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Show THE UINTAH BASIN FARMER r PAGE mi Associated Beehive Seed Growers of The Uintah Basin THE ALFALFA-SEE- June 15, 1926. GROWING BUSINESS D Joseph French Johnson has defined business as ANY OCCUPATION IN WHICH MEN, AT THE BISK OF LOSS, SEEK TO MAKE MONEY, by producing commodities for sale, or, by buying and selling commodities, or, by hiring the services of others for utilization of a profit. You notice that the essential oart of this definition might be stated BUSINESS IS ANY OCCUPATION IN WHICH MEN (OR WOMEN) SEEK TO MAKE MONEY AT THE RISK OF LOSS. Now, we as alfalfa-see- d growers are seeking to make money seed alfalfa for sale and doing this at the risk of by producing loss of our time and labor and other expenses. It is customary, in well regulated business enterprises, to go over everything in the enterprise, periodically, to see whether it is making money or losing money. By studying the records of his business one may learn how to make more money or learn how to stop the losses and save money. Saving money may be almost as good as making it. As a matter of fact, most alfalfa-see- d growers are farmers before they become fceed growers so that alfalfa-see- d growing is business. It may be really only a department in a bigger farming such a big department as to overshadow the other departments and merely leave them to use up odd time and labor or odd patches of ground, and the like just as the big packing houses work up their bvoroducts through other smaller departments. At any rate, suppose you take a look at your farming business as a whole. Mr. Johnson would say that the elements of any business ore LAND, LABOR, CAPITAL, and MANAGEMENT. Various businesses use them in varying proportions but they must all enter in. How much money could you get How much land have you? cash? for lease Or, if you lease, how much it for it if you were to much return? that Does it produce you rent do you pay? much How money do you spend What is your labor worth? Do you get it back? for hired labor on your farm in a year? Could you use this labor so as to make a bigger return? How much capital have you got invested in machinery, barns, sheds, livestock, and other equipment? Do you get fair interest on vour investment? "And last but by no means least what about the management? The management is usually the greatest factor in the sucDo you manage so as to maxe cess or failure of any business. rent you couid get for it cash the more from your land than and that oi your hired labor so that you manage to use your time than they are worcn at going they will make you more money on the money you nave return wages? Do you manage to get a good invested in working equipment? If you do, your business probably has good management and is time to go over the you are making money. If you do not it . business and see if you can find out why. that is still givby it some possible are money If you making going over you may find way to ing each department a careful economists call ALL THE MONEY make still more money. The fair wages for LABOR, ABOVE AND RENT, OVER ONE MAKES WAGES 01 MANAGETHE ON CAPITAL, and a fair RETURN $ . MENT. into every department of your that you do that. We will farming business. We would suggestbooks and information on how gladly help you to get farm account to keen them if you wish. 7 Tne thing that we are vitally interested m is this WE WAN UINTAH THE OF THE ASSOCIATED BEE HIVE SEED GROWERS BASIN TO MAKE GOOD MONEY and to continue to make money us GROWING ALFALFA SEED. We think you will agree with ASKED HAS NEVER that the J. G. PEPPARD SEED COMPANY THE GROWER UNLESS SEED ALFALFA ANYONE TO GROW It is not the purpose here to 5 go IT. HAD A GOOD CHANCE TO MAKE MONEY RAISING to overhaul to ask your you For that reason we are about of view business a from point Alfalfa Seed Growing Department to see if we can not all is if it right all is to see if it right pd , find wavs of improving it. not have if ask to you yourself One of the first questions Does alfalfa seed growing offer a fair done so is this change to make a good return on my land, labor, and capital, with One of the best ways something additional for my management? to get an answer to this question is to ask another Can I make as much (or more) money using my land, labor, and capital for the production of alfalfa seed as I could make if I used this land, labor, and capital in some other way? If you have answered these questions in the affirmative, we are ready to proceed with a brief study of alfalfa seed growing as a business. One of the first questions to ask about any business is this, A DEMAND FOR THE PRODUCT AT A PRICE THAT THERE IS WILL LEAVE THE PRODUCER A FAIR RETURN? In the same connection it is well to ask two more questions (1) Can the product be so improved as to greatly increase the demand or to sell for a better price? (2) Can the cost of production be reduced methods better and better management) so that profits will (by be increased at the present price or so that the product can be sold at a lower price and still leave the producer a fair return? If we apply these questions to the business of producing alfalfa seed, about the first thing we want to know is whether or not we really made money on growing seed in the past. What does it cost us to produce alfalfa seed ? For example suppose you have 40 acres of alfalfa which you could rent for $300.00 15.00 You spend 5 days irrigating worth You spend 5 days taking off hay crop 25.00 30.00 You hire help in haying worth 50.00 You cultivate time is worth 15.00 You irrigate again You harvest your crop at a cost (including 200.00 your own work) of You thresh your crop at a cost (including 250.00 your own w k) of Allowing yourself fa., waes your crop has 905.00 cost you 180.00 To offset this you have 30 tons of hay worth 725.00 Your seed crop is costing you If you raise 12.000 pounds (300 lbs. per acre) your cost of production would be $6.04 per cwt. If you raise 8.000 pounds (200 lbs. per acre) your cost of production would be $9.06 per cwt. BUT if you raise 16.000 pounds (400 lbs per acre) your cost of production is onlv $4.53 per cwt. Of course these figures are only for purpose of illustration. Put in the figures for your own crop and see what it costs you to pro- due; it. IF IT BRINGS YOU MORE PER HUNDRED WEIGHT THAN IF IT IT COSTS YOU, THE DIFIERENCE IS YOUR PROFIT. YOUR LOSS. In either BRINGS YOU LESS, THE DIFFERENCE IS case you know whether or not you made money and you know whether or not the demand lias been at a price to give you a fair return. The next question is that of improving the product in order to increase the demand or to get a higher price. You remember your crop from last year. Was it free from Sweet Clover, dodder and other weeds? Was a big part of it number one quality or was there a lot of second or third grade seed on account of impurities? Was it well ripened and bright colored? You may be interested to know that we still have on hand at Roosevelt, a big part of the second and third grade seed that we bought there last year. On the other hand, almost all of the strictly number one seed is gone. THERE WAS A DEMAND FOR HIGH QUALITY STUFF. e Seed Growers and the J. G. Peppard The Associated Seed Company have been cooperating in the Basin for four years to build up and maintain a high standard of quality. The vast amount of good seed that left here last season shows that they have achieved results. The poor seed still on hand shows, that there is still room for improvement. VHiat precautions are you going to take to make sure that most of your seed is first grade and dodder free? ' CONTINUED ON PAGE SEVEN Bee-Hiv- J. G. Peppard Seed Company Duchesne Roosevelt Vernal wmmmmmmmi |