The Richmond palladium and sun-telegram., 1919-03-21

the committee appointed by the Sec.
retary of Agriculture to consider a
plan of organization for the Office OF
farm management, and outside the
field of operation, and especially meth.
DDS of procedure in making cost-of-
production studies. The primary pur-
pose of cost-of- production studies,
says the report, are:
/. To record the details of the
farm business for reference.
2. To give an insight into the ele-
ments and interrelations of the differ
ent 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 enter
prises.
From the standpoint of the public,
cost-of-production studies provide the
facts which give a basis for intelli-
gent judgment upon the probable eff
fects of any legislation or other public
activity upon the farmer as pro-
ducer and as a citizen. Cost-of- -produc-
ton studies are therefore one of the
means of providing the basic facts
needed by legislature and price CON-
missions in comparing the profits of
competing lines of production and es-
timating necessary price.
Men on tho Committee.
Men of ripe experience in various
fields of agricultural research constt-
tuted the committee. They are: H.
c. Taylor, agricultural economics,
University of Wisconsin; Andrew
Boss, Agronomy and farm manage
ment, University of Minnesota; J. A.
Foord, agriculture and farm manage
ment, Massachusetts Agricultural Col
lege; ]. /. Falconer, rural economics,
Ohio State University; r. L. Adams,
farm management, University of Cali
fornia; G. l. Christie, assistant secre-
tary of Agriculture, and representa-
tives of the bureau of crop estimates,
the bureau of markets, and the office
of farm management of the depart
ment of Agriculture.
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 basic data, and GU
1oSy L
increasingly valuable.
By the survey method trained in
vestigators obtain the necessary data,
some from the farmers books, some
from the books of persons to whom
the farmer sells and from whom he
buys, some from his bin, silo and
building capacities, and some from
estimates made by the farmer. One
of the advantages of this system is
that records are obtained from all
classes of farms after the close of the
farm year, so that, when desired,
areas more representative of normal
conditions may be chosen. The com
mittee points out, however, that by
the survey method it is sometimes
difficult to determine the amount of
general expense and miscellaneous
labor and the proper basis for appor-
ton ing such items to different enter
prises, and that, unless the investiga-
tor is thoroughly experienced in the
subject he is studying, some items of
importance are likely to be omitted.
Both Systems Are Reliable.
Either method, the committee says,
is useful and reliable when the work
ic caraf,,Ily copduotod h,,t profor,bIu
both should be used. The detailed
cost accounts serve as a check on the
survey work, which in its turn shows
the relationship of the farms on which