Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1911-12-27
BUSINESS OF FARMING
Need of System of Business Account
ing on Iowa Farms.
ECONOMY AND EFFICIENCY
Farmers Should Analyze Operations
and Reduce Problems to
Business Basis.

Farmers Should AnalyZe Operations
and Reduce Problems to
Business Basis.
Recently / was talking with a
prominent agricultural educator who
remarked: THE great trouble with
the average farmer is that he is not
as accustomed to analyzing his oper-
ations and reducing his problems to
a business basis as Is the man engag-
ed in a commercial occupation. In
fact, in many sections of our coun-
try our farmers are just about one
generation beyond the pioneer stage,
as they still advocate and maintain
scrub live stock and inferior varie-
ties of grain. This lamentable con-
dition results solely from the fact
that their business capacity is not
developed, on account of which de-
ficiency they absolutely shun the ap-
plication of business principles to
the so-called humdrum work of the
farm" says George H. Dacy in the
Iowa Homestead.
There is no question but that the
farmer who awakes from this
lethargic condition can and will
make good" Today there are any
number of practical farms in the
middle west whereon rigid systems
of business accounting, strict prac-
tices, and methods in vogue so ex-
tensively in commercial operations
are reducing the work of the country
place to a practical business basis
The prevention of excessive waste,
the minimum utilization of by-pro-
ducts, the efficient advertising of pro-
duce offered for general sale, and a
system OF accurate bookkeeping
which will account for every receipt
and expenditure are just as essen
tial on the farm as in the factory.
Several striking examples of the
value of farm accounting and busi-
ness agriculture are presented In the
case of a couple of Wisconsin farms.
For several years one large place Of
500 acres was managed rather hap
hazzardly, with little attention to
detail or the business side of farm
ing, and as consequence was foot
ing up a large loss every season.
Then a new herdsman, a practical
manager. who appreciated the neces-
sity OF business methods on the
farm, was placed in charge Of this
project. He completely revolution
lied the system of management, in
stituted commercial methods and as
rigid set of business rules as ever
directed large factory toward great
prosperity. Beneficial results were
Immediately noteworthy and the
credit side of the ledger began to
pick up rapidly. At present this
profits of any farm in the state-last
year it is said to have paid It's owner
a net profit of several thousand dol
lars after a substantial interest
charge on the original investment
had been deducted.
Another failing project whose prof
its had gone awry, due to the lack
of efficient systems of management,
consisted of a small dairy farm. This
place was run according to obsolete
methods-cowS were cows and pigs
were pigs, irrespective of their feed
ing capacities and their production.
The results were, as might be antici-
pated, period of rapidly declining
returns; finally a heavy mortgage
placed on the farm and it's subse-
quent sale to young farmer who
had recently graduated from the ag-
ricultural college short course. He
Immediately began to 'clean house
and disposed of everything on the
place which was incapable of return
ing a fair annual profit. He tested
all the herd for milk and butter fat
/ ~ nA, mot hA hno rdn Z.
| fed balanced ration; decreased
waste and, as far as possible, employ
ed business management as the tonic
which was to cure the disease known
as poor farming Once again busi-
at present this progressive country
ness management was victorious, and
man is gaining prosperous liveli-
hood on the farm where his prede-
cessor could not make ends meet.
In various sections of the country
certain farmers have devoted little
time each week to accounting the
cost of producing their crops, the
cost of labor and the profits or losses
derived from every farm operation
to the United States Department OF
Agriculture. The government has
recompensed these countrymen in nc
way other than furnishing them
typewriter, itemized, monthly re-
ports which show just how much was
the expense of each farm operation
during that period, what the costs
of horse and man labor were, what
profit was yielded by the dairy herd
the swine herd, the flock of poultry
etc. The farmers who perform this
work for the federal department are
being benefited greatly thereby, as II
awakens in them realization of how
essential it is to keep track of the
work of the farm in addition to the
output and the income. This fedora
system of accounting in itself is too
detailed and requires too much time
and labor to prove universally eff
cient for the general farmer but i
should at least set him to thinking
and in short time he should be abl'
to devise system of accounts which
would fill his individual bill in ever.
particular.
At any rate he should keep tract
of the cost of labor, seed, cultivation
fertilization, the expense of harvest
ing the crop in each field, and tn
revenue realized from said crop. III