study of soils and their crop adaptation. It is a matter requiring study, experience and judgment.

(2) How much larger yields may be expected on account of better methods employed? It is here that most mistakes are made in estimating possible farm profits. Necessarily, all statistical averages of production are much below those which an enterprising farmer considers an average crop and habitually produces. Not more than 50% increase upon these figures, however, should be antic.i.p.ated by reason of the improved methods which one is going to employ.

While the average yield of maize, even in the so-called corn states, is not far from 30 bushels an acre, and while it is quite common for good farmers to produce 60 to 75 bushels of maize per acre, it would not be safe to a.s.sume a yield of more than 45 bushels unless the conditions are more than ordinarily favorable.

The application of the averages given on pages 149-150 to an individual farm enterprise may be ill.u.s.trated by calculating the possible results which might be obtained on 80 acres of arable land in Iowa and Pennsylvania with the four great soil products of northern United States.

Iowa Pennsylvania Acres Income Acres Income Maize 40 $552.00 15 $340.85 Oats 20 185.60 15 200.25 Wheat 5 62.10 15 249.25 Hay 15 151.95 35 655.90 Total 80 $951.65 80 $1,446.25

If 50% is added for the increased yields which may be expected on account of the employment of better methods, the total yield from 80 acres of arable land would become for Iowa $1,428 and for Pennsylvania $2,169. This does not mean that farming is necessarily more profitable in Pennsylvania than in Iowa. Not only may the cost of cultivating an acre of arable land be greater in Pennsylvania, but usually a larger territory must be owned in order to obtain 80 acres of arable land.

Eighty acres of these four crops is probably as often grown on a farm of 100 acres in Iowa as on one of 160 acres in Pennsylvania. The total farm acreage in Iowa is, in round numbers, 35 millions; in Pennsylvania, 19 millions. In Iowa about one-half the farm area is in the farm crops under consideration, while in Pennsylvania these four crops occupy only one-third the farm area.

[Ill.u.s.tration: Mr. R. D. Maurice Wertz, after several years in railroad offices, took charge of his fathers farm at Quincy, Pa., in 1891, and converted it into a fruit farm. He now has about 220 acres in peaches and apples. It is understood that he has sent from the above shipping station and one other about $200,000 worth of fruit in the last six years.]

[Ill.u.s.tration: Mr. T. E. Martin, Rush, N. Y., is one of the most successful potato growers in the United States. He has a farm of 57 acres of the Dunkirk series of soil. He has three 18-acre fields in rotation consisting of potatoes, wheat and clover and alfalfa. Mr. Martin has increased the yield of potatoes from 60 bushels per acre in 1892 to 417 bushels in 1906. In 1906 he produced 7,510 bushels on 18 acres. In 1907 he sold $2,807.89 worth of potatoes from 18 acres, or $160 per acre. He attributes his large yields mainly to drainage, thorough preparation of the soil, good tillage, spraying, clover and alfalfa, manure and commercial fertilizers.]

(3) Will there be a general increase or decrease in the price of crops during the coming years?

The following table gives the average farm price for Missouri by five-year periods.

THE AVERAGE DECEMBER FARM PRICE BY PREVIOUS DECADES COMPARED WITH AVERAGE OF FIVE YEARS, 1906-10.

1866 1875 1886 1896 1906 to to to to to 1875 1885 1895 1905 1910 cts. cts. cts. cts. cts.

Maize, bu. 40 33 33 35 49 Wheat, bu. 103 87 64 71 87 Oats, bu. 30 27 26 27 39 Potatoes, bu. 57 48 49 53 68 Hay, ton 902 799 704 700 875

An examination of the last column shows that the average price of these staple farm products has been considerably greater during five recent years than during the previous thirty years. Will this increase in price continue, or will there be a series of years of unusually low prices which will bring the average price of the decade down to that of the previous three decades? Few persons will care to venture an answer to this question, which is of the utmost importance to all farmers and especially to the beginner.

(4) The figures employed are taken from the yearbook of the United States Department of Agriculture and are the estimated farm price on December 1 of each year. Can the commodities be sold for the December farm price? Will potatoes sold at the time of digging bring less than the December price? Will wheat or maize held until May bring a higher price? To what extent, by the judicious holding of products, can advance in price be obtained?

(5) Will the products be sold for cash, or may they be turned into animal products at an increased profit? In some sections of the United States animals are reared primarily because of the increased profit due to manufacturing soil products into animal products; in other regions, however, they are kept primarily for the purpose of maintaining the fertility of the soil and only incidentally on account of the increased profits.

COST OF PRODUCTION

For a number of reasons it is difficult to determine the cost of growing farm crops. One reason deserves to be especially emphasized. In any business enterprise it may be necessary to run at a loss, because to stop would entail a still greater loss. This is particularly true in farming, where men are employed by the month in order that they may be had when needed. Since they are receiving pay, it is better that such men should be employed some days at farm operations which return only a portion of their wages rather than not to have them employed at all.

Under such circ.u.mstances, therefore, the cost of producing a given crop may be greater than is indicated by the time actually employed in its production.

Many other factors also enter, as the average number of hours per day which it is possible to work. This is greatly influenced by weather conditions. The Minnesota station determined that the working day on about thirty farms in that state varied from seven and one-half to eight and one-half hours, with two to three and one-half hours on Sunday. The average length of the working day for horses varied from 3.1 to 3.3 hours.

The cost for labor of cultivating a given area of land will depend not only on the crop or crops to be raised, the climate, the topography and character of the soil, the size and shape of the fields and the system of cropping, but also upon the man's ability for organization.

It is said that the European farmers, and even the farmers from eastern Canada, are several years in adjusting themselves to farming in western Canada. When the farmers from Iowa, Kansas, Nebraska or surrounding states move into western Canada with their three-horse teams and other suitable equipment, applying their thorough knowledge of prairie farming, they are at once successful. The man is thus an important factor.

TIME REQUIRED FOR CULTURAL OPERATIONS

The following table will be helpful as showing time required to perform certain operations, since it is a record of labor actually employed on a field of 18 acres of easily tilled land in central Ohio.

All labor was employed at prices named, board for man and food for horses being furnished in addition at the prices estimated. The owner of the land furnished the horse for the harvester.

Plowing 7.5 days at $2 $15.00 Harrowing 3 days at 2 6.00 Planting 2 days at 2 4.00 Cultivating (4 times) 7 days at 2 14.00 Cultivating with harvester 6 days at 1 6.00 Husking and cribbing by the job 45.54 Estimated cost of board 25-1/2 days 7.95 Estimated team maintenance 25-1/2 days 4.90 ------- $103.39

According to these figures the cost for labor of raising the crop and the cost of harvesting was almost exactly the same, each being a little less than $3 an acre.

THE COST OF PRODUCING FARM CROPS

The Minnesota station has determined the cost of growing the staple farm crops on 45 farms in different sections of the State. The total expense per acre for an average of six years is shown in the following table, not including land rental or cost of marketing.

COST OF PRODUCING FARM CROPS IN MINNESOTA.

Spring wheat, land fall plowed $5.54 Oats, land fall plowed 5.80 Barley, land spring plowed 6.89 Maize, husked from standing stalks 9.41 Hay, timothy and clover 3.68 Potatoes, land not fertilized 23.36 Potatoes, land fertilized 34.72

Some years ago the writer made an estimate of the cost of producing maize, oats, wheat and clover hay in a four-course rotation on a tenant farm in central Pennsylvania. The soil was a heavy clay and required plowing for each crop, except, of course, the hay crop, one acre a day being considered a good day's work.

Counting the expense of man and team at $2 per day, the labor cost per acre was found to be $7 for maize, $5.10 for both wheat and oats, and $2.30 for hay, or an average of about $4.90 per acre for the four crops. The interest on the capital invested in operating this farm, exclusive of the land, was estimated at $1.45 per acre.

INFLUENCE OF YIELD UPON THE COST OF PRODUCTION