Americus times-recorder., 1919-06-04
FINDING COST
ONFARMSG GREAT
AIDTOINDUSTRY

WASHINGTON, June 4. Cost-of-
production studies are of value to
the individual farmer and at the same
Time are helpful in ascertaining the
economic status of farming as an in
dustry, says the report of the commit
tee appointed by the Secretary of Ag-
rlculture to consider a plan of or
gahlzatlon for the office of farm man
agement and outline the field of op-
Grafton, and especially methodes of
procedure in making cost-of- -produc-
tion studies.
Inc primary purpose of cost-of-pro-
auction studies, says the report, are:
l. To record the details of the
farm business for reference.
z. To give an insight into the ell
ements and interrelations of the diff
ferent farm activities.
3. To furnish information that may
enable the farmer to reduce costs, or
otherwise increase profits.
4. To make possible a comparison
of the profitableness of the different
enterprises and combinations of en-
terprises.
From the standpoint of the public,
cost-of-production studies provide the
facts which give basis for intelli-
gent judgment upon the probable eff
fects of any given legislation or 9TH
er public activity upon the farmer as
a producer and as a citizen. Cost-of-
production studies are therefore one
of the means of providing the basic
facts needed by Legislators and price
commissions in comparing the profits
of competing lines of production and
estimating necessary prices.
Men of ripe experience in various
fields of agricultural research ccnsti-
tuted the committee. They are: H. G.
Taylor, Agricultural Economics, Uni
versity of Wisconsin; Andrew Boss,
Agronomy and Farm Management, I'm
iverstiy of Minnesota; ]. A. Ford, Ag-
riculture and Farm Mana cement, Mas
aachusetts Agricultural College; J. 1.
Falconer Rural Ec0a1 l.cs. Ohio
State University; R. L, Adams, Farm
Management, University CT California;
G. /. Christie, Assistant Secretary of
Agriculture; and representatives Of
the Bureau of Crop Estimates, the Bu-
reau of Markets, ana the ;'ffice of
Farm Management of the Department
of Agriculture.
Three MethGdS RecogClscd
The committee recognizes three
ways of obtaining cost data-cost ac-
counting, the survey method and the
QUESTIONABLE sent by mail. The ac-
counting method is based on complete
records of all farm work and business
transactions. Arrangements are made
with farmers to keep detailed records
of all operations and transactions in
connection with the farm business.
The work is supervised by personal
visits to the farm. 1t is desirable the
committee says, that cost accounts be
kept to obtain baSi: data 1nd cumu-
lative results of such work become
increasingly valuable.
By the survey method trained in
ysetigators obtain the necessary data,
some from the farme''s books, some
from the books of persons to whom
the farmer sells and from whom he
buvs. some from his bin, silo and
building capacities, and some from
estimates made by the farmer. One of
the advantages if this system is that
records are obtained from all classes
of farms after the close of the farm
wear. so that, when desired, areas
more representative of normal condi-
tions may be chosen. The commit
points out, however, that by the sur
vev method, it is sometimes difficult
TO determine the amount of general
expense and miscellaneous labor and
the proper basis for apportloning such
items to the different enterprises, and
that unless the investigator is thro-
oughly experienced in the subject he