Idaho

Bibliographic data

Monograph

Identifikator:: 1795100052

URN:: urn:nbn:de:zbw-retromon-179691

Document type:: Monograph

Title:: Idaho

Edition:: [Rev. ed.]

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Scope:: VII, 80 S

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Report on the farmers' costs of production of sugar beets in Idaho for the years of 1921. 1922, and 1923

Collection:: Economics Books

COSTS OF PRODUCING SUGAR BEETS 13 A second method of calculating the capital charge is based on the prevailing mortgage rate of interest on the market value of land. The average rate paid in 1922 on mortgages on the sugar-beet farms investigated by the Tariff Commission was 7.14 per cent. If the annual net cash rental is capitalized at this rate, 7.14 per cent, the resulting value of the land is $188 per acre; if it is capitalized at 5.5 per cent, the present rate charged on farm mortgages by the Federal land banks, the resulting capitalized land value 1s $244 per acre, slightly more than the farmer’s stated value of $222. The market values of land and the cash rental data obtained from the farmers on the cost schedules were carefully checked by the agents of the commission while in the field. Stated land values were checked against actual sales prices, and both land rentals and values against those given by such competent local men as county tax officials, bankers, real-estate dealers, county agricultural agents, and officials of the agricultural colleges, particularly professors .of agricultural sconomics and farm management. Where the values given by farmers were clearly out of line with data from these sources, adjust- ments were made. In 1922 the capital employed in sugar-beet production for farm equipment—implements, tools, and work horses—amounted in even numbers to $26 per acre of beets harvested for all farms investigated, and to $33 per acre for the farms investigated in Idaho. At 6 per cent the capital charge for equipment, based on the total value of equipment rather than on the average value, amounted to $1.56 an acre, or 13.8 cents per ton of sugar beets for all farms investigated, and to $1.99 an acre, or 13.6 cents per ton of sugar beets for the farms investigated in Idaho. The values of the implements and work horses were obtained on the schedules from the farmers themselves by the agents of the com- mission and were carefully checked against actual sales values in the localities, as well as against the estimates of such local men as farm- implement dealers, the local farm-implement auctioneer, horse dealers, bankers, county agricultural agents, and officials of the agri- cultural colleges. Where the farmers’ valuations were clearly out of line with sales values and estimates by these local men, adjustments were made. The values given by the farmers were those obtaining in the fall of 1922 and served as a basis for determining 1921 and 1923 values. It is important to note that the value of farm equipment—machin- ery and tools and work horses—shown in this report includes only that part of the total value of the equipment allocated to the sugar- beet crop and, therefore, does not represent the full value of all machin- ery and work horses used in sugar-beet production. Two examples may make this point clear. A wagon worth $100 was used in hauling hay and grain, as well as sugar beets. The farmer estimated that one-half the depreciation and repairs on the wagon was chargeable to sugar beets; therefore only this one-half of the value, or $50, was considered the capital involved in sugar-beet production. Similarly the cost of maintenance and operation and the value of each imple- ment were allocated to beets on the basis of use, allowance being made for the varying wear and tear due to different uses. In the application of this method of analysis to work horses the cost and value were allocated to sugar beets on the basis of the relative number of hours of direct horse labor emploved on the sugar-

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