i 1 ^tatc College of ^Briculturc ^t CorneU mnibttsitp Mata, B. S- Hifirarp Cornell University Library HD 1775.N4N5 Summary of farm account records [in seve 3 1924 013 989 821 mi XI Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924013989821 CO-OPERATIVE EXTENSIOl!! WORK IN AGRICULTURE AND HOME ECONOMICS STATE OP NEW HAMPSHIRE. New Hampshire College of Agriculture and the Mechanic Extension Service Arts, with the U, S» Department Farm Management Demonstrations of Agriculture, co-operating* SUMMARY OP S9 :,EARM ACCOUNT BOOKS CHESHIRE COUNTY, 1919 - 20. P. N. DARLING, COUNTY AGRICULTURAL AGENT. REPORT BY A. B. GENUNG PARM MANAGEMENT DEMSTR. - 2 - iNraiBER PIT HE CORDS < Seventy-eight farm account books were placed in Cheshire County last year,. Of the books kept thru the year, 32 were turned in at the end of the year* Three of these lacked certain inventory figures so that 29 farms were tabulated to make up this summary. These records are for the year ending in the spring, (April 1 to June l) 1920. The type of farming represented in this group is dairy and general. The business centers mainly abou' the dairy on practically every farm. LABOR MGOilE. The average labor income for the 29 fauas for the year was #849, This figure is probably around 1^00 higher than for the previous year for this group of farms, "Labor Income", it must be remembered, is what the farmer receives for his year's work after subtracting all farm expenses and 5% interest on his capital. In addition he has a house to live in and farm products used by the family. This group of farms is probably somewhat more propperous than the general average of the State, It is fairly representative, however, of the farms in Cheshire ' County that are actively and actually doing business. SOME HAWDIGAPS. The past season was a difficult one by reason of labor and feed shortage and high prices of both. The hay crop was short; resulting in slightly increased stock sales, and slightly increased feed bills. About half the farms recorded bought some hay during the year. -■3- ssoooF. h HOW HIGH DID YOUR LABOR IITCOIIE CLIim LAST. YEM? f2500 $2000 A ^1500 ■ J-4- I Average of 10 highest was §1301 $1000 g ^. I A^ ^ General average was -^849. $500 - ^ THIS SHOWS THE RANGE IN LABOR INC015E OB THE 29 FAKIS OF THE GROUP. -500 M - 4 - THE MOST PROFITABLE PABMS, Some farms make more money than othlBrs» Of course individual farms have their good and Isad years. There is also a difference in men and farms, However, when nvunlaers and averages are considered, it becomes apparent that there are more or less definite business reasons back of the success of the most profitable farais. What some of these most outstanding reasons are, this report aims to very briefly and simply set forth. There were 10 farms in the group that made labor incomes above |1,000, The average of these 10 was 11301, There were 4 farms that failed to make interest on the capital invested; thus showing a "minus" labor income* REASONS K)R BETTER PROFITS. 1« A business large enough to yield a reason- able gross income. 2. stock high enough in production to yield a profit above cost of keeping. Crop yields also high. 3. A well organized business, 4. Other factors like the personal factor, advantage taken of markets, good planning of work, good buying, labor efficiency, etc* - 5 - INVESMEUT OP CAPIT.AX. Capital Invested in: 1 Average highest of fa: 10 cms Average of all 29 farms i ! Real estai^e i $4731 $4142 1 Livestock 1 2262 1686 : Machinery & Equipment 877 595 Peed, Supplies, etc. 366 281 Total capital 8236 6704 Prom the above table it will be seen that the 10 most profitable farms have more capital invested by $1532 per farm than the general average. This increase in capital has been put mainly into land, livestock, and equipment. The striking thing is that the most profitable farms carry $576 worth of livestock more than the average farm. As following tables show, this did not represent very much more stock, but better stock* Land 10 highest farms [Average acres per farm ) 221 i Average tillable acres per farmj 48,4 Average value per acre $21 All 29 faims 188 44,5 It will be seen that the most profitable farms do not depend so much on larger acreage for their income. They carried only 4 acres more of tillable land, and 33 acres more of pasture and woods. The value per acre was about the same, VHiile size of farm is one measure of the size of business, it is not the important factor on these farms. - 6 - LIVESTOCK, jStock Kept: Average of 10 highest fari'iis Average of 29 farms all Nimber of cows 10 8.4. V K"um"ber of horses 2.8 2.3 Number of hens 16,1 33.6 Num'ber of hogs 3.1 3.5 - Livestock Inves:tmcnt $226S $1686 The most profitable farms are keeping a slightly- larger dairy herd, slightly more horses, fewer hens, and about the same number of hogs as the gene.ral average. Their investment in stock, however, was ^576 greater per farm* ' It is evident that the quality of stock kept plays a very iTuportant part in the success of these farms, - more so than the amount of stock kept. The number of cows kept on the whole group of farms did not change much during the year. There, was an increase of 5 milk cows, 5 horses, 46 hens, 138 swine, which reflects to some degree the rather stationary business of the county along these livestock linos. GBOSS IHCOIIE, This is a measiure of the size of business. The gross income per farm was about $1,000 greater on the 10 most profitable farms. Moreover the difference was in cash receipts rather than increase of inventory^ (The quality of the livestock and land shows up here) :- Average of Avern.ge of 10 hipjhcst farms all 29 farms Cn,sh receipts per farm $3906 Increase of inventory per farm 244 Total gross income per farm 4150 $2844 3.24 3168 - 7 - PRODUCTIQl;? OP LIVESTOCK. Average of 10 hi/yhest farms Average of all 29 farms* Average number cows Sales per cow of milk products Feed bought per cow 'Returns from milk products per [$100 worth of feed bought ' Livestock sales Average number hens Sales of eggs per hen abor Income 10 $192 97 197 $115-1 16 6 1301 8,4 $160 94 170 727 34 3.90 849 . Productiveness of the livestock just about tells the story of profits on most of these farms. The above table is worth your serious study* per farm. The most profitable farms only kept 1,6 more cows But every cow on the 10 miost profitable farms sold $32 worth of milk or milk products more than the' average cow. The most profitable farms produced more milk chiefly because they kept better cows. They only bought $3 more oifi' grain per cow than the average. Some of their milk went' to slightly better than average markets; but their chief advantage was in production of milk per cow. It pays to keep high producing cows. The purchase pride of a cow is less importa,nt in most cases than her performance. If your cows did not average to sell better than $125 worth of milk or milk product last year, you should give serious thought to th'e herd. You will find it difficult during the coming year to get pay for cny labor that you spend on cows that do not come up to this mark. Good breeding, feeding, and care build a profitable herd. V/eigh the milk once a month and find out which of your cows are v/orking for you, « and which are "working" you. - 8 - The matter of production shows up likewise in the case of poultry. The most profitable farms only kept about half as many^ hens as the average, but their egg sales per hen v;orc over a half higher. It pays to keep good hens* It should be remarked in passing that poultry paid very well in general last year. An increase in flocks should be good business during the coming year# The productiveness of hogs, feeding cattle and sheep is indicated in a general v/ay in the :com- parative figures of stock sales; general average $727, 10 highest farms average |1151, or a difference, in stock sales of $424 per farm* The farms selling retail- milk made the;- greatest profits per cow. Part of this was pay for more labor put into the marketing. The next best dairy profits were made by farms selling milk at wholesale. Next in order came the farms selling cream; and those selling butter averaged lowesfin profits. This has been the general situation for sdme years, and few farmers continue to make butter from preference. Most of the farms selling butter are too far froiii market to be able to haxiL milk daily to advantage, especially in winter. CROPS. The average sale of cash crops per farm- was $286, The 10 most profitable farms sold $364 worth of cash crops per farm. It must be remembered that there was no great difference in amoimt of tillable land per farm. The difference was chiefly due to better crop yields, which in turn was due slightly to better land, but mainly to better tillage and management of crops. That the most profitable farms also grew somewhat more and better roughage, besides selling more cash crops, is evidenced by the fact that they bought about the same amount of grain, but got con- siderably more milk per cow than the average. If the cows do not :!?g1.1. at least $125 worth of dairy products apiece, it Willi pay better to sell more crops and less milk. The reverse ■ll'g©*' holds /airly true on these farms. In general it appears good practice in this county to plan on potatoes, apples, beans, hay, or other cash crops to sell from $300 to $500 worth during the year, - 9 - I nRSvMTIZATION OP THE BUSINESS. The general sources of income and expenses for this group of farms are shoT,vn in the two following tables :- RECEIPTS Cash Receipts Average of 10 hi/i:hest farms Average of all 29 farms Crops sold Livestock sold Dairy products sold Eggs sold Miscellaneous receipts Total cash receipts I 364 1151 1921 95 375 3906 $ 286 727 1347 131 353 2844 EXPE1TSE_$, Cash Expenses Ave. of 10 highest farms Ave. of all ,29 farms Hired labor Eecd hought Livestocl: "bought Silo filling, thrashing, milk hauling New machinery & repairs Repairs, buildings, fences, etc, Horseshoeing & blacksmith Breeding fees, veterinary, etc. Sprqy materials & fertilizers Seeds, plants & trees Taxes, insurance & cash rent Miscellaneous expenses Total cash expenses $vi36 971 425 $345 791 277 72 38 50 59 34 22 37 25 8 9 37 37 69 44 153 158 78 131 ^2370 ^1936 - 10 - The most profitable farms sold over ^1,000 more of products per farm than the average* Moreover, in doing this they increased their expenses only ahout $400 ahove the average. The larger business accotmts for a little of this. The better production of stock accounts for much more« But the efficiency in planning and in carrying out the work also plays a part. The most profitable farms, having productive stock, proceed to put more emphasis on their livestock enterprise* They depend on it for a rather greater proportion ojf the gross income* But, getting better crop yields than average, they not only sell more cash crops, but evidently have more and better feed. They do. not bv^r more fertilizer; the fertilizer bill is identical* V/hat they do prac- tice is somewhat better crop rotation^ considerably better tillage and handling of crops; and incomparably better care and use of manure. The latter tells much of the story of better crops. The most profitable farms made more efficient use of their labor than the average* They hired about a third more labor per farm than the average. But" the labor cost per $100 of milk sales was $22 on the 10 highest farms; $25 on the average. The labor cost per $100 of gross cash sales was $11 on the 10 highest farms'; $12 on the average. It will be seen that altho' the most profitable farms hired more labor than average, they were able to apply it more efficiently to the producing of income « especially on the dairy and cash crops* That is and always will be the fundamental labor problem in this region: the problem of being able to set hired labor at actually productive work. Every farmer can usually hire all the labor he can pay for. But it is only the efficient faroicr who can so organize his business that he can really make hired labor pay a profit* some things that increase the profit on hired labor are better stock, more cash crops, more &nd better machinery. The milking machine, manure spreader, and (on reasonably level faims) hay-loader, are three pieces of equipment that pay high returns for the money invested in them, on these farms. Some such tools can be bought second-hand at moderate cost* They help greatly to get productive work from hired labor* - 11 - SOIJE iroiYIPWJi PABJS. The highest labor income recorded was $2001, The fann making this consists of 246 acres, 88 acres tillable. It carried 15 grade Jersey cows, 6 horses, and young stock. Its crops were 12 acred oats, fi- acre potatoes, 15 acres com, 7 acres barley, and the rest of the tillable land in hay» This farm shipped 12898 worth of market milk; sold $1755 worth of cash- crops (oats, hay, cipples, etc,); $1601 worth of live- stock and meat; and took in $957 from teaming, wood., and miscellaneous sources. The feed bill was $1361; hired labor $1760; and total expenses $4548, This farm is one of the most completely equipped in the county; using its own thrasher, hay-loader and side delivery rake, manure spreader, and 6ther like tools. It has no milking machine, but one is contemplated. Its owner started farming without resources, and has built up his business entirely by good management and hard work. His labor income the year previous was over $3500. The second highest labor income, $1989, was made on a 200 acre farm, with 60 acres tillable. This farm carried 19 cows, 4 horses, 21 head of young stock. It has 7 acres in com and oats, and the balance of its land in hay. It sold $2929 worth of market milk, $1070 worth of- livestock and meat, $232 worth of hay and cash cropsn etc. Its feed' bill was $1284, hired labor $288, total expenses $2803, This farmer also started without resources. He is an exceptional worker and a good manager • The third highest labor income, $1536; wass made on a 468 acre farm, with 47 acres tillable, and 150- pasture* This farm carried 15 purebred Holstein ' cows, 3 horses, 15 head of young stock, about 100 hens, etc. It sold $4038 worth of wholesale milk ($268 worth of milk sold per cow); $1285 worth of livestock and ' poultry, $602 worth of eggs, $214 worth of cash crops, $782 from teaming and miscellaneous sources. The hired labor bill was $1089, the feed bill $2710, total expenses $4974. This fanner has 0T,Tnied his present place about 4 years. He is a comparatively young majn, and has made all his business entirely by v;ork and good management. He is ' developing an excellent herd of purebred Holsteins, and in fact sold about s^l»000 worth of piirebred young stock last year. This is a very successful type of business for the region. This farm will make a $3000 labor income in a fair year. - 12- GEITBR.\L CONCLUSIOITS. The first consideration, for a profitable fana business in this region, is to do at least somethine to bring in some money# T/c refer to this in speaking about "size of business". One must plan crops or stock enterprises to at least amount to some- thing in gross sales. The mark for year's sales may well be at least $2000, The most frequently successful combination in this region is a dairy, coupled to cash crops like potatoes, hay, beans, apples» etc., and supplemented by sales of stock, and some miscqllaneovis rcxjcipts from labor off the farm, wood, etc. A good average one-man business might include 10 cows, about 2 to 5 acres of potatoes, 10 acres of corn and grain, and 30 to 40 acres of hay. A profitable combination is poultry and. fruit, 500 hens and 500 apple trees will make the basis for a very substantig,l labor income* Another profitable combination is p'o.ultry and wholesale mgtrkct milk. Cash crops should bo grown somewhat more extensively^ A good plan is- to figure oh selling at least $500 worth of potatoes, hoy, apples, etc. in a year. It pays every dairyman to work slowly into purebreds. Purebred stock add an extra enterprise to the business in the shape of the sales of surplus stock* It will be good business to figure on earning at least #500 receipts from wood, teaming or outside labor, maple products, and miscellaneous sources. The most important factor within reach of influence by the average farmer is production of milk or fat per cow. This tells the most of the story of profits on these faims. Cows that will not produce $150 worth of milk or fat during the coming year will not add much to the farm profits. Any such cows shoxjld be marked for changing at the first favorable opportxmity. Some dairymen have a habit of selling out two or thr^e of their best producers when a buyer comes along, and offers what seems a big price. This is a fujadaraental mistake and leads nowhere. If you have anything like a reasonably good market for milk product, keep your highest producers and buj» others to replace your poorer cows just as fast as you are able. The - 13 - purchase price may well "be stretched a few dollars if it buys a really good producer. Mills' in the pail tells the story of profits - riot purchase price of the cow. The shrewd "buyer takes advantage of this fact when he takes your test cow. There are timfe$/ of course,, when it is good "business to sell good coviW out of the herd, but not as a rule. The use of a good bull will pay in hard dollars. The bixll is all-important in the .future of the herd. Most of us know this, but there are a lot' of poor and unproven bulls in use, nevertheless. Every dairyman who docs not belong to a cow test association should weigh the milk at .least once a month. Milk scales cost but a few dollars;" this takes but a few minutes; and weights once a month will keep one posted jwi what the herd is doing. No man in any business can afford to neglect so simple and so vital a record of his main enterprise. Every farm in this region sho;ild keep at least 50 hens. More would be bfetter. Every hen, doaring the coming year, should sell at least $3 worth of eggs. If your flock does not average this, it should be weeded out and attention given to the feed and care. Poultry should be an important and profitable side-line on practically all of these faims, JlBLiay of these farms shoxild^ be planting fruit trees, Make a practice of setting outj say, '20 or 30 Baldwin, Mcintosh or other standard apple trees eVcry spring. They will add to the value of the foLvm^ arid they will pay big future dividends if cared for* The feed bill is by far the largest single item of expense on these farms. It should pay in most cases to grow at least 5 acres of oats or barley (where thrashers are avaiiible, etc). The growing of corn for silafee is also highly advisable, and is gonerally practiced on the successful faims. One other feature that should have serious atten- tion in this connection is the growing of more leguminous roughage. Too much stress cannot be laid on Red and Alsike clover on the dairy faims. Use of lime and manure are the secrets in growing clover in this region. Soy beans should be grown more extensively. They are an extremely valuable legume for feeding. Alfalfa can probably be profitably grown in certain parts of the county, V/ith . Alfalfa, liberal use of lime and manxire are again essential Vetch will pay in some cases. However, clover and soy beans deserve veiy emphatic consideration. There is probably nothing that will help more to cut the grain bill* « 14 - Care in buying feed will reduce the grain "bill, A little study of balanced rations is the first essential. By knowing what feeds one will require for a- period of the future, it is often possible to take advantage of special market conditions in those grains* If one's cows are pro- ducing profitably, there shoxild be no hesitation about buying grain in quantity when the price and time are favorable* If one lacks ready money, grain buying can generally, be financed at the bank; and no good business farmer need hc0*itate about borrowing money when this means greSater profits from his business. The main thing is to be. sure that the feed is going to be fed to cows that will more than pay for itj'., ■ "^ The reduction of all cxxrrent expenses to as low a point as reasonably possible is vital to farm. pro fits. A good labor income is often made on farms doing a moderate business, but keeping expenses well down. The place to cut expenses is on the less important items, not on the directly productive ones. For example, it is generally good business to spend money rather freely on fertilizer for potatoes; it is generally bad biisiness to spend much on prepared spray materials for potatoes • The principle of good spending is to spend where it means a return and a profit. The feed bill should bo watched and studied most. Better care and use of manure is a grave need on many faims in the region. Manure, to be properly eonserved, should be kept covered and compact. The pile in the barn cellar with hogs or young stock running over and packing it, makes a good storage. If kept outdoors, it shoiAld be compactly piled, and spread as often as possible. Manure piled when it leaches or ferments will soon lose its most valuable plant food. Sufficient bedding should be used to absorb the liquid portion, which is rich in nitrogen and potash. Since manure is relative- ly low in phosphorous, the use of acid phosphate with it is desirable (25 to 40 lbs. to the ton: in the drop, on the spread- er, or used separately in the rotation when grain is. sown). This matter of care and conservation of manure is of the utmost ir5>ortance. It is one of those critical factors in farm management that leads straight to prosperity or to ruin. The future of farming in this county holds promise of a good living and fair income on farms whore the important principles of farm management are observed. The scarcity of labor will be corrected - probably to a considerable extent within another year. The products of this region should command reasonably good prices in the Hew England markets for some time to come. The grain problem may be aggravated by the railroad sittxation, but there arc also other factors operating to offset the latter. It will probably be good practice to grow more oats, corn, and barley here than formerly. So Dong as milk prides ar<^ish (^riough to o-over cost of r)rrt- - 15 duction, the county will do well to make the dairy the basis of its faiffl husiness» It is essential to Iceep accura,te farm accounts, and it devolves on the progressive dairymen to keep records on cost of milk production. How heavily a farm should he stocked will he determined hy this good halance of the business that results in most efficient use of land and lahor* "There are many reasons why it does not pay to go to the extreme either way. Ordinarily a man can raise feed for more cows than he can milk. If each man milks 10 to 15 cows he can raise the hay and silage for these cows and part of the grain, and in addition he will have time to raise hay, potatoes, fruit or other crops for sale. If the cows are so poor or prices of the product so low that the cows do not pay a good price for their feed, it is of vital importance that cash crops fee raised (or that there be another source of income). "If a dairyman keeps all the coitts he can feed in a good year, he will have to buy hay in a poor year. In such years hay is usually very high in price, but the price of milk usually does not change.much. Either he must buy high-'^!j?priced hay or sell some of his stock. It usually pays to keep no more stock than one can raise hay and silage for in a rather poor year. This allows some roughage to sell in good years. Hay and roughage are so expensive to handle that one must study his conditions carefully before he decides to buy hay regularly. "Every farm has a considerable amo\int of low- grade hay, mixed hay, and other products that do not have much market value or that arc too bulky to pay to sell. At least enough stock sho\iLd be kept to make use of those low- grade products. On most farms there is some land that will not pay for farming, but that will bring some income as pasture land, "The more money one has and the more profit- able his animals are, the nearer he should come to an exclusively stock farm, but it' rarely pays to stop selling at least one cash crop. The less money there is available and the poorer stocknpay, the fewer one should keep, but it rarely pays to soil nothing but crops, even on a truck farm". SUIQJARY 07 THE YEAR'S BUSII'llSSB. Real est ate- Value at "beginning of year Livestock " " " " ... Machinery " n « » . Peed & Supplies " " " " Total Capital Ave. of highest 10 fa-rme Insert yoQr record here Ave, of all 29 farms $4731 ■. \ |4142 2262 1686 877 595 366 281 • $8236 6704 I 364 1151 1921- 95 ... 375 169 9 BBCEIPTS Sale of crops sale of Livestoclc Sale of dairy products sale of eggs Miscellaneous Receipts Increase in value of livestock Increase in value of machinery Increase in value feed & supplies 66 • Total Receipts $1150 ' BXPEIISES . Hired labor $ 436 Purchased feed 971" Purchased Livestock . 425 Silo filling, Thrashing, Milk hauling, etc# 72 New machinery & repairs of machinery 50 Repairs of hldgs, fences, etc* 34 Horseshoeing 37 Breeding fees & Veterinary medicine 8 Spray material & fertilizer 37 Seeds, plants, and trees. 69 Taxes, insurance & cash rent 153 Miscellaneous expenses 78 Decrease in value livestock 000 Decrease in -value machinery 000 Decrease in value feed & supplies 000 Est, depreciation on bidgs, 67 Total Expense FARtil INCOME (Reftcipts minus) Expenses ) Int. on total capital @ 5% LABOR INCOME Dairy receipts per cow Egg receipts per hen $2437 1713 412 19-2 6 $ 286 727 1347 131 353 196 31 97 $3168 $ 345 791 277 38 59 22 25 9 37 44 158 131 000 000 000 48 11984 1174 335 160 3.90 COOPEB&TIYE EXKiNSION WOM IK AORICtJLTURAL AND BlCMB ECONOMICS STATE Of HEW H&MPSHIRE New Heanpahix« College of Ixtension Servlee Agriculture and Mochaaic Farm Maaagement Arts, and U' S. Department DesioBBtrationB of Agriculture, cooperetiag. SmmMd OF 34 fAms. acgox^t bscorcs. COOS COOKTJf - 1919 -•20. W. C. Stokoe D. A. 0*Brien County Agr. Agents KEPOHT BI A. B. GEHUHO ?AHM m^rnGSMEm im^str. 0006 cooaiTsr #8600 ♦8000 ♦ * " ' f A yyt«9 of 10 best «B8 $IS8S I #1500 ♦ #1000 I f ♦ * ♦ SOD i H T GeasraX sTarags mas #904 BOW BlOli DIB ¥OUB lABCB IHCCaSS i CLIMB UST YSAl? ""T .soo mc&m on ihk m fabms. - 3 - lASO 10 M^aat faxes JJUL S4 tenm Atvx^kge ecres per £bxm Av. tillsbltt acres per faxra ^verege velus per acre 190 48 179 40 ;i,i?^T OCK mmn K^T Avarege kif^ast er of eows 13. S U.6 Huffiber of Worses 3.3 a.9 Hii»b@r of hot^ 1?. so. mmher of s«ias B.6 2. Idvestook iB-vestaeat #S336 ti9se . 4 - QMi^ Tscsm AvM?aM 34 tbrtm G&ak receipts per flaxm 13666 #2@17 Insmmae at laveatory per fexm 580 301 ¥ot«l groea iaeoBa» per flam 45^ 3116 pflosDCTioH car Li^assTocat AYere^ of 10 MLii^eat i^xtaa AT. of all 34 fazisa A-vemge iBimber of ctnra topt 13.S 11.6 Seles of dBi3E7 produst per co« ^l^. flSO. ^ed bought per eo« $ 68. #54. Beturas fro^ deir^ prodtict per glQO Doirtib of feed bought |S3£. |240 Livoatoek aeJMs per fam #784. #501. {Jtm-- eelea per ham,] $ 2.88 $ ». Labor ineooe #1892. #904. CASK CROPS Tlw aterage sale of easli oxops per t^m on tiw 10 most profitable faxraa was |982. On ^e whcla 34 ftizna It a-veragei #471. This mss loostly potatoes, with a little imy, seed grain, eto. Tbe outstendlxxe oash crop of this cotinlQr is potatoes, tiitii hay e possible second. There ias no question about the iiss»ortsace of cash crops in this coooty, froBt the standpoint of profits. The farms tiiat grow potatoes regu- il^rly eversr year are invariably in %im higher labor inccete class. So atan in this region «ho has a fbzn adapted to potatoes can afford not to consider at least five ecres of titnit crop. Production of good qmality My as a coim^r- oial prc^ositlcsa is also a profitable tiling for mxxf fenas here. Give thoight to your ooney crc^s, — it is froia -Uiem that a large pert of your profits have been coBiag. L&BOa The question of efficient use of labor has played a bigger part in profits than i&sa^ laon tmderatend. The 10 noBt profitable tbitas spent an average of |S^ per farsi for hired labor. With this they sold ^665 worth of cash products during iha ymr, Their hired labor expense per ^00 of dairy receipts was |16, and per #100 north of total cash re- ceipts was 1^. The ibole 34 ftireus spent an average of ^23 per faxra for hired Jebor. Their hired labor expense per #100 of daixy receipts was |S1, end per $100 of total cash receipts #11. It is clearly evident that one seomt of profits is in getting productive worlE out of hired labor. That is, the fundtimemtal labor probl«&, — how to set hired labor at actual incceie — prodBg||g wc^k. Qaly the efficient farmers can do it. Some things tbat help to get more profits frosi hired labor are isore cash crops, better aeehinexy, higher producii^ stock, etc. - a - Tl» e&terprSaes thet yielded the cush incoiae on eeeh average farm ore shosa liszeii&tlL:* aacaipajs Cash Reoelpts Average UlAbeet of 10 Averege of all 34 ferma Crops aold (aostly potatoes) |98S t 471 I>ivastoek sold 724 ^ 501 Deiry products aold 1829 1510 Sggs aold 48 60 MisoellaneoaB receipts 282 876 TOTi.L CASH HlCSIPfS 3865 2817 The i^nexal distritxitltm of eijqieaeoa aa the a-rerege farm la ahovti in the folloviiig teble:- Ceah ExeenBon Hired labor feed bought Liveatock boagM Silo flUiag, thraahing, aiUc hauling Ken nachixMiry & repairs Bapeire buildiBga, feacea, etc. HoraeslujeiBg, bleckamitb* etc, Breediag fees, vi^rinary, etc. ^ray ttiaterials & Fertiliser Seeds* pleats , trees Tescaa, insuraaea, eaah rent Miaoellaaeoaa esqpeaaea Average of 10 jygheet yygaf., 780 280 71 75 43 30 23 81 44 147 135 Average of ell 5^ ftP»>»' |323 528 198 SB 153 46 23 14 44 35 119 I6S fOTAl' CASH SXPSHSSS 1085 1799 - 7 - Tim OF SktUIHQ The most cooBon tgrpe of &nolQ|; rapcrsaeixfeed ia tMs grat^} is daixy end geaerel. Tba raost ^norelly saccessfol type is wholasele markBt lailk ecRtbined with potatoes, bay, or otlisr oesh cros>8. Tbere l8 no area in the state vliere the typical dairy end crop business appears to more advantage. UBOB IKCOKE The averees lAb&e Inootaa on the 34 rarras was #904. This Is doubtless higher then the general county avexege for all fezne, but is fairly representative of 'ttiose farsui in the ecmnty that are actually and actively doing business. The 10 laost profitable farms irijowed an averaffB labor IneoEoe of $1898, the hij^est indlTidual labor incorae being |S635. "Labor Incoos**, it imst be refflNnbered, Bieans what the fezner has left at the end of the ^ar after subatracting all current ezpenses and S$ interest on capital invested. It is the net liicoBie he be s to shov for his own labor. Sam BEASCBS FOR GOOD I^Hl^i'lTS. 1. A boslness lar^ «K>ugh to yield a reasonable gross ineo»e. S. Stock and crop yields high enough to return a profit ebore ccf t of keeping or prodnolng. 3. & well orgp^Blsad bttsinasa. 4. Other things, like the personal factor, adv&ntage taken of JsarlOBts, good planning of work, good buyi%, labor efficiency, etc. - 8 - SCMg gaSIHAL COKaUSlJKS. Ons <^ tlw mak pcdsta 1& th» eTerege fazm bueloesa of this ooonty Is tb« c«aipcts«tiT»l7 lov xoceipts p»r cow froa milk &e milk gaNHbiet* ^^s is aadoaVtodly prisatrlly dc» to coapeiratively low pro^oetienu 1!lw avensk^ rvesipts per eon of |130 is not Mg^ sooogh to oMiB very greet profits from tto ooss sloiui* It is cmkjf tto fact -^at tbssa faxBui era raisi^ laore orops to foed tbaa in asotioBS farther aouth tlBt peziaits "Kbe profit above tto fs«d cost. Wliea ^3» tmeh greater returns are considered ^ profits, timt is} frost orops raised to sell over those ^wt ere raised to laarkat thru the eovs, it is apparant that the oova are not doing th«ir part in the business derate on these fams, as eoiapared aith otiber oo^Jitias. This is undoubtedly due to Hm amount mid (pelity of rou^bega grown i»ra, and to the attention given oats end barley. It sLU undoubtedly pay to give a lot laore attention -to oats, and to grow nore of -^let crop end of berl^. Is buying grain it shostld be reasatored that the first requisite for inti^ligsat buying or feeding is to have a knos- led^ of balanced raticsis and to have at least stxae idea of the principles al nutrition. Sleither poultry nor hogs are being given iiueh attentioa on these fanas. IMs ia probably good polioy aa the idiola. Bogs «ill pay on aotse of the dairy f^rais ssUing fat; in wieh cases the aim ahould be to keep purebred ho£^ for breedera rather than priaar<- ily to asll for pork only. Wexa ahould be a prof i table enterpriss on sotae a£ the aetallar fanna and thoae ccoaidexably raooved from ailk aliJpping point. A combination of poultry and potatoes would aake tosis for businasa oomperable to the very profitable poultry and fruit fanss in the aoutham pert of the atete. It will pay to give further attenti IliA groKing of polaitass is an Is^orta&t actual and poteatial •ntarpriaw is this couaty. Tbe potato crop «aa m8ple tor tbe profits last yoar em laora than ona tnrBi that gava ox^dit to ita cowa, but that actually ssais its iKUMgr on p^atAtoes and in m^ita of the cowa. OiTS ths caAb crops raoro thouglit. - 10 - siEi4&ay OF aim TaA-^»s ajbiHisss. AV* of 10 M^eat ffistae #S672 S336 891 860 #9759 # 988 734 1829 48 2m 2S9 81 SIO #4385 # 298 788 850 71 7ft 43 30 S3 81 44 147 135 _ .m „ #£004 fessi 488 InaMTt ytftiof ^v. of all 34 feme Baml •stete-VsluA at beglnniae of yewr #4438 liifeatock » » » 1998 MBeMnmy « « « 866 f»ed and Supplies " " S35 fotal Capital |7M • Sale of eropa #4?X Sala of liTeatoek 501 Selo of daixy pzodtieta 1510 Salo of eega 60 MiacallattBoua rocaip'tB 275 Izierease ia value of li-vestocle HO Inaraase in laltie of nechinery 67 laorease In mtilue feed & auppliea 1S4 Total Baoeipta pile Hired labcar I 323 ?arc)u!ised feed 628 PoreMsed livestook 196 Silo filUag, TliMflhing, Milk baulii^, ©to. .,..^, ,„,... ,.«:■: 52 Mew HacMnery & repalra of ' v; aaehlBsry 153 Be:* ire of bidga, fw»oea, etc. 46 Borshoeia^ ,K 23 &«ediag feed asd V^teriaaxy f | - raadictse 14 Spray ssterial & fBrtiliser 44 Seed8« plaata and traea 36 %3tea attd r«at and iaaannee 119 aiea. esq^enee 163 sat, depreeiatioB ialf enough to pay the average hired labor bill. This added sale of cash crops on the latter faims was mostly potatoes and hay. It was made possible by their larger tillable acreage and larger business. Their crop yields also ran about -^ better on the average. That, besides selling more cash crops, the 10 highest farms also grew more and hotter roughage is evidenced by the fact that they kept considerably more stoek, produced more milk, but bought less grain per cow. ' It -pays to grow the right kind of crops, and to grow them well. The farms with lowest producing cows should well plan to sell rather more cash crops and vice versa* - 9 - ORGAMZATIOIT 07 THE BUSIMSS ^ The general sources of income are shown in the following table:- Gash Receipts Ave. of highest 10 fanns Average of all 44 farms -MW i -i Crops Sold Livestock Sold Dairy Products Sold Eggs Sold Miscellaneous Receipts Total Cash Rocoipte $377 $1511 3303 92 466 5749 $206 832 $1732 105 380 3255 The general distribution of following table :-» Sxpcnses is shovm in the Ave, of all' 44 farms Cash Expenses Ave, of 10 highest farms Hired labor Peed bought Livestock bought Silo filling, thrashing, milk hauling, etc.. Jew machinery & repairs Repairs bldg's, fences, etc* Horseshoeing & blacksmith Breeding fees, veterinary, etc. Spiuy material & fertilizer Seeds, plants & trees Taxes, insurance, cash rent Jlisccllancous expenses- TOT.^ GASH EXPEITSES $ 655 1,151 712 107 164 62 44 21 53 56 266 111 3401 $ 363 734 373 44 180 45 27 12 30 40 156 123 2127 - 10 - The most profitaTale faims sold over ^2500 more of products per farm than the average. Moreover, in doing this, they increased their expenses only about ^1300« In other ■words they got the same returns as the average faira, or better, on the first ^2100 laid out. But they then proceeded to spend $1300 more, for which their receipts showed 11)05^ profits The larger business made possible part of this; the higher production per cow accounts for part of it; the better yields of crops per acre account for part, ;aaother factor that plays a part is the efficiency in organizing, planning, and carrying out the work. The most profitable farms, having more profitable cows, proceed to put mere emphasis on their livestock enterprise* They depend on it for a rather greater propoptioiinof the gross incame, which is good practice. The. man with less capital, fewer cows, or loss productive cows, shotxld make an effort to grow more cash crops and get more receipts from miscellaneous enterprises. But, getting better crop yields than average, the most profitable farms not only sell more cash crops, but evidently have more and better roTjghage to feed. They do- not buy much more fertilizer; the fertilizer bill is less than $10 difference per farm. YJhat they do practice is somewhat better crop rota- tion; considerably better tillatge and handling of- crops; and incomparably better ca^e and use of manure* The latter cer- tainly tells part of the story, of better crops. The most profitable farms made more efficient use of their labor, than J;he average. , They hired about twice as much labor per ttixca. as the average.. _ But the hired labor expense per $100 Tfiforth of milk receipts was approximately $20 on the 10 highest' farms; approximately .$21 on the average. The labor coat per ,.^100 of gross cash sales was $20 on the 10 highest faims; $11 on the average. So far as -hired labor is concerned, it is easy to see why the ton highest farms were making more of their dairy eni;erprise,than were the average : they were able to make laljor earn about twice as much producing milk as in pro- ducing other general products. The average faim, on the other hand, having less productive cows and a smaller business, coxild get better returns for labor producing products other than milk. That is and always will be the fxmdaracntal labor problem in this region; the problem of being able to set hired labor at acttxal income • producing work. Every farmer can usually hire all the labor he can pay for» But it is only the efficient fairoor who can so organize his business that he can really make hirSd labor pay a profit* Some things that increase the profit on hired labor are more and better stock, more cash crops, more and better machinery. The m(ilking machine, manure spreader, hay-loader, etc., are pieces of equipment that pay high returns for the money invested in them on most of the farms of this region. Some such equipment can be bought second-hand at moderate cost. They - 11 - help greatly to get productive work from hired laTaor. SORIE lUDIVIBUAL TAmiS The farm showing the highest la"bor incomo in the group has one. of the "best herds in the county. It carried an average of 24 grade Jerseys. The main sales arc of cream which amounted to $4388 and stock which amounted to $1860. The stock sold last year included 8 cows, 22 calves, and 37 hogs. The sellig of "butter fat makes it possihle to grow considerahle pork and young- stock to advantage on skim milk* This farm also sold #72 worth of wheat, potatoes, a few eggs, some wood, etc. Its total receipts amounted to #7749, The expense for hired lahor was #1180, and the feed hill was #1354. It will he seen that the latter is helow average for the azaoimt of stock kept, and this fact tells its own story with regard to the hig yields of hay, grain, and roughage. The faim consists of 210 acres with 50 tillable and ahout 130 in pasture. Pour horses are kept. This farm is an example of a good sized strictly dairy business. There is little doubt that the selling of more cash crops might make it possible to increase the labor' income, and the same can be said of hens as a minor enterprise. However, this herd averaged dairy receipts of #182 per cow and is in fact high enough in production to jvistify centering the business largely in the dairy. One thing which this farm should do as time goes on is to work slowly into purebreds. This would add an extra enterprise to the business, and would boost the stock sales materially' without much increase in expense. The labor income was #3318» Another farm that made a labor income of approximately #2600 is an example of typically good organization. It is a faim of about 175 acres with around 50 tillable, carries 15 grade Holsteins, from 3 to 4 horses, 40 hens, etc. The cows sold #3056 worth of miik last year or over #200 per cow. #690 ' worth of young stock and meat was sold. Cash crops (seed oats, apples, wheat, potatoes) were sold to the amount of #341. In addition #586 ^was received for wood sold, maple syri;^, and teaming done - mostly the latter. The total receipts amovmtcd to #5110. The labor hired amounted to #134, while the feed bill was #457. It is readily to be seen how this faime|H^|S|it. his own labor to extremely efficient use, and how the crops quite largely supplied the needs for feed in addition to cash crops sold. These are both highly important items in the yearly business of every farmer. A man must first use his own time and labor efficiently before he can afford to hire help. Likewite his own land must first produce a maximum of grain or forage before it is good business for him to buy expensive Western grain. The outstanding features of success on this farm are the excellent cows, "good crops, and unusually good organization of the business. Another farm among the first ten in the group was one - 12 - 6f 400 acres with aljout 110 acres tillable a«d 110 pastiore. " This farm carried an average of 30 cows, four to ^ve horses, a small flock of hens, a few pigs, etc. Its total capital amounted to $16,404. The sales were: ^3675 worth of milk, ($122 per cow), $1133 worth of young stock and meat, $992 worth of sweet com and potatoes; ' and receipts of $462 fron wood, outside lahor, tractor work, ctc# The year's receipts were $7640. The hired lalsor amounted to $1459 and the grain hill was $629. The lat»or "includes that paid to the faimcr's sons* The feed hill is quite striking, in that it shows -frhat is possible in this region for a faim with reasonably good land in the matter of raising its own grain and «odftage. This fattn has a considerably larger business than average, and is selling considerably more cash crops than average. The receipts per cow is its weakest point. There is no reason why with a higher producing herd this farm cannot very nearly double its labor income with little added outlay. It shoxil-d be stated that this is a young herd just being developed. As time goes on the intention is to make this more of a dairy proposition and this farm should show one of the highest labor incomes in the region. It illustrates the possibilities of large business and good organization. GBKERAL CO^STCLUSIOITS, The average farm in this group has made fairly good profits during the past year. To make profits above the average three things seem essentials 1, Dows that will produce above $150 worth of milk or fat apiece during the year; 2. some* thing approaching a 20- cow farm and dairy; 3* An organiza- tion of the farm business that includes profitable minor enter- prises like ca^h crops, stock to sell, potiltry and miscella- neous products; that also includes proper crop rotation, care of manure, use of labor, and utilization of farm by-products. Good crop' yields naturally enter into this situation, and are, of course, a factor in profits. The most frequently successful combination in this region is a dairy, combined with potatoes and hay to sell, and with such minor products as poultry, hogs, wood, receipts from labor off the faim, etc. This is the logical type for a young man to aim at# Some farms selling nothing but milk(or cream) and stock make good labor incomes. These had exceptionally high producing cows. Good labor incomes were made by farms selling con- siderable cash crops and less dairy products* These crops were sweet corn, potatoes, and hay* • A man starting farming, or a young man witji less stock and equipment, would do well to emphasize the cash crops. A few farms placed some emphasis on poultry, and these made good profits on the cntcrpriso. - 13 - The most important factor within reach of influence ■by the average farmer is production of milk or fat per cow« This tiall-s the most of the story of profits on those farms. Cows that will 'not produce ^^150 worth of milk or far during the coming year will not add much to the farai profits. Any suc!^ cows should Toe marked for changing at the first favor- aisle opportunity. Some dairymen have a habit of selling out two or three of their best producers when a buyer comes along and offers what seems a big price. This is a funda- mcnto,! mistake, and leads nowhere. If you have anything like a reasonably good market for milk product, keep your highest producers and ^vty others to replace your poorer cows just as fast as you are able. The purchase price may well be stretched a few dollars if it bt^rs a really good producer. Milk in the pail tells the story of profits - not purchase price of the cow» The shrewd buyer takes advantage of this fact when he takes your best cow# There are times, of course, when it is good business to sell good cows out of the herd, but not as a rule« The use of a good bull will pay in hard dollars. The bull is all-important in the future of the herd. Most of us know this, but there are a lot of poor and ianproven bulls in t;ise ncvcrthcJess- Every dairyman who docs not belong to a oow-tcst association should weigh the milk at least once a month. Milk scales cost but a few dollars; this takes but a few min- utes; and weights once a month will keep one posted on what the herd is doing* No man in any basin ess can afford to - neglect so simple and so vital a record of his main enter- prise* Every farm in this region should keep at least 50 hens. More would be better. Every hen, during the coming year, should sell at least $Z worth of eggs. If your flock does not average this, it shoiild be weeded out and extra attention given to the feed and care. Poultry should be an important and profitable side-line on practically all of these farms. A few of those farms should be planting fruit trees. Make a practice of setting out, say, 20 or 30 Baldwin, Mcintosh or other standard apple trees every spring* They will add to the value of the farm, and they will pay big future di-fidends if cared for* The feed bill is by far the largest single item of expense on these farms. It should pay in most cases to grow at least 5 acres of oats or barley, and preferably more (where thrashers are available, etc*). The growing of com for silage is also highly advisable, and is generally prac- ticed on the successful farms* • 14 - One other feature that shoijld have seriou& attention in this ccnneotion is the growing of moro le^tmiinous rou^- age* Too much stress cannot be laid on Red and Alsike Clover on the dairy fanns^ Use of lime and manure are the secrets in growing clover in most of this region. Soy "beans should he grown more extensively. They are an extremely valuable legume for feeding* Alfalfa can probably be profitably grown in certain parts of the county. With iVlfalfa, liberal use of lime and manure are again essential* Vetch will pay in some cases. However, clover and soy beans deserve very emphatic consideration,. There is probably nothing that will help more to cut the grain bill. Care in buying feed will reduce the grain bill, A little study of balanced rations is the first essential. By knowing what feeds one will require for a period of the future, it is often possible to take advantage of special market conditions in those grains. If one's cows are producing profitably, there should be no hesitation about buying grain in qtuintity when the price and time are favorable. If one lacks ready money, grain buying can generally be financed at the bank; and no good business farmer need hesitate about borrowing money when this means greater profits from his business-. The main thing is to be sure that the feed is going to be fed to cows that will more than pay for it, Tho reduction of all current expenses to as low a point as is reasonably possible is vital to farm profits* A good labor income is often made on faims doing a moderate business, but keeping expenses well down. The place to cut expenses is on the less important items, not on the directly productive ones* Per example, it is generally good business to spend money rather freely on fertilizer for potatoes; it is generally bad business to spend much on prepared spray materials for potatoes,. The principle of good spending is to spend whore it means a return and a profit. The feed bill should be watched and studied most* Better care and use of manure is a grave need on many farms in the region. Manure, to be properly aonserved, should be kept ocvered and compact. The pile in the barn cellar with hogs or yoitig stock running over and packing it makes a good storage. If kept outdoors, it should be compactly piled, and spread as often as possiblo* Manure piled where it leaches or fcnnents will soon lose its most valuable plant food. Sufficient bedding should be used to absorb the liquid portion, which is rich in nitrogen and potasiu Since manure is relatively low in phosphorous, the use of acid phosphate with it is desirable (25 to 40 lbs. to the ton: in tho drop, on the spreader, or used separately in the rotation when grain is sown^» ' This matter of care and conservation of raaniire is -15 - of the utipost importance. It is one of those critical factors m farm management that leads straight to prosperity or to slo-w ruin. The future of farming in this county holds promise of a good living and fair income on farms where the important principles of farm management are observed. The scarcity of lahor will Tdc corrected - probably to a considerable ex- tent within another year* The products of this region shbijld command reasonably good prices in the New England mar- kets for some time to come. The grain problem may be aggravated by the railroad situation, but there are also other factors operating to offset the latter* It will probably be good practice to grow more oats, corn and barley here than fomerly. So long as milk prices are high enough to cover cost of production, the county will do well to make the dairy the basis of its farm business. It is essential to keep accurate farm accoxmts, and it devolves on the progressive dairymen to keep records on cost of milk production. How heavily a faim shoxild be stocked will be determined by this good balance of the business that results in most efficient lise of land and labor* "There are many Reasons why it does not pay to go th the extreme either way* Ordinarily a man can raise feed for more cows than he can milk. If each man milks 10 to 15 cowe he can raise the hay and silage for these cows and part of the grain, and in addition he will have time to raise hay, potatoes, fruit or other crops for sale« If the cows are so poor or prices of the product so low that the cows do not pay a good price for their feed, it is of vital importance that cash crops fee raised (or that there be another source of incomeji. "If a dairyman keeps all the cows he can feed in a good year, he will harp to buy hay in a poor year. In such years hay is usually very high in price, T>ut the price of milk usually does not change much. Either he must buy high-priced hay or sell some of his stock. It usually pays to keep no more stock than one can raise hay and silage for in a tather poor year. This allows some roughage to sell in good years. Hay and roughage arc so expensive to liandle that one must study his conditions carefiilly before he decides to ipuy hay rSgularly . "Every farm has a considerable amount of low-grade hay, mixed hay, and other products that do not have much market value or that are too btilky to pay to sell. &t least enough stock should be kept to make use of these low-grade prodJi*^"^^' ^" ttjost farms there is some land that will not pay - 16 « for fanniag, but that will bring some income as pasture land* "The moro raonoy one has and the more profitable his animals arej tho nearer he should come to an exclusively stock fasui, but It mrely pays to stop selling at least one cash cr6p* The loss money there is available and the poorer stock pay, the fewer ono should keep, but it rarely pays to sell nothing but crops, oven on a truck faim"* - 17 - COMPARISON 01 THE PAST TOO YEAR'S BUSINESS IN GRAFTON COUNTY. Real eatate-Value beginning of year Livestock - " " n « Machinery " Peed & Supplies " n It II n II n TOTAL CAPITAL RECEIPTS, Sale of Crops Sale of Livestock Sale of dairy products Sale of cgss Miscellaneous Receipts Increase in value of livestock Increase in value of machinery Increase in value feed & supplies TOTAL RECEIPTS EXPEITSES Hired labor Purchased feed Purchased livestock Silo filling, thrashing, milk hauling, etc, 38 New machinery & repairs of machinery Repairs of bldgs, fences, etc. Horseshoeing Breeding fees,& Veterinary Medicine Spray material & Fertilizer Seeds, plants, trees Taxes, insurance & Cash rent Miscellaneous Expenses Decrease in value of livestock Decrease in value of machinery Decrease in value feed & sv5>plies Estimated depreciation on bldgs. - TOTAL BXPEN£ TAHI INCOME. (Receipts « Expenses) Int. on tQ^al capital © 5^ LABOR INCOME Average 33 faims Ave. 44 ■ 1918 farms, 1919 ^4438 $4094 24S4 2116 715 964- 900 777 $8547 $7951 # 123 $ 206 872 832 1874 1732 66 105 265 380 117 153 193 56 376 178 $3886 $3642 362 363 754 734 570 373 jtc, 38 44 152 180 28 45 24 27 13 12 37 30 54 40 186 156 132 123 ©00 000 000 000 000 000 40 60 < $2390 $2187 1496 1455 427 398 1059 1057 Dairy Receipts per cow 103 138 Average number cows per fana 18 12.5 COOPERATIVE EXTEI^SIOIT lYOPJl ■ M" AGRIGULTUKr": AlfD HOIVIS ^^jrq^ClK'h . STATE OF EW IIALZ' yil.) K^ iTew • Hamp shire college of Agriculture and the Mechanic Arts, U.. S. Department of Agriculture . and Hillsboro County Fa'rm Bureau, coo-erit;. n,: . Extension Service Farm Management Demonpt rat ions 2JlJIlH/i,"", N* £,. June 30. 1919. SUiaiARY OF 19 FARIi ACCOUITT RECORDS. HILLSBOBD COUNTY- -YE -^Jl 1918 ACCOUNTS KEPT UlTOER. SUPERVISION: OF COUNTY AGR. AGENT, C. A. SMITH. REPORT BY A. B. GEKUIIG . FARlJt ItANAGEIilENT DEMON 3'! RAT OR. ITTJOER OF RECOR:DSc. Nineteen farrn account TdooIcs wex-e carried thru tlie,-'-' year and corapleted records turned m to County Agent Smith this Spring. Some cf these closed the year on Jan. i, ?,ome on the 1st of Peo^, Wlarch, and April. All reco-ris are for the farming season of 1918. .'/ CHARACTER 0? FAJHailG. Most o-p these farms comhine dairying with some other enterprise." A few make speaia^lties of apples or poultry. The region is fairly ■well adapted to all of these. LAS OR INC 01.3. The average labor income made by the 19 farms was $960, with the whole range of labor incomes from $58 up to $2357. The five highest farms made an average ' labor income of ftigSS. The five lowest farms made an average of $157. It may be said that this is a fairly prosperous group' of farma. It undoubtedly stands above the average of the sT-ate, The range in labor income is shown by the accom- panying figure, in which each star represents a farm:- Figure showing rr.-i-}c'e of labor ?ncoifi-^s of tho 19 farms, 2400 2100 800 300 FACTORS THAT liSTERl^IIl^E PROFITS. When "the "business' records f .rem' several farms are tiiken togefher and studied as a group, it is possible to find out What principles underlie the success of the best paying farms. There are four chief factors which enter into the success of these farms? 1. Size of business. 2. Quality of Livestock. 3. Quality of crops. 4. Diversity and organization of the business. 1. SIZE OF BUSINESS. One measure of the siae of business is the amount of capital invested. This is shown in the following table Capital invested in: Average of 5 best farms Average of all 1.9 farms Real estate 13840 $4316 Livestock 2334 1595 Machinery & equipment 757 613- Feed & supplies 688 436 Total capital invested 7619 6960 It will be seen that the best farms exceed the general average by .ip659 of capital invested. The investment in real estate is larger in the lower income group. This is dus to the fact that the low income group "includes two farms with large acreages of young, non-bearing apple orchards, the investment in which greatly raises the real estate total without show- ing corresponding income. If the ten "best paying fa,r;r.s be grouped, their average investment in 'real estate is fcuncl to be' $4340 or 424 higher than the general average. As a general prop- osit-ioh, it appears"- to >>e grue thac h, larger investment of capital tends to larger income ^ , Another measure of size of ^Urinass is the amount of tillable or productive land per farm. This figure does not appear "in the accouh-c ■bboksj hut information, from 12 ' of" these farms indicates a tilla-tcle acreage from 15^ to 20^ larger than average on the "best paying farms. Still another measure of si^ie of "business, is the amount of stock kept. This shows as follows;- Live stock kept: Average Average of 5 best of all 19 farms farms. Number horses per farm 2.5 2.26 " cows UK 9.5 7.6 " hens " " 243 121 " animal units per farm 19.9 15.4 Investment in livestock ^1)2334 $1595 "The most prof itable farms are keeping more stock than the" average". They have each $759 more invested in stock, and are keeping' 4i- more animal unitsr (An animal unit is" the equivalent, in. amount of feed consumed and manure produced, of a dairy cow.) The" stock inventory on the 19 fe-zTuc at the beginning of the year was as folJov/s:- IvUnijer hordes -16 Hi co?;& 14 \ he'-iers t.:'> calves 6 J bulls 6 steers j_ sheep 4 hogs Z2 pigs 35 hens 2337 ducjcs 2 bees 2 Another measure of size of business is the gross income per farm. This shows as follows :- Average gross income on 5 best farms 06335 " " " " al] 19 " 3924 " " " " 5 lowest " 1614 2. PRODUCT I\/E LI^-ESTOCK. This is one of the all-important factors where dairy or poultry play much part \n thR business. Returns from milk products per §100 worth of feed bought Returns from eggs per OlOO worth of feed bought Labor Income Average of Average of Average of ^ best all 19 5 lov/est farms farms farms Average n^umber cows Returns per cow from 9.5 milk or milk products (5261. Average number hans 243 Returns per hen from eggs §5.09 Feed bought per animal unit ftl04 . 0251. .^480. $1993. 7.i 175. 121 4.57 80. 218. 571. 960. 3.8 104. 54 2.80 54. 192. 518. 157. The "brst paying lai-riis are ,:j;ctt.,LiL£; 036 more per cow from milk than the genera.! avtrat^^e, aul Olo? more per cow than the 5 lowest farms. The tes* farrib are getting $.52 more per hen from c-ggs than the averjiK^o, and 2.29 more per hen than the Icwest f arras. The huct .-^arms huy more feed than tte others, but got better returns for feed used. In r.eturns from milk per i^lOO v/orth of feed bought, they ex- ceed the average by 035, and the lowest by §59. Returns from eggs per 0100 worth of feed r,re somewhat lower on the best farms; but the di.fforence indicated is more than off- set by the fact that the lo^vest farms are keeping flocks so sm.all that they are kepi, largo i;>- on v/aste grain and by- products of the fa,rmo The comparative returns from poul- try and cows indicate that milir prices have recently not been high, relative to egg pricas. When one of the men on th3 five highest farms bought a cow during the year, he paid an equivalent of about $142. He then had an animal for which he could buy a hundred dol- lars worth of feed and extract a profit thereon of a hundred and fifty dollars. V/hen one of the men on the lowest farms boiAght a COT/, he paid 3.bout f;'.85 and got an animal which he thought it worth V7hile to i':iy aboat ^jSS worth of feed for, and which returned him arourio. $45 profit for this outlay. It is readily to be seen wYiich g:-:'^\xo wt=re likely to keep most COWS. A similar relat-jtve sitvaticn existedwith hens. In other words, the bert pcrin.^ farms keep more productive stock than t}ie avera^'^. This is one of the most fundamental factors in genei'al farming. There is no point which the average farmer should hiOxe constantly strive to better than the quality of the stock he keeps. For the dairyman, few things will pay better dividends than a set of milk scales. Weigh the milk from each cow occasionally, and once or twice a. year have a fat test made. Better still--join a cow-testing association. 3. &00T) CROP YIELDS. Are imioorcant in making a large lahor income. As is the case with live;?tooic, the best fsxr/is show a yield per acre of staple crois auove the general average of the com- munity. The figures for crop yielcls do not appear in these farm account books, Hov/ever, survey figures froiatthis county show that t}ae most .,-rof itcA-ie farms are getting 3'"ields of hay, silage corn, potatoes, and oats from one- fourth to one-third b3uter than -one general average of their neighbors, If a farmer gets crop yields at least one-fiftn better than his neighborhood average, he is doing well. If his yields run as a rule no bttter than the neigh- bors', it will usually pay him to r^ive some attention to better cropa. 8 4. YfELL ORGANIZED BUSIKSSS. Good organization of the business, with usually some diversity of products, means an increased labor income, A well' organized farm business is one which shows efficiency in use of labor, horses, manure, by- products, etc . . here The question of some diversity of products enters Diversity: Average of Average of 5 best all 19 farms farms Percentage of total receipts represented in sales of dairy products Percentage of total receipts represented in sales of eggs Percentage of total receipts represented in stock sales Percentage of total receipts represented in crop sales Percentage of total receipts represented in labor and miscellaneous receipts 44^ Z8fo 22fo 15% 9% \2% 17^ 20 J2 15^ Taken as a whole, these farms seem to show a fair diversity of busxjness. That is, they draw their income from several sources, so that the business is reasonably well balanced. The more productive stock on the best farms reflects itself here in the fact that these five farms are depending on dairy and poultry products for a rather larger percentage of receipts than are the others. Also this greater productiveness of stock evidently enables them to make a considerably larger income than the average, with- out having to resort to work off the farm and miscellaneous items for as large a percentage of receipts as does the average. It is generally considered ol ut or dairy and general farms, a v;ell balanced businost, s .ocld ^how in the neighbojf- hood of at least 20^ of the receipts from cash crops. On the Other hand, if receipts from stock fall much below 40^ of the whole, there is apt to be shortage of productive winter work, and a consequently lov?er iu'^ome.. This is the trouble with a fruit farm exclusively.- it dees not provide for a |*j34 jreax o£ jiXOUuctive woxJs* unlaws the iai»e« wajfiyi 4^»4 iuiir.g the winder . lAk-iviB'z , ar.'. SKclusivcly d^-itj farm ilke® 1*0* u-s\*all^ pt-@'vi^ a full year's work; 1^^ saaie iaiw>r that ia required to milk and c&re for a herd, will ala^ have tilde to raise some cash crops during the suimner, and ~" j|,ncrease the labor income thereby. The well balanced farm Will usxially have from two to four main sources of income, with somewhere nojir half {50%) its receipts coming frqan stock and at least a fifth (20^) from crops* ^'.\, Labor cost is one of the largest expisiise iteais on most farms. The efficiency in use cf labor on these farms is indicated in the following table:- , .., .1 Average of Average of Average of 5 best farms all 19 farms 5 lowest farms Labor hired per farm ^606 459 jLOQ Labor cost per OlOO worth of »ilk product sales Labor cost per ftlOO worth of crop sales Labor cost per OlOO worth of gross income' $24 33 27 063 1- w* ■, 62 "•" 24.. $9 •' 12 7 The best farms hirsd more labor thaii the average and they used it more efficiently in producing an income. They were able to produce §100 v/orth of milk at a labor cost $9 cheaper than the average; and notwithstanding that they sold nearly a third more crops thaa the average, their labor cost for croi>s was practically the same as the aver- age. Further, While the gross income on the best farms was around 50% greater than the average, yet they were making every OlOO °^ this income at a f^3 less cpst for labor than th« average- Larger business, better livestock, and 10 better balanced "business enabled them to use hired labor more efficiently. It is to be noted that the lov/est farms, although. showing a gross income about one-fourth that of the best farms, nevertheless spent v/ithin ;';.2 as much for labor per O^OO of income as did the best ones. HIGH V/AGji'3. It is evident that the prices of farm products have scarcely risen in proportion to the increasing labor costs. When wages become 'relatively too high, there is a natura,l tendency on the part of the average farmer to take his team and v/orU out, rather than to attempt to utiliz.e his own and his horses' labor (to say nothing of hiring more.) in rais- ing products on his own land. Thus there are 5 farms of the total number which received above fiSOO each for labor off the fans. 'This amount averaged '"'i702, and those farms made an average labor income of ^1I3G. There are 10 farms that received an average of 0^23 for outside labor, and these made an average labor income of ■"]8'7'7 . The whole 10 farmers averaged 5222 each from outside labor. One of the farms in the highest labor income group sold apples as the leading enterprise. . I rr addition, the owner worked on the highway v^i^h- his team and received £;660 therefor. From the orchard, a few hens, and his outside labor, he made a labor income of 019O6. This man considered that he could make an additional 06OO more certainly and directly by hiring out than by putting his labor together with the necessary capital into more land, equipment, and livestock. That other men regarded outside labor as an important minor source of income is indicated 'bj the fig- ures given above. In other 'words., current v^rages have be- come sufficiently high to compete directly with certaiji farm enterprises, for the farmer's labor and- that of his horses. The average farm kept 2,26 horses (considered on a basis of 12 months) . The average total value of these horses per farm was 0^74. Horses are very expensive to keep. If a farm business is not so organized that it ©an keep the horses busy a fair share of the tim.e, it is thus hand- icapped. The idle hor^e means a great leak in the farm or of its. TYPES OF FAK"ii;G. As a rule, the most successful farms are apt to have more ban one enterprise. Usually a combination of two or more enterprises is found to give an organization which provides most nearly for a full year's productive work for men and horses. 11 1. DAIRY AND PRUIT V/holesal milk and apples are a pfofitabl'e type of business among t he :^- group of farms. One typical farm of this 3®rt,, with poultry as a minor enterprise, did a business as follov/s: Capital Receiiots Expenses Real estate Livestock Equipment t. Supplies Total Capital li^Tiol&sale milk Stock sold 332 bbls. apples Eggs & poultry I.iaple syrup Labor {Hauling milk) Total Seceipts Hired labor Feed Stock bought Other cash expenses Decrease in inventory 417 Total Expenses 03 500 2360 (averaged 13 cov/s, 1094 2712 768 1283 298 127 923 658 1842 125 579 Farm Income Interest on Capital Labor Income 132 hens, 4 horses) 6954 6111 3621 2490 347 2143 This is an example of a good farm business, four main sources of income; Wholesale milk, It has livestodk, apples, milk-hauling; and two important minor sources poultry and maplu syrup. This man has put a very conservative valuation on his real estate and other capital items. The diversity of the business, the high yields from stock and crops, volume of- business done. Insure a large * ^ this farm in any normal year well adapted to this county. and labor income on This type of farming is the 12 2. POULTRY AND DAIRY r Another profitable combination of enterprises. Following is the sumwary from a farn on which the live- stock consisted of an average of 10 cows and 892 hens. One team did the work. Capital (Total investment.) Receipts Eggs ?^5416 Cream 1344 Livestock 463 Hay, strav,',. etc . 370 Poultry & miscell. 501 Increase in inventory 1229 Total credits Expenses Labor 1112 , Peed 3699 Stock 257 l'£achinery and re-^airs 281 Ali else 1310 (* ^10496 9323 Total charges 6659 ' . Farm income 2664 Inte^^est on investment 524 Labor Income ■ 2140 3. POULTRY AKD FRUIT. This is another excellent combination of enter- prises,, and frequently proves nore profitable than Khen either is handled alone. Following ®s the summary from such a typical business. An average of 535 hens v/as ko^Tt. Thre.e cows and two horses were also kept on this farm. 13 Capital (Total inveRtment) Receipts SgbS Apples Poultry and stock Butter Crops, etc. Increase in invtrucr;v' Total credits *3 2798 59 3 3 52 J ±5 309 6351 Expenses Labor Feed Machinery & repairs All else Total charges 11 '1 7 2i 35 55:^ 717 4874 Farm income 1977 Interest ' Labor Inc ■ on ;omi capital 640 1337 Expenses on this farm are rather higher than normal, and probably higher than they run in an average year. This type of business is well suited, however, to an expansion in volume siAf fie lent to make a labor income of $2000 or better. This farm and one other were the only ones selling butter. The other sold only $46 worth, It is to be noted that no dairymen find it profitable to make butter who are so situated that they can seli whole milk to a ready market. Two farms made labor incomes above ,#1200 selling apples practically alone; two also from market milk mainly. With exceptionally good stock (especially purebred) it occasionally pays to devote the entire time to the dairy. It seems evident, however, that a farm selling either milk, apples, or eggs alone, can often increase its labor income materially by combining other enterprises with these. The highest labor income in the group, $2357, was made by a farm selling retail milk. This is a business in itself, and can be engaged in aniy under givon circumstances proper location and facilities. This involves a great deal more 'labor than v;holeisale milk, and tho ,.:resiter pay .received is only fair return for the added, labor cf retailing. 3 4 COIffLE?"'! Av" ;,:./:<. $5550 $4184 2789 1656 771 515 599 375 $9709 $6730 Capital Invested in: Average of 10 Average of higlaest farms all 35 i£>.rms Real estate Livestock Machinery and equijanent Feed, supplies, etc. TOraik CAPITAL From the above tahle it will he seen that the 10 most profitable farms have $2979 more capital invested per farm than the general average. The really striking and significant thing ahout this is the difference in livestock. The Tbest farms are carrying more and higher priced — better — livestock. They each have $1133 more per farm in stock than the average. It is worth noting that even with their greater investment, the 10 highest farms had 28^ of their capital in livestock, while the average farm had 24^ of its capital in stock. It evidently pays to have upwards of a third of one's money is stock, -- that is, in productive stock. LAID. 10 highest farms. All 39 farms. 243 171 farm 58 37 $22 $24 Average acres per farm Average tillable acres per farm Average value per acre. The most profitable farms are larger. They have no greater investment per acre ($2 lees, in fact); but they have more acres. They are each 72 acres larger than average; but the important thing is that they have 21 more acres of tillable land than the average farm. This gives them the basis for a larger business, and is a factor is their success. - 6 - LIVESTOCK. Stock kept per farm: Ave. of 10 Ave. of all highest farms 33 farms. Number of cows 18 9.3 ■ Nvim'ber of horses 3.8 2.5 Number of hens 13 25 Number of swine 3.4 2.4 Livestock Investment $2789 ^1656 The most profitable farms are keeping twice as large a dairy herd as the .average farm. They keep one more hoifse; half as many hens; one more hog per farm than average, ThBxr investment in stock was $1133 greater than average. The greater amount of livestock kept on the most profitable farms is the most outstanding factor, from the standpoint of size of business. After productiveness of stock, the greatest consideration is to have enough of it to yield a respectable gross incB&ie, It is evidently good business to go into 3ebt if necessary to increase the number of good cows kept where the, farm conditions axe favorable, — at least up to 18 cows. As one becomes more prosperous, a "^ greater proportion of capital may wisely be put into livestock. The total number of cows on the 33 farms increased by 13 during the year. There were 117 more hens at the end than at the beginning of the year. Hogs showed a decrease of 4. Horses increased by 4, The livestock numbers indicate no marked tendency in either direction during the past year; but reflect moderately the fairly profitable dairy and poultry business, and the decline in pork, GROSS INCOME. This is another measure of the size of business. The gross income per farm on the 10 highest farms was about double the average. Ave, of 10 highest farms Ave, of all 33 farms a Cash receipts per farm Increase of inventory per farm Total gross income per farm $5295 4S0 6785 ^3345 232 3577 - 7 - PROlXJCTIOlsr OF LIVESTOCK. ^ Ave. of 10 highest farms Ave, oof aia 33 farms ■■ Average number cows 18 9.3 Sales of milk product per cow ^230 $201 Feed bought per cow $116 $120 Returns from milk products per $100 worth of feed bought $197 $^67 Stock sales per farm $985 $564 Average number hens 13 25 Sal es of eggs per hen $8.07 1 $5.12 j Labor income 1 ^2069 1 $848 I Production per cow is much higher in this county than the state generally. This bespeaks better cows and better market* for milk. The best farms not only kept twice as many cows as average, but they sold $29 worth of milk mo/e per cow. The 10 highest farms did not get this extra $29 worth of milk per cow by buying more grain. They bought $4 less feed per cow than the average farm. They kept better cows or sold their milk to better advantage. This extra margin of profit on each cow amounts to $594 per farm., — a s\aa worth pondering ove*. It is clear that grain buying is one of the out- standing dairy problems of Herrimack County, These farms are buying from 25^ to 100^ more grain per cow than adjoining counties. Notwithstanding that dairy receipts per cow axe higher than in neighboring counties, the returns from milk per hundred dollars worth of feed bought are lower. It seans evident that whatever effort is directed at the produc- tion of more and better roughage, and toward more advantageous buying of grain, will strike at the heart of the problem in this county. One essential is a better understanding of balanced rations. After that, comes a knowledge of grain markets and prices, to the end that the average farmer may b\;iy more economically. This is a matter obviously affecting dairy farm profits by many thousands of dollars. - 8 - In the case of poultry, production per hen is above that of most other counties. Here again, the 10 highest farms exceed the average: their sales of eggs per hen "being #3 higher than that on this average farm. The most profitable farms are apparently paying less attention to poultry than the average. It would pay them, however, to give more attention to hens. Poultry should be an important minor enterprise on practically every one of these farms. The average farm, keeping 25 hens, is losing an item of profit amounting to ■ i^l5 per farm, as compared with production of hens on the 10 highest farms. It pays to keep good hens, and to give them care and attention sufficient to get high production, just the same as with cows. Poultry paid well over the state last year. An increase in flocks should be good business during the coming year. The productiveness of swine, feeding cattle, and sheep is indicated in a general way in the comparative figixres of stock sales: general average §564, ten highest farms §985, or a difference of §421, Hogs, paid, in general, only to use up skim milk and farm by-products. Feeding western grain to hogs did not pay well on the few farms where it was tried. Sheep did not compare well in profits with dairy cows. Beef cattle seemed to be low in profits, except in some cases where purebreds were kept and sold mostly for breeders. The farms selling retail milk made the greatest profit per cow. Part of this was pay for extra labor of marketing. The order of dairy profits after this was: farms selling wholesale milk, selling cream, and lastly selling butter. It is possible to make good profits selling butter if cows are high enough in fat production, CROPS The average sale of cash crops per farm was §272, The 10 most profitable farms sold §321 worth of cash crops apiece, a difference of §49 per farm. That, besides selling more cash crops, the 10 highest farms also grew more and better roughage is evidenced by the fact that they kept twice as much stock, produced more milk, but bought less feed per cow. It vays to grow the right kind of crops and to grow them well. The farms with lowest producing cows should plan to sell rather more cash crops, and vice versa. - 9 - 0RGMI2ATI0H OF IHE BUSINESS. The general sources of incoine are shown in the following tabl€3»i Cash Receipts Ave. of 10 highest farms . Average of all ] 33 farms. 1 Crops Sold 0321 1 0272 1 Livestock Sold 985 564 Dairy Products Sold 4148 1872 Eggs Sold 105 128 Miscellaneous Receipts 736 509 Total Cash Receipts 6295 3345 The general distrihution of expenses is shown in the following tahle:- Cash Expenses Ave. of highest 10 farms Average of 33 farms* 674 393 2100 1115 372 ' 268 59 '■■ . 35 241 ■ 106 124 69 49 27 7 8 49 38 37 30 197 > 136 157 ^ 126 4171 • 2351 all Hired labor Feed bought Livestock bought Silo filling, thrashing, milk hauling, etc, Uew machinery & repairs Repairs bldgs, fences, etc. Horseshoeing, & blacksmith Breeding fees, veterinary, etc, Spray material & fertilizer Seeds, plants & trees Taxes, insurance, cash rent Miscellaneous expenses t Total Cash Expenses - 10 - The mast profitable farins sold nearly $3000 more of products per farm than the averafee, Lioreover, in doing this, they increased their expenses only ahout $1800. In other words they got the same returns as the average farm, or better, on the first $2300 laid out. But they thien proceeded to spend $1800 more, for which their receipts showed 15% profit. The larger business made possible part of this: the higher production per cow accounts for part of it; the better yield© of crops per acre account for part. Another factor that plays a part is the efficiency in organizing, planning, and carrying out the work. The most profitable farms, having more profitable cows, proceed to put more emphasis on their livestock enter- prise. They depend on it for a rather greater proportion of the gross income, which is good practice. The man with less capital, fewer cows, or less productive cows, should make an effort to grow more cash crops and get more receipts from miscellaneous enterprises. But, getting better crop yields than average, the most profitable farms not only sell more cash crops, but evidently have more and better roughage to feed. They do not bviy much more fertilizer; the fertilizer bill is less than $11 difference per farm. What they do practice is somewhat better crop rotation; considerably better tillage and handling of crops; and incomparably better care and use of manure. The latter certainly tells part of the story of better crops. The most profitable farms made more efficient use of their labor than the average. They hired upwards of twice as much labor per farm as the average. But the hired labor expense per $100 worth of milk receipts was approximately $16 on the 10 highest farms; approximately $21 on the average. The labor cost per $100 of gross cash sales was $10 on the 10 highest farms; $11 on the average. So far as hired labor is concerned, it is easy to see why the ten highest farms were making more of their ft^iry enterprise than were the average; they were able to make labor earn about twice as amich producing milk as in producing other general products. The average farm, on the other hand, having less productive cows and a smaller business, could get better returns for labor producing products other than milk. That is and always will be the fundamental labor problem in this region; the problem of being able to set hired labor at actual income - producing work. Every farmer can usually hire all the labor he can pay for. But it is only the efficient farmer who can so organize his business that he can really make hired labor pay a profit. Some things that increase the profit on hired labor are more and better stock, more cash crops, more and better machinery. The i:iilking machine, manure spreajder, hay-loader, etc*, are pieces of equipment that pay high returns for the money invested in them on most of the farms on this region. Some such equipment can be bought second-hand at moderate cost. They help greatly to get profitable work from hired labor. - 11 - SCaiE IlTDIVinJAL FARMS. The farm showing the highest labor incoiae in the group is a strictly dairy business. It has approximately 500 acres with about 100 tillable. Last year an average of 30 cows -were kept, also 7 horses, and about 30 head of young stock,, etc. The receipts per 66w froia wholesal'e market milk averaged -$219. Total milk sales amounted to $6580. Besides this, $2030 worth of stock and $50 worth of eggs were sold making total cash receipts of §8665. The chief expense was for feed which amounted to $2204, The hired labor bill amounted to $451, Total expenses were $3284. The iabor income was approximately $4700. This farm is noteworthy for its very high production per cow and for the extremely efficient way in which the work is done. The item for hired labor is very modest for the amount of business done. This farm could probably increase its profits by growing some cash cropB. Another farm making a labor income above $2200 sold milk at retail. This farm had 45 acres of tillable land, kept 15 cows, 3 horses, and in addition, 65 sheep, 25 hens, young stock, etc. The sales of milk averaged $300 per cow. The other important sales included $1163 worth of stock, $833 worth of crops, (potatoes,, fruit, vegetables), $462 worth of wool, wood, etc., and $96 worth of eggs. The chief expenses during the year were for purchased feed $1390j hired labor $839; stock bought $516; miscellaneous $331, taxes, etc., $174. This farm had a capital amounting to approximately $9000. It is a good example of a moderate sized farm with high production of cows and crops, with a good diversity of enterprise*, and efficient organization. It is probable that the business would show greater profits if fewer sheep were kept and more hens. Another farm making a good labor income kept 10 cows and sold mostly butter, the receipts per cow averaging about $125, In addition, hay and potatoes were sold amounting to $576.. Sales of stock, wood, labor off the farm etc., coupled to increase of inventory, brought the total receipts up to $4122. This man's feed bill was $564. His hired labor expense $405, etc., etc.. Current expenses were kept sufficiently low on this farm to make the year's showing a good one. This farm could materially increase its profits by keeping cows higher in production of butter fat. - 12 - GENERAL COHCLUSIOITS . The average farm in this group has made fairly good profits during the past year. To make profits atove the average three things seem essential; 1, Cows that will pro- duce above $150 worth of milk or fat apiece during the ye^rj 2, Something approaching a 20-cow farm and dairy; 3. An organization of the farm business that includes profitable minor enterprises like cash crops, stock to sell, poultry and miscellaneous products; that also includes proper crop rota- tion, care of manure, use of labor, and utilization of farm by-products. Good crop yields naturally enter into this situation, and are, of course, a factor in profits. The most frequently sOiCcteBful combination in this region is a dairy, combined with potatoes and-;hay to sell, and with such minor products as poultry, hogs, wood, receipts from labor off the farm, etc. This is tjae logical type for a young man to aim at. Some farms selling nothing but milk (or cream) and stock make good labor incomeB, These had exceptionally high producing' cows. Good labor incomes were made by farms selling con- siderable cash crops and less dairy products. These crops were sweet corn, potatoes, hay, fruit, and vegetables, A man starting farming,; or a young man with less stock and equipment, would do well to emphasize the cash crops. A few farms placed some emphasis on poultry, and these made good profits on the enterprise. The most important factor within reach of influence by the average farmer is production of milk or fat per cow. This tells much of the story of profits on these farms. Cows that will notpproduce :ipl50 worth of milk or fat during the coming year will not add much to the farm profits. Any such cows should be marked for changing at the first favorable opportunity. Some dairymen -lave a habit of selling out two or three of their best producers when a buyer comes along and offers what seems a big price. This is a fundamental mistake, and leads nowhere. If you have anything like a reasonably good market for milk product, keep your highest producers and buy others to replace your poorer cows just as fast as you are able. The purchase price may well be stretched a few dollars if it buys a really good producer. Milk in the pail tells the story of profits - not purchase price of the cow. The shrewd buyer takes advantage of this fact when he takes your best cow. There are times, of course, when it is good business to sell good cows out of the herd, but not as a rule. - 13 - The use of a good bull will pay in hard dollars. The bull is all-important in the future of the herd. Most of us know this, but there are a lot of poor and unppoven bulls in use nevertheless. Every dairjrman who does not belong to a cow-test association should weigh the milk at least once a month, Ililk scales cost but a few dollars; this takes but a few min- tites; and weights once a month will keep one posted on what the herd is doing. No man in any business can afford to neglect so simple and so vital a record of his main enter- prise. Every farm in this region should keep at least 50 hens, llore would be better. Every hen, during the coming year, should sell at least $3 worth of eggs. If your floafc.'. does not average this, it should be weeded out and extra attention given to the feed and care. Poultry should be an important and profitable side-line on practically all of these farms. A few of these farms should be planting fruit trees. Hake a practice of setting out, say, 20 or 30 Baldwin, Ilclntosh or other standard apple trees every spring. They will add to the value of the farm, and they will pay big future dividends if car4d for. The feed bill is by far the largest single item of expense on these farms. It should pay in most cases to ?row at least 5 acres of oats or barley, and preferably more where thrashers are available, etc). The growing of corn for silage is also highly advisable, and is generally prac- ticed on the successful farms. One other feature that should have serious attention in this connection is the growing of more leguminous rough- age. Top much stress cannot be laid on Red and Alsike Clover on the dairy farms. Use of lime and manure are the secretis in growing clover in most of this region. Soy beans should be grown more extensively. They are an extremely valuable legume for feeding. Alfalfa can probably be profitably grown in certain parts of the county. With Alfalfa, liberal use of lime and manure are again essential. Vetch will pay in some cases. However, clover and soy beans deserve very emphatic consideration. There is probably nothing that will help more to cut the grain bill. - 14 - Care in buying feed will reduce the grain bill. A little study of balanced rations is the first essential. By knowing what feeds one will require for a period of the future, it is often posssible to take advant^e of special market conditions in; those grains. If one^ s cows are producing profitably, there should be no hesitation about buying grain in quantity when the price and time are favorable. If one lacks ready money, grain buying can generally be financed at the bank; and no good business farmer need hesitate about borrowing money when this means greater profits from his business. The main thing is to be sure that the feed is go- ing to be fed to cows that will more than pay for it. The reduction of all current expenses to as low a point as is reasonably possible is vital to farm profits. A good labor income is often made on farms doing a moderate business, bu^t, keeping expenses well down. The place to cut expenses is on the less important items, not on the directly productive ones. For example, it is generally good business to spend money rather freely on fertilizer for potatoes; it is generally bad business to spend much on prepared spray materials for potatoes. The principle of good spending is to spend where it means a return and a profit,- The feed bill should be watched and studied most, Be"^ter care and use of manure is a grave need on many farms in the region. lianure, to be properly conserved, should be kept covered and compact. The pile in the barn cellar with hogs or young stock running over and packing it makes a good storage. If kept outdotrrs, it should be compactly piled, and spread as often as possible. Lianure piled where it leaches or ferments will soon lose its most valuable plant food. Sufficient bedding should be used to absorb the liquid portion, which is rich in nitrogen and potash. Since manure is relatively low in phosphorous, the use of acid phosphate with it is desirable (25 to 40 lbs, to the ton; in the drop, on the spreader, or used separately in the rotation when grain is sown,). This matter of care and conservation of manure is of the utmost importance. It is one of those critical factors in farm management that leads straight to prosperity or to slow ruin. The future of farming in this county holds promise of a good living and fair income on farms where the important principles of farm management are observed. The scarcity of labor will be corrected - probably to a considerable extent within another year. The products of this region should coranand reasonably good prices in the New England markets for some time to come. The grain problem may be aggravated by the railroad situation, but there are also other factors - 15 - operating to offset the latter. It will probaTsly be good practice to grow more oats, corn and barlisy here than formerly. So long as milk prices are high, enough to coTer cost of pro- duction, the county will do well to make the dairy the 'basis of its farm business. It is essential to keep accurate farm accounts, and it devolves on the progressive dairymen to keep records on cost of milk production. How heavily a farm should be stocked will be determined by this good balance of the business that results in most efficient use of land and labor, "There are many reasons why it does not pay to go to the extremeueither way. Ordinarily a man can raise feed for more cows than he can milk. If each man milks 10 to 15 cows he can raise the hay and silage for these cows and part of the grain, and in addition he will have time to raise hay, potatoes, fruit or other crops for sale. If the cows axe so poor or prices of the product so low that the cows do not pay a good price for their feed, it is of vital iiirportance that cash crops be raised (or that there be another source of income). "If a dairyman keeps all the cows he can feed in a good year, he will have to buy hay in a poor year. In such years hay is usually very high in price, but the price of milk usually does not change much. Either he must buy high-priced hay or sell some of his stock. It usually pays to keep no more stock^ than one can raise hay and silage for in a rather poor year. This allows some roughage to sell in good years. Hay and roughage are so expensive to handle that one must study his conditions very carefully before he decides to buy hay regularly, "Every farm has a considerable amount of low-grade hay, mixed hay, and other products that do not have much market value or that are -feoo bulky to pay to sell. At least enough stock should be kept to make use of these low-grade prQducts. On most farms there is some land that will not pay for farming, but that will bring some income as pasture land. "The more money one has and the more profitable his animals are, the nearer he should come to an exclusively stock farm, but it rarely pays to stop selling at least one cash crop. The less money there is available and the poorer stock pay, the fewer one should keep, but it rarely pays to sell nothing but crops, even on a truck farm". - 15 - SUIJMARY OF THE YEARNS BUSINESS. UERRIIIACK COUFTY, Ave, of 10 Insert Your Ave. o highest farms Record Here all 33 farms . Real estate-Value beginning of year Livstock " " " Ilachinery " " " Feed & Supplies " " " TOTAL CAPITAL RECEIPTS Sale of crops Sale of livestock Sale of dairy products Sale of eggs Miscellaneous Receipts Increase in value of livestock Increase in value of machinery Increase value feed & supplies TOTAL RECEIPTS BXPMSjES Hired labor Purchased feed Purchased livestock Silo filling, thrashing, milk hauling New machinery & repairs Repairs of hldgs,, fences, etc. Horseshoeing Breeding fees & Vet. medicine Spray material & fertilizer Seeds, plsmts, &' trees Taxes, insurance, cash rent Hisoellaneous escpenses Estimated depreciation on bldg. TOTAL EXPENSES Tarm Income (Rct>ts, minus Exp.) Int. on total capital @ S^ LABOR INCOIIB Dairy receipts per cow ^5550 2789 771 599 $9709 $ 321 985 4148 105 736 295 87 108 $6785 ^ 679 2100 372 59 241 124 49 7 49 37 197 257 ^ 60 §4231 $2554 485 02069 $ 230 04184 1656 515 375 $673© ^ 272 564 1872 128 509 109 51 72 $3577 $ 393 1115 268 35 106 69 27 8 38 30 136 125 ^ 42 $2393 $1184 335 $ 848 $ 201 Egg ireceipts per hen 8.07 CdS|OPERATIVE EXTENSION V/ORK II AGRICULTUEE AEB H^IIE EGOITOMIGS STATE OP MV/ HAlvIPSHIRE New Hampshire College of Agriculture Extension Service And the Mechanic Arts, and U. S. Earm Management Demonstrations Department of Agriculture, co-operating* SmffilARY OF 54 EAEM ACCOUNT RECORDS SIJLLIVAN COUNTY, 1919-' 20. H. N. T/ELLS, COUNTY AGRICULTURAL AGENT REPORT BY A. B. GENUNG E.\mi MilNAGEMENT DMISTR, - 2 - Of the farm account tooks kept in Sullivan County during the past year, 55 were turned in (one record not used in ta"bulating} to the County Agent at the end of the year* These 54 records -are for the year ending in the spring of .IQSO* ' L.\30R IHCO]^» ::: The average" lator income for- the 54 farms for the year wag #948/ This cpmpares with an average labor income on 61 faims- in 1918 of $760, and an average labor income on 56 farms in 1917 of $482, Apparently ahout the same amoimt of stock was Icept and about the same average amount of business done during the past year as in the two years previous. A sli:;;htly higher return has been realized on each dollar of outlay, such increase being about in line with the general depreciation of money* "Labor Income", it must be remembered, is what the farmer receives for his yearns work, after deducting all expenses and b% interest on his capital invested. In addition he has a house to live in and farm products used by the family. This groxrp of farms is undoubtedly somewhat more prosperous than the general average of the State or region* It is fairly representative, however, of the farms in Sullivan County that are actually and actively doing business, TYPE OF PAmiING, The type of farming represented in this group is dairy and general, The business centers mainly about the dairy on' most of the farms* In addition, some potatoes, hay, small fruits, and other cash crops are sold* The past season was marked by some shortage in labor and in grain for feed, and by slowly increasing cost of both* These are the big current items of expense* The hay crop was short, tending to make fairly high sales of livestock, and to somewhat increase the feed bill. Many of the farms recorded bought hay during the year. 13500 ^- $3000 $2500 |200C 11500 liooc $ iSi ■4- ^ l-li. $ $ « j>v/^.otioally all of those rarms, A few of these farms should he planting fruit trees. Make a practice of setting out, say, 20 or 30 Baldwin, Mcintosh or other standard apple trees every spring* They will add to the value of the farm, and they will pay hig future dividends if cared for* The feed bill is by far the largest single item of expense on these farms. It should pay in most cases to grow at least 5 acres of oats of barley and preferably more, (where thrashers are available, etc)* The growing of corn for silage is also highly advisable and is generally practiced on the successful farms. One' other feature that should have serious attention in this connection is the growing of more Icgiiminous roughage. Too much stress cannot be laid on Red and Alsike clover on the dairy farms. Use of lime and manure arc the secrets in growing clover in most of this region* Soy beans should be grown more extensively. They are an extremely valuable legume for feeding* Alfalfa can probably be profitably grown in certain parts of the county. With Mfalfa, liberal use of lime and manure are again essential. Vetch will pay in some cases. However, clover and soy beans deserve very emphatic consideration. There is probably nothing that will feelp more to cut the grain bill. Care in buying feed will reduce the grain bill. A little study of balanced rations is the first essential. By knowing what feeds one will require for a period of the future, it is often possible to take advantage of special market conditions in those grains. If one's cows are producing profitably, there should be no hesitation a,bout buying grain in quantity when the price and time arc favorable. If one lacks ready money, grain buying can generally be financed at the bank; and no good business farmer need hesitate about borrowing money when this means greater profits from his business. The main thing is to be sure that the feed is going to bo fed to cows that will more than pay for it. The reduction of all current expenses *o as low a point as is reasonably possible is vitnl to faim profits. A good labor income is often made on farms doing a moderate business, but keeping expenses well down. The place to cut expenses is on the less important items, not on the directly productive ones. Por example, it is generally good business to spend - 15 - money rather freely on fertilizers for potatoes; it is senorally "bad "business to spend much on prepared spray materials for potatoes* The principle of Good spending is to spend whore it means a return and a profits The feed "bill sho\d.d "be ■ao.tchod arvct eti«iiod most. Better care and use of manure is a grave need on many farms in the region. Manure, to "be properly con- served, should be kept covered and compact. The pile in the barn cellar with hor;s or yotong stock running over and packing it makes a good storage* If kept outdoors, it should "be compactly piled, and spread as often as possi'blc. Manure piled where it leaches or ferments will soon lose its most valuable plant food* Sufficient bedding should be used to absorb the liquid portion, which is rich in nitoro/^en and potash. Since manure is relatively lev; in phosphoro-us the use of acid phosphate with it is desirable ( 25 to 40 lbs. to the ton: in the drop, on the spreader, or used separately in the rotation v/hen grain is sown). This matter of care and conservation of manure is of the utmost importance. It is one of those critical factors in farm management that loads straight to pros- perity or to slow ruin. The future of farming in, this county holds promise of a good living and fair income on farms where the important principles of farm management are observed* The scarcity of labor will be corrected - probably to a considerable extent within another year. The products of this region shoiild comiiiand reasonably good prices in the New England markets for some time to come. The grain problem may bo aggravated.by the railroad situation, but there are also other factors operating to offset the latter. It will probably be good practice to grow more oats, corn, and barley here than formerly. So long as milk prices are high enou-^h to cover cost of production, the county will do well to make the dairy the basis of its farm business. It is essential to keep accurate farm accounts, and it devolves on the progressive dairymen to keep records on cost of milk production. How hqavily a farm should be stocked will be determined by this good balance of the business that results in most efficient use of land and labor. "There arc many reasons why it docs not pay to $o to the extreme either way; Ordinarily a man can raise feed for more cows than he can milk. If each man milks 10 to 15 cows he can raise the hay and silage for these cows and part of the grain, and in addition he will have - 16 - time to raise hay, potatoes, fruit, or other crops for salc# If the cows arc so poor or prices of the product so low that the cows do not pay a .good price for their feed, it is of vital importance that cash crops be raised (or that there be another source of income) "If a dairyman keeps all the cows ho can feed .in a good year, he will ha,vc to buy hay in a poor year« In such years hay is usually very high in price, but the price of milk usiially docs not change much. Either he must buy highpriced hay or sell some of his stock© It usually pays to keep no more stock thn,n one can raise hay and silage for in a rather poor' year. This allows some roughage to sell in good years* Hay and roughage are so expensive to handle that one must study his conditions carefully before he decides to buy hay regularly* "Every farm has a considerable amount of low-^grade hay, mixed hay, and other products that do not have much market value or that are too bulky to sell. At least enough stock shoi0.d bo kept to make use of these low-grade products* On most farms there is some ln,nd that will not pay for farming, but that will bring some income as pasture la,nd« "The more money one has and the more profitable his animals are, the nearer he should come to an exclusively stock faim, but it rarely pays to stop selling at least one cash crop. The less money there is available and the poorer stock pay, the fewer one should keep, but it rarely pn,ys to sell nothing but crops, even on a truck farm," - 17 -. COMPARISON OF AVERAGE. PAHI BUSINESS TOR THE PAST- THREE Y^^ARS lU THIS COmTTY. Ave* 56 farmd 1917 Ave, of 61 farms. 1918. .■Avo» of 54 farms. 1919 Real GState-ValuG at Taegin- ning o'f year Livestock- n ;" " Machinery ^ .~ " " Feed & Supplies " •' " . - TOTAL CAPITAL ;|3817 1511 556 293 l|6178 150 455 1055 95 300 134 51 18 . RECEIPTS. Sale of Crops •. Sale of Livestock sale of dairy products Sale of egss Miscellaneous Receipts Increase in value of livestock Increase value of uiachincry Increase in value feed & supply TOTAL RECEIPTS $2258 EXPENSES, Hired labor 313 PurclBsed feed 515 Purchased livestock 216 Silo filling, thrashing, milk lauling, etcv^ New machinery & repairs 86 Repairs of bldgs*, fences, etc. 32 Horseshoeing 14 Breeding feos» Veterinary med. 8 Spray material & fertilizer 35 Seeds, plants & trees 29 Taxes, insurance & cash rent 110 Miscellaneous Expenses 61 Estimated depreciation on buildings 25 TOTAL EXPENSES Ip467 FAM INCOME {Receipts minus Expenses) 791 Int. on total capital @ 5% 209 LABOR INCOME ■ '% 482 Average number cows per faun 9,1 Average milk product receipts per cow 107 Average milk returns per $100 worth of feed 204 $3648 1664 545 318 $6175 173 729 1200 106 302 16 52 36 $2616 276 570 265 35 82 22 23 26 31 118 64 27 $1548 1068 308 760 8.46 142 210 $3668 1701 684 382 $6435 201 611 1359 1-24 385 217 62 62 $3021 -300 635 311 29 90 28 21 11 25 28 140 95 58 $1751 1270 522 948 8*5 160 214 - 18 - SnCJARY OF PMT YEAR'S BUSIKESS. Ave. of 10- Hinhiiyst Farms Insert Your Record here Ave* of all 52 fama Real ostate-Vralue at 'be- /^innirii'; of year . 06363. Livestock " " " 3266 Mac hi n or y " " " 929 Peed & Supplies " " 495 TOTAL CAPITAL flloEs" RECEIPTS. . Sale of Crops I 259 Sale of Livestock 1287 Sale of Dairy Products ^ 3433 sale of eggs -113 Miscellaneous RecBipts 623 Increase in value livestock 303 Increase in value machinery 131 Increase in value feed & • supplies 189 TOTAL RECEIPTS ' f^3& EXPENSES* Hired LalJor 655 Pxirchased Peed 1245 Purchased Livestock * 563 Silo filling, thrashing, milk hauling, etc» 42 Few machinery & repairs 200 Repairs of "bldgs*, fences, etc. 32 Horseshoeing 28 Breeding fees & veterinary medicine 11 Spray material & fertilizer 32 Seeds, plants & trees 32 Taxes, insurance & cash rent 213 Miscellaneous expenses 214 Estimn,ted depreciation on huildinqs 50 TOTAL EXPENSES #3317 EAM INCOME (Receipts minus expenses) 3021 Int. on capital @ bfo 553 LABOR INCOME 2468 Dairy receipts per cow Dairy receipts per $100 worth of feed bought 229 275 $3663 1701 684 582 di>C A IE .$ 201 611 1359 124 385 217 62 62 $3021 300 635 311 29 90 28 21 11 25 28 140 95 38 11751 1270 322 948 160 214 COOPERATIVE EXTENSION V/ORK IN AGRICULTURE AND HOME ECONOMICS r.TATE 0¥ HEV; HAl'IPSHIKE New Hampshire College of Agriculture and the Mechanic Arts, and U. S- Department of Agriculture, cooperating. Extension Service Parra Management Demonstrations. Durham, N. H., Jvly 1, 1920. MONTmy PAH! LI.^LTAGEfnHT NOTES. New Hampshire has all Icinds of farms, just as do other states. Some of our farmers do a business that would make any section of the East hustle to compete with. Here is one man who made a laTior income approaching |3,000 from milk, sweet corn, stock told, and miscellaneous crops. He sold ^992 worth of sweet corn, iiis cows averaged $122 of milk sales per cow. Total receij>ts ^jaiounted to $7639, This is a case, in other words, v/here a well ■^-.quipped business* growing plenty of cash crops, did well even tho the cows were not high producers. If the farm "business is strong in at least two of the important features, it can hope to make a reasonably good income. There are two factors that should urge every dairyman to do some shifting if necessary in his herd this fall, to bring his average dairy sales per cow up to the piofitable mark. One is the fact that the cow market is easier than it has been in two years. The other is the certainty that the milk situation next winter will beo.r down strongly on dairyruan who are not fairly efficient in their production. The game is growing slowly but steadily a harder one to stay in at a profit. If your herd did not average to sell at least |125 worth of milk or fat per cow this past year, you would do well to shift a fev/ head (even cutting down the herd if necessary) before next winter. The sout-hern part of the state is showing up well in the farm accounts of the past year. Here is one case where a man sold $1846 worSh of potatoes, cabbage, beans, and other vegetables. This was mainly potatoes. He also sold $2865 worth of wholesale milk, his sales per cow averaging $260,- one of the best production records in the State. His total receipts were $6057, His hired labor bill a:Tiounted to $508; total expenses $2464, His labor ?ncorae was $3138. - 2 " One outstanding feature on every successful farm is the productive use of labor. It is a fact that many fanners v/ho really do the hardest amount of physical work have a small income to show for it. The hard work on a farm can he done very easily ir. an unproductive way, - and often is. Productive labor means essentially the work that goes into an enterprise. which will make a return for it. The more of our vrork that we can put into pro- ductive enterprises, the quicker v/e got into the good labor income class. Hard work, purely as such, does not get the farmer of today nearly as far as it did his grriid father- Productive vrork is the necessary thing. You have thought and talked frequently about your slacker cows and hens^ Now then, what about your slacker fields? Every farm has some fields that are not as productive as others.- \Te cannot shift fields as readily as cows. But it is noticeable that the best farmers watch the production of their particular fields Just as they do the cows, A certain rotation here, a little seeding there, some lime in another place, manure for another, a cnrtain crop for another,- real farm nanagonent is Virhat pays. It is easy to drift along "plouffing up a piece" now and then as it looks thin. But the men who make money making crops are those who keep all their fields lined up in the working class - who keep their land out of the slsxker class. Professor Scoville of the la.vc^ !ia-nagement Department at Cornell has worked out a very interesting system of plotting probable crop production and consequent prices, based on the curve of former yields, etc. In the case of potatoes, for example, he assumes that the curve ba,sed on production since 1866 is a parabola and solves for the same. The method gives an expected production that falls within a percentage r4nge of actual produc- tion so close as to give a fairly substantial guide to prices. The expected production for 1920, incidentally, works out at 406,800,000 bushels. The New England Milk Producers' Association has established a cost of production department with ''7, H. Bronson in charge. It seems apparent that they intend to give attention to this natter. The Dairymen's League in ITev/ York have gone back to cost of production basis for fixing milk prices, as practically the only way of :oeeting dissatisfaction of their members* They are using the Warren Pormula, substantially. Speaking of cows that are moncy-ra..kers, here are a couple - 3 - purebred Jerseys that I saw the other day in Merrimack County* One of them, a 5-year old, has just made 5214 Ihs. of milk arid 307.8 lbs. of fat in 120 days. The other,' a 4-year old, made 5261 lbs. ofmilk and 288.6 lbs. of fat in 120 days. These are exceptional cows, and' they belong to an exceptional farmer* It is needless to add that he makes an exceptional income. County reports and a state-wide surnnary of the past year's faim business situation will be gotten out this month. If you have any more books to come in please get them in this v/eek, if possible. CL., rd.-^. Farm Management Demonstrator* COOPERATI "VE EXTENSION WORK IN AGRICULTUHS AiTD HOME ECOKOHICS. STATE OF I'JEW ■KAJ.IPSHIKE. New Hampshire Calle'.e of Agriculture and the' ITechanic Arts, and U. S. Deoartment of Agri.culture . cooperating . S3CtenGir>ri Serrvl'je Fariu "i£;.nagernent DemonntrationB . THE BEST LABOR INCOHIE RECORDED IH SULLIVAN COUNTY LAST YEAR. The largest labor income recorded last year was (^2360. It came from a dairy farm, and was made mainly from milk, sale of stock and some outside labor. This is a good valley farm. The tillable land is fairly level, easjf to v/ork, and is naturally productive. The farm is well equipped^ has exci'^llent buildings, and is in every way a prosperous, going business. There are few better planned dairy barns in the state than the one on this farm. The capital invested amounts to over OH. 000, including stock valued at $2475, An average of between 12 and 13 cows was kept last year. Whole milk was sold (Boston market) to the amount of 01989, or around ,''",160 per cow for the year. This means that the cows are much better than ordinary. They are practically all grade Holsteins. A purebred bull of good blood heads the herd and is considered a very important factor. The receipts last year were as follows: Milk sold 01989 Stock sold 1658 Eggs 80 Potatoes £c i3eans 95 Labor ic Miscellaneous 744 Increase in inventory S73 T^tal 05239 The stock sold Included a registered bull, four cows and some p^srk, beef and poultry. Expenses were-f,« follows: Labor 0563 Feed Bought 894 3to»^ Bought 405 Lime 31 Machinery & Repairs 103 All else 514 §2310 This is a large business, compared with the average of Sullivan County. The investment of capital is large, and the whole enterprise is above that of the average b-jp.. It is not a business that any man need consider beyond hir reach, however, for the owner has acquired this farm solely by years of hard work, patient planning, thrift, and careful management. All of these things are open to most men, The success of this farm is not due primarily to its size g# :).arge investment. It is due especially to good cows, w^se managemfeRt , and hard work. The labor income is a good one and is a deserved one. This v/hple farm enterprise gives point to the fact that it is possible for the right kind of man, working along intelligent, progressive lines, to achieve for himself a good home, a good business, and a very comfortable income. COOPERATIVE EXTENSION V70RK IN AGRICULTUKE AND HOME ECONOMICS STATE OE NE^V HAMPSHIRE New Hampshire College of Agriculture Extension Service and the Mechanic Arts. U. S. Earm Management Department of AgricixLture, and Demonstrations Sullivan County Earm Bureau, cooperating- DURHAM, N. H. , June 1, 1919. SUMMARY OP 61 EARM ACCOUNT RECORDS, SULI-fVAN COUNTY, 1918. ACCOUNTS KEPT UNDER SUPERVISION OP COUNTY AGENT, H. N. VffiLLS. REPORT BY A.. B., GENUNG, PARM MANAGEMENT DMONSTRATOR. NmiBER OP RECORDS, Sixty- two fanners in Sullivan County kept and turned in a completed farm accoujit "book to County Agent \7ells. Practically all of these were for the year ending April 1, 1919,- One record not being sufficiently complete, the tabula- tions herein have been made on the basis of 61 records. The type of farming represented in this group is entirely dairy and general, the business on practically every farm centering about the dairy« LABOR INCOME. The average labor income for the 61 farms for the year ending April 1, 1919 was $760. (This compares with $482, the average of 56 fams for the previous year, many of them being the same farms represented in last year's gfgures)* Y/h en, compared v/ith the general showing for the State or region, this group of farms will undoubtedly 3Dank as fairly prosperous,. • The range in labor income is shown in the accompanying figure, with each star representing a farm. 3 - Slgure showing range of Labor Incomes on the 61 farms. * ** ■* * * * * * * * * * * * 2400 2200 !00C 1800 1600 1400 1200 1000 800 600 * * * * * * * * * * * * * * * * *. 400 200 -.200 L - 4 THE MOST PRO]?ITABLE EAKIS. It is, of course, appa.rent that some farms make more money than others,, '..here were ten farms in the group that" made lab- or incomes ahove :'pl400. The average of these ten farms was |1949.. There were six farms which failed, to make interest on the investment, therefore showing a Eminus" lahor income. §11. The average laoor income of tiae ten lowest farms was FEASOITS FOR BETTER PROFITS. Good luck alone does not account for profits in farming, any more than with other business enterprises, - not when the average of ma.ny records is considered. Individual farmers have Jaeir good oind bad years, but v,rhen numbers and averages- are considered, it is usually possible to get at underlying causes. Some of the most fundamental reasons back of the success of the best paying farms are as follows ;- i. GOOD SIZED BUSIIIESS. Capital Invested In: Average of Averg,ge of 10 Best FaCTis 61 farms. Real Estate Livestock Machinery and Equipment Feed and Supplies Total Capital $5290 2159 843 476 8768 $3648 1664 545 318 6175 Amount of capital invested is a measure of the size ?L bpi?^f • ''' ^^^ foregoing table it will be seen t^t the best farms exceed the general average by $2593, - 5 - Stock Kept Average of Average of 10 Best jfarris 61 rarms ( Number of horses Ntimber o f cows 3,10 14.15 N^jmber of animal units 27,-85 Investment in Livestock $2159 2.60 8,46 19.00 $1644 -I On dairy and general farms of the type in this county, the amount of stock kept per farm is some measure of the- size of business. The foregoing table shows that in terms of stock the best farms have a larger sized business tian the general average. The stock inventory on the whole group of farms was as follows: - Stock Nxffiiber horses 11 colts II cows n heifers II calves H steers II oxen 11 bulls II sheep swine II hens II turkeys II bees Beginning of Year 164 12 504 323 258 59 12 40 107 223 2039 7 12 End of YEar. 156 15 529 273 299 63 32 40 124 167 2096 10 32 + -n :Jf^°''^^er measure of the size of business is the amount of tillable acreage per farm. This item does not ap-pear in the account books, and, therefore, cannot be summarized. The investment of capital is real estate, however, indicates Clearly that the most profitable farms are those with a tillable acreage above average: the 10 best fairas show an investment m real estate of $1642 more than the general acreage. Still another measure of size of business is the gross income per farm* This shows a^ follows:- - 6 - Average gross income on 10 best farms, §5446 II fi II " all 61 " ^2616 'm " w "10 lowest " ^1510 2, PRODUCTI'VE LIVESTOCK, This factor increases in importance as a man places more and more emphasis upon his dairy. It is almost impossible to exag;^erate what it means in terms of labor income to a dairy farmer to have cows not only good, but considerably better than average. No farm can show profit that buys expensive western grain, grows expensive roughage, and then feeds it all to cows much below average in production* Average of 10 best I^rms Average of 61 I?arms Average of 10 lowest Farms Average number cows Returns per .cow from milk or milk products Returns per productive animal unit from milk pro- duction Peed bought per cow Returns from milk products per ^100 worth of feed bought Labor Income 14.15 $204,68 88^69 75,95 269,51 1949,00 8.46 $141.84 67.00 67.37 210,52 760.00 5.44 $81.60 46.72 75.28 108.53 11,00 It appears that on these farms under present or recent conditions, a dairy cow must produce around $70 in milk pro- duct before she begins to help increase the labor income, Y/ith cows that do not come up to this mark, if he average farmer makes a profit on his year's business he is very apt to do it in spite of the cows, not because of 'Brieir help. The foregoing table shov/s that the- most successful men were keeping cows that returned each $63 above the average of the group. These farms, moreover, were buying ©nly about $8 more of grain per cow than the average. The poorest farms - 7 - bought just about the same amount of grain per cow, as the best group, but the cows in the lowest group failed by $60 each to make as much milk as the averagej.- Prom the Ilarm Management standpoint, the most important factor on these farms is the production per cow, because it is the factor most nearly under the farmers' control, A man may not be able to govern the cost of feeds, fertilizer, or labor. He may not be able to control the market for his products; he cannot determine the weather nor foresee crop failure. The kind of cows a dairyman keeps, however, rests largely in his own hands. Poor cov/s are kept usually as the result of ignorance, indifference, or shiftlessness. There is no-' more business excuse for a dairyman to retain cows below the average of production than for a modern railroad to retain the old wood-burning locomotives. iTeither can pay dividends. It would be ■; good business for a man owning cows that produced less than ^80 worth of milk or butter last year to sell them and bowwow money, if necessary, to replace them with cows up to the average of this group in production. Every such change mace on one of the 10 lowest farms would be equivalent in profits to adding about 5 acres of tillable land to that farm. The entire herd on one of these farms so changed would be about equivalent to doubling the tillable area of that farm, A he£-d can be improved in production by:- Breeding from a good bull from proven stock. Breeding from the highest producing cows* Skillful feeding and care. Keeping accunate record of individual production. One of the best possible ways of starting systematic improvement in your herd is to join a Cow Testing Associatioma. SELLIITG MILK OR BUTTER. The question of whether it pays best to sell milk or butter is of some interest and significance* •' The following table represents a summary from a group of 27 farms- selling wholesale milk and from a group of 25 farms selling butter:- , LalDor Income IJTixtnber cows per farm Returns per cow from dairy products Feed bought per cow Feed bought per farm Sa.les of dairy products per $100 feed bought Sales of stock and dressed meat per farm Sales of stock and dressed meat, per cow Percent of gross income re- presented by sales of dairy products Average of 27 Farms selling who 1 esale milk ^977 10 $155 68 680 229 748 74*80 48.2^ Average of 25 Farms selling butter $514 6 $ 79 51 306 155 458 76.33 29,3>i It is probably true that in the usual case, distancd. to shipping station, availability of market, and home conditions •determine whether a farm will sell milk or butter. The foregoing table shows, too-^ver, butter -last year were at a disadvantage, for a long period of years... that the men selling This has held true It is evident that the average man making butter received very little for his labor therein. That he realized this is indicated by the fact that he kept only 6 cows per farm, and by the fact that he depended on returns from butter for less than one- third of his income. Very fev/ men make butter who are so situated tha,t they can sell whole milk* It is some- times said that the skimmed milk makes up a large item of profit on farms selling butter. On the above farms, however, the sales of stock and dressed meat (representing most of the skimmed milk) amounted to only about $1,50 per cow more on the butter farms; while the total sales per farm from stock and meat are $290 great eir on the milk faims. r It is possible for a man with cows producing a good yield of butt erf at to make a good income from butter. - 9 - one man sold ^1819v:orth of butter fron an average herd of 12 cows, or over '"150 per cow. He had' no special market, the price per poimd ranging from 45^ to 60.(^, with an average *of SOiZ-, This man sold also $1352 worth of Imvestock and ^ meat, $70 v/orth of crops, $85 worth of eggs, and 5i,406 worth of miscellaneous products. Pie made a MToor income of ;ij)2258« Two of the 25 f arras selling butter made labor incomes ab above $1400, Pour of them failed to make interest on the capital invested. live of the 27 farms selling milk made labor incomes above $1400, Two failed to make interest on capitals The average labor income on the wholesale milk farms was $977, while that on the butter farms was ^514 - the fonrier making nearly double the latter. It appears that if a farm must sell its dairy product in the foim of butter it must have particularly good covers and be well mana-ged, to make much labor income, 3. GOOD CRDP YIELDS* Should be mentioned as a factor in the success of the best farms, No figures on crop yields are available from the account books. However, reports from some of the best paying farms in this group, indicate that they are getting yields of oats about -^ better, and of hay, silage corn, and potatoes about one- third better than the average of their neighborhoods. The average fann sold $173 worth of crops. The average of the 10 best faims sold $230 worth of crops. 4, Y,^LL ORGAITIZED BUSIICESS. The effect of war prices on average receipts and expenses on these farms appears in most items. The average receipts from- eggs on the 61 farms was $106, or $3612 per hen,> Receipts from livestock sold amounted to $729 on the average farm. Receipts from miscellaneous sources: maple sugar, lumber^ outside labor, etc., averaged $302, The inventory showed slight increases during the year 'in stock, equipment and supplies. The minor expenses have all risen in the last year. AVERAGE EXPMTSE PER FAIM ON THE SI FAH.IS K)R:- Threshing $7.23 Seeds $30.92 Silo filling 9.32 Insurance 7,44 Baling 2,10 Taxot; $101 i93 Team & machine work $11.30 Horde-shoeing, etc. 22,78 Milk hauling 5.42 New machinery & repairs 81,67 Rented pasture 7,05 Repairs to buildings 21.09 Veterinary & medicine 7.28 Repadrs to fences 1,00 Spray materials 1.80 Breeding fees 2,00 Fertilizer 23.62 Mis-^ellaneous expenses 63-,72 The average depreci 'to $27 per farm. - 10 -» iation on buildings recorded axnoimt^d Percentage of total receipts represented in sales of dairy products Percentage of total receipts represented in livestock sales Percentage of total receipts represented in crop sales Percentage of total receipts' represented in sales of eggs, maple sugar, lumlaer, & labor Average of 10 "best farms Average of all 61 farms 53^ 20.5^ 4.; 10.2% of 46fo 2Q% e.6% 15.6% Ave^of lowest farms 34^ 26,7^ 11.7^ 9.2% At first glance the foregoing table might seem to indicate that the least productive farms v/ere most diversified, and,, therefore, best balanced as to business. The well balanced farrii' busine-ss, however, is not that which has a little of everythirig^'to sell, and not much of anything. The ten best., farms have two main sources of income, milk and live- stock, and about these the business IS organized to make the best possible use of available labor and land. The small area of tillable land per farm is responsible for- small crop sales and relatively large income from miscella- neous products like maple sugar and lumber- the business is Sufficiently large, the covins productive, to warrant the organization of a business. Under the conditions in this region, organization appears to make the most money. On these farms sufficiently typical dairy such Average- of 10 best farms Average of all 61 farms Average of 10 lowest ■ farms. ,; Labor hired per farm $578 $275 $112 : Labor cost per i^lOO of milk product sales 20 23 25 Labor cost per $100 of gross income 10 11 I 9 ^ 11 - This table shows that the 10 best farms are so organ-, -♦ized that they are able to hire about twice as much labor , as the average, and still use it more efficiently than the average faxm in producing an income. It cost the best farms less in labor for every OlOO worth of receipts than it did the average, notwithstanding that their gross receipts were more than double the average. The same holds true of horse labor in relation to- receipts. It is this type of business organization which results in the greatest efficiency in the use of labor, horses, marLure, by-products, etc., that usually pays best in a given:^ region. It is probable that if more tillable land coiild be secured, the averj.ge farm could profitably grow more cash crops. But most of these farms are handicapped by not having ©, very large tillable acreage. There are some farms in this group which it would ^e.y to buy or rent more land. How heavily a farm should be stocked will be deter- _ mined -by this good balance of the business that results in most efficient use of land and labor. "There are many reasons why it does not pay to go to the extreme either v/ay» Ordinar- ily a man can raise feed for more cows than he can milk. If each man milks 10 to 15 cows lie can raise the hay and silage for these cows and part of the grain, and in addtion he will have time to raise hay, potatoes, fruit or other crops for sale. If the coes are so poor or prices of the product so low that the cows do not pay a good price for their feed, it is of vital importance that cash crops so raised (or that thare be another source of income) "If a dairyman keeps all the cows he can feed in a good year, he will he.ve to buy hay in a poor year. Irl such years hay is usually very high in price, but the price of milk usually does not change much. Either he must buy high- priced hay or sell some of his stock. It usually pays to keep no mowe stock thah one can ra.ise hay and silage for in a rather poor year. This allows some roughage to sell in good years* Hay and roughage are so expensive to handle that one must study his conditions, carefully before he decided to buy hay regiilarly. "Every farm has a considerable amount of low-grade hay, mixed hay, and other products that do not have much market value or that are too bulky to pay to sell* At least enough' stock should be kept to make use of these low-grade products^ On most farms there is some, land that will not pay for fami- ing, but that will bring some income as po.sture land, "The more money one has and the more profita.ble his ani- mals are, the nearer he shoixLd come to an exclusively stock fairra, but it rarely pays to stop selling at least one cash crop.' The less money there is available and the poorer stock pay, the fewer one should keep, but it rarely pa,ys to sell nothing but crops, even on a truck fana." - 12 The following combination of factors produced labor incomes above $1400 during 1918. Large sized business, excellent, cows, excellent diversity. Lar^e sized business, excel'. ent cows, good diversity- Lariged sized business, good cows, fa,ir diversity. Pair sized business, good cows, fair diversity. Pair sized business, excellent cows, poor diversity* Largedsized business, fair cows, excellent diversity Tair sized business, excellent cows, excellent diversity. As soon as any two of these factors fall below "fair" a farm is likely to show a low labor income. saaiARY I'OPv TliE r:A CAPITAL Real estate Livestock Machinery & Equipment ]peed a.nd supriHes Average total capital PJIOEIPTS Sale of crops S^le of Livestock Sale of dairy products Sale of eggs Miscellaneous receipts Increase in value livestock Increase in value machinery Increase in value feed & Supplies Average total receipts EXPBITSE S Hired" lahor Purchased feed Purcha.sed livestock Silo filling, thrashing, etc, ITew machinery & repairs Repairs "buildings, fences, etc. Horseshoeing, etc. Breeding fees & veterinary Spray material and fertilizer Seeds, plants, tires Taxes, insxn-ance, cash rent 1/ii scellaneotts expenses Decrease in value livestock " " " machinery " " " feed & supplies Estimated deprediation on buildings Average total expenses 10 Best A3.1 61 Farms Parms ^;;5290 $3648 2159 1664 84-3 545 476 318 8768 6175 230 173 1119 729 2896 1200 98 106 462 302 215 16 298 52 128 38 5446 2616 578 276 1075 570 412 265 71 35 286 82 30 22 33 23 12 9 51 26 55 31 189 118 235 64 Your Parm Interest on capital LSBOR INCOME 32 3059 PARM INCOME (Receipts minus expenses) 2387 438 1949 27 1548 1068 308 760 t COOPERATIVE EXTENSION V/ORK IN AGRICULTURE AND.HOIfiE ECONC»nCS. STATE OF NEW HAIIP SHIRE New Hampshire college of Agriculture and the Extension Service Mechanic Arts, and U. S. Farm Management Department of Agriculture, . Demonstrations. cooperating. I£BMORANDUJ^ . DISTRIBUTION ji'ABIi RECEIPTS AND EXPENSES. A study of accounts kept on 113 dairy and general farms over the state last year shows tne following points relative to distribution of receipts and expenses. Only cash items are included herein: -- RECEIPTS Percentage of income derived from dairy products 48.4^ " » » " " sale of stock 25. % " " " " '• sale of crops 9. % " ' " " " all else 17.6^ •'All else" includes eggs. Wood and lumber, ma;le sugar, outside labor, etc. This item varies of coUrse; in Cbos County the sales of wood are relatively high» while in Hills- boro County eggs are relatively high. The importance of the dairy industry in this state is obvious, when it'^is noted that practically three-quarters of every dollar received on these farms came from milk or butter- fat and stock sales. A study made four years ago showed 47.8^ of receipts coming from dairy products. 40. ■ % 17, • fo 16. .1% 7. >n% 7. .5^ EXPENSES . Percentage of expenses represented in purchased feed " "' " " " hired labor " " " " " purchased livestock " " " " " machinery, buildings and repairs " " '• " " taxes k insurance " " " " " other general expenses 11. 7J Of the average Collar paid out by these farmers last year, 40 cents went for feed, and 17 cents for hired labor. I'ost of this feed and labor and probably -|- the purchased livestock are change- able either directly or indirectly to the cows. If a man..redeived a dollar f ^r every dollar expended, he had a margin to the good of something like six cents on each dollar, for which his cov/s were largely responsible. ^t ^s obvijus thsit the men who made money were thuse who Vide ned tlds margin by keepiri;-' better cows and rais- ing better crops, Better cows mean more dollars as well as more margin. Under the conditions whereby milk prices have adjusted themselves in the past, there are just two conditi^■r•:•' open to the dairyman: he must either take a low wage for his own labor; or else he must keep cows that beat the average in production. August 25, 1919, A. B. Genung, Farm Management Demonstrator. COOPBRATIirE EXTEHSIOK ¥OPX IN AGRICULTUKE AND EO}£E ECONOMTCS. STATE 05 NE?^-HAljiPSHiaE New Haiep shire college of /.Kriculture' arid the ::>c:]ariic Arts, -and U. S. Ijtp.a-;ir-'3nt of Agrx culture , fioep-j ^Siting. Extension Service Earra. Majaagement Demonstrations- ^iEMORANDlir.f . ■ • PASTUiar CHARG^S-W-SEASON OE 1919/ "By correspondence OT ■Tay. personal Word, this. Off ice has received information- oh the' 'ciir rent eost of pasturing -stock from 380 farms in all parts ofi- the ■stt.te. - ' Conditions -under ••which -ipasture is rented differ widely. The most common case is- where a certain .pasture area is rented outright during the season for a- lump' "sum. In this- case the price paid, is .simply as.hargained between two men, and may take account of- fencing or other "items. Where stoek is pastured at so much per head, the rate is determined by the locality, distance driven, character of pasture, etc. Dry stock, heifers, young stock,- and sheep are usually put Out for the season. The usual pasture season is about twenty weeks, from the middle of Hay to middle of October. Milch cows and horses "are frequently pastured by the month or week, usually in pastures nearer the owner. Reports show that rates have increased materially this year, and that somewhat less rented pasture is being used. The, rate for young stock is "frequently somewhat higher wherea buj.1 is pasture.d with it. While conditions vary, yet the following figures may be taken as renre<^entinc about the a-'rera^e ch?rfes -f or the st-^tc ac a whole ; - ' MI.KJH CO'.VS. Most milch cows are necessarily pastured fairly close to the barn,, and the rates near town are rather higher than for mountain pastur^. The average' figure for the season as reported by 175 farmers was' $8.75 per cow. By the week for short periods, this mean§ about 50^. as usually stated. TRY CO¥S. The season rate for dry cows, as reported by 240 farmers, averaged |5.75 over the state as a whole. This figure varied all the way' from '^2 to $10, but the average is. as stated, and means around oQi^ per week. YOUNG STOCK. The rate oi\ young stock varies according tg age. The average figures per head, for the season, are as follows: Yearlings $2.30, as reported by 270 farmers. Two-year-olds :l]i3.50. " " " 340 " Three-year-olds $4,50, " " " 80 " Oxen %1 to $10, " " " 4 " HOR'SSS . The average charge per horse, -for the season, as report- ed by P,68 farmers, was '^8.50 SHEEP. The average charge per sheep, for the season, as report- ed by 91 farmers, was %\.'hb. A. B. Genung, Farm Management Demonstrator, COOPERATIVE EXTEIJSION WORK lU AGRtCULTaKS AHD HOME ECONOMICS STA'fE OP EEW HAMPSHIRE '^'^^AJ Hampshire College of ^Lgriculture and Mechanic Arts, and the U» S, Department of Agriciilture, cooperating. Extension Service Parra Management Demonstrations. Durham, E'. H,, August 1, 1920, MONTHRy-TAmi MANAGEMENT NOTES. One of the most outstanding farm enterprises that is yielding profits consistently during the past year, is poultry; The average gross sale of eggs psr hen have ranged around $3.00 ($2*47 per hen in Grafton County, $3*96 per hen in Sullivan County, etc). It has "been no imcommon thing, however, to find sales of eggs running as high as $8»00 to |10.00 per hen* Eor example, one man in HLllshoro County who kept 1,000 hend last year sold $11,186 worth of eggs and poultry. Another man in Hillsboro County from 510 hens sold 4,539 dozen eggs for $3088*00, or $6,00 worth of eggs per hen. Both of the former men made labor incomes above $5,000 each, tho not on poultry alone. The outlook for hens seems to be very good for the next year, and probably for two or three years. That it is possible to make a profit selling butter is demonstrated by at least two men in the State- Mr- Herbert \Yilliams of Meriden sold $177 worth of butter per cow from 12 Jerseys last year and Mr. Prank Wiggin of Sanbornville sold $171 worth of butter per cow from 8 grade Gusnnseys during the year* Both of these items are in addition to a considerable amount of milk and butter used by the families. A man who can sell this much butter per cow can figure on making upwards of $100 pfofit per cow. The whole matter of butter profits is summed up in production per cow. If your sales of butter last year did not amount to $125 per cow, it will pay you to give some thought tp the production of your heEd:» The railroad freight situation liias become a very serious matter to the farmers of New England as well as everyone else. It is going to have a very serious effect on the dairy situation next winter if grain does not move differently than it has- The Senator from Kansas stated not long ago that 400 cars a day for three months would not suffice to move the wheat then in elevators, whereas at the time of his statement 50 elevators in Kansas were able to get only a total of 7 cars per day. 2 - - + + ^ ^^^^ ^^^- ^"°-'- markets £ire a peculiar spectacle at present Avj Dottom seems to have more or less dropped out from under both, |-.n.e general run of cattle hides are off nearly 50^ in price. In -^e '.vool situation there is almost a lack of markers at the present 'i;;"^e.:..„ ..,;W, free wool market opened up in Australia the first I tne moa-Gh and the London demand for American wool is very omalla The Exchange situation has practically removed Central iurope from our market, and normally these nations are very heavy consumers of our wool* ■"•" connection with the wool situation it is to be remarked that sheep did not show up well last year in New Hampshire from the standpoint of profits* It seemed to require about 24 sheep to equal the gross sales from one average dairy cow. This is consi-derable out of line, and means a certain decline in the sheep industry if vrool and '.liiiXk-''-, prices imdergo much greater discrepancy Hogs have not shown up very well in profits during the past year. In my opinion, however, this is a good time to increase the swine enterpris'e- Due to the discrepancy between pork prices and corn prices the middle West is considerable dovm on its normal nimber of sows* The iiig crop for the coming season promises to be considerably smaller than usual. Hogs, however, are a quick maturing animal, and prices of pork recover quickly. Generally speaking this is the time (when the mass of pork producers are discoa,T:-aged and production at a low ebb), to get into the hog game* This does not mean th,at the average New Hampshire farmer should attempt to raise much pork fed on Western grain., This is almost impossible to do at a profit, but our dairy fa,rmers that can profitably feed a half dozen pigs or so on the farm by-products will make'no mistake, in my opinion, if they increase their droves this fall. The past year's hay situation has led many fanners in the State to think over the question of proper amount of stock for their farms. There is little doubt that last fall saw many of our farms carrying more stock than they could feed thru the winter at a profit. Over half the farms in New Hampshire were forced to buy expensive hay last spring. Another result has been a rather free market and a rather diiLl market for stock all suramer-, A good general rule is to plan to carry about as much stock as can be fed in a rather poor hay year. This will leave some hay to sell in a good year. Potatoes have made a tremendous growth during the last month. They are now looking very good over most of the State. This is exactly the kind of season, however - that is a season of very quick .Tine growth and considerable damp weather - when we must — s — watch out for iDlight, The use of Bordeaux is certainly a matter that most potato growers will "be unwise to overlook just now. That there is a degree of change in the labor situation is already hecoming apparent. Letters are beginning to come in to the College from many New England cities where factory men are out of work and wanting to get jobs on farms. Many of the Cotmty Agents report similar inquiries. It is only a question of time when some correction of the recent shift of farm labor to manu- facturing will come about* It is not going to be possible for an indefinite period for manufacturers to bid away all the avail- able labor supply regardless of wages. Y/e are all much interested in the first census returns that have come to hand from Washington, Strafford and Carroll Counties which have been tabulated show -what most of us have anticipated, namely that there has been a continuance of the decline in New Hampshire agriculture during the last ten years. The number of farms and farmers has fallen off more than 25^. The acreage of staple crops and the nimibers of livestock have also steadily declined. This sit\iation is worth serious study on the part of the people of this State, and is the strongest argument at hand for an increased consideration of agriculture by the general commimity. Some of the most reliable figures on tractor operation now available have just been compiled from 320 farms in Kentucky. A few of their important average figures are as follows:- ' Average number of dayS work done in 12 months 49,5, plus 5.5 days of custom labor. two Average number of acres plowed per day with/bottom plow 6.26» Average amount of fuel used all sizes, 2.9 gallons oil per A. Average amount of lubricating oil used per A. was .2 gallons for plowing. The average life of the tractors was 7,3 yearso 151 tractors were used for cutting ensilage, and all but 8 reported ample power. The two plow machines handled up to a 15 inch cutter, but con- sidered to do best work with about a 13 inch cuttor. - 4 - The figure for repairs used is that the yearly cost of repairs during the life of a tractor amounts to A% of the original cost. There is quite a little discrepancy in milk returns to farmers whet-her the month's freight charges are based on S-g- quart cans or 40 quart cans. It seems to Toe a practice on the part of some dealers v/ho are taking milk in one size cans to subtract freight on the basis of the other size cans. ■ In Belknap Coxinty this was foimd to be making a difference of $10.00 to $12,00 per month to some of the farmers. One outgrowth of the Foreign Exchange situation that still interests us is the importation of Danish butter. Week before last 5,000,000 pounds of Danish butter were landed in one cargo in Hew York City, and affected butter prices between 8 and 10 cents a poixnd, Y/e are getting Danish butter in Boston frequently, also. It is a curious situation when Denmark can afford to ship her butter fat directly away from hungry Europe to this land where our production is already very great, pay ocean transportation and all overhead charges and make a profit laid down in our ports above the price she can get in London, Paris, or Berlin, The hay crop in New Hampshire is unquestionably a fairly good one. Haying has been handicapped somewhat by stormy weather, but there is no doubt that our barns will be much better filled than they were last fall. The "feenrpt^+.ion to sell at present prices is strong, but it is probably bjou advise to the man who expects to make a noimal amount of milk next winter to be not too hasty about disposing of any of his roughage* The general crop situation over the country is somewhat imiqp^ved. The Government reports predict about a 388 million bushel crop of potatoes, which is about average, and which this year should mean perhaps a dollar t(? a $1,50 potatoes at the farm during the fall* The wheat ^rop is placed at about 810,000,000 bushels, which is also about an average crop. Oats are likewise aboSt an average cjppp, while Corn is reported' as slightly above the five year average 2,779,000 bushels. Applea are about an average crop, tho New York reports an excellent crop. That State expects to hardest bettc;r than l/5 of the total apple crop of the country. Trading in wheat futures began last month on the Chicago market for the first time since before the war. December wheat ~ 5 - started at a high figure ( above $2.50 per bushel )-.-®uring the past week^, However, gr^ain prices have taken a decided fall along with 'the general stock market. December wheat was quoted on Thursday at $2*27. There is a farm account book here in the office without a name, postmark or any means of identification. It is one of the colimn type of books with the black binding, and is for a farm of 297 acres, keeping 15 cows. -J think it belongs in either Coos or Rockingham Counties. If inquiry is made for such a book kindly let me know. Final figures on the business of 1919-20 are now being tabulated, and reports will be out in a few days for the whole State, The average labor income from 29 farms in Cheshire County is $849; from 44 farms in Grafton County $1057;from 54 farms in Sullivan County $948* . If you wish any specific figures for your county or section of the State before receiving report, drop me a line. O-.o.^ Farm Management Dem, ■?7 1 COOPERATP^B EieTKJSION WORK IF AGRICULTURE AND EOME ECONOHICS. STA2S 01 i^J^' HALIPSHIRJ5. New Hampshire College of Agriculture and ilechanic Arts, -.and U, S. Department of Agriculture, cooperating, Exteni3ion Service, ?arm lianagement D©nonstrations, DurhaiQ, H. H. Sept. 1, 1920. MOHTHLY HOTBS. The average laljor Incomes fj&fzTae counties so far tabul'atadr'were as follows: Eillp'ip^ $1648, Qjca-ft^on $1057-, Sulll^im $948, Coos ^888, Che^^re $849, Jller|amaclc $848, j Rodcingham should show up wfeljfj BelJmap aiwi Qs^frollore lowei. The high figure in HilJ-sTsoro was an average of 24 farms, many of them fruit farms. The latter, together with poultry, did very well i^$t year. The outstanding farm management proTolems are 'brought clearly to the light "by these yearly summaries, Poremost among these prohlems appear the need for growing of better - more leguminous - roughage, more economical purchase of grain, more productive cows, "better care and use of manure, use of better seeds, better keeping of business accounts, etc., etc. These are only some of the high points, and the county farm bureaus are in general v/orking on them all. The present census figures that have come to hand indicate a continuation of the trend that has been evident in our agriculture for sixty years, namely; a general shifting from the extensive to the more intensive types of farming^ From a grain-growing, beef cattle, sheep-raising state, we are slowly shifting to a laillc producing, fruit growing, poultry and egg producing, potato and truck crop raising state. It is a fundamental readjustment from the more extensive to the more intensive agriculture, — a logical and inevitable development as New England has felt the competition with the middle west and other regions. This will probably continue, in my opinion, for a generation. Only the growth of population and lowering level of production on the western land will bring a final stability to ouT type of farming. It is this process of shift- ing from extensive to intensive agriculture that has been the largest single factor in reducing our number of farmers, farms, and area of improved land. -2- A lot of questions are being asked about potato prices. It is ay belief that we are going to be somewhat disappointed in the farm price of potatoes this fall. We hat^ebetter • than an average crop, according to reports (around 4QOQ,000,000 bushels.) There is some evidence of blight and rot in parts of the east, but there is no widespread report of trouble in the great producing £-'eas. One gi^ess on prices is perhaps as good as another, liy opinion is an average fall price to farmers of around ^1,25 a bushel. It may run higher than that in places, - and it may go lower. \¥e all know it has cost that or more to grow the crop in this state, but that does not alter the sitxxation. Potatoes may be higher, but the foregoing is xay guess for an average. Before the war this same crop would have sold &t from 40i2^ to bOfi a bushel « The census figures for population for the given herewith: - POPULATION EEW RffiEPSHIRE. state are 1920 Coos County 3609^ Grafton County 40572 Carroll County 15017 Belknap County 21178 Sullivan County 20922 ilerrimack County 51770 Strafford County 38546 Cheshire County 30975 Hillsboro County iSSElSi^ Rockingham 52498 Total 443083 1910 1900 30753 29468 41652 40844 16316 16895 21309 19526 19337 18009 53335 52430' 38951 39337 30559 31321 1£!&C76 112640 52138 51118 430572 411588 A. B, Genung, Farm Ilanagement Dmstr, COOP??./' t;^ j:xr:-]fv3'cr.T v,':-:k University of New Hampshire and U. S. Dept, of Agriculture, co-operating. EiteiiSion Service Farm Management Demonstrations, A STrn}Y OF 33 StlALI. GEiJEPAL FAEMS. (All Counties Represei:ted) Harry C. Woodworth, Faim l&nageiflenfc Demonstrator. For the Year Fndi/ig April 1, 1923. Noveniber 5, 19234 - 1 |3000 2800 "SOOO 1600" 1000 5C0 -500 -ICOO Ave^gre Labor Income #513,00 I -1500 J -2000 T?his shov>?s the range in Labor Income on the 33 iiarms of the group. - <; The small general fai-m ir. mere tjrpical of Few liJirpshire agricultxrre than anj. other type.- Our act3otior. way have been atti-a;ted. more to the specialized dair;-, fruit or pooj-tinf farm,, hut the arera2:e farm of the state is a small general one., Ihe 33 fari'js ir this s-'jinnarj- are mostly small general farms and are widely scattered over the statcw As specialised farms have not been included, the results of this summai^ fairly represent the business condition on the better anall general farms of the state. Labor Income. The average labor income for the year ending April 1, 1923 on the 33 ferras -las ^13.00. The highest labor income vas $2023a00, made on a small firm sellirg retail mill-t and some truck crops vhere the operator did some skilled labor off the farm at good prices* The loy^Bst income v^s made on a general dairy faim v/here large losses were obtain '3d xhcn cash crops vvere destroyed in the early summer rains. Investment, The aveiage invcstaent per fa.im v;as $7734.00, Of this amount $4585.00 T-as invested in land and $2751.00 ^^s invested in livestocdc, machinerj; and supplies. Receipts. The average cash receipts per f&rm vas $2656.00. - 3 - Cash Crops . . . » • • • . . C'^41.00 - . . 20„4^ Daisj- prodncts , • * • • . . #:ic5.oo . . . 41..'!'% L:'.-i>e?.r^ck . . , • • » . . -^ E»g3 • • • 1 :i5^'=.jo . . . 1.7$ Miscellaneous . . , » • a . . 4J9.00 . . . . .. "5.^ Totals . . p.ei'^-^oo . . . r'.oo .^d It is to be noted ths.t even In these general fenns, cash crops • represented only 30,4^ of the total caati sales. As the season. of 1922 vss verj; v/et and "unfavorah le to tlie gromng of cash crops, the receipts from this source are pTJohatlj/ somev/hat lov/er tlan in a normal year. In a way the receipts from miscellaneous sources could- be c3a.ssified as cash crops, as the fiirmer many times lias the option of growing a cash- crop or vAjrlcing his teams for pay. Broenses. The average cash expense v.as $1779.00, ' and -was divided into; the 'fbllovang items :- Hired labor ....... i ., . Purchased feed ........ Purchased livestock , Silo filling i . . . New machinery & repairs i . .. . Repairs buildings .....,., Horse shoeing .......<« Breeding fees & veterinary i *■: Spray material * i Seeds, trees, etc. . Taxes .*..*.-. Miscellaneous . . . Depreciation .... 4 i $364. 00' 663. OC 116.00 4S.b0 57.00 17.00 20.00 9.00 132.00 47 .00 153.00 89.00 23.00 . .21,6^ . 36. ,^0 • « . 6.5% Zw&fo Z^2^a . 1,0% > 1.2$ .5% 7.4$- Z.1% . S,5% . 5,0% ■ • • J 1*3^ Totals #1779.00 . . . 100.^ In this list of e:rpenses, hired labor and purchased feed represent about bC^a of the total cash e3cpense. Purchased feed, the largest item of e:qpense, cannot be materially lov;ered on small fSirms, as usually grain can be purchased cheaper than the cost of producing on New Hampshire ferms. But the labor bill of $384.00 per f&rm, or 21.6^ of the total cash ejqjendi- tures, seems very large as compared to the size of business. It would seem from observations in tlie field that the expense for labor could be naterially reduced bj the use of better methods, and in some cases by com- plete reorganization of ferms. We can well question everj ctep i.i car ::i3th.c.c of producti.on* Is • our vajr the test vay? Can our methods te improved? Individual Examples of Suoc ess* One ferm is situated back from the railroad in the hills, but near a large group of summer residences. The distance to market malaes proijac- tion of market milk unprofitable, and so the operator has token advantage of his location for summer business. He makes §ood butter and sells at a pr«niuin price to the people during the sunaner and ships to the same people at-their city homes durifcig the rest of tlie season* In addition ko this the" operator keeps a few sheep, and markets the lambs by butchering on the fa-rm atd. peddling the meat to the sumner trade. Ordinarily one would not advise the production of butter and on many fenns ■tohere would be some question as to the profitableness of sheep, jet here is a progressive young man who is doitig' both these things and for the last four years has had a good- income* He Ms adapted his fe.rm organization to his special conditions. And this 16 true of many ffiirms. The opeiator has fitted into the local situation. Aside from organization, adaptability is an important fector leading to'ward success in the case of otir small gerBral ferms. general Conclusions, The outstanding vreakness in the organization of our snail general farms is_ the small size of business. Because Oinr farms are small, a great deal of time is consumed in unprofitable puttering. Under present condi- tions of high weges, such ferraing is discouraging and unattractive. But there is no reason vhy many of these flrrr.s cannot be reorganized and made profitable. In some cases two faims can be made into one. In other cases the tjpe of farming can be changed so that a comparatively small f&rm is doing a relatively large business. Primarily the success of the poultry farmer in recent yeai-s is due to ohe fact thai he is turning out a large volume of products. He is pvo-Tacin^!; n. jot per L-?an. There are many illustrations where ;r.sri. are ;n the 'vrong type of feiraing for the particular fiirms. For instance, on son:e cf the sriall hilly fiirns in southern H-;w Ifcaipshire, men are engaged in dairy in-. IJrder their condi- tions hay, silage and other feed cannot be prcduf-ei to advantage, and, the herds are necessarily anall. These men are fig-hting an uphill battle, and the only vira.y they are able to exist is by reducing the standard of living. This the younger generation is unvalling to do, and the result vail be more abandoned farms. Some of thf3se f&rms would make good orchard or poultry fiarms . Certain comtnunities that are no?/ dairying under severe handicaps could well study the advisability of setting out apolo orchards. From the vie^vpoint of the' state, some of those changes should be made. Looking ahead fifteen years it is far better to have conmunit ic-s of prosperous apple orchard farms than to Iiavo an abandoned -roa. But this change can come about only through' persistent, patient, long-time, energetic campiigns on the part of many interested organizations and individuals. The changing of a \i.hole corarjiunit;y from dairying to div.jrsified fruit fiirming is of course beset with many practical problems. Tlie older men are not interested in fruit because they would not expect to live to see direct results. Il-ny of the youi^er men have not capital enough to feel secure in a program with small returns for the first ten years. A lai^e number, financially speaiking, can look ahead only from month to month and an apple orchard seems out of the question. And v/herever a community is encouraged to start orchards, due emphasis should be put on the necessity of an economic unit. Twonty acres of apples is probably the lovrost practical unit in this state. - fc - ■In the nottheru part cf tlie state there iz not tne sarre opportunity in fruit grovdng and rj-ya.lzyr- ralsLip, >\.1: horo the faiTiS are usually- larger and a good size cf bu ;: i rrr k s c--.n ^e obAair.CMi in eeiieral farming. This_ is particularly true in resioris v/here potai.oes are grown In large fields or v.-il-iere there is an op,:^ortai'.itx to iraT-Irot .-vvret ccm. " Then, too, in "both south and -cc'tt?! it is wall to studj; the special demands of the sumir^r visitor- ' It is good business, good farming, to have attractive products to sell v/liere ficre is a spocial demand for them. Some of our small general farmers vritli ^Dcd locations for summer trade can well study methods of forcing vego tables- Professor Sepler of the University of New Hsmpshire has been able to produce tomatoes a week early bj use of acid phosphatej One week in the maturing time of nany vegetables is a great asset in supplying sumaer trade. In conclusion, rrhlle it is evident t>e,t on the average general f&.nn the labor income is not large, yet here and there is a great opportunity where a man maj study out an organization that fits into the scheme of his surroundings, and wiiere he can do well* - 7 - Sumriarj; of the Year's Business on 33 Small General 5fe,ims. Real Estate - Value "beeiuning jear $4985.00 Livestocflt — •• « tf 1469.00 Machinery " » '» 793,00 Peed & Sufrplies " » " i . , . 469.00 lotaa. Capital . . . , ^734.00 Receipts^ Sale of Crops ••• # 541.00 Sale of Dairy products , •,. 1108»ft3 Sale of livestock 4*4.00 Sale of Eggs . 194,00 Miscellaueous Receipts , 409.00 Increase in valu© of livestock 64.00 Incsrease in value of Machineiy - — Increase in valiie of Ilbed & supplies -^ ' Total Receipts ... ... $2720.00 Hired leibor *. $ 384.00 Purchased feed 683. 8D Purchased livestock 116.00 Silo filling, tliraaliing, milk hauling, etc 49,00 Hew nachinei;^ & repairs of nE-cMneiy . 57.00 Repairs of buildings, fences, etc. 17.00 Horseshoeing -- '.120. Oft/ Breeding fees and veterinary medicine 9-00 Spiay material and fertilizer 132.00 Seeds, plant^8«Mi trees 47.00 Taxes, insurance anfi cash rent 153.00 Miscellaneous Expemses 89.00 Decrease in value of livestock --- Decrease in value of machinery 11.00 Decrease in valtie of feed and supplies 30>00 Estinated depreciation on buildings {% Value ) , 23.00 Total Expenses $1820.00 I&mn Inc«ame (Receipts minus Bagienses) 900.00 Interest on Total CJspital at£^ 387.00 LABOR INCOJffl 513.00 IN AGRICULTURZ; AND HOJ'iH EGCMOFICS STATE OF I\fI]W HAiiffSHiaC University of New H£topc2iire and U. 3. Department of Zxtension Service AgriciUtiiro, co-operating* Farm Mt.nas&mcnt Demons tmtions A STUDY OF 32 V/HOLESaLE MILK FIiMS H;.HRY C. w"OODV/0RTH, FARlf MAKAG-miEBT DSrfflWSTMTOR. Kovcmtcr 1, l'-23. ~ i FiTo important fcctors of success in dairying::- 1. Efficient production of coiv focd- 2. Efficioat production of a qash crop to nske best use of labor and manure. 3. Good production pet'r cow. 4. CJood production per ne-n, 5. Good returns above feed cost. For tho J ear Gndi23g April 1, 1823, four groups of %-holcsale milk farms in tho Connecticut Hivor Vn.1103, kept special account "books. They co-oxjnratnd vith tho Extension Service in order that a study miffht he nado of types of organization on such farms. From tho fortj men, 32 accounts were obtained for study* These farms represent hettor than average conditions, and include some of the best dairj farms in the state. T/hen the accounts vrere started in 1S22, the price of milk vas very lov;, but toner d the end of the jear the conditions were more favorable, ■The weighted average price for milk throughout the jear v,as $2,40 per iOO pounds, In:.anuch ?.s the milk vr.s sola to several different companies urder varying conditions, the price for tho same grade of milk w::.s not tlio same. Then, too, on same f"ims the lieavj; flov; of milk came in the spring of 1922 when the market vr.s low, viiile sonc v;ere fortunate enough to ir.ve the lieavj, flow come after the imrket iiad become stabilized. For purposes of study in addition to figuring the actual labor income, an adjusted labor income yr.s estim:-ted on the basis of the New England Milk Producers' Association price for the year. The actual labor income for the 32 farms vas $769.00 and ranged from -^695. 00 tq $2721.00. In a ^e ^r of such unsettled conditions wide variations in income vail often follow. MILK SOLD. The toral average number of cov/s was 546,5 or 17.1 per farm, the sm:.llest herd being 7 cows ;nd the largest 40 cows. The a.mount of milk sold from the 32 11 r.nr, vrs 7,133,:;bl pcruncG, or -^n .iver^ge of 97, S17 pounds per f-rj;, ra;:^!;^; frrw 31JftC cc 1^03. 992 pouit. g, DEGRZi: OF spinni.M.T.T'^ .t 'ou. Th.e. &.Tas varied {crrctl^; in degree of spec idolization in millc prodtJction. The recoi>ts from calo of milk ropresGnted about 66^ of total receipts. Sales of milk :.nd stock represented B'^v of total cash income. The large fanns in the (Grafton Countj, group sccEicd to be more highly specialized than the dr.irj, f:::it,is of Sullivan Countj as shovm in the follo\7ing tiblo:- Total '32. Gr-fton Sullivan Farms County County Cash- Pro -as 4.^ ^ 5, .7^ Dairy ■Products 60, ) 77. ) 56. ) ) 84 ) 91 ) 74 Stock ■ 18. ) 14 ) 16.2 ) Eg^s 2.6 i2 5^8 nisCGllancous 9._2 7.9 14.7 100. ICO. 100. nineteen farms received more tloan 6Cf,i of the total receipts from sale of milk. On several farms of the group sales of milk and cattle were practically the onlj source of income. The grov.lng season -reas a V3r5; abnoiTnal one and some faTiOrs ^.erc unable to take care of cash crops on account of v/et and cold v'eathcr of earlj spring. The cash receipts this particuLar ;. c-r do not indicate the normal divorsitj on manj f arras . - 4 * In the C2.SG of the Grafton County group only .9^ of the total receipts come from sale of cash crops. _>Some of these farms are so situ;-. ted th:, t a cash crop such as potatoes nr-y not be practical, but on a large number of f:,rms of this type a good cash crop would mate a better f^rm organization. The labor and manure v.culd be used to bettor advantage and over a series of j cfirs the labor income ^rould be better. From fice to ten acres of potatoes veil cared for '.-.ould mate a good cash crop« and this organization is being undertaken in a few instances in Coos County. Hovevor, tic re seems to be a general feeliiig among many of the river formers that potatoes m^y nOt be grovai as profitably on the bottom lands. The oj^Joricnce of some of the mai has discouraged the growing of potatoes on a large scale. In some recent experiences in Coos County, good yields vere obtained where formerly potatoes had seldom succeeded. These fields were obtained by protecting agp-inst ]ate blight bj thorough and efficient spraying. Dr. Butler of the State Expcrimcait Station believes from bis estpericnces -■ith potato grovrcrs over the state that if propcrlj protected from late blight, potatoes v-lll yield well on the river farms. Another possibilitj. for the daiiyman of Grr-fton Countj is the grooving of sweet corn for can.dng factories. This of course takes group action in interesting a canning factorj; to locate in the region. The com vrhen grmnn. efficiently makes a piofitable cash crop, and in addition there is roujhago for the cows. The vholesale milk farmers need a good cash crop. - 5 - MILK PER nnv;. Eleven farms sold less than 5,000 pounds of milk per gov/, and the avenge labor income of these operators was $463.00, Twenty-one farms sold more than 5,000 pounds of milk per cov;^ and their average lahor income was $921 .DO In the case of the 19 ferms which had over 60^ of their income from sale of milk, 5 sold less than 5,000 pounds of milk per cow, and the average labor income was $369.60. The 14 farmers who sold more than 5,000 pounds per cow had an average labor income of $1070.00. The farmer whose cows did not come up to the 5,0C0 pound yield, therefore, vra.s at a decided disadvantage. PHOPUCTlQg ?BR JliN. In the case of each man tho amount of milk sold was divided by the aver-go number of men onplojed on tho farm (including operator), and this givos the amount of milk per man. V/hen the 32 farms were grouped according to production per man, no striking differences in average labor income resulted. V/hen the 19 farms which received over 60$? of income from sale of milk v/ere sorted accordir^ to milk sold per man, the fiincers sellirg less than 50,000 pounds of milk per man averaged $433.00 labor income, those soiling betv/cen 50,000 and 75,000 pounds per jicn averaged $959.00, and those sellii^ over 75,000 pounds per man had an average income of $1275.00. - 6 - Aver2.3:e sales Labor (Adjusted to ave.) •jesr man. Income (price of milk.3»7%. Under 50,0C0 pounds. Group 1. 40,500 |43-3.00 50,00C to 75,000 pounds. Group 2. 64,700 959.00 Over 75,000 pounds. Group 3. 99,436 $1275.00 In the case of a. specialized wholesale milk faim it T.Duld seem essential to "be able to sell at least 50,0C0 pounds of milk per man. HfeCi:i^^rS ^12? a lOO '70RTH OF FSCD. tn studying tlie individu?-! records it is evident that vliile some men were ..ble to produce a lot of milk per ncn, the^, did it at a high feed cost, i;iiile still others did not grow the haj, and silage at a low cos t. Figuring haj, vcrtii ^IG.OO per ton, sila,';e at $6.00 per ton and purcliased grain at irartef price ^.'hen purclnsed, the returns from $100 VKJtth of feed varied greatly, ranging from $113.00 to $185.00. The reason for. low returns over feed cost can usually be traced to one or more of the &llomng items;- Poor cov;s. Sporadic feeding. Poor jK-sturos (pastures not included in feed cost ahove) Too much grain for the cualitj of the cows, A careful studj. of these 32 farms indicates tJxit even on a highly specialized milk farm the operator mxist be a v/cll balanced dairy arji crop fcrmcr if the faim is to succeed. There must lae success in producing crops efficiently, and again success in feeding these crops - 7 - at a profit. It is a. txw angled business. One must be proficient in both parts. Very often a nun is chiefly interested in the -dairy cows a.rd neglects to study and usefbetter method 5? of crop production- On the othej* Mnd sons men are crop farTj,ers rind grow crops profitably, but not being keenly interested in cows fail to get good returns from the feed used. In either case the nsn may be able to secure a reasonable income. But to secure a ij-rge income tiie mn oust be ^ble to grow crops cheaplj and at the same time tove the abilitj? to feed cows "profitably. In studying the ferms individually and in groups, three Cictors stand out promiji.ent.ly; namel^; Sales of milk per cow, Sales of milk; per nan^ and Returns over feet? coot. Of the 19 ff-rms vhich ted more than 60^ of sales from milk, 5 had Over 5,0C0 pounds cf milk sr'les per cow. Over 5C,OC0 po-^uds of- milk sal'?s p°r irp-n, Ovor 5O7J return above feed cost. The average labor income viis ;#]999.00. These are large farms with good cows, good labor- efficiency and high returns above feed cost. A ST QRl B Y TT[ ,IMIK'iTt:c.]\t. (Income adjusted to 2.44 per iCO pounds of 3.'!"^ 3i.'k.j There were 19 specialized wholesale milk farms, over 6d% of vhose income vas from sale of milk ------------ $910.00 Ave. Labor Income . Take 5 away. (5 fai^ns v;ith below 5, COO pounds of mi-Ik per cov/) , This leaves 14 specialized wholosalc milk farrjs \/ith over 5,000 pounds ~ 8 - of milk sold per co\v ------- 01070. CC Avo. L-bor Incoiae Tal:e 4 avaj . (4 farms \rith belov/ 50,000 pounds of milk per man). This leaves 10 specialized wholesale milk farms, with over 5,000 pounds of milk sold per cow, over 50,000 pounds of milk sold per man ai**43'00 Ave. iabor Income. Take 5 avn;, . (5 farms v.l fc below 50^ returns over feed cost.) This leaves 5 f.i-rms vith over 5,0C€ pounds of milk sold per cow, over 50,000 pounds of milk sold per man and over 50/j returns over feed cost --- ---_-^_--_ — - ^1999,00 Ave. I.abor Income. AGEi.cULTURi; .'^j^:' >:c"i:; ";V ;c STATE OF Mr,7 H_i'l.;Kl :.."; Univtjrslty of JTew Ifempshiire and. JvJ.;9.i-':ion Sorvice TT, S, Dapfc- oiT ji^ricnltture, cc-opera ting", Paiai l.^ac g-.-rf nt D(^onstrationB . REPORT OK BACK-TOVm FARIIS XEXR ENDING APRIL 1. 1923. by H. C. T/OCDV/ORTH, FARM MNA&HHENT DEMONSTRATOR co*operating vditjj the f TEN COUNTY AGBICULTURAl ASEMS. T>eoanber 10, 1923. coopehatiite r- :■:.■• ■:..-- v.t '^:^^: '■■4 University off New Hanpsniro E-:' i;?!.:--.' Sorvice and U, So Departniemt of Agri- C^i-a.^ Ji^eat Wcrk. cuittire, co-operating. Sunmiary of Back TotTn Farms, Year ending April, 1, 1923, Real estate — Vcilue beginning year ,..,,*.*,.. ^543.00 Livestock — " " »• ^ * . . , 79o.,00 Machinery — " »» "..,....»,,. e"v 00 Peed and Supplies — Valtie beginning year ..... ... lG:^.oo TOTAL CAPITAL. |6147.00 RECEH"I!S Sale of Crops ,..*...,.......*.... $ 200.00 sale of Dairy Products . » -...♦»..* 361.00 Sale of Livestock * i ..,,... . 342.00 Sale of Eggs . . . . , 100.00 Miscellaneous Receipts 445,00 Increase in value of livestock 137.00 Increase in value of machinery 21.00 Increase in value of feed and sup^jlies 33,00 "total receipts .... #1639.00 EXPENSJJS Hired labor «.....^ ........ - $ 186.00 Purchased Feed ..« i i .............. . 352. OC Purchased Livestock , 186, OC Silo Filling* Thrashing, Milk Hauling, etc 5,O0 Hew Machinery and Repairs of S/fechinery ...v. ..... 69.00 Repairs of Buildings, Fences, etc, ..' 53. OC Horseshoeing ,......,...,. ., 23. GO Breeding Pees & Veterinary Medicine . . ' , . 4.0C Spray Mate^-ial & Fertilizer ,....-.,...... 46. Oj) Seeds, plants and trees ............... 38.00 Taxefii insurance & cash rent .............. 117.00 Miscellaneous Ejcpenses ......... i < j «; * «, 104*05 Decrease in Value of Livestock . 9i6o Decrease in Value of nachinery 20. OC Decrease in value of feed & supplies .......... 15. Of^^ Est. depreciation on bldgs. (% .Value ] 21.00 TOTAL EXPEiSES. ...... . .8_ |L248 .00 FARM IICOME (Receipts minus Expenses) ............... 391.00 Interest on total capital ® ^% 307.00 LABOR INCOME . , | 84.00 - 2 - The coming of the railroads and the dc^veloprient cf <:ha z.o4«x^^ ir..Jn.t.-iai system have greatly cha:^ed the economic position o.f rar.-^ of our back towns, "V/hy," said an old nan, standing inthe door^/ny of the one hundred S^aar old to^7n house, "the road you just cane over mtji jts ten miles of forest on hoth sides and not one si-n of habitation, that used to fee good- tillage land and good farms." Nov; and then an old stone fence is the only indication one sees that this vas at one tine a prosperous farmigg community. A careful search- would disclose at least twenty- five old building sites that are nov; marked only by a hole in 5he ground, and perhaps a few old apple trees in the woods, • V/ith the building of the railroads the back farms were at a tremendous disadvan.tage , The younger generation soujht other fields of labor, and with the passing of the older generation the farms were generally absorbed bj/ the ever encroaching timber. And yet some of these farms are still operating. Some at least out- wardly seem to be prosperous farms. In other instances the men h^ve found such severe handicaps in everything that they have attempted, ttet they have just quit fT,rming. T^ey live on the fan::,- maintain a team of horses, v/ork in the y;oods, haul timber and \'ork on the road. And many of these men are asking themselves and others, "V/hat shall \7e do?" In order to understand this ouestion more intelligently^- the men on back farms were urged to keep records for a year. V/e have been able to secure only seven of these records. In f2.ct the number of back farms viiere the operator is actually farming is very small, and it is difficult to get actual records. - 3 - The seven records ott.ainod were from back towiQ where the operator is attempting to make a lix'ir^- hy selling cicops, stock or stodc products. Even in these cases, hov;ever, about Z&% of the income ims from miscellaneous sources, which. is mostly vvork on the roads. The average labor income fiuc the yeai" was $84.00. This is not a ]arge income, but is -probably typical of the conditions in the back towns. The average size of fattn was 202 acres, and the average number of tillage acres vs.& 33,. The average capital investment was $5148.00, of which $4543.00 was invested in land. The towal receipts for the year averaged $1639.00, and the-i;otal expenses averaged $1248.00. The largest income repOTted \us $445.00, made on a farm tMt had a large pasture and sold butter, cattle and maple sjTup. Another account showed a. labor income of $410.00, and this vcs made on a firm where siz acres of potatoes v;ere produced, and where the. operator did considerabile teaming. The difficulties of ferming more than ten miles from a railroad are many. The production of whole milk is usually not practicable. The pro- duction of butter is ordinarily not very profitable on account of ■ the lou prices. And yet some form of livestick is practically essential to the maintenance of the soil fertility. Many have advocated the production of beef cattle in these back places. We have few records that throw any light on the possibilities of success in such an undertaking, and these few are negs-tive, Successfttl beef cattle production requires a large unit with large areas of tillageand pasture land. There are fev; locations in the state vhere these -conditions are available to the extent of insuring success in a large undertaking. - 4 - One possibility, where one is located bacjc from a good dairy section, is the growing of dairy cattle. Calves of good daily type could be pur- chased and v.hen groTvn into heifers resold ^ust before freshening. The advent of the auto has made some of these regions accessible to the summer tourist. In fcict many summer people have purchased small farms and live in these districts a few months of the year* And wherever a nvimber of these pebplfe ate groiipea ih a small area, the adjdining fSirms may have a good Market for a few plroducts. This market, however, itf-of short duration and often represents only a limited business.. Aside from timber, the development of the summer business is the only bi*ight spot in the agriculture of J5)einj of our back tovins. The truth is that relying upon sales of crops, dairy products and stock, a large nusiber of the back fSirms cannot be economically operated under present conditions. The long haul to market, \'iiether by truck or team, takes away any possible margin of profit. Many feel that it is • just as tsrell to abandon these farms* Me have no right to ask young people to raniin in the back tovms unless there is an opportunity there, and ordinarily there is little chance of straight success in straight ferming. But there is another phase of the situation that merits our attention and study* Even tho abandoned from the point of view of strictly crop or stock farming, these areas will still be regions of timber production. And it nay be a great loss to the timber industry if all these farms are abandoned. It would seem important and essential to maintain enough good tillage land to provide feed for men and horses annually anployed in lumbering. For example, in one section of our state there are approximately 150,000 acres of land ten miles or more from a railway station. At present - 5 - only a small amount of land is actually v/orkfid, anci fx-ora a strictly- agricultural point of viev/ there is very lictle S'jirmiiig f;oirjg on. Let us consider this whole tract from a ztra-.ght luir-b -r ing v-ie^Tpoint, Some, time v;e are soing to heed the forester a-d grov/ lu;r.l)er more systenatioally» The scareity and hi-^h price of timlDer mil eventually make such'a policy practicable and profitaMe. The 150,000 acres of land could eventually be lumbered in rotation, allo\7ing seventy-five years for the grpr/iiig of the lumber. This would mean approximately 2,000 acres of timber harV-ested each year indefinitely*,. According to estimates furnished by Professor K. V/* v7ood\'ard of the Forestry Department, the labor of 400 men and 200 horsejs v/ould be required %o grow, harvest ard mill the timber according to the forester's standards. On a permanent basis 400 men v/ould require homes to live in as v/ell as food. Ordinarily lumberii^: has attiacted.men v-ithout families or ;.ties of any kind, but it is conceivable that lumbering under conditions where good homes now stand a large proportion of the men could live ~ permanently ^nder favorable conditions for fscmily life- Of course whether v.e plan it or not, or vsiiether it pays or not, so long as v;e protect the area from fires, timber will be growing. But as a community or as a 'state v»e ns-y be aile to influence the form of organization that vail eventually handle such a large tract of land* Will it be snail individual holdings, large corporations or state ovme"-, and v/hich vould be the better type? Individuals now hold many small tracts, but eventually if timber is ^rovm and handled systematically, each unit area must be of such size that a man can use his time to the best ad"vantage- This would mean ordimrily a much larger tract than is now held by the firmer under present conditions. As txKs nen can ordinarily - 6 - work to advantage in lumberin;:, the individml tim':er ir^ct thou.ll protably be a thousand acres cr more,-. It is provable ttet 100 repcrate tracts owned by individual men could handle this forestry' proc leir., but it is impracticable foi* imme 'iate results as the presenc holders of land would not ordinarily have capital enough to f:et tor:ether a Irj.rre unit, and in many cases they could -not finance the business to the point of toving a crop of lumber each year. And from another point of view forestry represents a long-time proposition, and it would be extremely difficult to secure a number of men to co-o]perate in such a -pvogrsm; V/hen relatively small tracts are held by individuals, there will always be a strong tendency tovard slashing and destructive, lumbering. However, when the individual has a large enough tract so ttat he- could use his time to advantage, there is no .reason vhy he could not haul his logs to a nearby saw mill in ghe same v;ay ttet other t?.xiaeTs may haul potatoes or hay to narket* There may be marked antagonism against corporations buying up this timber land. On the other hand the large companies are in a better position to lay out a long time program, and probably at least in areas far from the main roads, a large tract operated bjy a corporation would be the- lest "olution of the problem. Or the state could buy up this tract and put it in charge of a trainee", forester under the State Forester. One of the serious handicaps of these regions for forestry is the high tax. But in time this drawback nay be greatly alleviated. The high tax at present in these districts is mostly local taxes spent for the up-keep of roadSe Roads are maintained at great expense to a few farms some distance from the main highv.ey. As a strictly timber area owned eithet by a large corporation or by the state, there would be little need of - 7 - roads tnake if easier to haul tiriber, but :".t 'vould he cheaper to haul over lumoer roads in the v.:nlc?r to e.oiic po.ri.'t r.n the r:s-jr\ :.-:.adf. than to pay the high yearly tax necessary to maintuin the r^ice road3. ■-... ■".. Under this plan it v^oxild se pojsiitile tornai ntcir the goodL.'i&rms now located on or near the main reals; then on the ieccndary roads" and back of main roads the luTiber could be handled in large units. Whether operated in large units or by individuals or a combination of both, we should facte the fact that these areas shoi-.ld be pi-oducing annual crops of timber and we shoiold, as a state, foster the better utilization of the forest land by encouraging the development of systematic lumber growing as advocated by the modern forester. The solution of the probleris of many of the back tovjis lies vdth the forester, but as a long time program" in Tiev/ of probably development . later, .'" ... 7 it vrould seem advisable in some vay- to maintain the good feirms along the no. in roads. , • ' .> ..^