OCR Text |
Show OPERATING OUTLAY ON AVERAGE FARMS Overhead Expenses Placed at $7 by Farm Management Department Depart-ment of Nebraska College. Operating expenses for the average eastern Nebraska farm, according to surveys made by the farm management manage-ment department of the Nebraska agricultural college, total very close to $1,500 or from $7 to $7.50 per acre. This figure Includes depreciation charges on buildings and machinery and the value of all labor Including that of the farmer himself at the rate of wages for hired men. It does not Include the interest on the value of the land. On $100 land, this would be at least $5 per acre; on $150 land, $7.50, or as much as all other expenses combined. Operating expenses are about the same on all farms with the exception of the extremely large or extremely small farms, regardless of whether or not they are showing a loss or returning return-ing a profit. This Is evidence thstt it Is impossible to reduce expense of operating op-erating a farm below a certain point, and that profits are not made by reducing re-ducing expenses but by increasing farm receipts. |