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COST OF FEED.

As previously suggested, the adaptation of soil to bluegrass grazing is a distinct advantage for the dairy business in this section. During the grazing period, from May to November, most of these dairymen have not fed concentrates, except when the season happened to be drier than usual and the pasture short. Milk usually is reduced in price during the summer because of the plentifulness of grazing, which increases the general supply of milk. Cows graze to a considerable extent on bluegrass during the winter months, and occasionally on rye or wheat fields. Thus the quantity of feed that needs to be bought is small, compared with that bought on the Northern dairy farm. On account of recent advance in price of concentrated feeds, one of the ten dairymen has filled his old silo with clover and has built a new one for corn and cane silage. Clover is thus used as a substitute for the more expensive concentrated feeds, such as cottonseed meal, bran, and shorts. In 1914, the year the business records of these farms were taken, the average cost of concentrated feeds bought was about $14 per cow, which in terms of concentrated feed at $35 per ton (about the average price in 1914) would mean that the average cow got about 4.4 pounds of this feed daily for 180 days. Other purchased feeds, mostly hay and corn fodder, amounted on the average to about $4.50 per cow.

The bluegrass dairyman pastures more intensively than the average live-stock farmer. The latter allows about 4 acres for each animal unit,' while the average for the ten dairy farms was found to be about 1.6 acres for each animal unit on the farm. Dairy farms are relatively small, the manure is exceptionally rich in plant food, and a large part of it is scattered on the pastures. According to figures obtained, $40 to $50 would be a liberal estimate for the average cost of feed for each dairy cow kept on the farms studied.

TO WHAT EXTENT DAIRYING MAY BE DEVELOPED IN THE BLUEGRASS REGION.

While a study of these ten dairy farms would indicate that market milk production was profitable where markets have developed, dairy farming is not the type that can be as generally recommended as some other types until it has been demonstrated that butter and cheese, the least perishable of dairy products, and those which have a wide demand in the general market, can be profitably produced here. The production of milk and butter in the three counties (Madison, Scott, and Mason) in which these ten dairy farms are located remained practically stationary between 1890 and 1910. On

1 Animal unit-the equivalent of 1 cow, horse, or beef animal. Two heifers, 4 calves, 7 sheep, 3 hogs, 14 pigs, or 100 chickens are counted as equivalent to an animal unit.

the other hand, the production of tobacco, hemp, hay, beef cattle, and sheep, characteristic of the more general profitable types, had a marked increase during the same period. In 1890 the census enumerators found 5,357 pounds of cheese produced in Madison County and 2,025 pounds in Mason County. In the census years of 1900 and 1910, practically none was reported for these counties. In Jefferson County, bordering on the bluegrass region, 10,120 pounds was reported in 1890 and 13,817 pounds in 1900. None, however, was reported in the census of 1910. Three counties bordering Jefferson produced about 15,000 pounds during the period covered by the census of 1890 and 1900, but none was reported for these counties in 1910. Between 1900 and 1910, however, there was a large increase in the production of market milk for the Louisville market in these counties. The cheese production that still persists in Kentucky is confined largely to the low mountains and hills bordering the bluegrass region, known as "The Rim," where there is some bluegrass land, though rather unfavorable for general farming and low in price. In this region spring water is abundant and the climate is somewhat cooler than in the more level bluegrass country. On the hilly, cheaper land along the Ohio River a small quantity of cheese was still being produced in 1910.

These facts relative to dairying in Kentucky emphasize the truth that farm enterprises once started in a locality will develop only to the extent that they find a favorable environment and are found to be profitable by practical farmers. The production of butter and cheese would no doubt be profitable in the bluegrass region and possibly at the present time would be a thriving industry if other enterprises such as tobacco, hemp, wheat, beef cattle, swine, and sheep had not proved to be more generally profitable. The fact, however, that the production of butter and cheese has not yet developed into a profitable and extensive business here is not conclusive evidence that it would not be profitable on many farms favorably situated for these enterprises. Even on many general diversified farms in this region profits could be increased by keeping better dairy cows and producing butter and even some cheese as a side line. Many farms in the bluegrass region have excellent springs which may be used to advantage in connection with such enterprises.

An important factor in retarding the development of the dairy industry even under favorable conditions is the general reluctance of bluegrass farmers to engage in it. While negro laborers as a rule are experts in growing and handling tobacco, they are not familiar with the processes of dairying and share the common objection to it. In some sections, however, where dairying has become profitable and where it has been practiced a long time, this dislike is being gradually

Overcome.

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This is the largest farm of the ten in question and is valued at $125 per acre. It is well situated near a market point. While it is somewhat rolling, the soil is of good quality and about all of it tillable. If properly organized, this farm should have made the largest labor income of the group. Instead, it is among the lowest, those which were only fairly successful. In the first place, the dairy business shows up poor in quality, receipts per cow being low as compared with those of the more successful farms. The operator has 75 cows, about as many as he can give proper attention to. Half his acreage easily could be made to support this herd. Thus, this area of land (400 acres) might be supporting two successful dairy farms instead of one (see farm No. 4). If there were an additional farm superintendent, however, the farm might be so organized that the dairy business could be conducted as one department, while the greater part of the land could be cropped in accordance with the best practice in the section. With a higher degree of diversity and by handling other live stock, the gross income of this farm, even with its present management, should be increased considerably without much more expense. The average expenses of the ten farms are about 45 per cent of receipts, while on this farm they are about 75 per cent, showing that the business was too expensive for the income received. This farmer housed his cows in a $7,000 dairy barn, an investment of nearly $100 per cow, while his nearest competitor, one of the most successful farmers of the group, had but one-third of this amount invested. Although this was a large farm and showed a relatively small proportion of its receipts from other sources than dairying, it failed to produce as much feed for dairy stock as the average farm ($18) and expended for purchased feeds $20 per cow.

1 See footnote, p. 4.

2 Total capital includes investment in land, buildings, machinery, live stock, feed, supplies, and cash to run the business.

& Working capital includes all items of capital except land, buildings, and other improvements usually included in real estate.

• Expenses include a charge for unpaid family labor, depreciation, and 5 per cent interest on total capital besides money actually paid out in conducting the farm business.

5 Farm income is the total receipts less expenses.

Labor income is farm income less 5 per cent interest on invested capital.

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Of the larger sized farms among the ten studied this one is the most efficiently organized. The diversity is much greater than that of farm No. 1. About 46 per cent of receipts were from sources other than dairying, mainly wheat and tobacco. Sales of live stock amounted to $1,200 above purchases. The operator owned 132 acres and rented 158 additional, for which he paid $800 a year. All the feed except concentrates was raised on the farm. Only one man was hired, the operator and his family doing most of the dairy work. The manure from the dairy was applied to his own land. This made his crop yields much higher than the average. Eleven acres of tobacco and 10 acres of corn were raised by a cropper. Thirty-three acres of corn for grain, 12 acres of silage corn, 50 acres of wheat, 25 acres of meadow hay, and 5 acres of tobacco were raised by his own and hired labor. The owner had been in the dairy business about 40 years and is about 60 years of age. A large family had been raised. and educated.

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This farm had 10 acres of corn for grain, 8 acres for silage, 10 acres in rye which was grazed, and 20 acres in hay. There were 153 acres in pasture, 2 acres in garden and orchard, and the remainder, 44 acres, was considered waste land. The topography was hilly and not well adapted to cultivated crops. The land was valued at $40 per acre, though the more level land in the community was valued at $100 to $150 per acre. Three year-hands were employed on this farm and seven head of work stock were kept. Both man-labor and horse-labor were poorly utilized. A better utilization could have been achieved and the income considerably increased if a few acres of

tobacco had been raised. There were no receipts from crops and diversity was low.

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This farm well may be classed as the best dairy farm of the ten. While the receipts per cow were considerably above the average, others had higher receipts per cow, but in the expenses this farm showed high efficiency in the economy of labor and feed, two most important factors in expenses. Operating expenses were only about 35 per cent of receipts, as compared with 45 per cent, the average for the ten farms. The land area (150 acres) was small as compared with the number of stock units kept on the farm. These number about 98, or about 1.9 acres for each animal unit. Of this number of animal units, 50 were dairy cows. Every part of the farm, including pasture area, received frequent applications of stable manure. There is practically no waste land on this farm. But a small acreage is occupied by fences, buildings, and roadway. Bluegrass grows even in small lots and about the buildings. The feed purchased amounted to about $10 per cow. About 50 per cent of the farm area is in bluegrass pasture, which in a normal season furnishes all the feed for dairy stock during the summer. A considerable amount of grazing also is done during the winter. Fields that are to be pastured in winter are allowed to accumulate a good growth of grass in the fall. About $1,000 of the total receipts represented breeding fees. Usually a few acres of tobacco are raised. During the last two years (19151916), however, hemp has been substituted for tobacco. It was estimated that the hemp for 1916 would yield about 1,700 pounds per acre, which, at 10 cents per pound (about the price of the previous year), would be $170 per acre. The expense of growing an acre of hemp is about the same as that of tobacco ($50 to $60, exclusive of rent), and the average rent for the land is figured at $30 to $50 per

acre.

This farm has been organized as a dairy farm for about 12 years and has been exceptionally successful. It sets the standard for quality and prices for milk in the locality and is rated among the best dairy farms in the State. The operator is a graduate of an agricultural college. He does the work of milking, bottling, and distributing with the help of a man and a boy.

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