Farm Equipment, Chapter XI

Chapter XI

Farm Equipment.

87.

The equipment of a farm is a matter that has a close relation to the possible profits from operating it.  The farmer must have sufficient work stock and machinery for operating the place easily and well.  He must also have suitable buildings for storing his produce.  Chapter III suggests a proportion for the investment of capital which will give satisfactory results in the general organization of the farm.  The individual farmer, however, must study the problems which confront him, and erect buildings or buy machinery only as it can be shown that they will add to the profit form his farm, or lessen the labor of himself or the family, or add to the comforts and pleasures of the home.  Some farmers will need corn cultivators, others need potato diggers, while still others need grain binders, hay loaders, or manure spreaders.  Even in the same community, there is a great difference in the needs of the individual farmers for equipment or buildings.

88.  Buildings, an Expense to the Farm.

Few buildings return a direct profit on the money invested in them.  It is necessary for the farmer to have a house for his family to live in, but it really does not add to the production from the farm.  It is rather a bill of expense.  The depreciation and upkeep will amount to five per cent or more on the investment.  So far as securing profits from the operation of the farm is concerned, therefore, it is to the farmer's interest to invest as little as possible in the house.  A good house undoubtedly adds to the value of a farm as a home and increases its selling value, but does not in any way increase the production from the farm.  The desire for comfort and the personal satisfaction of living in a good home must be weighed against the possibilities of

112

Farm Equipment     113

paying the bills from the earnings of the farm.  The average sized farm in the United States is 138.1 acres.  In Minnesota it is 177 acres.  Few of the Minnesota farms under the present system of farming can afford to pay interest on an investment in a house for the farmer and his family of more than $2,000 to $2,500.  If a house costing more than that amount is erected the additional investment should be charged as a personal expense to the individual, and not as an operating expense against the farm.  On many small farms a house costing $1,000 to $1,200 would adequately care for the labor necessary

[Fig. 46.--A comfortable but moderate priced barn that shelters a highly productive herd of cows.  For such a purpose the expense is warranted.]

to operate the farm.  In other states and particularly in the South, the dwellings will cost less than the amount indicated.  The practice should be to charge against the operating expense of the farm only such dwellings as are used to shelter the working force of the farm, or in some way add to the farm income.  In cases where a tenant house is provided to house and feed the farm labor, the owner's house should not be charged to the operating expense of the farm, but as a personal expense to the farmer.

Barns and other building  likewise, must be made to add to the income of the farm by sheltering productive live stock;

114     Farm Management

by protecting feed or market products from deterioration; or by affording shelter to productive labor.  If they do not, they become a bill of expense to the farm.  There should be a well demonstrated need for a building before its erection is undertaken.

89.  What Machinery to Buy.

The farmer is often confronted with the question of what machinery to buy, what size would be most economical and how to care for it so as to get the greatest use from it and make it last.  As a rule, the

[Fig. 47.--Shelter that costs but little.  Such shelter is neither attractive nor comfortable.  It detracts from rather than adds to the value of the farm.]

American farmer is inclined to overstock with machinery.  New inventions have been numerous and manufacturers are good advertisers.  As a result, the farmers are led to try many machines before their value has been established or their wearing qualities determined.  The consequence is, that many must soon be discarded as poorly adapted to the work to be done.  It is best not to be too hasty in buying new inventions.  Experiment Stations and wealthy farm owners should do the experimenting.  Farmers who have to pay for their machinery from the earnings of their farm, should stick to the "standard" machines.

Farm Equipment     115

90.  Calculate when to Buy Machinery.

Investments in machinery should be made only after carefully calculating the probabilities of being able to make the machine pay interest on the investment.  This can be done by considering, (1) The quality of the wk that can be done with and without the machine.  (2) The cost of the work, with and without.  (The cost includes interest, depreciation, cost of care, storage, insurance, risk, and repairs.)  (3) The returns form the same capital invested in live stock, labor, or other enterprise.  (4) The gain or loss in quality of product, with and without the machine.  (5) The saving of man or horse labor.  Other factors such as greater amount of time for recreation, or for other more agreeable work, should also be considered, though they do not necessarily affect the profits.  The original or first cost of the machine under consideration, should not be made the sole factor in the question.  The cost per acre or per unit of product, should be made the basis of machinery cost and investment.  The total cost for a year including interest on investment, repairs, depreciation, oil, and shelter, divided by the number of acres handled, will give the cost per acre for the machine.  Calculations of the cost per acre of doing the same work without the machine should be made also and a method reached that will give the greatest possible gain.  (See page 24, Chapter III.)

91.  Size of Machinery to Buy.

Machines are made in various sizes.  In buying a new machine, a farmer should consider at least two things.  First, the amount of work to be done; second, the motive power available.  It is a mistake to buy too small a machine and just as great a mistake to buy a machine so large that the motive power cannot adequately propel the machine.  In determining what size to buy the capacity must be considered.  The following example will illustrate.  A farmer has ten cows, each giving 5,000 pounds of milk yearly.  The aggregate amount of milk will be 50,000 pounds a year.  Which will be most economical to buy for

116     Farm Management

separating the milk, a separator with a capacity of 450 pounds per hour costing $100, or one with a capacity of 600 pounds per hour, for $125?  In separating 50,000 pounds of milk with the 450 pound separator, 111 hours will be required, which at 14 cents per hour, will cost $15.54.  With the 600-pound machine, 83 hours will be required costing $11.62.  there will be again in labor saved, therefore, of $3.92.  This, however, is not all profit.  there is an additional investment in the machine of $25.00, which at 6 per cent would bear $1.50 interest.  The depreciation also must be considered on the additional cost of investment.  It is estimated that the depreciation on milk separators is 5 per cent.  Five per cent on $25.00 will

[Fig. 48.--An expensive way of storing machinery.]

be $1.25.  This added to the interest on the additional investment, amounts to $2.75.  Subtracting the additional interest and depreciation charge of $2.75 from $3.92 saved in labor, would leave a net gain of $1.17 per year in the use of the larger machine.  Similar calculations can be made comparing the gain to be made from the purchase of a large or small drill; the purchase of small walking plows or a large gang plow; the use of large and small grain binders; and many other machines used about the farm.

92.  Maintenance.

There is a great difference in the rate at which different farmers wear out machinery and equipment.  The good care-taker can do much to prolong the life of his machinery.  Proper housing is essential to keeping machinery

Farm Equipment     117

in good order, but good housing is expensive and adds to the machinery cost of the farm.  Machines that stand outdoors, warp and twist badly, thus increasing the friction when they are put to use.  Machines stored in poor machine sheds with leaky roofs and wet floors, often rust quite as badly as if they were standing outdoors.  Attention should be given also to the care of machines while in the field.  Few operators take the time and care to properly oil the bearings.  bolts are allowed to become loose, thus letting the machine sag or get out of adjustment.  The matter of adjustment of the bearings and cutting devices also, is a factor in determining the length of

[Fig. 49.--A cheap but effective protection for machinery.]

time the machine can be used.  Attention to these small details will add very much to the usefulness and length of life of a machine.

It is a good practice to go over the farm machinery at least once each year, tightening up bolts, renewing worn portions and making sure that the bearings are in good order for operation.  If a forge and some blacksmith or carpenter tools can be had, much of the ordinary repair work can be done by the farmer or his sons.  The saving in the cost of the work will not be great perhaps, but the saving in time, in going to the shop in the village, may amount to considerable.  Much of this repair work can be done on rainy days or in winter when

118     Farm Management

farm work is not pressing, and the machines can be put in good condition then for the busy days during the seeding and harvest seasons.  The depreciation of farm machinery is illustrated by Table I which is taken from Bulletin No. 117 of the Minnesota Experiment Station.  These figures cover the depreciation of machinery on a number of Minnesota farms where records were kept during the years from 1902 to 1907.

Table I
Annual Depreciation in Value of Farm Machinery Expressed in Percentages
Machine Northfield, Rice County Per Cent Marshall, Lyon County Per Cent Halstad Norman County Per Cent 1820-acre farm, Norman County Per Cent 640-acre farm, Stevens County Per Cent Average all Machines Per Cent
Grain Binders 8.33 9.44 7.47 6.53 10.57 7.91
Grain drills and seeders 7.27 8.07 6.53 4.36 6.47 6.75
Threshing outfit NA NA NA 12.00 NA 12.00
Corn binders 11.46 10.16 11.40 NA 9.00 10.03
Corn planters 6.74 8.54 NA NA NA 7.15
Corn cultivators 6.67 9.04 6.97 4.66 5.00 7.25
Mowers 7.25 10.01 6.97 7.28 8.93 7.80
Hay tedders 4.84 NA NA NA NA 4.84
Hay loaders 11.78 NA NA NA NA 11.78
Hay rakes 7.68 7.51 8.46 5.81 5.00 7.80
Gang plows 10.51 7.16 6.69 8.46 6.71 7.40
Sulky plows 10.27 11.93 5.77 NA 3.70 8.42
Walking plows 4.77 7.29 7.64 NA 8.82 6.09
Wagons 6.66 4.86 5.44 2.47 5.90 4.89
Harrows 11.01 8.20 7.93 8.89 6.78 8.72
Disks 5.41 7.46 NA 3.35 7.50 5.19
Manure spreaders 10.50 12.59 NA NA 10.00 11.67
Hay racks 14.57 14.89 10.30 5.12 NA 7.76
Reapers NA NA NA 8.13 NA 8.13
Grain tanks NA NA NA 3.47 NA 3.47
Sleds 5.66 4.50 6.82 8.20 NA 5.81
Fanning mills 5.00 4.97 NA 3.66 3.33 4.58
Horse weeders NA NA NA NA 5.71 5.71
Harness, heavy 5.97 6.63 7.21 NA 4.44 6.17
Gasoline engines 3.92 NA NA NA 10.00 7.35

Farm Equipment     119

It will be noticed from the table that there is a large variation in the rate of depreciation on various machines.  Manure spreaders, hay loaders, and threshing outfits depreciate quite rapidly in value.  Hay tedders, fanning mills, and grain tanks or wagon boxes, depreciate comparatively slowly.  The rate of depreciation will not be the same on all farms, but by inventorying the cost price, and making an arbitrary valuation of the machine each year, it will be possible by using the figures covering ten to fifteen years, to determine the rate of depreciation on any farm.  Most farmers will not be in position to do this.  The figures used in the table will be applicable to the North Central States quite largely.  Where they do not apply, it will probably be safe to estimate the depreciation on machinery at 10 per cent.

93.  Machinery Cost per Acre.

It is a matter of interest to know the cost per acre for the various kinds of machinery used on the farm.  It may be made a factor in determing [sic] the cost of producing crops.  The cost per acre is determined by including all charges against each of the machines for the year, such as interest, depreciation, repairs, oil, and cost of housing.  This cost for each machine divided by the number of acres handled, determines the cost per acre for the use of the machinery.  Table II gives the values per acre for various machines used on farms in Minnesota.

94.  Duty of Machinery.

The capacity of machinery is often determined by the motive power applied.  A machine cannot be run at full capacity unless sufficient motive power is supplied.  The efficiency or capacity of a machine is based on horse power or the speed at which it is driven.  Few machines perform all of the labor of which they are capable, owing to the fact that the use of the machine is interrupted by the demand for the farmer's time in doing chores which keeps him from the field work.  In other words, the machines are not used for the full length of time for which they are capable.

120     Farm Management

Table II
Values in Farm Machinery Consumed Per Acre Annually, 1902-1907
Machinery Northfield, Rice County Marshall, Lyon County Halstad, Norman County 1820 acre farm, Norman County 640-acre farm, Stevens County Average all Machines
Grain Machinery:
  Binders $0.240 $0.247 $0.160 $0.135 $0.175 $0.181
  Reapers NA NA NA .171 NA .171
  Drills and seeders .104 .101 .077 .036 .075 .075
  Fanning mills .019 .016 NA .004 .016 .010
  Grain tanks NA NA NA .012 NA .011 [sic]
  Wagons, sleds, and racks .041 .041 .036 .023 NA .034
Corn Machinery:
  Binders 1.199 .911 .653 NA .251 .826
  Planters .094 .080 NA NA NA .087
  Cultivators .171 .145 .218 NA .086 .155
  Wagons, sleds, and racks .171 .159 .100 NA NA .158
Hay Machinery:
  Mowers .332 .310 .150 .146 .166 .206
  Rakes .152 .106 .081 .018 .026 .085
  Tedders .113 NA NA NA NA .113
  Loaders .300 NA .100 NA NA .151
  Ropes, forks, etc. .078 .200 NA NA NA .120
  Wagons, sleds, and racks .064 .061 .059 .036 NA .059
All crop machinery:
  Plows .086 .132 .078 .061 .119 .087
  Harrows .027 .021 .017 .006 .024 .017
  Disks .185 .097 NA NA .032 .089
  Threshing outfit NA NA NA .335 NA .335

These figures are taken from the statistical work on the Northfield, Marshall, and Halstad routes for the years 1902 to 1907.  It is likely that figures for later years would vary slightly from those given, but the table is regarded as approximately correct for the North-Central states.

Farm Equipment     121

Exercises for Pupils

1.  Learn the cost of the houses of parents of the pupils and have each one calculate the interest charge at 6%, the depreciation at 3%, and add to these the cost of repairs for the year and determine the cost of sheltering the family.

2.  Have the pupils determine the annual cost of owning a manure spreader costing $105.  Also determine the machinery cost per load of manure hauled and per acre manured during the year.  What would these costs be without the spreader?

3.  Have the pupils learn from their parents the date of purchases and the first cost of a walking plow, a self binder, a lumber wagon, a grain drill or seeder, and a harrow.  Other implements may be substituted if desired.  Have them learn also the present value and determine the percentage rate of depreciation of each.

Problems

1.  A self binder costs $105.00.  The interest rate is 6%; depreciation, 7.9%; repairs, $2.46; oil, 75 cents and shelter $2.00.  What is the cost of the binder for the first year?  for the second year?

2.  If the binder is used to cut 40 acres of grain a year, what is the cost an acre for the machine?  What would it be if 165 acres were cut?

3.  On a certain farm there are 160 acres to plow annually.  Five horses are kept for farm work.  A gang plow can be bought for $65.00, or two walking plows for $30.00.  The interest rate is 6%; depreciation on the gang plow is 7.40%; on the walking plows, 6.09%.  Man labor costs $42.00 a month of 26 days.  Horse labor costs 90 cents a day per horse and the five horses will be used in either case.  Two men will be required to operate the walking plows; one to operate the gang plow.  The plowing can be done in 40 days.  What is the cost an acre under each way of plowing?

4.  If teams walk two miles an hour and work 9 hours a day, which will plow the most a day and how much, three 2-horse teams with 12-inch plows, or two 3-horse teams with 16-inch plows?

5.  A man can buy a manure spreader for $120.00 cash, or $125.00 on six months' time at 6%.  What rate of interest does he actually pay if he buys on time?

6.  A 14-inch walking plow costs $16.00.  Its value at the last inventory was $12.00.  The depreciation is 6%; interest rate is 6%.  The cost of repairs for the year is $1.70.  What is the cost an acre for the plow if 28 acres are plowed?

122     Farm Management

7.  A mower is now inventoried at $30.00.  The rate of depreciation is 8%.  Money bears 6%.  Repairs cost $3.80 and 35 cents worth of man labor.  What is the cost an acre for the mower if 30 acres were cut?

8.  A grain drill was purchased for $65.00.  It has been in use for 6 years and is now inventoried at $32.00.  what is the rate of depreciation?

References

Bulletin No. 117.--Minnesota Experiment Station.

"Farm Management."--F.W. Card, pages 40-47.