The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1920-03-11

Drlce fecelfeu, anu Inc COSb VI piONuN
ton is much more within the control
of the individual farmer than is the
price Farmers recognize that it is as
important for them to know their cost
of production as it is for the manufac-
turer, the lumberman, or the miner,
to know his costs, but they have not
paid greater attention to this feature
of their business because they have
not realized low simple and how prac-
teal it really is.
A simple and ingenious method Of
determining the approximate cost OF
producing wheat, for example, was
used by Extension Director l.. W. Flu
harty while he was in the employ of
the office of farm management of the
United States department of agricul-
ture. He simply charged the total of
farm expenses to the wheat in proper
ton to the Importance of wheat as q
farm receipt IL so per cent of the
receipts were from wheat, then he
charged 80 per ent of the total expen-
ses as the cost Of producing the wheat
Mr.. Fluharty had obtained reports
from 107 wheat farmers in the eastern
part of the Palouse country who had
received 80 per cent or more Of their
incomes from wheat in 1914. No farms
were included which received as much
as 80 per cent of their receipts from
all other sources combined, because
the accuracy of this method Of getting
wheat cost decreases as the percentage
of receipts from wheat become less.
In order to make sure that the limit
was set high enough, these 107 farm
ers divided their business records into
four groups according to the import
ance of wheat as a source of income
and the cost Of producing a bushel of
wheat was figured separately for each
group. The cost, hanging from 20
cents to 8S cents per bushel, was so
nearly the same for each group that we
may conclude that the limit was a wise
selection. What variation there was
can be largely attributed to the differ
ence in yield and the difference in the
amount of summer fallow.
The figures showing now the cost of
production was figured are given here.
They show what it cost to produce
wheat in 1914 on 107 farms in northern
Idaho and eastern Washington which
had 80 per cent or more of their re
ceipts from wheat. OF course the fig
ures are much lower than at present
but the method is the same and is
clearly shown.
Per cent receipts from wheat 1854
Operators labor ---------------$ 442
Total operating expenses--------1 1913
Total farm expenses $4,000
Wheat cost $29S7
(Proportionate part of total.)
Bushels wheat raised per farm 3642
Cost per bushel ---------- 80
Average yield per ACID 30.4
1t will be seen from the table that in
1914 the average cost of producing
wheat on the whole 107 farms was 81
cents per bushel. 1t varied in the diff
ferent groups from 90 cents per bushel
on one group, which had the least SUN,
I'm Al.
est yields per acre, to 81 cents and IS
cents per bushel ON the groups having
the most and in summer fallow and OBJ
tanning the lowest yields per acre. But
evidently the groups all produced
wheat in large enough proportion to
make the method reasonably accurate.
III 1t cost just as muc1 to produce q
dollars worth Of oats or beef or other
farm product as it does to produce &
dollars worth of wheat, then the meth
cd used in this case could be used ac
curately in all eases. But this is not
exactly true. For Instances, oats may
he produced at greater cost for dol
lars worth than wheat. so that by tai,
method the wheat is carrying par
or what should properly be charged I,
oats. Or if the oats are produced at ,
less cost for dollars worth thar
wheat. then by this method the oat
are carrying a part OF the wheat cost
But, If the amount of oats is small an,
the amount of wheat is large. then tn
error Is divided among 10 many bush
els OF wheat that it does not mako an
great difference in the cost of eac
nushel OF course. the greater the prc
portion of receipts from wheat. th
smaller becomes the possible error.
iarm record with all of its RECENT
from wheat world have no error VIII,
ever from this source.
Ihere are lots of wheat growers
n