The comet. (Johnson City, Tenn.) 1884-1916, 1895-01-31
Cost of Producing Wheat.


Cost of Producing Wheat.
The low price of wheat has get many
people to figuring what it costs to
produce it. 1t is altogether natural
that the results should be widely diff.
lerent, because 80 many variable ele.
ments enter into the calculation. The
cost OF cultivating an acre in wheat,
and marketing the crop must be OBJ
tanned, and then divided by the mum.
Der OF bushels produced. AS this
number may vary, under conditions
not extremely abnormal, from eight to
forty, it is clear that this is an element
OF primary Importance. Yet this ele.
ment not only varies greatly in diff
ferent localities, but IN the same To-
cality in different years.
1t follows, therefore, that uniformity
OF results is not to be expected, even
when the methods are the same. But
there is considerable difference in the
processes employed. This may best
be illustrated in connection with no.
tees of some of the estimates sub
mitted.
Mr., @. L. Doughty figures out that
he raised twenty bushels to the acre
in Pawnee county, Kansas, at a cost
OF sixteen cents a bushel. In this he
includes interest on the value of the
land at $40 an acre. His estimate has
been roughly handled for several rea-
sons: Because he computes wages at
the annual average rate, and not at
the higher rates prevalent at harvest
allows for teams only the cost of feed
and similar errors.
Another writer, from Nebraska, puts
the cost of an acre of wheat according
to his experience at 1925, OF which So
is for rent. This would give an ave
rage of thirty-nine cents as the cost
for bushel on his basis of sixteen
bushels to the acre. Bat he charges
for threshing twenty bushels, while
calculating the yield at sixteen, and
leaves out the cost of seed entirely
These mistakes tend to balance each
other. II we correct both we shall
find the cost somewhat higher, OF
nearly forty-two cents per bushel.
Mr.. Carpenter, of Reno county
Kan, has made very comprehensive
estimate of his experience for four
years on 200 acres of land. His ave.
rage crop for these years was fifteen
bushels per acre, and the average price
fifty cents bushel, making $500 a
year. Against this he charged ex-
penses, taxes, interest on value OF land
at $l5, ETC., and one,half of the cost
of supporting his family, the other
hall being charged to other crops. In
this way helnakes the average annual
cost to have been 81 Joy SO, and his
annual profit $4,000. This would
make his wheat cost nearly thirty
seven cents bushel. With reference
to his calculation the New York Com
Noercial Bulletin offers this criticism :
"This is good profit on the amount
of capital involved over and above
wages, materials, interest and depre.
citation; but it is too small, for Mr..
Carpenter has overloaded his expense
account. The odd sum Of $7.9S is the
interest on the 20 per cent. of the
cost of his teams and implements,
which he charges off annually for de.
probation; il has no place in the ac-
count, and removing it reduces the
expense to a round $1,100. The cost
of supporting Mr.. Carpenters family
40 hO puAb VI VA0 CUSt Vi ThISlu WQeaL
it must come out of Mr.. Carpenters
profits. This takes 5000 off the ex-
pense account. We have already
explained the objection to reckoning
the rental value of the land as part
of the expense account, it should
come out of the profits"
These different estimates, and the
criticism on that of Mr.. Reno, show
how much depends upon the point Of
view, or, in other words, upon the
method Of computing the cost. The
several writer's, apparently without
any great difference in actual condi.
tions, certainly with only difference
of Is per cent, in the yield, figure out
the cost of producing wheat all the
man NTAER SarsapariIIa com-