The Ontario Argus. (Ontario, Or.) 1???-1947, 1921-06-09
ONTARIO ONTARIO ECON THURSDAY JUNE

IL EOOIN, LII u hODA u u
there will be more or less depends
on the profits that can be made from
them in the long run, although
right now there are many obstacles
I'm the way Of an increase such as
of markets in the flu
ture and lack OF finances to enable
those who would otherwise Increase
their farm livestock. The point is,
there is not sufficient farm live
stock TO cut much figure IN con-
suming hay at present and until the
numbers of farm animals are In
creased to make up for the falling
off OF range stock and the constant
increase I'm acreage of hay, the con-
sumption OF hay where grown Is not
likely to equal the supply, II the
crop continues to be grown on the
present basis.
The third means OF marketing
hay, or the shipping demand, is
matter which may well be consider
ed I'm relation to average values In
the past and probable freight rates
We need not go much further with
the argument than to say the pres
ent farm price of hay is about what
the average farm price OF hay was
over n tern OF years Just preced-
ing the War. Freight rates are
higher and whether they will con-
tinue so or not remains to be seen
However. II freight rates we're re-
duced to pre-war levels. IL would
hardly be profitable 90 ship hay
from this section at present prices
This need be argued no further than
to call attention to the fact that
very little hay was ever shipped
from this section previous to the
high price period of the War, re-
gardless OF how low prices were
here.
Now as TO the cost OF producing
hay, there is much difference OF
opinion as there may well be. for we
have great diversity OF farms
both in size and soil quality. Also
farmers differ In ability TO produce
economically. and there are other
factors which effect the cost such az
land values. cost OF water, etc How
over. from studying a large number
OF farms and taking the average.
have arrived at the following as
the overhead cost per ton on a typi-
cal 40-acre farm managed as eff
ficiently as could be expected
Interest on investment IN land
and buildings, 100000 at
10 ssssss.ssss. .ssssssssN bbV
Interest and depreciation on
work stock, machinery aud
equipment, $4,000 at goo 40
Taxes, county and Btate...... 100 |
Water. .................. 200 |
Total .......,.,..,.S1000 !
Average yield OF 40. less horse
feed, 1G5 tons.
Average overhead cost. 5000
These figures are more than con.
servative, unless II II 10 be argued |
that the average forty acre farm II
not worth 100000. But 10 offset
any conclusion which might result |
from such argument. let II be re-
that this IL an average |
and not a bulk line" overhead cost. |
by which I mean that figure OF |
this kind should be so set that so |
per cent OF the farmers would be |
able TO produce at cost or above. |
whereas an average means that |
one half OF the farmers are produc- |
Ing at a loss and that cannot en-
dure. particularly under irrigation
districts where the success OF the
entire project In dependent on the
success OF most OF the individuals
under Il. Allowing for the bulk
line estimate and adding on a little !
for insurance on hay and insurance /
and depreciation on farm buildings. |
stc, we can place the overhead cost 1
on the 40-acre farm at about $500, !
the modest labor income |
Tor the operator, whether owner or
tenant. at $4,000 per month, the |
cost per ton would be increased by |
s4S5. making the total cost per
.on S11.35. This figure Is consider
lbly below bulk line costs" for
1870. but Il Is given as figure
which might be approximated In
'uture operations. II may be taken
'or what II Is worth In connection
With hay values for beef production
Is given by Prof. Potter.
Now this article has grown rather
engthy, but | do not want TO close
Without commenting on your clos
ng paragraph. | quite agree with
'ou that the problem is one which
he farmers must solve, In the main
with such help as the business
men can legitimately give them"
Nlso, your suggestion that the ma
ure OF this help should be suggest
ID by the farmers who best know
he needs, shows appreciation ON
our part OF the fact that farmers
NOW their business better than
most business men give them credit
or, However. II seems TO me that
he agricultural situation I'm the
ounty is well worth some honest
o-goodness consideration by the
business men and a real manifesto
ion on their part that they are
eady TO cooperate with the farmers
n putting across some worthwhile H
for the general welfare.
otherwise. we may see business men
ooking for new locations, Just as
ONE of our farmers are talking OF
L present.
IL we must have more dairy cows,
'igs and chickens, then we must
.lso have more farm capital, more
armara on the farms and moro