Agriculture Reference
In-Depth Information
In addition to the regular working tractors, Steve also restores old tractors, particu-
larly John Deere tractors. These are sometimes used for “play,” which consist of doing
farming activities such as plowing, disking, and mowing with equipment no longer used
in farming. This play teaches his sons about older farming methods.
1.3.6 Farm Animals
As noted above Steve raises both hogs and cattle that he sells, the hogs on a contract
basis. The cattle are raised to the desired weight and sold at local markets. He has
no chickens or other “farm” animals although the family does have two family dogs.
1.3.7 The House
The farm house (Fig. 1.38) is 24 m 18 m (80 ft 60 ft) thus having 432 m
2
(4800
ft
2
) of floor space. It has two stories and four bedrooms, each of Steve's sons has his
own room, two bathrooms, a family room and a living room, and a screened in
porch. The house is a basic wood frame house with wooden siding and a shingled
roof. The house has electricity in all rooms and running hot and cold water in the bath-
rooms and the kitchen.
1.3.8 Household Appliances, Utensils, and Utilities
The kitchen contains all appliances common to United States kitchens that is, stove,
dishwasher, microwave, mixer, toaster, coffee maker, and the like. All appliances are
electric. There is also a table and chairs in the kitchen and the family most often eats
there.
1.3.9 Income
Giving a complete analysis of the expenses and profits from each of Steve's enterprises
is beyond the scope of this topic. However, a picture of the economics of the farming
operation can be gained by looking at one enterprise.
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For the maize enterprise with a
yield of 10,033 kg/ha (160 bu/acre) his variable costs are $2.58 and his fixed costs
$1.68 per bushel. Thus the total cost of production is $4.26 per bushel. For a discussion
of fixed and variable costs see Chapter 10. The most important are the variable costs.
When he has a return higher than his variable cost, Steve is making more money than he
spent in cash to raise the crop. If he sells the maize for less than the variable cost, he has
not recovered his cash costs to raise the crop. Because large farmers cultivate such large
areas and obtain high yields, small differences in the per bushel income make a large
change in total income. For 1000 acres of maize yielding 10,033.6 kg/ha (160 bu/
acre) or a total of 160,000 bushels a $0.10 difference in per bushel price results in a
$16,000 difference in total income. In the United States it requires about 304 ha
(1000 acres) to support one farmer and his family.
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An enterprise would be any one of the individual crops grown or types of animals raised. Thus Steve has a
corn enterprise, a hog enterprise, etc.
