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The University Research Farm at Oyster River - an economic evaluation of its operation and some alternative… Nisbet, Thomas George 1965

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THE UNIVERSITY RESEARCH PARM AT OYSTER RIVER -AN ECONOMIC. EVALUATION OP ITS OPERATION AND SOME ALTERNATIVE ENTERPRISE COMBINATIONS by THOMAS GEORGE NISBET B.S.A., U n i v e r s i t y of B r i t i s h Columbia, 1962 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OP MASTER OP SCIENCE IN AGRICULTURE i n the Department of . AGRICULTURAL ECONOMICS ¥e accept t h i s t h e s i s as c o n f o r m i n g t o the r e q u i r e d - s t a n d a r d . THE UNIVERSITY OF BRITISH COLUMBIA A p r i l 1965 I n p r e s e n t i n g t h i s t h e s i s i n p a r t i a l f u l f i l m e n t o f t h e r e q u i r e m e n t s f o r an a d v a n c e d d e g r e e a t t h e U n i v e r s i t y o f • B r i t i s h C o l u m b i a , I a g r e e t h a t t h e L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s t u d y * I f u r t h e r a g r e e t h a t p e r -m i s s i o n f o r e x t e n s i v e c o p y i n g o f . t h i s t h e s i s f o r s c h o l a r l y p u r p o s e s may be g r a n t e d by t h e Head o f my D e p a r t m e n t o r by h i s r e p r e s e n t a t i v e s . I t i s u n d e r s t o o d t h a t , c o p y i n g o r p u b l i -c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l n o t be a l l o w e d w i t h o u t my w r i t t e n p e r m i s s i o n * D e p a r t m e n t o f O-^ ^^ ^^ 1 -^The U n i v e r s i t y o f B r i t i s h C o l u m b i a , V a n c o u v e r 8 S C a n a d a D a t e f l U ^ o-o ^ i-=t t i i . ABSTRACT The o b j e c t i v e of t h i s s t u d y was t o examine the f a rm o r g a n i z a t i o n and management of the U n i v e r s i t y R e s e a r c h Parm at O y s t e r R i v e r . Itr§. p r e s e n t r e s o u r c e use and a n o r m a t i v e a n a l y s i s p o s t u l a t i n g a more d e s i r a b l e o r g a n i z a t i o n o f e n t e r p r i s e s i s p r e s e n t e d . The method f o r the p o s i t i v e a n a l y s i s was to p r e p a r e i n v e n t o r i e s , net w o r t h s t a t e m e n t s and o p e r a t i n g s t a t e m e n t s f o r the f i s c a l y e a r s 1962-63, 1963-61)., and f o r the c a l e n d a r y e a r 196L).. Prom t h i s d a t a , measures o f performance were c a l c u l a t e d and compared w i t h s i m i l a r d a t a from r e g i o n a l s t u d i e s o f d a i r y f a r m i n g on Vancouver I s l a n d and i n the F r a s e r V a l l e y . I n add-i t i o n , comparisons were made w i t h budget s t u d i e s i n Washington S t a t e . The U n i v e r s i t y Farm o p e r a t e d at a l o s s i n each of the t h r e e p e r i o d s , a l t h o u g h the r e s u l t s f o r the 196I4. c a l e n d a r y e a r showed c o n s i d e r a b l e improvement. C o s t s a t O y s t e r R i v e r farm were h i g h e r t h a n i n the s t u d i e s used f o r comparison, due to h i g h e r overhead c o s t s and h i g h e r wage r a t e s . However, measures of p h y s i c a l performance were g e n e r a l l y e q u a l to r e g i o n a l a v e r -ages „ I n making t h i s e v a l u t t i e n , c o n s i d e r a t i o n was g i v e n t o the development and e x p a n s i o n programs un d e r t a k e n i n r e c e n t y e a r s . The r e c o r d keeping system was r e v i e w e d , and an a l t e r n a -t i v e method proposed w h i c h w i l l f a c i l i t a t e the e v a l u a t i o n of f a c t o r use. i i i L i n e a r programming was chosen f o r the n o r m a t i v e a n a l y -s i s , because i t had the advantage o f b e i n g a b l e t o recommend o p t i m a l e n t e r p r i s e c o m b i n a t i o n s a f t e r c o n s i d e r i n g a r e l a t i v e l y l a r g e number of a l t e r n a t i v e a c t i v i t i e s and r e s o u r c e c o n s t r a i n t s . A l t h o u g h more a c t i v i t i e s c o u l d have been c o n s i d e r e d i n the p r o -grammes, i t was d e c i d e d a p r i o r i to l i m i t the number t o those w h i c h c o u l d r e a s o n a b l y be e s t a b l i s h e d i m m e d i a t e l y , o r i n a p e r i o d of a few y e a r s . I n c l u d e d i n t h i s s t u d y were 15> d a i r y a c t i v i t i e s , two f o r b e e f , one f o r sheep, and one f o r p o t a t o e s . I t was n e c e s s a r y to c o n s i d e r the purchase o f hay and the employ-ment of a d d i t i o n a l l a b o u r . Resource c o n s t r a i n t s were i n c l u d e d f o r l a n d , n i n e l a b o u r p e r i o d s , o p e r a t i n g c a p i t a l and b u i l d i n g space. Of the f i v e a n a l y s e s u n d e r t a k e n , one i n c l u d e d as a p r e -r e q u i s i t e 30 A y r s h i r e cows and p e r m i t t e d l a b o u r purchases f o r a l l p e r i o d s . T h i s p a r t i c u l a r a n a l y s i s i s o f i n t e r e s t i n view of t h e n e c e s s i t y f o r m a i n t a i n i n g the A y r s h i r e h e r d f o r e x p e r i -m e n t a l p u r p o s e s . With t h i s • i n i t i a l h e r d r e q u i r e m e n t the optimum p l a n a l s o i n t r o d u c e d 5>6 H o l s t e i n c a t t l e and 1|0 a c r e s of p o t a t o e s . The r e t u r n t o f i x e d f a c t o r s of p r o d u c t i o n was maximized a t $ 2 9 , r e p r e s e n t i n g a r a t e of r e t u r n on i n v e s t m e n t of $oQ%. The s t a b i l i t y o f the optimum p l a n s w i t h r e s p e c t t o p r i c e changes was d e t e r m i n e d . The n o r m a t i v e a n a l y s i s s p e c i f i e s a h i g h e r l e v e l of p r o -d u c t i o n p e r cow t h a n i s p r e s e n t l y b e i n g a c h i e v e d , but the l e v e l i s w i t h i n the r e a c h of a c o m m e r c i a l o p e r a t i o n . A more s e r i o u s l i m i t a t i o n l i e s i n the e s t a b l i s h m e n t o f a s h i p p i n g quota f o r i v p o t a t o e s . I t would take a number of years to e s t a b l i s h an adequate quota and the i n i t i a l acreage would have to be on a s m a l l e r s c a l e . However, i n p r i n c i p l e the s i t u a t i o n i s no d i f -f e r e n t from t h a t encountered i n b u i l d i n g up a m i l k quota, and t h e r e f o r e the establishment of a potato e n t e r p r i s e may be r e -garded as a d e s i r a b l e long-run o b j e c t i v e . The remaining f o u r analyses d e f i n e optimal programmes f o r recommended a c t i v i t i e s under v a r y i n g c o n d i t i o n s of enter; p r i s e combination and resource a v a i l a b i l i t y . V TABLE OF CONTENTS CHAPTER PAGE I INTRODUCTION . . . . 1 I I ANALYSIS OF THE PRESENT FARMING OPERATION The U n i v e r s i t y Farm at O y s t e r R i v e r . I4. S o i l s on the Parm . . . . . . . . 9 The C r o p p i n g and F e r t i l i z e r Program 10 The Accounts . . . . . . . . . 11 Net Worth Summary 13 O p e r a t i n g Statement Summary . . . F i n a n c i a l Measures o f Performance . . ]_£ C a p i t a l Investment p e r Cow . . . 16 Gross Revenue p e r Man E q u i v a l e n t ^ ]_£ Gross Revenue p e r Cow 1 Q Gross Revenue p e r $100 C o n c e n t r a t e Fed ^ Labour Cost p e r Cow i q T o t a l Cash Costs p e r Cow 20 The Cost o f P r o d u c i n g 100 pounds o f M i l k p n Machinery U t i l i z a t i o n and Cost o f O p e r a t i o n o f Powered Equipment 21 Measures o f P h y s i c a l Performance M i l k P r o d u c t i o n p e r Cow 27 Forage P r o d u c t i o n p e r Acre . . . . 29 Labour E f f i c i e n c y 29 P r o d u c t i v e Man "'.Work U n i t s -per Man E q u i v a l e n t 30 v i CHAPTER PAGE I I Labour E f f i c i e n c y „ A n i m a l U n i t s p e r Man E q u i v a l e n t . 32 The M i l k i n g P a r l o r Time Study . . 3^ The O r g a n i z a t i o n o f Farm Records . . . 37 I I I THE NORMATIVE ANALYSIS The L i n e a r Programming Problem and Assumptions ^3 The S e l e c t i o n o f A l t e r n a t i v e A c t i v i t i e s ^8 D e f i n i n g the A c t i v i t i e s and Resource , . R e s t r i c t i o n s £0 The D a i r y A c t i v i t i e s . ." £ 2 T e c h n i c a l C o e f f i c i e n t s f o r D a i r y A c t i v i t i e s . . ^ Net P r i c e s f o r D a i r y A c t i v i t i e s ^ The Beef A c t i v i t i e s 7 n T e c h n i c a l C o e f f i c i e n t s f o r Beef .  A c t i v i t i e s 71 Net P r i c e s f o r Beef A c t i v i t i e s 7^ The Sheep A c t i v i t y 7^ T e c h n i c a l C o e f f i c i e n t s f o r the Sheep A c t i v i t y 76 Net P r i c e f o r the Sheep A c t i v i t y 77 The P o t a t o A c t i v i t y 77 T e c h n i c a l C o e f f i c i e n t s f o r the P o t a t o A c t i v i t y yQ Net P r i c e f o r the P o t a t o A c t i v i t y 7Q Resource S u p p l i e s Q Q S e t t i n g up the A n a l y s i s Q Q The R e s u l t s o f the A n a l y s i s ^ Q The S t a b i l i t y o f the Optimum Program w i t h r e s p e c t t o P r i c e Changes o f A c t i v i t i e s I n c l u d e d i n the P l a n 91 v i i CHAPTER PAGE I I I The Most R e l e v a n t A n a l y s i s „ IQQ The P r a c t i c a l Problems o f Implementing the Optimum P l a n . . . . . . . . 1 0 3 IV CONCLUSIONS AND LIMITATIONS 1 0 6 BIBLIOGRAPHY . . . . . . 1 X 1 APPENDIX . . . . . . . . . . . . . . . 1 : L£ v i i i LIST OF TABLES TABLE Page I SUMMARY OF NET WORTH FOR THE FISCAL YEARS 1 9 6 2 - 6 3 , 1963-6i | AND FOR THE CALENDAR YEAR 196U 1 3 I I OPERATING STATEMENT SUMMARY FOR THE FISCAL YEARS 1 9 6 2 - 6 3 , 1963-6i | AND FOR THE CALENDAR YEAR 1961+ 14 I I I MEASURES OF EFFICIENCY 17 IV MEASURES OF EFFICIENCY 18 V COSTS OF OPERATION OF POMERED EQUIPMENT . . . 26 VI A COMPARISON OF AVERAGE MILK PRODUCTION PER CO* 28 V I I A COMPARISON OF ANIMAL UNITS MAINTAINED PER MAN EQUIVALENT 33 V I I I MEASURES OF MILKING EFFICIENCY 35 IX A COMPARISON OF OPERATION TIMES FOR A SIDE ENTERING WALK THROUGH MILKING PARLOR 38 X LAND COEFFICIENTS FOR THE DAIRY ACTIVITIES .. ^ X I LABOUR. COEFFICIENTS FOR THE DAIRY ACTIVITIES. ^ X I I GROSS VALUE OF OUTPUT, OPERATING CAPITAL COEFFICIENTS AND NET PRICES FOR THE DAIRY ACTIVITIES 68 X I I I BUILDING SPACE REQUIREMENTS FOR THE DAIRY, BEEF, AND SHEEP ACTIVITIES 6 9 XIV TECHNICAL COEFFICIENTS AND NET PRICES FOR THE BEEF'ACTIVITIES 73 XV TECHNICAL COEFFICIENTS AND NET PRICES FOR THE. SHEEP ACTIVITY ^ XVI TECHNICAL COEFFICIENTS AND NET PRICES FOR THE POTATO ACTIVITY 7 9 X V I I THE INITIAL SIMPLEX MATRIX OF REAL ACTIVITIES R d i x LIST OF TABLES TABLE Page X V I I I ANALYSIS I , CONSIDERATION OF ALL ACTIVITIES, LABOUR PURCHASES PER-MITTED IN ALL PERIODS . 92 XIX ANALYSIS I I , CONSIDERATION OF ALL ACTIVITIES, LABOUR PURCHASES LIMITED TO MAY, JUNE, JULY, .'AUGUST !A'ND ."SEPTEMBER 97 XX ANALYSIS I I I , CONSIDERATION OF ALL ACTIVITIES, 30 AYRSHIRE COWS PRE -INCLUDED LABOUR PURCHASE PERMITTED IN ALL PERIODS 98 XXI ANALYSIS IV, CONSIDERATION OF ALL ACTIVITIES, 30 AYRSHIRE COS'S PRE-INCLUDED, LABOUR PURCHASE LIMITED TO M Y , JUNE, JULY,. AUGUST'.ANDVSEPTEMBER 101 X X I I ANALYSIS V, CONSIDERATION OF ALL ACTIVITIES, 30 AYRSHIRE CO.WS PRE-INCLUDED, LABOUR PURCHASES PERMITTED IN ALL PERIODS, AND THE PRICE OF BEEF AND SHEEP ACTIVITIES RAISED 1 0 2 X X I I I SUMMARY OF FORAGE AND CONCENTRATE REQUIRE-MENTS PER YEAR FOR THE BASIC PRODUCTIVE UNIT. (EXCLUSIVE OF THE COW) 187 XXIV LAND REQUIREMENTS DAIRY l88 XXV LABOUR REQUIREMENTS DAIRY' 8 HR. WORK UNITS. . . ]_9[|. ft X LIST OP ILLUSTRATIONS . Page F i g u r e 1 Map o f the O y s t e r R i v e r Farm . . . £ F i g u r e 2 Monthly D i s t r i b u t i o n o f t r a c t o r u s e . 1962 23 F i g u r e 3 Isoquants used t o Represent P r o d u c t i o n per day o f the A y r s h i r e cow based on the M i s s o u r i P a r t i t i o n E q u a t i o n . . £8 F i g u r e l i Isoquants used t o Represent P r o d u c t i o n p e r day o f the H o l s t e i n cow^based on the M i s s o u r i P a r t i t i o n E q u a t i o n . . 60 F i g u r e £ D a i r y l a b o u r r e q u i r e m e n t s o f the p r o d u c i n g u n i t , by months, f o r growing fo r a g e and f o r the chore r o u t i n e 63 F i g u r e 6 Beef l a b o u r r e q u i r e m e n t s o f the p r o -d u c i n g u n i t , by months, f o r growing f o r a g e and f o r the chore r o u t i n e # 72 LIST OF APPENDICES Page Appendix 1 V a l u a t i o n of I n v e n t o r i e s . . . . 116 Appendix 2 Land I n v e n t o r y and V a l u a t i o n . . 118 Appendix 3 B u i l d i n g I n v e n t o r y 196J4. 12I4. Appendix I4. M a c h i n e r y I n v e n t o r y I96I4. . . . . 126 Appendix 5 L i v e s t o c k I n v e n t o r y 196I4. . . . . 131 Appendix 6 O p e r a t i n g Statements f o r the C a l e n d a r Y e a r 196)4. and the F i s c a l Y e a r ' s 1963-6I4. and 1962-63 . . . . . . . . 13I4. Appendix 7 C a l c u l a t i o n of Measures of Performance F o r the D a i r y E n t e r p r i s e at O y s t e r R i v e r Farm. II4.6 Appendix 8 The a l l o c a t i o n o f E x p e n d i t u r e Between the D a i r y and Beef E n t e r p r i s e s a t O y s t e r R i v e r Farm 1I4.9 Appendix 9 D i s t r i b u t i o n of T r a c t o r Time by Farm O p e r a t i o n 196I4. 160 Appendix 10 D i s t r i b u t i o n of T r a c t o r Time by Months, Summer of I96I4. l 6 l Appendix 11 Costs o f O p e r a t i n g Powered M a c h i n e r y 162 Appendix 12 The P r e s e n t System o f Account-s at O y s t e r R i v e r and a Suggested. R e c l a s s i - * . f i c a t i o n . . . . . . . . . . 171 Appendix 13 A Comparison o f the C h a r a c t e r i s t i c s o f P r o d u c t i o n F u n c t i o n s D e r i v e d by K e r r f o r F r a s e r V a l l e y Data, G o s s l i n g f o r O n t a r i o Data, Heady under Iowa C o n d i t i o n s and the M i s s o u r i P a r t i t i o n E q u a t i o n 175 Appendix II4. C a l c u l a t i o n o f Land C o e f f i c i e n t s f o r the D a i r y A c t i v i t i e s 18I4. Appendix 15 C a l c u l a t i o n of Labour C o e f f i c i e n t s f o r the D a i r y A c t i v i t i e s . . . . 189 Appe n d i x 16 C a l c u l a t i o n of O p e r a t i n g C a p i t a l Co-e f f i c i e n t s f o r the D a i r y A c t i v i t i e s 197 Appendix 17 C a l c u l a t i o n of Land C o e f f i c i e n t s f o r the Beef A c t i v i t i e s 198 C o n t i n u e d -Appendix 18 Appendix 19 Appendix 20 Appendix 21 Appendix 22 Appendix 23 x i i LIST OP APPENDICES C a l c u l a t i o n of Labour C o e f f i c i e n t s f o r the Beef A c t i v i t i e s C a l c u l a t i o n of Net P r i c e s f o r the Beef A c t i v i t i e s . „ . . , . . C a l c u l a t i o n ' of T e c h n i c a l C o e f f i c i e n t s and Net P r i c e f o r the Sheep A c t i v i t y C a l c u l a t i o n of T e c h n i c a l C o e f f i c i e n t s and Net P r i c e f o r the P o t a t o A c t i v i t y A d d i t i o n a l New Investment R e q u i r e d f o r a ILO t o 50 a c r e P o t a t o E n t e r p r i s e Forage M i x t u r e s a t Oy s t e r R i v e r f a r m Page 200 206 208 212 215 217 x i i i ACKNOWLEDGEMENTS The w r i t e r i s g r a t e f u l t o Dr. J . J . R i c h t e r and Dr. M.J. D o r l i n g o f the A g r i c u l t u r a l Economics Department a t the U n i v e r s i t y o f B r i t i s h Columbia f o r the h e l p f u l comments, c r i t i c i s m s and s u g g e s t i o n s t h a t accompanied the p r e p a r a t i o n o f . t h i s s t u d y . The w r i t e r wishes t o e x p r e s s h i s thanks and ind e b t e d n e s s t o Mr. L. Kansky, Farm Manager a t O y s t e r R i v e r , f o r h i s c o - o p e r a t i o n and c o u n s e l . Mr. A. B a x t e r o f the U n i v e r s i t y A c c o u n t i n g O f f i c e was most h e l p f u l i n c h e c k i n g and r e c o n c i l i n g t h e Farm A c c o u n t s . Mr. K. Teng of the U n i v e r s i t y of B r i t i s h Columbia computing c e n t e r p r o v i d e d the program f o r the l i n e a r program-ming p r o b l e m and a s s i s t e d i n i t s a p p l i c a t i o n t o t h i s s t udy. 1 CHAPTER 1 INTRODUCTION O b j e c t i v e s and Methodology The o b j e c t i v e s f o r t h i s assignment were: (1) t o c o n s i d e r the U n i v e r s i t y Research Farm at O y s t e r R i v e r as a commercial o p e r a t i o n and e v a l u a t e the p a t t e r n of r e s o u r c e use under p r e s e n t o p e r a t i n g c o n d i t i o n s and (2) t o c o n s i d e r a l t e r n a t i v e e n t e r p r i s e c o m b i n a t i o n s t h a t show promise o f i m p r o v i n g r e s o u r c e u t i l i z a t i o n . Method The t h e s i s has been p r e p a r e d i n two main p a r t s , the f i r s t c o n t a i n i n g the p o s i t i v e a n a l y s i s and the second c o n t a i n i n g the n o r m a t i v e a n a l y s i s . The term " p o s i t i v e " i s used i n the sense of p o s i t i v e economics o r the e x p l a n a t i o n of ma t t e r s as t h e y p r e s e n t l y e x i s t . The no r m a t i v e a n a l y s i s i s p r e s c r i p t i v e i n n a t u r e , p o s t u l a t i n g c o n d i t i o n a l l y a more d e s i r a b l e s t a t e o f a f f a i r s . In C h a p t e r I I an account i s p r e s e n t e d o f the farm o p e r a t i o n and o f the development o f the farm t o the p r e s e n t s t a t e . T h i s i s f o l l o w e d by a summary o f the f i n a n c i a l a c counts f o r the c a l e n d a r y e a r 196I4 and f o r the f i s c a l y e a r s 1962-63 and 1963-61}.. A comparison i s made of measures.' ; o f f i n a n c i a l and p h y s i c a l p e r -formance a t O y s t e r R i v e r and compared w i t h s i m i l a r farms i n the F r a s e r V a l l e y , i n Washington S t a t e and on Vancouver I s l a n d . F i n a l l y , the farm r e c o r d k e e p i n g system i s e v a l u a t e d . In C h a p t e r I I I d e t a i l s o f the no r m a t i v e s o l u t i o n s are 2 p r e s e n t e d . A n o r m a t i v e s o l u t i o n p r e s c r i b e s the a c t i o n t h a t s h o u l d be t a k e n t o ' a t t a i n a p r e d e t e r m i n e d o b j e c t i v e s u b j e c t t o a l t e r n a t i v e a c t i v i t i e s and r e s o u r c e r e s t r i c t i o n s . Having c o r r e c t l y d e f i n e d the problem, the o b j e c t i v e w i l l be a c h i e v e d i n a manner t h a t most e f f i c i e n t l y u t i l i z e s the l i m i t i n g r e s o u r c e s . Two methods are common i n a problem of t h i s k i n d . The f i r s t i s b u d g e t i n g where the s i z e o f the problem i s not l a r g e , the second i s l i n e a r programming which can handle more i n v o l v e d problems. The i n f o r m a t i o n r e q u i r e d f o r b o t h approaches i s e s s e n t i a l l y the same but l i n e a r programming p r o v i d e s a more s y s t e m a t i c way o f d e t e r m i n i n g an optimum s o l u t i o n when the problem i n v o l v e s more a c t i v i t i e s . L i n e a r Programming was the method chosen f o r t h i s s t u d y . In a d d i t i o n t o i t s advantage i n h a n d l i n g complex problems the a v a i l a b i l i t y o f an I.B.M. 70I4O e l e c t r o n i c computer g r e a t l y f a c i l i t a t e d the t a s k o f d e t e r m i n i n g the e f f e c t on optimum s o l u t i o n s f o r d i f f e r e n t problem f o r m u l a t i o n s . Having d e c i d e d t h a t l i n e a r programming was an a p p r o p r i a t e t o o l the next s t e p was t o d etermine and d e f i n e the r e l e v a n t number o f a c t i v i t i e s and resource, r e s t r i c t i o n s . . Consequent l y , the problem o f d e f i n i n g t e c h n i c a l c o e f f i c i e n t s and r e s o u r c e r e s t r i c t i o n s i s d i s c u s s e d i n some d e t a i l because of i t s importance i n o b t a i n i n g m e a n i n g f u l r e s u l t s . A l t h o u g h a l a r g e number of a c t i v i t i e s c o u l d have been h a n d l e d r e p r e s e n t i n g many d i f f e r e n t and new e n t e r p r i s e s i t was d e c i d e d t o l i m i t the c h o i c e o f a c t i v i t i e s , a p r i o r i , t o those a c t i v i t i e s t h a t c o u l d r e a s o n a b l y be e x p e c t e d to be implemented 1 i n the s h o r t run ( 2 - 3 y e a r s ) . 1 An a c t i v i t y i s d e f i n e d here as an e n t e r p r i s e o r a p r o d u c t i o n proces s. 3 Most of the a l t e r n a t i v e a c t i v i t i e s i n the l i n e a r program-ming problem c e n t e r e d around the d a i r y e n t e r p r i s e a l t h o u g h beef, sheep, and p o t a t o e s were a l s o t a k e n i n t o a c c o u n t . The reason f o r t h i s i s t h a t ( l ) d a i r y i n g i s the predominant a g r i -c u l t u r a l a c t i v i t y i n the a r e a and would thus appear b e t t e r s u i t e d and more p r o f i t a b l e than o t h e r a c t i v i t i e s and (2) the farm i s a l r e a d y committed t o a p r e d o m i n a n t l y d a i r y o p e r a t i o n and i s not l i k e l y t o change i n the next s e v e r a l y e a r s . The c h o i c e of o t h e r a c t i v i t i e s was c o n d i t i o n e d by t h e i r p o t e n t i a l p r o f i t -a b i l i t y compared to d a i r y i n g , t h e i r demand f o r r e s o u r c e s , the market f o r the p r o d u c t and the a c t i v i t i e s o t h e r than d a i r y i n g t h a t are p a r t o f the p r e s e n t o p e r a t i o n . As a r e s u l t c o n s i d e r -a t i o n was g i v e n to V~> d a i r y a c t i v i t i e s , two beef a c t i v i t i e s and one each f o r sheep and p o t a t o e s . The r e m a i n i n g a c t i v i t i e s were f o r hay purchase ( h a v i n g the e f f e c t of adding t o the l a n d s u p p l y ) and l a b o u r purchase f o r the months of May, June, J u l y , August, and September. A second a n a l y s i s i n c l u d e d l a b o u r p u r c h a s i n g a c t i v i t i e s f o r 9 p e r i o d s o f the y e a r . P r e l i m i n a r y c o n s i d e r a t i o n was g i v e n t o s e v e r a l o t h e r e n t e r p r i s e s namely; hogs, p o u l t r y , s t r a w b e r r y p r o d u c t i o n and t r e e f r u i t s . These a c t i v i t i e s were e x c l u d e d because t h e y f a i l e d t o s a t i s f y one o r more of the above c r i t e r i a . k ANALYSIS OF THE PRESENT FARMING OPERATION The U n i v e r s i t y Farm at O y s t e r R i v e r The U n i v e r s i t y Farm at O y s t e r R i v e r i s l o c a t e d 85 m i l e s n o r t h o f Nanaimo on Vancouver I s l a n d , i n an ar e a dominated by a r e l a t i v e l y l a r g e number o.f s m a l l a g r i c u l t u r a l h o l d i n g s . These h o l d i n g s produce a v a r i e t y o f s m a l l f r u i t and t r e e f r u i t c rops which, are s o l d on the l o c a l market. L i v e s t o c k p r o d u c t i o n i s v a r i e d and the number of head p e r farm i s s m a l l . The predom-i n a n t type o f commercial f a r m i n g i n the Courtenay-Comox area i s d a i r y i n g a l t h o u g h s e v e r a l farmers In the Comox, V a l l e y have done w e l l by p r o d u c i n g s m a l l f r u i t s and v e g e t a b l e s on a com-m e r c i a l s c a l e . The market f o r s m a l l f r u i t s and v e g e t a b l e s i s however l a r g e l y a l o c a l one. The c l i m a t e i n the O y s t e r R i v e r a r e a i s c h a r a c t e r i z e d by r e l a t i v e l y heavy p r e c i p i t a t i o n i n the w i n t e r months f o l l o w e d by a r e l a t i v e l y d r y summer p e r i o d . The e f f e c t o f the heavy w i n t e r p r e c i p i t a t i o n has been t h a t s u f f i c i e n t b u i l d i n g s have had t o be p r o v i d e d f o r the e n t i r e d a i r y h e r d . The low summer p r e c i p i t a t i o n has the e f f e c t o f l i m i t i n g f o r a g e p r o d u c t i o n , 2 p a r t i c u l a r l y i n the l a t e summer months. S u p p l e m e n t a l i r r i g a -t i o n i s used on s e v e r a l farms i n the ar e a and c o u l d be c o n s i d -e r e d on the U n i v e r s i t y farm. E a r l y and l a t e f r o s t s do not 2 P r e c i p i t a t i o n a t Courtenay averaged 9«75 i n c h e s and 8 . 5 3 i n c h e s f o r the months of December and January r e s p e c t i v e l y . The averages f o r J u l y and August were l.l\$ i n c h e s and 1 .66 inches' r e s p e c t i v e l y . B r i t i s h Columbia Department o f A g r i c u l t u r e . C l i m a t e o f  B r i t i s h . Columbia . V i c t o r i a , Queens p r i n t e r , 1962. page 13 5 Figure I. University of British Columbia Research Farm Oyster River B.C. 6 p r e s e n t any i m p o r t a n t management problems under the p r e s e n t c r o p p i n g system. The i n t r o d u c t i o n o f crops such, as c o r n f o r s i l a g e o r p o t a t o e s would r e q u i r e c o n s i d e r a t i o n o f the p o s s i b i l i t y o f f r o s t damage i n l a t e A p r i l and e a r l y May. The a r e a o f the O y s t e r R i v e r farm has been c a l c u l a t e d at 1 3 6 3 . 5 a c r e s o f whi c h 332 a c r e s are c l e a r e d . The farm i s geo-g r a p h i c a l l y s e p a r a t e d i n t o the upper and l o w e r farm areas by a d i s t a n c e o f 6 m i l e s , (see f i g u r e 1) The l o w e r farm has an a r e a o f 35h a c r e s (195 .6 c l e a r e d ) and i s the more p r o d u c t i v e w h i l e much of the upper farm i s of d o u b t f u l a g r i c u l t u r a l v a l u e . The c l e a r e d a r e a on the upper farm amounts t o I36.J4. a c r e s and i s s i t u a t e d on a s e r i e s o f benches l o c a t e d between MacCaulay road and the O y s t e r R i v e r . An a d d i t i o n a l 500 a c r e s l i e s a d j a c e n t t o but s o u t h o f MacCaulay r o a d . T h i s area i a u n c l e a r e d and u n f e n c e d . .The farm has two g e o g r a p h i c a l d i s a d v a n t a g e s ; ( l ) i t s l o c a t i o n i n c r e a s e s the c o s t o f t r a n s p o r t i n g produce and s u p p l i e s and makes F a c u l t y a d m i n i s t r a t i o n more d i f f i c u l t and (2) the s e p a r a t i o n o f the farm i n c r e a s e s farm o p e r a t i n g c o s t s and p l a c e s a g r e a t e r burden on management. As r e c e n t l y as I9J49 most o f the a r a b l e l a n d was h e a v i l y wooded so t h a t l a n d c l e a r i n g and development were the predominant a c t i v i t i e s . As a r e s u l t ^ i t i s o n l y i n r e c e n t y e a r s t h a t more a t t e n t i o n has been f o c u s s e d on the economics o f i t s o p e r a t i o n . In 1961 p a r t o f the campus d a i r y h e r d and m i l k quota was t r a n s f e r r e d t o O y s t e r R i v e r and t h i s marked the s t a r t o f the d a i r y o p e r a t i o n . B u i l d i n g c o n s t r u c t i o n had s t a r t e d p r i o r t o the t r a n s f e r and c o n t i n u e d a t i n t e r v a l s t o the p r e s e n t d a t e . The most r e c e n t c o n s t r u c t i o n , i n I96I4., was a 100 cow d a i r y b a r n . 7 The management p o l i c y has been one of i n c r e a s i n g the herd s i z e from the o r i g i n a l I4.O cows t o a herd s i z e o f about 100 m i l k i n g cows. C o n s i d e r a b l e q u a n t i t i e s o f s u r p l u s m i l k have been s h i p p e d i n an e f f o r t to i n c r e a s e the d a i l y q u o t a . S i n c e s h i p p -i n g quotas are based on demand i n the area and p r o d u c t i o n i n the p r e c e e d i n g y e a r i t was n e c e s s a r y t o s h i p c o n s i d e r a b l e q u a n t i t i e s o f non-quota m i l k . The farm has i n f a c t succeeded i n i n c r e a s i n g i t s q u o t a from 1300 l b s . d a i l y i n 1962 t o 2050 l b s . i n 1 9 6 I 1 . Expanding m i l k p r o d u c t i o n has l e d t o i n c r e a s e d demands f o r r e s o u r c e s with, l a b o u r and f e e d b e i n g a f f e c t e d most. The c o s t o f h i r e d l a b o u r i n c r e a s e d from # 2 6 , 885 . 0 0 i n 1961 t o an e s t i m -a t e d $ 3 0 , 1 3 8 . 0 0 i n the y e a r 196I4-65. Purchased fe e d a l s o i n -c r e a s e d by # 9 0 0 0 . 0 0 i n the same p e r i o d . In the l a s t 2 y e a r s i t has been n e c e s s a r y t o supplement home grown fee d w i t h purchased hay from Washington S t a t e . 'With so much a c t i v i t y c o n c e n t r a t e d on d a i r y p r o d u c t i o n i t i s not s u r p r i s i n g t h a t t h e r e i s l i t t l e i n the way o f o t h e r a c t i v i t i e s . A b e e f a c t i v i t y , p r i m a r i l y a c o w - c a l f o p e r a t i o n i s m a i n t a i n e d as the o n l y o t h e r c o m m e r c i a l e n t e r p r i s e . The r o l e o f the beef h e r d on the farm has been one of d i m i n i s h i n g i m p o r t -ance. However, p r i o r t o the t r a n s f e r of the d a i r y h e r d , beef c a t t l e t o g e t h e r w i t h some hogs p r o v i d e d the s o l e means of income. The b e e f h e r d numbers remained f a i r l y s t a t i c f o r 1962-63 and 1 9 6 3 -I96I4. y e a r but c u r r e n t p l a n s c a l l f o r a r e d u c t i o n t o a l l o w more d a i r y a n i m a l s t o be m a i n t a i n e d . As mentioned a l r e a d y , t h e beef o p e r a t i o n can be c o n s i d e r e d a c o w - c a l f o p e r a t i o n w i t h c a l v e s b e i n g s o l d i n the l a t e f a l l . Very l i t t l e f i n i s h i n g o f animals i s a t t e m p t e d . 8 T h i s s t u d y i s p r i m a r i l y concerned w i t h the commercial a s p e c t s of the f a r m i n g o p e r a t i o n but t o the e x t e n t t h a t non-commercial o b j e c t i v e s i n f l u e n c e r e s o u r c e use they must be g i v e n some con-s i d e r a t i o n . The non-commercial o b j e c t i v e s a r e ; t o u n d e r t a k e r e s e a r c h p r o j e c t s , t o p r o v i d e an o p p o r t u n i t y f o r s t u d e n t s t o e x p e r i e n c e . a p p l i e d a g r i c u l t u r a l p r a c t i c e s , t o p e r f o r m community s e r v i c e s and to a c t In a d e m o n s t r a t i o n a l c a p a c i t y . The f u l f i l l m e n t o f these o b j e c t i v e s r e s u l t s i n a r e s o u r c e use p a t t e r n t h a t i s q u i t e d i f f e r e n t than i t would be un d e r a p u r e l y commercial o p e r a t i o n . E x p e r i m e n t a l p r o j e c t s compete s u c c e s s f u l l y f o r r e s o u r c e s , p a r t i c u l a r l y l a b o u r and l a n d , r e -d u c i n g the amount a v a i l a b l e f o r more p r o f i t a b l e a l t e r n a t i v e s . The r e s u l t i s t h a t c o s t s o f o p e r a t i o n are h i g h e r and ou t p u t i s reduced. The e l i t e seed p l o t s , the h o l l y experiment and the r o l e of the A y r s h i r e h e r d i n a l o n g t erm c r o s s b r e e d i n g e x p e r i -ment are cases i n p o i n t . The e l i t e seed p l o t s and the h o l l y ex-periment u t i l i z e l a n d and l a b o u r t h a t would o t h e r w i s e be a v a i l -a b l e f o r d a i r y i n g . S i m i l a r l y , the r e s o u r c e s used by the A y r s h i r e herd c o u l d be u t i l i z e d more p r o f i t a b l y by H o l s t e i n cows o r 3 perhaps by some o t h e r a c t i v i t y . 3 T h i s s t u d y has demonstrated the f a c t t h a t the H o l s t e i n cow i s more p r o f i t a b l e than the A y r s h i r e . T h i s c o n c l u s i o n i s su p p o r t e d i n d i r e c t l y when one c o n s i d e r s t h a t l e s s than 2>% o f a l l D.H.I.A. h e r d s are of the A y r s h i r e b r e e d . 9 SOILS ON THE FARM The most n o t i c e a b l e c h a r a c t e r i s t i c o f the s o i l t y p e s , p a r t -k i c u l a r l y on the l o w e r farm, i s t h e i r c o m p l e x i t y . T h e i r i r r e g -u l a r b o u n d a r i e s t r a n s c e n d f i e l d b o u n d a r i e s so t h a t any one f i e l d may have f o u r t o s i x s o i l t y p e s o r s u b - t y p e s . D e s p i t e t h i s , s o i l and c r o p management problems have not been e x c e s s i v e . Drainage i s , f o r the most p a r t , more than adequate. T h i s i s one of the c h a r a c t e r i s t i c s of the Chemainus type a l l u v i a l s o i l s t h a t are the most i m p o r t a n t . The C a s s i d y complex, the Qualicum s e r i e s and the Neptune s e r i e s are a l s o p r e s e n t but are l o w e r i n produc-t i v i t y and g e n e r a l l y c o a r s e r i n t e x t u r e r a n g i n g from loamy sand t o s t o n y loamy sand. F o r t u n a t e l y , these s e r i e s occupy o n l y a s m a l l a r e a . The u pper farm i s c h a r a c t e r i z e d by a s e r i e s of benches t h a t i n c l u d e most o f these s o i l types (except the Neptune s e r i e s ) . However the more p r o d u c t i v e Chemainus types occupy o n l y a s m a l l a r e a . Other areas are c h a r a c t e r i z e d by g r a v e l l y and s t o n y d e p o s i t s a t o r n e a r the s u r f a c e . The o t h e r s o i l s a p p e a r i n g on the upper farm are the Bowser s e r i e s and the Dashwood s e r i e s . The Bowser s e r i e s has been mapped i n t o Bowser # 1 and # 2 . Bowser # 1 has, i n g e n e r a l , a loamy sand t e x t u r e and good d r a i n a g e but o n l y moderate ( i n r e l a t i o n t o the o t h e r s o i l s ) p r o d u c t i v i t y . Bowser #2 i s p o o r l y d r a i n e d and of d o u b t f u l a g r i c u l t u r a l v a l u e . The Dashwood s e r i e s has been c l a s s i f i e d as non a r a b l e due t o > the p r e v a l e n c e of r o c k s , b o u l d e r s and s t o n e s . IL T h i s d i s c u s s i o n i s based on an u n p u b l i s h e d paper by K. J . Sleeman, Department of S o i l S c i e n c e , the U n i v e r s i t y of B r i t i s h Columbia. 10 The p r o d u c t i v i t y f o r f o r a g e p r o d u c t i o n has been e s t i m a t e d at 2 . 5 tons o f dry m a t t e r p e r a c r e on the lo w e r farm and 0 . 7 5 tons on the upper farm. These were the p r o d u c t i v i t y f i g u r e s used In t h i s s t u d y , r e p r e s e n t i n g the b e s t judgement of those f a m i l i a r w i t h the a r e a . CROPPING AND FERTILIZER PROGRAMS The p r i n c i p a l f o r a g e m i x t u r e grown was one c o n t a i n i n g r e d c l o v e r , l a d i n o c l o v e r , o r c h a r d g r a s s , p e r e n n i a l rye g r a s s and a l t a f e s c u e w i t h d i f f e r e n t f i e l d s h a v i n g s l i g h t l y d i f f e r e n t 5 p r o p o r t i o n s . One f i e l d c o n t a i n s a l f a l f a because e x p e r i e n c e has shown t h a t i t i s the o n l y f i e l d i n whi c h a l f a l f a does w e l l . The f o r a g e m i x t u r e i s under sown w i t h oats and oat s i l a g e i s h a r v e s t e d the f i r s t y e a r . The f o r a g e s t a n d remains f o r i|. t o 5 y e a r s a t whi c h time i t i s ploughed and the c y c l e r e p e a t e d . P a s t u r e s are c l i p p e d r e g u l a r l y and f e r t i l i z e r i s a p p l i e d . Y i e l d s average 2 . 5 tons of d r y m a t t e r p e r y e a r w i t h m o i s t u r e b e i n g the main l i m i t a t i o n on y i e l d s . In 196I4., example, y i e l d s were e s t i m a t e d a t o v e r 3 tons of d r y m a t t e r p e r acre due t o the f a v o u r a b l e growing c o n d i t i o n s . F e r t i l i z e r a p p l i c a t i o n was h e a v i e r on the p a s t u r e f i e l d s t h an on f i e l d s used s o l e l y f o r s i l a g e o r hay. The e s t i m a t e d r a t e s (196I4.) were 252 l b s . p e r acre and 126 l b s . p e r acre r e -s p e c t i v e l y on the l o w e r farm. No f e r t i l i z e r was a p p l i e d on 5 See appendix 23 f o r f o r a g e m i x t u r e s 11 the top farm. T h i s d e c i s i o n was based on the f a c t t h a t , w i t h l i m i t e d f u n d s , the f e r t i l i z e r s h o u l d be a p p l i e d where i t would b r i n g the g r e s t e s t r e t u r n . Because p a s t u r i n g i s the most econ-o m i c a l manner of u t i l i z i n g f o r a g e , p r o d u c t i o n was encouraged h e r e . THE ACCOUNTS Accounts are p r e s e n t e d f o r the f i s c a l y e a r s 1 9 6 2 - 6 3 , 1 9 6 3-61+ and f o r the c a l e n d a r y e a r 196I4.. A summary of the net worth f o r the t h r e e p e r i o d s i s p r e s e n t e d i n t a b l e I . Table I I summarizes 6 the o p e r a t i n g s t a t e m e n t s f o r the t h r e e p e r i o d s . The net worth statement i s n o r m a l l y p r e s e n t e d as p a r t of the bal a n c e sheet r e p r e s e n t i n g on the l i a b i l i t i e s s i d e the owner's e q u i t y o r the amount by which the farm b u s i n e s s i s i n d e b t e d to the owner. On the O y s t e r R i v e r farm funds o b t a i n e d f o r o p e r a t i n g expenses and f o r c a p i t a l i n v e s t m e n t a re o b t a i n e d v i a budget ap-p l i c a t i o n and need not be r e p a i d . As s u c h , net worth i s made up of a l l a s s e t s and i t was s u f f i c i e n t to p r e s e n t o n l y the statement of net w o r t h . The i n c r e a s e i n net worth from A p r i l 1, 19&2 t o December 3 1 , I96I4 was i n excess of $ 1 5 , 0 0 0 . Most o f the i n c r e a s e i s a c counted f o r i n the i n c r e a s e In l i v e s t o c k i n v e n t o r y o c c a s i o n -ed by the o b j e c t i v e o f i n c r e a s i n g the h e r d s i z e . The remainder i s made up o f I n c r e a s e s i n machinery i n v e n t o r y and the v a l u e o f 7 creamery s h a r e s . The d e c r e a s e i n v a l u e o f b u i l d i n g i n v e n t o r y caused by d e p r e c i a t i o n tends t o h i d e the f a c t t h a t b u i l d i n g con-s t r u c t i o n has been p r o g r e s s i n g over the p a s t s e v e r a l y e a r s . 6 D e t a i l e d i n v e n t o r i e s , v a l u a t i o n o f a s s e t s , and o p e r a t i n g s t a t e m e n t s are p r e s e n t e d i n appendices 1 - 6 7 Creamery shares r e p r e s e n t a mandatory purchase o f shares i n the Comox Creamery A s s o c i a t i o n . A l q v y o f $ .05 p e r l b . of b u t t e r f a t i s deducted from the monthly m i l k cheque f o r t h i s purpose. 12 The summary,of o p e r a t i n g statements shows a l o s s i n each of the t h r e e p e r i o d s . The I96I4. statement shows c o n s i d e r a b l e improvement over the o t h e r two but s t i l l shows a n e g a t i v e net farm income of o v e r $ 1 0 , 0 0 0 . I t was n e c e s s a r y t o modify the g e n e r a l l e d g e r a c c o u n t s t o take p r o p e r account o f changes i n l i v e s t o c k i n v e n t o r y , farm consumed m i l k , and the c l a s s i f i c a t i o n of Items of e x p e n d i t u r e . The o p e r a t i n g statement summary of T a b l e I I has been m o d i f i e d i n t h i s manner. A r e c o n c i l i a t i o n o f the 1961| m o d i f i e d statement w i t h the g e n e r a l l e d g e r statement of expenses and r e c e i p t s and o t h e r d e t a i l s o f c a l c u l a t i o n are p r e s e n t e d i n Appendix 6 . The f o l l o w i n g s e c t i o n on f i n a n c i a l measures of performance p r o v i d e s an a n a l y s i s of the data i n the net worth and o p e r a t i n g s t a t e m e n t s . T A B L E . . I SUMMARY OF NET WORTH 1962 - 1963 : . 1963 - 196I4. 19614. CALENDAR YEAR Apr.1,1962 Mar.31,1963 Mar. 31,19614. J a n . 1,19614. Dec. 31,19614. LAND . LOWER FARM 71,490.00 ...' $ 71,14-90.00 $ 71,14.90.00 $ 71,14.90.00 $ 71,14-90.00 UPPER FARM 57,585.00 57,585.00 5 7 , 5 8 5 . 0 0 5 7 , 5 8 5 . 0 0 5 7 , 5 8 5 . 0 0 * BUILDINGS 114.6,199.00 137,731.00 132,663.00 : 13l4-,l8l4..00 1 3 9 ,198.00 MACHINERY & .EQUIPMENT 23,928.00 25,026.00 22,158.00 22,718.00 27,114.3.00 LIVESTOCK 14.1,503.00 14.5,596.00 14.5,610.00 14-5,537.00 514., 970.00 FEED & SUPPLIES 1,000.00 1,000.00 1,000.00 900.00 3,200.00 CREAMERY SHARES 2,506.36 3,506.36 1^,706.36 1^,323.19 5,932.77 TOTAL 314,211.36 3 l ^ i , 9 3 l | . 3 6 3 3 5 ,212.36 336,737.19 3 5 9 , 5 1 8 . 7 7 NOTE: See appendix i and 2 f o r the v a l u a t i o n o f a s s e t s TABLE I I OPERATING STATEMENT SUMMARY FISCAL YEAR I 9 6 2 - I 9 6 3 FISCAL YEAR 1963-1961;. CALENDAR YEAR 196k. .. $ $ TOTAL ADJUSTED INCOME 5 1 , 1 9 8 . 6 3 5 3 , 6 7 9 . 6 3 6 7 , i | 2 7 . 30 CASH EXPENSES 6 0 , 656 .29 6 2 , 8 5 6 . 6 9 68,1814.. 36 NON-CASH"EXPENSES 1 0 , 1 7 5 . 7 7 . - .9,W>..81L 9 , 9 9 2 . 7 6 NET FARM INCOME" ' - 19,633 .11-3 - 1 8 , 6 2 3 . 9 0 - 10 ,7lt- '9.32 15 FINANCIAL MEASURES OF PERFORMANCE The c h o i c e o f a p p r o p r i a t e measures o f performance was l i m i t e d t o thos e t h a t promised t o be the most u s e f u l and those t h a t would y i e l d v a l i d comparisons w i t h d a t a from o t h e r s t u d i e s r a n g i n g from 1959 - 19&3• Consequently^ measures r e l a t i n g t o r e c e i p t s and e x p e n d i t u r e s were made u s i n g averages o f 1962-63 8 and 1963-6I4 d a t a . The sources o f co m p a r a t i v e d a t a i n c l u d e d the Vancouver I s l a n d D a i r y s t u d y (1961) and the F r a s e r V a l l e y s t u d y ( 1 9 6 D of the Economics D i v i s i o n , Canada Department o f 9 A g r i c u l t u r e . In a d d i t i o n comparisons were made w i t h two s y n t h e t i c budget s t u d i e s a p p l y i n g t o Washington S t a t e , a f t e r 10 ' c e r t a i n d a t a from these had been r e v i s e d . The measures deriv e d , from the American sources were used w i t h some r e s e r -v a t i o n s i n c e ( l ) t h e y are d e r i v e d from s y n t h e t i c budgets r a t h e r than from an a c t u a l farm s u r v e y , and (2) d i f f e r e n t y i e l d and management p r a c t i c e s are p o s t u l a t e d e.g. i n one s t u d y m i l k p r o d u c t i o n was assumed t o be 1I4.OOO l b s . a n n u a l l y and a l l r e -placements were assumed p u r c h a s e d . 8 See appendix 8 f o r the method o f a v e r a g i n g and the method o f a l l o c a t i n g e x p e n d i t u r e s between the d a i r y and beef e n t e r p r i s e s . 9 M.M. Sorboe and E.D. Woodward, D a i r y Farming on Vancouver  I s l a n d 1 9 6 l . Vancouver, Economics D i v i s i o n ^ Canada Depart-ment o f A g r i c u l t u r e , I96I4; D.C. Cross f i e Id and E.D. 'Wood-ward, D a i r y Farming i n the F r a s e r V a l l e y o f B r i t i s h Columbia 1961 , Vancouver, Economics, D i v i s i o n , Canada Department o f A g r i c u l t u r e , 1964 10 J.Swanson and B.J. Bond, Market M i l k P r o d u c t i o n C o s t s , P u l l -man, I n s t i t u t e of A g r i c u l t u r a l S c i e n c e s , Washington S t a t e U n i v e r s i t y , 1959 . ( S t a t i o n s c i r c u l a r 3 7 7 ) ; H. Perryman, H. F l e t c h e r et a l . Economics o f M i l k P r o d u c t i o n , Pullman, A g r i c u l t u r a l E x t e n s i o n S e r v i c e , 'Washington S t a t e U n i v e r s i t y , 1962 ; D e t a i l s o f thes e r e v i s i o n s have been p r e s e n t e d i n appendices 7 and 8 16 The measures o f performance t h a t were c a l c u l a t e d are p r e -s e n t e d i n t a b l e s I I I and IV. The c o m p a r a t i v e p o s i t i o n o f the O y s t e r R i v e r farm may be summarized as f o l l o w s : C a p i t a l Investment p e r Cow C a p i t a l investment p e r cow i s s u b s t a n t i a l l y h i g h e r (except i n the case o f machinery) t h a n f o r the o t h e r g r o u p s . T o t a l i n -vestment p e r cow i s about 50 p e r cent h i g h e r than i n t h e o t h e r B r i t i s h Columbia s t u d i e s . I t i s 2.0 t o 2.5 times g r e a t e r t h a n i n the Washington s t u d i e s . B u i l d i n g investment p e r cow i s 2.5 t o 3 times, g r e a t e r than f o r the o t h e r groups. Machinery and equipment inv e s t m e n t i s l o w e r a t O y s t e r R i v e r due m a i n l y to the f a c t t h a t a c o n s i d e r a b l e p a r t o f the powered equipment i s r e n t e d . Much of the cause o f the h i g h t o t a l i n v e s t m e n t p e r cow l i e s i n the l a r g e amount of n o n - a r a b l e l a n d owned by the U n i v e r s i t y . S i n c e the farm was a g i f t t o the U n i v e r s i t y the apparent o v e r -investment i n l a n d i s not a p o i n t o f v a l i d c r i t i c i s m . There does, however, appear t o be an o v e r - i n v e s t m e n t i n b u i l d i n g s . Even when one c o n s i d e r s the n e c e s s i t y of more l i v e s t o c k s h e l t e r due t o the high, w i n t e r p r e c i p i t a t i o n an investment p e r cow t h a t i s 2.5 t o 3 times the average f o r o t h e r w i s e s i m i l a r c o n d i t i o n s , does seem e x c e s s i v e . 11 Gross Revenue p e r Man E q u i v a l e n t Gross revenue p e r m a n - e q u i v a l e n t i s above average f o r the P r a s e r V a l l e y and Vancouver I s l a n d s t u d i e s , but below t h a t of the h i g h income groups o f these a r e a s . The v e r y h i g h f i g u r e 11 A man e q u i v a l e n t may be d e f i n e d as the a v a i l a b i l i t y o f one man o r h i s e q u i v a l e n t i n terms o f p a r t time l a b o u r f o r one y e a r . TABLE I I I MEASURES'' OP ' EFFICIENCY TOTAL INVESTMENT . PER COW OYSTER RIVER FARM FRASER VALLEY . HIGH INCOME GfROUP AVERAGE, ALL'"FARMS VANCOUVER ISLAND HIGH INCOME GROUP AVERAGE, ALL FARMS WHAT C OM C 0 UIJTY ; WASHINGTON. ... GRAYS HARBOR & LEWIS COUNTIES . WASHINGTON 2 , 8 3 7 . 1 , 9 8 7 . 2 , 1 0 3 . 1 , 8 6 8 . 2 , 2 0 3 . 1 , 5 2 0 . 1 ,11k BUILDING INVESTMENT PER COW — 1 , 0 7 0 . 3 1 5 . w. 3 8 0 . 14-30. 314-7. 3 2 1 . MACHINERY INVESTMENT PER' cow — ' 21k . 2 5 3 . 251. -275. 2 9 8 . 2 3 8 . 2 k k . PERCENT QUOTA. MILK 73 87 85 85 85 N.A.. N.A. GROSS REVENUE PER MAN-EQUIVALENT 7 , 2 2 7 . 8 , 6 8 8 . 6 , 7 5 3 . 7 , 0 7 k . 6 , 8 5 3 . 1 2 , 6 2 8 2 1 , k 7 9 . NOTE: See appendices 7 and 8 f o r d e t a i l s o f c a l c u l a t i o n . TABLE IV MEASURES OF EFFICIENCY LBS. MILK . AVG. . GROSS - -GROSS REV. LABOUR AVERAGE .. ANIMAL TOTAL COST OF .PROD. . ... PRICE REVENUE "" PER ..COST COST ..UNITS CASH COST PRODUCING PER PER " PER S 1 0 0 . C 0 N C . PER. OF HIRED MAINTAINED PER 100 LBS. COW . . . CWT..' ... '' 'COW FED . . . COW . LABOUR . , PER.COW . ~ COW ..MILK. .. • • ; • $ $ ! PER MO. "r $.-OYST1IR RIVER FARM 1 2 , 2 9 8 . V f . 4 . 6 I 5i+i. 3 6 8 . 313 . 3 2 5 . 1 . 3 2 6 2 5 . 7 . 18 FRASER VALLEY . . H i g h Income Group 9 , 9 6 9 . : ' l i . 3 9 615. 6 0 8 . 158. 2 5 0 . 1 . 2 6 1+10. 1+.83 Average, A l l Farms 9 , 5 0 7 Ii . 2 8 51+8. . 5 6 2 . . . 2 0 0 . 2 5 0 . 1 .25 1+57. 5.1+9 . . VANCOUVER ISLAND -H i g h Income Group " " 9 , 5 3 7 - ' " 5.01+ " 610. 1+98. 199. 2 0 5 . 1 .29 1+68. 5 . 1 f 6 Average, A l l Farms 6..11+ 8 , 8 6 0 1+.91+ 5 8 8 . 1+53. 211 . 2 0 5 . 1 .27 1+92. WHATCOM COUNTY Washington. 9 , 5 0 0 : 1+.80 1+56. 5 1 3 . 11+6. 2 8 8 . 1 . 2 3 1+03. 5 . 5 8 GRAYS HARBOR & LEWIS COUNTIES Washington i l + , 0 0 0 ; 4 . 0 0 616. 5 8 7 . 1 0 0 . 391+. N.A.. 1+01. 3.1+2 NOTE: See appendices 7 and 8 f o r d e t a i l s of c a l c u l a t i o n . 19 f o r the Gray's Harbor and Lewis C o u n t i e s s t u d y i s a r e s u l t of CD an assumed p r o d u c t i o n o f l l | , 0 0 0 l b s . a n n u a l l y and (2) v e r y h i g h l a b o u r u t i l i z a t i o n o f about 2 .2 man e q u i v a l e n t s f o r 100 m i l k i n g cows. Gross 'Revenue p e r Cow Gross revenue p e r cow i s l o w e r than the co m p a r a t i v e B. C, groups but t h i s may be a t t r i b u t a b l e t o a lo w e r p e r c e n t a g e o f quota m i l k - 73 p e r cent v s . 85 t o 87 p e r cent f o r the o t h e r B. C. gro u p s . T h i s must have been more than enough t o o f f s e t the h i g h e r average p r i c e s r e c e i v e d by Vancouver I s l a n d p r o d u c e r s . Gross Revenue p e r #100. .Concentrate Fed Gross revenue p e r $ 1 0 0 . c o n c e n t r a t e f e d f o r the O y s t e r R i v e r farm i s c o n s i d e r a b l y below t h a t o f the o t h e r s t u d i e s . As a measure o f f e e d i n g e f f i c i e n c y i t must be used w i t h r e s e r v a t i o n because the q u a n t i t y and q u a l i t y of f o r a g e w i t h w h i c h i t i s com-b i n e d has not been s p e c i f i e d . N e v e r t h e l e s s a r e t u r n of $IL50. -$ 6 0 0 . p e r #100o c o n c e n t r a t e f e d when compared t o a r e t u r n o f $ 3 6 8 . at O y s t e r R i v e r i s not w i t h o u t meaning. O y s t e r R i v e r farm m a i n t a i n e d a h i g h e r r a t i o o f young s t o c k p e r cow than d i d the o t h e r s but t h i s f a c t s h o u l d have been o f f s e t by i n c l u d i n g i n c r e a s e i n l i v e s t o c k i n v e n t o r y i n g r o s s revenue. The p r i c e of c o n c e n t r a t e was about the same f o r a l l o f the s t u d i e s . The l o w e r g r o s s revenue p e r cow at O y s t e r R i v e r would account f o r o n l y p a r t o f the d i f f e r e n c e . The one c o n c l u s i o n r e m a i n i n g i s t h a t more o r b e t t e r q u a l i t y f o r a g e c o u l d p r o f i t a b l y be s u b s t i -t u t e d f o r some o f t h e c o n c e n t r a t e now b e i n g f e d . Labour Cost p e r Cow Labour c o s t p e r cow i s o n e - t h i r d t o o n e - h a l f h i g h e r a t 20 O y s t e r R i v e r than the o t h e r B. C. groups and 2.5 t o 3 times g r e a t e r t h a n the American s t u d i e s i n d i c a t e . I t has been shown ( t a b l e V I I ) t h a t the number o f a n i m a l u n i t s p e r man e q u i v a l e n t f o r O y s t e r R i v e r compared with. Vancouver I s l a n d and the average f o r the F r a s e r V a l l e y i s about the same. The reason f o r the h i g h e r l a b o u r c o s t s p e r cow i s the h i g h e r wage r a t e s p a i d employees at O y s t e r R i v e r (see t a b l e V ) . The low f i g u r e s f o r the American s t u d i e s are a r e s u l t o f l o w e r wage r a t e s and h i g h e r p r o d u c t i v i t y p e r man. T o t a l Cash Costs p e r Cow T o t a l cash c o s t s p e r cow, f o r the reasons o u t l i n e d above are h i g h e r t h a n f o r any o t h e r group and a r e h i g h e r than the g r o s s revenue p e r cow. I t i s e n c o u r a g i n g t o note t h a t f o r the c a l e n d a r v e a r 1961+ the s i t u a t i o n improved so t h a t cash r e c e i p t s 12 and cash expenses were n e a r l y e q u a l . The Cost of P r o d u c i n g 100 l p s . o f M i l k The c o s t o f p r o d u c i n g 100 l b s . o f m i l k was c a l c u l a t e d at ,f 7.18 f o r O y s t e r R i v e r i n c l u d i n g the D a i r y share of d e p r e c i a t i o n on b u i l d i n g s and equipment. The c o s t s o f p r o d u c t i o n quoted i n the o t h e r s t u d i e s were m o d i f i e d t o i n c l u d e the v a l u e of o p e r a t o r ' s l a b o u r . In a d d i t i o n the concept of c o s t o f p r o d u c t i o n used i n the F r a s e r V a l l e y s t u d y was not v a l i d f o r comparison w i t h O y s t e r R i v e r farm so i t was n e c e s s a r y t o r e c a l c u l a t e the c o s t of p r o -13 d u c t i o n . D e t a i l s r e g a r d i n g the c a l c u l a t i o n o f c o s t of p r o -d u c t i o n f o r the Vancouver I s l a n d group were o m i t t e d so the measure was r e c a l c u l a t e d . The d i s c r e p a n c y between the h i g h 12 See t a b l e I I 13 D.C. C r o s s f i e l d and E.D. -Woodward, op. c i t . page 19 . 21 c o s t a t O y s t e r R i v e r and t h o s e o f the c o m p a r a t i v e s t u d i e s may be accounted f o r by reasons a l r e a d y d i s c u s s e d , namely, h i g h e r c a s h and non-cash expenses. H i g h e r c a s h expenses may be a t t r i b u t e d t o h i g h e r wage r a t e s , and h i g h e r feed c o n c e n t r a t e c o s t s . Above average i n v e s t m e n t i n - b u i l d i n g s r e s u l t s i n h i g h e r d e p r e c i a t i o n c h a r g e s . The c o s t of p r o d u c i n g a'hundredweight of m i l k i s a l s o a f u n c t i o n o f the amount, o f m i l k produced, and w h i l e O y s t e r R i v e r farm was above average i n m i l k p r o d u c t i o n , t h e r e were low p r o -d u c i n g cows t h a t c o u l d have been p r o f i t a b l y r e p l a c e d w i t h h i g h e r p r o d u c e r s . M a chinery U t i l i z a t i o n and Cost o f O p e r a t i o n o f  Powered Equipment. Ltf The f a rm i s f o r t u n a t e , i n b e i n g a b l e t o l e a s e 3 of i t s 5 t r a c t o r s a t a r a t e o f 10 p e r cent o f the new p r i c e p e r y e a r . A manure s p r e a d e r , f o r a g e b l o w e r and a f r o n t - e n d l o a d e r are a l s o l e a s e d . L e a s i n g , under these t erms, i s c o n s i d e r a b l y l e s s expen-s i v e than owning the machines because no charges f o r i n t e r e s t on investment o r ' d e p r e c i a t i o n a c c r u e d i r e c t l y t o the farm. T r a c t o r s are Kept about 2 y e a r s at w h i c h time they are r e p l a c e d by a new one. The farm thus b e n e f i t s by h a v i n g newer equipment and fewer major r e p a i r s than might o t h e r w i s e be the c a s e . An e x p l o r a t o r y t r a c t o r u t i l i z a t i o n and c o s t o f o p e r a t i o n 3tudy was made w i t h the f o l l o w i n g o b j e c t i v e s i n mind: 1. t h a t such a study would p i n p o i n t maximum use p e r i o d s o r " b o t t l e n e c k s " i n the f a r m i n g oper-a t i o n . I t would p r o v i d e an i n d i c a t i o n of the p o s s i b i l i t y of smoothing the peak demand p e r i o d s so t h a t machinery and l a b o u r would be more e f f i c -i e n t l y u s e d . In a d d i t i o n i t would i n d i c a t e the d i s t r i b u t i o n of use between j o b s . 1I4. Machinery u t i l i z a t i o n i s p r e s e n t e d i n t h i s s e c t i o n as a l o g i c a l p r e l u d e t o c o s t s o f machinery o p e r a t i o n 22 2 . tha,t i s would p r o v i d e an i n d i r e c t measure o f the d i s t r i b u t i o n of .labour r e q u i r e m e n t s . 3 . t h a t i t would p r o v i d e a guide i n b r e a k i n g down the c o s t s o f v a r i o u s farm o p e r a t i o n s . The proce d u r e f o l l o w e d d u r i n g the summer o f 19614. was to r e c o r d t r a c t o r hours at the end o f each day and d i s t r i b u t e t h i s t o t a l t o the t a s k s performed, a c c o r d i n g to the r e c o l l e c t i o n of the o p e r a t o r . In a d d i t i o n t r a c t o r use r e c o r d s had been kept by Mr. W. B o u r d i l l o n , the farm mechanic, f o r 1 9 6 1 - 6 2 , so t h a t an a n n u a l d i s t r i b u t i o n was a v a i l a b l e . I t was not f e a s i b l e t o attempt a n o t h e r f u l l y e a r ' s s t u d y . I n s t e a d , t r a c t o r use i n the summer months was o b t a i n e d by r e c o r d i n g r u n n i n g hours f o r June, J u l y and August. W i n t e r month e s t i m a t e s were based on 15 r e c o r d s f o r November and December. T r a c t o r u t i l i z a t i o n f o r 1962-63 i s i l l u s t r a t e d i n f i g u r e 2 . The most i n t e n s i v e use occu r s i n the months o f May, June and J u l y . S i l a g e h a r v e s t i n g , h a y i n g and the m e c h a n i c a l f e e d i n g o f d a i r y cows a r e the prime u s e r s of machine and man t i m e . Of l e s s e r importance are manure h a u l i n g , f i e l d work, f e r t i l i z e r a p p l i c a t i o n and m i s c e l l a n e o u s . 15 The 196I4 d a t a are p r e s e n t e d i n appendix 9 ar>d 10 s i n c e o n l y f i v e months of the y e a r were s t u d i e d . The p a t t e r n i s s i m i l a r t o t h a t of 1962-63 f o r w h i c h complete r e c o r d s were a v a i l a b l e . 175 150 12 5 CD to 100 V) 13 O X 7 5 5 0 2 5 0 >•--—v-v.: (figures in parentheses are total hours) -Fo rd Major (883 ) —Ford 2 N (621) Massey F e r g . 3 5 ( 5 l 2 ) J i J a n Feb Mar Apr May J u n J u l A u g Sep Oct Nov Dec Figure 2. Tractor hours, monthly distribution , 1961-1962. Case 5 3 0 ( 2 9 8 ) 2h The F o r d "Major" t r a c t o r i s used more t h a n any o t h e r , a v e r -a g i n g 800 - 1000 hours p e r y e a r . The Case " 5 3 0 " w i t h the f r o n t end l o a d e r i s used l e a s t a t about 300 hours p e r y e a r . The othe two wheeled t r a c t o r s average 500 t o 600 hours p e r y e a r . The b u l l d o z e r was purchased i n 1958 and was used e x t e n s i v e l y i n the l a n d c l e a r i n g o p e r a t i o n s . I t s p r e s e n t use i s l i m i t e d t o odd job ( g r a d i n g , snow removal e t c . ) . Under the p r e s e n t use p a t t e r n re placement o f t h i s machine would not be e c o n o m i c a l l y j u s t i f i e d . The 3-ton t r u c k averages between 7000 and 8000 m i l e s p e r y e a r and the h a l f - t o n t r u c k about 7000 m i l e s . The d i s p a r i t y between 'summer and w i n t e r use i n the case of the Ford "Major" averages 100 - 150 hours p e r month f o r the r e s p e c t i v e s e a s o n s , i . e . w i n t e r use i s about 50 hours p e r month and June and J u l y use averages 175 t o about 200 hours p e r month. The o t h e r t r a c t o r s f o l l o w a s i m i l a r p a t t e r n . The p o s s i b i l i t y o f smoothing the d i s t r i b u t i o n o f t r a c t o r use i s l i m i t e d by the f a c t t h a t most o f the f o r a g e f o r s i l a g e (and f o r hay) i s ready f o r c u t t i n g at t h e same time so t h a t i n o r d e r t o p r e s e r v e f o r a g e q u a l i t y i t must be h a r v e s t e d as r a p i d l y as p o s s i b l e . One i m p o r t a n t f a c t o r i s apparent i n F i g u r e 2 and t h a t i s the r e l a t i v e l y low number of hours ( d u r i n g t h i s peak p e r i o d ) spent by the Case " 5 3 0 " on the s i l a g e b l o w e r . One p o s s i b i l i t y of i m p r o v i n g u t i l i z a t i o n would be t o r e p l a c e t h i s t r a c t o r and b l o w e r w i t h a s i l a g e e l e v a t o r and e l e c t r i c motor. As a r e s u l t , t h i s t r a c t o r o r i t s e q u i v a l e n t might be used t o h a u l s i l a g e thus e l i m i n a t i n g the w a i t i n g time p r e s e n t l y i n c u r r e d by the f o r a g e h a r v e s t e r . A l t e r n a t i v e l y , c o n s i d e r a t i o n c o u l d be g i v e n t o e l i m i n a t i n g the t r a c t o r ( C a s e " 5 3 0 " ) f r o m the 2 ^ f a r m i n g o p e r a t i o n s i n c e i t was used l e s s than 300 hours p e r y e a r and o n e - t h i r d o f t h i s time was f o r s i l a g e , A s e p a r a t e p o s s i b i l i t y would be t o i n s t a l l a f o r a g e box on the 3-ton t r u c k t o p r o v i d e a second v e h i c l e f o r t r a n s p o r t i n g f o r a g e . Two 8-hour s h i f t s c o u l d be used to ensure t h a t f o r a g e was h a r v e s t e d at peak q u a l i t y . There i s l i t t l e t h a t one can do to d i s t r i b u t e the r e -quirements o f f o r a g e h a r v e s t i n g w i t h o u t s a c r i f i c i n g q u a l i t y so the burden must r e s t on the be s t p o s s i b l e u t i l i z a t i o n o f men and machines. S i n c e the purpose o f t h i s s e c t i o n was e x p l o r a t o r y i n n a t u r e , d e t a i l e d p a r t i a l budgets showing the e f f e c t s o f these suggested changes have not been p r e s e n t e d . Costs o f machinery o p e r a t i o n were determined o n l y f o r the powered equipment because they r e p r e s e n t the most i m p o r t a n t segment of machinery c o s t s . No attempt was made t o dete r m i n e the u n i t c o s t s ( p e r t o n , p e r a c r e ) o f the v a r i o u s f o r a g e oper-a t i o n s s i n c e t h e s e c o s t s are a f f e c t e d by y i e l d . However, such c a l c u l a t i o n s c o u l d be made a n n u a l l y a f t e r the f o r a g e growing season when the y i e l d s are known. A summary o f t h e c o s t s o f o p e r a t i o n of powered equipment i s made i n Ta b l e V w i t h d e t a i l s of c a l c u l a t i o n p r e s e n t e d i n Appendix 2-26 TABLE V COSTS OP OPERATION OP POSE RED EQUIPMENT J D T E I FTXET) VARIABLE COST EST. USE TOTAL COST OWED .COST per. h r . o r p e r mi. H r s . o r mi. p e r h r . o r p e r m i l e EQUIP.  3-ton .. . Truck 890.1+0 ,035/ml. 7000 m i l e s , l62/mi. h a l f - t o n Truck 1+38.50 ,019/mi. 7000 m i l e s ,082/ml. C r a w l e r T r a c t o r 1353.1+0 .28 / h r . N.A. $7.0l+/hr. r, Ford " 2 N " 152.60 .16 / h r . 500 h r s . LEASED EQUIPMENT Ford "Major" D i e s e l . 1+1+8.27 .175/hr. 900 h r s . . .680/hr. Case "530" D i e s e l 566.83 ,209/hr. 300 h r s . 2.10/hr, Massey Fergus on " 3 5 f t D i e s e l 1+21.70 . l 5 o/hr. 500 Hr. .99/hr, NOTE: A r e c o r d of hours o f use was not a v a i l a b l e f o r the c r a w l e r . Cost p e r hour was c a l c u l a t e d f o r 200 hours use. 27 MEASURES OF PHYSICAL PERFORMANCE . M i l k P r o d u c t i o n p e r Cow. The o v e r a l l h e r d average o f the cows a t O y s t e r R i v e r f o r a 305 day l a c t a t i o n (1963 r e c o r d s ) was 1 2 , 2 9 8 l b s . o f m i l k w i t h 16 I4.32 l b s . of b u t t e r f a t , o r on a l\% f a t c o r r e c t e d b a s i s 1 1 , 3 9 9 l b s . There was a s i g n i f i c a n t d i f f e r e n c e i n the p r o d u c t i o n o f each b r e e d . On the average, each H o l s t e i n cow p r o d u c e d 2 6 2 2 l b s . o f m i l k more th a n the average A y r s h i r e and 33 l b s . more f a t . ( H o l s t e i n s 13,i|06 l b s . milk,149 l b s . f a t ; A y r s h i r e 10,781+ l b s . mil.kjl4 . l6 l b s . f a t ) . Data were o b t a i n e d from D.H. I.A. ro u t e and herd averages f o r B.C. and Vancouver I s l a n d f o r comparison w i t h the O y s t e r R i v e r h e r d . T a b l e VI summarizes the r e s u l t s . M i l k p r o d u c t i o n at O y s t e r R i v e r , even w i t h the composite h e r d , was h i g h e r t h a n any o f the o t h e r averages p r e s e n t e d . B u t t e r f a t c o n t e n t , however, was below t h a t o f the o t h e r a v e r a g e s . No i n -f o r m a t i o n was a v a i l a b l e f o r the amount o f v a r i a t i o n i n the com-p a r a t i v e h e r d a v e r a g e s , but i t i s s i g n i f i c a n t t h a t at O y s t e r R i v e r the range was between about 8000 l b s . and 1 8 , 5 0 0 l b s . The r e t e n t i o n o f the l o w e r p r o d u c e r s was p r e d i c a t e d by the d e s i r e t o b u i l d up the m i l k q u o t a . 16 F o u r p e r cent f a t c o r r e c t e d m i l k was c a l c u l a t e d u s i n g the f o l l o w i n g f o r m u l a 1$ P.CM. = O.I4. (LBS.MILK) + 1 5 . 0 (LBS.FAT) 28 TABLE V I A COMPARISON OF AVERAGE MILK PRODUCTION PER COW BREED OR NUMBER OF LBS. LBS PERCENT . AREA LACTATIONS MILK FAT FAT B.C. H o l s t e i n 1 1 , 9 3 6 1 1 , 7 9 9 khh 3.76 A y r s h i r e l+OO 9 , 7 8 6 396 1+.05 OYSTER RIVER Compos i t e 71 1 2 , 2 9 8 1+32 3 . 5 1 H o l s t e i n kl 13,1+06 kk9 3 - 3 5 A y r s h i r e 30 10,781+ [+16 3 . 8 5 VICTORIA 527 9 , 7 5 5 381+ 3 . 9 4 DUNCAN 635 1 0 , 6 1 5 1+30 1+.05 NANAIMO 1 0 , 3 9 7 381+ 3 . 6 9 COURTENAY 658 1 0 , 6 6 9 1+22 3 . 9 5 SOURCE: (a) F o r B r i t i s h Columbia a v e r a g e s ; B r i t i s h Columbia Department of A g r i c u l t u r e , D a i r y Herd Improvement S e r v i c e s . A n n u a l Summarized  Report f o r 1 9 6 2 . (b) F o r Vancouver I s l a n d a v e r a g e s ; l e t t e r t o the w r i t e r from Mr. J . A. Mace, S u p e r i n t e n d e n t , D.H.I.A. S e r v i c e s , B r i t i s h Columbia Department of A g r i c u l t u r e , V i c t o r i a , B.C. 29 Forago P r o d u c t i o n per Acre-Since there have been no c o n s i s t e n t attempts to measure forage p r o d u c t i v i t y from the various f i e l d s the f i g u r e of 2.5 tons o f dry matter.used i n t h i s study i s a judgment estimate. Spot checks that were made i n the summer of I96J4. i n d i c a t e that the y i e l d f o r t h a t y e a r was c l o s e r to 3 tons o f dry matter per acr e . However the consensus of the manager and others i n the area i s t h a t 2.5 tons of dry matter i s a b e t t e r long run average. Even at 2.5 tons of dry matter p e r acre (or 2.8 tons of hay e q u i v a l e n t ) gross output compares f a v o u r a b l y w i t h F r a s e r V a l l e y 17 y i e l d s averaging 2.17 tons of hay per'acre and Vancouver Isla n d 18 y i e l d s averaging 2.06 tons of hay per ac r e . The use of commercial f e r t i l i z e r averaged 252 l b s . per acre on pasture and 126 l b s . on the remainder of the lower farm (pre-dominantly ammonium phosphate, 1 6 - 2 0 - 0 ) . In the F r a s e r V a l l e y the average rate of a p p l i c a t i o n was 20I4 lbs-, per acre with, the hi g h income group a p p l y i n g 228 l b s . per a c r e . Labour E f f i c i e n c y The i n v e s t i g a t i o n of l a b o r e f f i c i e n c y was l i m i t e d to those areas of l a b o r u t i l i z a t i o n t h a t showed promise of y i e l d i n g the most u s e f u l i n f o r m a t i o n . It should be recognized that estimates of Oyster R i v e r l a b o u r p r o d u c t i v i t y are complicated by the non-commercial a c t i v i t i e s of the farm. The employment of students, f o r example, r e s u l t s i n a lowering of average p r o d u c t i v i t y . 17 D.C. C r o s s f i e l d and E.D. Woodward, Dairy Farming i n the F r a s e r V a l l e y 1961 op. c i t . pp 12 - 13 18 M . M . Sorboe and E.D. 'Woodward, D a i r y Farming on Vancouver I s l a n d 1961 op. c i t . pp 13 - li+ 3 0 , S i n c e the t e a c h i n g o b j e c t i v e o f the farm i s t o enable s t u d e n t s t o g a i n e x p e r i e n c e , c o n s i d e r a b l e time must be spent t e a c h i n g c u l t u r a l p r a c t i c e s , f e e d i n g p r a c t i c e s and machinery o p e r a t i o n . IShen s t u d e n t s r o t a t e jobs t o g a i n a- w i d e r v a r i e t y o f e x p e r i e n c e the job must be r e t a u g h t . E x p e r i m e n t a l p r o j e c t s s i m i l a r l y a f f e c t l a b o u r u t i l i z a t i o n p a t t e r n s . Farm maintenance a t O y s t e r R i v e r must be kept at a c o n s i s t e n t l y h i g h e r l e v e l than f o r n o n - i n s t i -u t i o n a l farms because the farm i s s u p p o r t e d by and open t o the p u b l i c . Two g e n e r a l measures of p h y s i c a l • e f f i c i e n c y were used i n t h i s s t u d y . In a d d i t i o n , a p r e l i m i n a r y e s t i m a t e o f the number of cows m i l k e d p e r man hour (see Table V I I I ) i n d i c a t e d t h a t a more d e t a i l e d time s t u d y of t h i s a r e a would be f r u i t f u l and t h i s was s u b s e q u e n t l y u n d e r t a k e n . 1. P r o d u c t i v e man work u n i t s p e r man e q u i v a l e n t and a n i m a l u n i t s p e r man e q u i v a l e n t . 19 Both measures are o f an o v e r a l l n a t u r e . The f i r s t i s a measure t h a t s p e c i f i c a l l y i n c l u d e s the r e q u i r e m e n t s f o r growing f o r a g e as w e l l as l i v e s t o c k whereas the second emphasises the l i v e s t o c k r e q u i r e m e n t s w i t h f o r a g e g r o w i n g r e q u i r e m e n t s b e i n g i m p l i c i t r a t h e r than e x p l i c i t . The s t a n d a r d s used were those of Sorboe and Woodward i n the CD.A. p u b l i c a t i o n D a i r y Farming on Vancouver I s l a n d ( 1 9 6 1 ) . They are the same c o e f f i c i e n t s t h a t were used t o d e f i n e l a b o u r c o e f f i c i e n t s i n a l a t e r p a r t o f t h i s s t u d y . 19 (a) A p r o d u c t i v e man work u n i t i s the amount of work t h a t can be a c c o m p l i s h e d by an average man i n a 10 h r . day under average w o r k i n g c o n d i t i o n s . (b) Man e q u i v a l e n t has been d e f i n e d i n f o o t n o t e 11 . (c) An a n i m a l u n i t (A.TJ.) r e f e r s t o a f e e d consuming u n i t . C a l c u l a t i o n o f the number of p r o d u c t i v e man work u n i t s at O y s t e r R i v e r (196J4.): L i v e s t o c k o r Crop '.Work U n i t T o t a l U n i t (Average Standards T.Work U n i t s Numbers ) (10 h r s . ) D a i r y Cows 97 1 3 . 5 1 3 0 9 . 5 Beef Cows 52 3 . 5 1 8 2 . 0 H e i f e r s 31 2 . 0 6 2 . 0 10 2 . 0 2 0 . 0 C a l v e s 59 2 . 0 1 1 8 . 0 0 5 2 . 0 1 0 . 0 0 P a s t u r e Acres 1 8 8 . 6 0 . 6 1 1 1 5 . 0 0 Kay A c r e s 6 6 . 9 1 . 8 0 120.1+ S i l a g e Acres 1 6 3 . 0 2 . 5 0 1 6 7 . 5 TOTAL 2101+.1+ C a l c u l a t i o n o f the number o f man e q u i v a l e n t s : F u l l - t i m e employees Man E q u i v a l e n t s 20 Manager 0 . 5 Mechanic 1 .0 . Herdsman 3 • 0 Other 2 . 0 Summer h e l p (Commercial p a r t o n l y ) 2 S t u d e n t s f o r f o u r months 0 . 6 8 TOTAL 7 . 18 20 I t has been e s t i m a t e d t h a t o n e - h a l f o f the manager's t i m e i s a v a i l a b l e f o r the commercial a c t i v i t i e s on the f a r m w i t h the o t h e r h a l f b e i n g devoted to the t e a c h i n g and r e s e a r c h f u n c t i o n s . 32 The number o f p r o d u c t i v e man viork u n i t s p e r man e q u i v a l e n t a t O y s t e r R i v e r i s t h e r e f o r e 2101+.1+ — 2 9 3 . 1 0 7.10 ~ T h i s compares f a v o u r a b l y w i t h the low and medium-income groups o f the F r a s e r V a l l e y at 277 and 255 work u n i t s p e r M.E. r e s p e c t i v e l y . The h i g h income F r a s e r V a l l e y group was more e f f i c i e n t i n the use o f l a b o r w i t h each man p e r f o r m i n g an average of 31+0 work u n i t s p e r y e a r . On Vancouver I s l a n d the work accom-p l i s h e d p e r man e q u i v a l e n t averaged 2 8 6 , 297 and 275 f o r the h i g h , medium and low income groups r e s p e c t i v e l y . The O y s t e r R i v e r f i g u r e o f 291+.5 work u n i t s p e r man e q u i v a l e n t compares f a v o u r a b l y w i t h o t h e r Vancouver I s l a n d farms. A n i m a l U n i t s p e r Man E q u i v a l e n t Comparisons u s i n g the number of a n i m a l u n i t s p e r man e q u i -v a l e n t show a s i m i l a r p i c t u r e , w i t h the F r a s e r V a l l e y h i g h income group h a v i n g 2 3 . 2 1 a n i m a l u n i t s p e r man e q u i v a l e n t . A n i m a l u n i t s p e r man e q u i v a l e n t average about 20 f o r O y s t e r R i v e r and o t h e r F r a s e r V a l l e y and Vancouver I s l a n d c a l c u l a t i o n s (see t a b l e V I I ) . These measures i n d i c a t e t h a t o v e r a l l l a b o u r e f f i c i e n c y i s above average f o r the a r e a and f o r the F r a s e r V a l l e y . T h i s c o n c l u s i o n i s even more s a t i s f a c t o r y when one remembers t h a t the c ommercial o p e r a t i o n must bear the burden o f some o f the non-commercial o b j e c t i v e s . 33 TABLE V I I AComparison o f ANIMAL UNITS M a i n t a i n e d PER M N EQUIVALENT AVERAGE NUMBER OP ANIMALS ANIMAL UNIT STANDARD AVERAGE NUMBER OF A.U.'S MAN-EQUIV. EMPLOYED A.U,'S PER MN-EQUIV OYSTER DAIRY & COWS & BULLS RIVER . BEEP 1 5 0 . 5 1 1 2 . 0 2 * HEIFERS 1+1.0 0.1+1+ I8 . 0 l j . - -CALVES 61+. o 0 . 2 5 1 6 . 0 0 - -TOTAL - 11+6.06 7.18 2 0 . 1 7 VANCOUVER ISLAND (AVERAGE FARMS) COWS & BULLS 2 8 . 8 0 1 .0 2 8 . 8 0 - -HEIFERS 1 2 . 3 0 0.1+1+ 5 . U - -CALVES 6 . 2 0 0 . 2 5 1 .55 - -TOTAL - 3 5 . 7 6 1 .77 2 0 . 2 0 FRASER VALLEY (HI GH INCOME GROUP) C0¥S & BULLS 3 6 . 9 0 1 .0 3 6 . 9 0 - -HEIFERS 1 6 . 1 0 0.1+1+ 7 . 0 8 - -CALVES 9 . 1 0 0 . 2 5 2 . 2 7 - -TOTAL - 1+6.25 1 .91 21+.21 SOURCE: (a) Vancouver I s l a n d ; M. M. Sorboe and E.D. Woodward D a i r y Farming on Vancouver  I s l a n d 1 9 6 l op. c i t . pp 18 - 19 (b) F r a s e r V a l l e y ; D.C. C r o s s f i e l d and E.D. Woodward, D a i r y Farming i n the  F r a s e r V a l l e y . 1961 op. c i t . pp 16" - 18 A.U.'s have been s t a n d a r d i z e d t o a l l o w f o r the d i f f e r e r i n l a b o u r r e q u i r e m e n t s o f d a i r y and beef a n i m a l s . 31+ In c o n s i d e r i n g these measures one must b e a r i n mind two imp o r t a n t q u a l i f i c a t i o n s . ' The f i r s t i s t h a t performance r a t e s e q u a l t o o r b e t t e r than those i n the ar e a do'. . not n e c e s s a r i l y mean t h a t l a b o u r e f f i c i e n c y cannot be f u r t h e r improved. A p a r t i c u l a r example comes t o mind i n the hand f e e d i n g o f s i l a g e d u r i n g the w i n t e r months. Under the p r e s e n t system s i l a g e must be f o r k e d from the s i l o by hand, then d i s t r i b u t e d by hand from a t r a c t o r drawn t r a i l e r . R e l o c a t i o n o f the s i l o s t o f a c i l i t a t e the t r a n s f e r of an au t o m a t i c u n l o a d i n g d e v i c e from one t o a n o t h e r p l u s a f e e d conveyor b e l t a t the bottom are f u t u r e improvements t h a t would i n c r e a s e l a b o u r e f f i c i e n c y . The second q u a l i f i c a t i o n i s t h a t measures of o v e r a l l e f f i c i e n c y tend to mask areas o f i n e f f i c i e n c y . The m i l k i n g p a r l o r i s a case i n p o i n t . P r e l i m i n a r y e x a m i n a t i o n of the number of cows m i l k e d p e r man hour i n d i c a t e d t h a t O y s t e r R i v e r performance was about t w o - t h i r d s o f what one c o u l d expect w i t h a s t a n c h i o n type b a r n . A c c o r d i n g l y a time s t u d y was s e t up to a s c e r t a i n the areas of the m i l k i n g r o u t i n e t h a t r e q u i r e d improvement. The M i l k i n g P a r l o r Time Study Method: Two s t o p watches were used i n t i m i n g the o p e r a t i o n o f the m i l k e r s . B o t h watches were s t a r t e d a t the moment a cow e n t e r e d the m i l k i n g p a r l o r . One watch, was l e f t r u n n i n g ( t o p r o -v i d e a check) u n t i l the machine had been removed from the cow. The o t h e r watch was used t o time v a r i o u s o p e r a t i o n s u s i n g the snap-back t e c h n i q u e . The o p e r a t i o n s were grouped so t h a t s t a r t -i n g and f i n i s h i n g p o i n t s were as w e l l d e f i n e d as p o s s i b l e . An attempt was made t o d i s t i n g u i s h between n e c e s s a r y o p e r a t i o n s and 35 T A B L E V I I I M E A S U R E S OP M I L K I N G E F F I C I E N C Y D O U B L E - ! ; H E R R I N G B O N E S T A N C H I O N B A R N D O U B L E -3 T A N D E M ".WALK T H R O U G H O Y S T E R R I V E R F A R M COWS P E R M A N H O U R 30 MAN M I N U T E S P E R COW 2.00 M A C H I N E ON TIME P E R C0# 5.50 M A C H I N E O F F T I M E P E R com .32 32 1.88 5.50 .11* h3 1.1+0 5.50 .11+ I+.21 6.69 1.13 I D L E M A C H I N E T I M E P E R C E N T • 5.5 2.5 2.5 16.9 S O U R C E : D a t a w a s o b t a i n e d f r o m t h e U . S . D . A . p u b l i c a t i o n T h e F a r m C o s t S i t u a t i o n M a y 1959 a s p r e s e n t e d i n t h e D a i r y m a n ' s G u i d e B o o k , p u b l i s h e d b y t h e C h o r e B o y M a n u f a c t u r i n g C o . o f C a m b r i d g e C i t y , ' I n d i a n a . 36 those t h a t were performed w h i l e e s s e n t i a l l y w a i t i n g f o r the cow to be m i l k e d . S i n c e a complete time and m o t i o n s t u d y was beyond the scope of t h i s s t u d y no attempt was made to t e s t t h e r e s u l t s s t a t i s t i c a l l y . The r e s u l t s are p r e s e n t e d i n t a b u l a r form i n Tabl e s V I I I and IX, t o g e t h e r w i t h s t a n d a r d s d e r i v e d by McHardy 2 1 and by the U.S.D.A. McHardy used a m o t i o n p i c t u r e camera t o r e c o r d and time i n d i v i d u a l o p e r a t i o n s . The times f o r the oper-a t i o n s t h a t were r e l e v a n t t o the O y s t e r R i v e r o p e r a t i o n were summed f o r c o m p a r i s o n w i t h the group times o b t a i n e d u s i n g the st o p watch. The m i l k i n g p a r l o r was d e s i g n e d t o handle f o u r cows i n tandem on e i t h e r s i d e o f an o p e r a t o r ' s p i t . U n t i l r e c e n t l y o n l y one s i d e of the m i l k i n g a r e a has been used and i t was under th e s e c o n d i t -ions t h a t the time d a t a were c o l l e c t e d . A t t h i s w r i t i n g two add-i t i o n a l s t a l l s are b e i n g completed on the o t h e r s i d e o f the oper-a t o r ' s p i t , t h a t s h o u l d have the e f f e c t of i n c r e a s i n g the m i l k i n g r a t e . Two men p e r f o r m the m i l k i n g o p e r a t i o n . I t was found t h a t the p r i n c i p l e r e a s o n f o r the low number o f cows m i l k e d per man-hour was the r e l a t i v e l y i d l e p e r i o d w h i l e w a i t i n g f o r the cows t o be m i l k e d o u t . The i n t e r v a l between the time a machine was i n s t a l l e d on a p a r t i c u l a r cow and the time i t was removed averaged 6.69 m i n u t e s . D u r i n g t h i s time o n l y 2 1 P.V.McHardy, " S t a n d a r d Time Data F o r S i d e E n t e r i n g and Her-r i n g b o n e M i l k i n g P a r l o r s " , A g r i c u l t u r a l M a t e r i a l s H a n d l i n g  Manual S e c t i o n I . I , Ottawa N a t i o n a l C o o r d i n a t i n g Committee on A g r i c u l t u r a l S e r v i c e s , Canada Department of A g r i c u l t u r e , Queens P r i n t e r , 1 9 6 2 , page 3 5 ; M.M. L i n d s e y , Farm Economics R e s e a r c h D i v i s i o n , A g r i c u l t u r a l R e s e a r c h S e r v i c e , U.S.Department of A g r i c u l t u r e , The Farm  Cost S i t u a t i o n , May 1 9 5 9 , c i t e d i n Chore-Boy M a n u f a c t u r i n g Company I n c . , Dairyman's Guide Book f o r P r o f i t a b l e D a i r y i n g , Cambridge C i t y , I n d i a n a , pp. 1 2 - 1 3 37 one o t h e r cow had t o be p r e p a r e d , r e q u i r i n g 1.10 m i n u t e s . The -.• o p e r a t o r a l s o spent an average o f 1.09 minutes on each o f the ,: two cows t h a t he was r e s p o n s i b l e f o r , ' machine s t r i p p i n g , mass-.:: a g i n g udders and c h e c k i n g h i s cows. The 3 .50 minutes remaining;,. b e f o r e the i n i t i a l cow had been m i l k e d was e s s e n t i a l l y i d l e and 22 c o u l d have been used t o handle a t l e a s t one more cow. The above c a l c u l a t i o n s were based on the p r e s e n t r a t e s o f performance at O y s t e r R i v e r . F a s t e r r a t e s o f work would a l s o i n c r e a s e the c a p a c i t y o f the m i l k i n g p a r l o r . The r a t e a t which a cow can be m i l k e d i s a n o t h e r f a c t o r . Some cows can be m i l k e d out i n l e s s t h a n i i minutes w h i l e o t h e r s may t a k e over 10. These two f a c t o r s were apparent i n the O y s t e r R i v e r s t u d y . Cow p r e -p a r a t i o n time, f o r example, averaged 1.10 minutes p e r cow com-pared t o the McHardy s t a n d a r d f o r the same group o f o p e r a t i o n s of O.733 m i n u t e s . Cow m i l k out time averaged 1.19 minutes p e r cow l o n g e r than the U.S. D.A. s t a n d a r d (6.69 vs 5 . 5 0 ) . A n o t h e r m a n i f e s t a t i o n o f the low m i l k i n g r a t e was the h i g h p e r c e n t a g e of i d l e machine time between cows. I d l e machine time averaged 1.13 minutes p e r cow o r l 6 . 9 p e r cent o f machine-on time compared to U.S. D. A. s t a n d a r d s of 2.5 - 5 $ . Much of t h i s i s due t o the type of e q u i p m e n t ? f o r example the r o l l o - m e a s u r e t a k e s about 1 minute t o empty depending on the amount of m i l k i n i t . The O r g a n i z a t i o n o f Farm Records A good system o f farm r e c o r d s w i l l i n c l u d e both p h y s i c a l and f i n a n c i a l r e c o r d s . The p a r t i c u l a r form of t h e s e r e c o r d s w i l l depend on the use t o w h i c h they w i l l be put and the o b j e c -t i v e s o f the farm. In the case of a commercial farm the c h a r a c -2~2" In g e n e r a l the o p e r a t o r appeared busy d u r i n g most of t h i s i n t e r v a l but the work performed was n o n - e s s e n t i a l . 38 TABLE IX A \ COMPARISON OF OPERATION TIMES FOR A SIDE ENTERING WALK THROUGH MILKING PARLOR OPERATION McHARDY STANDARD MINUTES OYSTER RIVER MINUTES 1. PREPARE COW " Cl o s e T a i l g a t e 'Hash Cow (Hose) "lash Cow (Rag) Dry Udder S t r i p Check (Cup) Righ t R o l l o - M e a s u r e I n s t a l l Machine .Oi|0 .087 . 120 .112 .137 .036 . 2 0 1 TOTAL .733 1 .10 2 . MASSAGE UDDER, MACHINE STRIP, CHECK CO.WS N.A. 1 .09 3 . MACHINE IDLE TlME (AFTER REMOVAL OF MACHINE) Dump R o l l o - M e a s u r e . O2I4 Record Weight . 0 9 0 Walk (10 s t e p s a t . 0 1 2 ) . 120 Open Headgate . 0 2 5 C l o s e Headgate .036 Open T a i l g a t e .OJ+0 Feed (Crank) .013 Hold Door Open .121+ M i l k Emptying N.A. TOTAL .472 1.13 SOURCE: F.V. McHardy E n t e r i n g and A g r i c u l t u r a l " S t a n d a r d H e r r i n g b o n M a t e r i a l s Time Data f o r Si d e e M i l k i n g P a r l o r s . H a n d l i n g Manual S e c t i o n 1.1 op. c i t 3 9 t e r i s t i c s have been w e l l d e f i n e d . , Hopkins and Heady s t a t e t h a t the o b j e c t i v e o f farm r e c o r d s and accounts i s " t o f a c i l i t a t e the 2 3 management of the farm". They go on t o suggest the f o l l o w i n g ways i n which management b e n e f i t s from a c c u r a t e farm r e c o r d s : 1. By p r o v i d i n g a h i s t o r y o f performance i n c l u d i n g b o t h p h y s i c a l performance and f i n a n c i a l p erformance. 2 . As an a i d i n the c o n t r o l o f c u r r e n t o p e r a t i o n s . 3 . P r o v i s i o n of the b a s i c I n f o r m a t i o n f o r b u d g e t i n g o r p l a n n i n g farm o p e r a t i o n s . Adequate farm r e c o r d s are t y p i c a l l y composed of t h r e e p a r t s : ( l ) Farm i n v e n t o r y taken a n n u a l l y ( o r more f r e q u e n t l y ) , ( 2 ) Accounts d e a l i n g w i t h r e c e i p t s and e x p e n d i t u r e s and ( 3 ) P h y s i c a l p r o d u c t i o n r e c o r d s t h a t p r o v i d e b a s i c i n p u t - o u t p u t d a t a . I f the o b j e c t i v e o f the O y s t e r R i v e r farm i s to o p e r a t e on a commercial b a s i s c o n s i s t e n t with, the a t t a i n m e n t of i t s ' o t h e r o b j e c t i v e s then the p r e s e n t system of r e c o r d k e e p i n g i s i n a d e -q u a t e . At p r e s e n t the r e c o r d k e e p i n g system i s composed o f the a c c o u n t s , d a i l y m i l k p r o d u c t i o n r e c o r d s and a weekly i n v e n t o r y of l i v e s t o c k . The a c c o u n t s are adequate i n t h a t a l l cash, expen-d i t u r e s and r e c e i p t s are r e c o r d e d on a monthly s t a t e m e n t . How-e v e r from the p o i n t of view o f a n a l y s i s an a c c o u n t i n g f o r non cash, e x p e n d i t u r e s and r e c e i p t s s h o u l d be i n c l u d e d on an a n n u a l b a s i s . The c l a s s i f i c a t i o n o f the expense accounts c o u l d be improved .so t h a t s i m i l a r items and items p e r t a i n i n g to the 2 3 John A. Hopkins and E a r l o> Heady, Farm Records and  A c c o u n t s , Ames, Iowa, The 'Iowa S t a t e C o l l e g e P r e s s , T 9 5 F : P P . k - 5< same e n t e r p r i s e were grouped t o g e t h e r . The l a r g e s t c r i t i c i s m o f the p r e s e n t system i s the g e n e r a l absence o f p h y s i c a l records.. A l t h o u g h m i l k p r o d u c t i o n r e c o r d s are kept w i t h p a i n s t a k i n g c a r e l i t t l e o r no e f f o r t i s expended i n d e t e r m i n i n g the f e e d ( o r o t h e r i n p u t s ) consumed i n p r o d u c i n g the m i l k . Records of l a n d u t i l i z a t i o n , c r o p y i e l d s and beef p r o d u c t i o n r e c o r d s are s i m i l -a r l y n o n - e x i s t e n t . F u r t h e r m o r e ^ t h e p r e s e n t method o f a c c o u n t i n g c o n t r o l does not appear t o be s u f f i c i e n t l y f l e x i b l e t o take ad-vantage of u n f o r s e e n o p p o r t u n i t i e s and t o ta k e p r o p e r account of u n f o r s e e n expenses. E s t i m a t e s o f r e c e i p t s and e x p e n d i t u r e must be made one y e a r i n advance and the management appears com-.mit t e d t o s t a y i n g w i t h i n i n d i v i d u a l account budgets. P r o p e r a c c o u n t i n g c o n t r o l i s n e c e s s a r y f o r any b u s i n e s s but i t s h o u l d not u n d u l y hamper d e c i s i o n making. A p a r t i a l s o l u t i o n would be to make f o r m a l p r o v i s i o n f o r a q u a r t e r l y r e v i s i o n . The f o l l o w -i n g changes would a l l e v i a t e 71 the shortcomings o f the p r e s e n t system o f r e c o r d s . 1. An a n n u a l i n v e n t o r y s h o u l d be t a k e n o f a l l a s s e t s i n c l u d i n g such items as the amount o f f e e d , f u e l , and f e r t i l i z e r on hand. 2. I f a s u i t a b l e method o f c o n t r o l can be d e v i s e d i n d i v i d u a l f e e d r e c o r d s f o r each cow s h o u l d be kept t o complement e x i s t i n g i n d i v i d u a l p r o d u c t i o n r e -c o r d s . Monthly e s t i m a t e s (by w e i g h i n g ) of hay and s i l a g e s h o u l d be 'kept and r e c o n c i l e d w i t h i n v e n -t o r i e s . 2I4. F o r example, i n p r e p a r i n g the o p e r a t i n g statements f o r t h i s s t u d y i t was o f t e n n e c e s s a r y t o t r a c e o r i g i n a l documents to v e r i f y e x p e n d i t u r e i t e m s . A suggested r e -c l a s s i f i c a t i o n i s p r e s e n t e d i n Appendix 12 3, A system of cr o p r e c o r d s s h o u l d be d e v i s e d t h a t would i n d i c a t e l a n d u t i l i z a t i o n , s o i l p r e p a r a t i o n and t r e a t m e n t , c r o p mix grown,, f e r t i l i z e r and manure a p p l i c a t i o n and y i e l d s . A l s o , some g e n e r a l comments r e : s e a s o n a l a b n o r m a l i t i e s s h o u l d be i n c l u d e d . 1|. P r o d u c t i o n r e c o r d s o f the beef e n t e r p r i s e s h o u l d i n d i c a t e l b s , o f beef produced p e r u n i t of f e e d i n p u t o r v a l u e o f beef produced p e r d o l l a r o f fe e d i n p u t . 5 . The f i n a n c i a l r e c o r d s are complete i n t h a t a l l c a s h ex-p e n d i t u r e s and r e c e i p t s a re r e c o r d e d but a r e - o r g a n -i z a t i o n o f items -as suggested i n Appendix 1 2 would f a c i l i t a t e economic a n a l y s i s and i n t e r p r e t a t i o n . 6, I f c o n s i d e r a t i o n i s to be g i v e n to comm e r c i a l o b j e c t i v e s then the farm o p e r a t i o n s accounts s h o u l d be q u i t e d i s t i n c t from the accounts d e a l i n g with. 2 5 t e a c h i n g and r e s e a r c h p r o j e c t s . Research p r o j e c t s might be handl e d b e s t by i n -c l u d i n g i n the p r o j e c t budget an e s t i m a t e o f the farm " o u t - o f - p o c k e t " expenses and the farm oper-a t i o n s accounts would be r e i m b u r s e d f o r t h i s amount. 2 5 . An attempt i s made t o s e p a r a t e the t e a c h i n g and r e s e a r c h accounts from the commercial accounts but i t i s o n l y p a r t i a l l y s u c c e s s f u l . Parm " o u t - o f - p o c k e t " expenses i n c u r r e d w h i l e u n d e r t a k i n g r e s e a r c h p r o j e c t s have i n some cases been absorbed by the farm. The same i s t r u e o f v i s i t i n g and t r a v e l l i n g expenses i n c u r r e d on non-commercial b u s i n e s s . 6 . Expenses t h a t would o c c u r w i t h o r w i t h o u t the p r o -j e c t c o u l d be absorbed by the farm. 7. Where s p e c i f i c r e s e a r c h p r o j e c t s are not i n v o l v e d but where a t e a c h i n g o r community s e r v i c e ( e g o the e l i t e seed p l o t s ) are i n v o l v e d farm e x p e n d i t u r e s s h o u l d be handl e d on a budget b a s i s and i n c l u d e d o n l y under the t e a c h i n g and r e s e a r c h a c c o u n t s . 8. E x p e n d i t u r e s i n c u r r e d w h i l e g u e s t s are s t a y i n g on the farm and non-commercial t r a v e l l i n g expenses s h o u l d be cove r e d by an account i n the t e a c h i n g and r e s e a r c h s e c t i o n . 9. C a p i t a l e x p e n d i t u r e s s h o u l d be q u i t e d i s t i n c t from b o t h the comm e r c i a l o p e r a t i o n and the t e a c h i n g and r e s e a r c h f u n c t i o n . These recommendations presuppose t h a t b o t h the p h y s i c a l and f i n a n c i a l r e c o r d s w i l l be used by the management i n e v a l u -a t i n g the performance of the farm. In a d d i t i o n i t i s suggested t h a t such, assessment s h o u l d l e a d to p l a n n i n g f o r improvement. O b v i o u s l y r e c o r d s are o f l i t t l e v a l u e i f they are not employed i n a dynamic manner. 1+3 CHAPTER I I I THE N O R M A T I V E A N A L Y S I S S i n c e t h i s s t u d y i s c oncerned w i t h the p r a c t i c a l a p p l i c a t i o n of l i n e a r programming t o a f a r m management problem, the c o n c l u -s i o n s and t h e i r u n d e r l y i n g assumptions and l i m i t a t i o n s are more r e l e v a n t t h a n a d e t a i l e d account o f the t h e o r y of l i n e a r program-26 mingo I t w i l l s u f f i c e to p r e s e n t the p r o f i t m a x i m i z i n g problem and to s t a t e the. u n d e r l y i n g assumptions and l i m i t a t i o n s . The c a l c u l a t i o n o f t e c h n i c a l c o e f f i c i e n t s i s , however, p r e s e n t e d i n some d e t a i l because o f i t s : importance I n o b t a i n i n g m e a n i n g f u l 2 7 r e s u l t s . H e a d y a n d C a n d l e r s t a t e : "The most d i f f i c u l t t a s k i n s e t t i n g up forms f o r a - l i n e a r p r o g r a m m i n g p r o b l e m 'is t o o b t a i n m e a n i n g f u l t e c h n i c a l c o e f f i c i e n t s . ' T h e n e e d f o r c a r e a n d d e t a i l i n t h i s r e s p e c t s h o u l d be reemphasized. A d d i t i o n a l e f f o r t i n t h i s d i r e c t i o n g e n e r a l l y i s m o r e i m p o r t a n t t h a n i n a d d i t i o n a l r e f i n e m e n t s i n t h e m a t h e m a t i c a l a p p r o a c h , The L i n e a r Programming Problem and I t ' s Assumptions The l i n e a r programming p r o b l e m d e a l t w i t h i n t h i s s t u d y was to maximize p r o f i t s u b j e c t to t h e r e s t r i c t i o n s of a s e t of l i n e a r i n e q u a l i t i e s . I n m a t r i x n o t a t i o n the p r o b lem may be s t a t e d as f o l l o w s : 26 F o r a d e t a i l e d account of a g r i c u l t u r a l a p p l i c a t i o n s of l i n e a r programming see E.O. Heady and ¥. C a n d l e r , L i n e a r Programming methods. Ames,. Iowa, The Iowa S t a t e U n i v e r s i t y P r e s s , 1958. 27 I b i d . , pp. 225. 28 Maximize the o b j e c t i v e f u n c t i o n ; f ( x ) = C ' X t S u b j e c t to the r e t r i c t i o n s ; PX 4 s; x: S 0 I Where C i s a t r a n s p o s e d column v e c t o r of n e t . p r i c e s C ' = Ij^  c ^  °3 0 j j^ X i s a column v e c t o r of p r o d u c t i o n p o s s i b i l i t i e s X = x ] x 2 p i s the m a t r i x of t e c h n i c a l c o e f f i c i e n t s of the a c t i v i t i e s i n X. P = P11P12 P l j p 2 i ? 2 2 ? 2 j ^ r n l pm2 0 • • e mj S i s the column v e c t o r of r e s o u r c e s u p p l i e s ; S - s l s 2 .m and 0 i s a n u l l m a t r i x j by 1 The above f o r m u l a t i o n of the problem would be s a t i s f a c t o r y i f i t c o u l d be a s c e r t a i n e d t h a t the r e s o u r c e s would be c o m p l e t e l y e x h a u s t e d . The i n t r o d u c t i o n of d i s p o s a l a c t i v i t i e s p e r m i t s non-use o f r e s o u r c e s and changes the r e s t r i c t i o n d e a l i n g w i t h r e s o u r c e 28 The o b j e c t i v e f u n c t i o n i s the p r o f i t f u n c t i o n to be maxim-i z e d . I t w i l l s u b s e q u e n t l y be r e f e r r e d t o as the f u n c t i o n a l . s u p p l i e s f rom P X < S t o P X == S Where P P l l P 1 2 p 2 1 p 2 2 . . . p. .1 0 0 4 • » * l n p 2 n _ml p o . • . . p .0 0 0 • . o 1 and X n The i n e q u a l i t y X ^ 0 s t i l l h o l d s . The C v e c t o r must a l s o be e n l a r g e d to n p r i c e s . Programs t h a t meet the r e s t r i c t i o n s P X = S and X ^ 0 are f e a s i b l e programs. An optimum program i s one t h a t i s f e a s i b l e and a t the same time maximizes the f u n c t i o n a l f (X) = C'X. The s i m p l e x method o f m a x i m i z i n g the f u n c t i o n a l s t a r t s w i t h an i n i t i a l f e a s i b l e program i n w h i c h a l l r e s o u r c e s u p p l i e s are a l l o c a t e d t o d i s p o s a l . Then, u s i n g an i t e r a t i v e p r o c e s s , r e a l a c t i v i t i e s are brought i n to the program one a t a time u n t i l the f u n c t i o n a l , has been maximized. A c r i t e r i o n e q u a t i o n i s employed to determine w h i c h o f t h e r e a l a c t i v i t i e s w i l l add most t o p r o f i t . The c r i t e r i o n e q u a t i o n i s o f t h e f o r m m Z j - C j where the Z.j i s ^ C.r. . 1=1 J or the sum over a l l elements o f column j of the p r o d u c t s of the 1+6 p r i c e s of the a c t i v i t i e s ( o r r e s o u r c e s ) i n the p l a n and the co-e f f i c i e n t s i n column j . C i s the p r i c e of t h e a c t i v i t y r e p r e -29 3 s e n t e d by column j . The r ^ . i s the m a r g i n a l r a t e o f s u b s t i t u -t i o n of the i t h r e s o u r c e o r a c t i v i t y w i t h the j t h a c t i v i t y . A f t e r the f i r s t i t e r a t i o n the m a r g i n a l r a t e o f s u b s t i t u t i o n i s e x p r e s s e d i n terms o f the most l i m i t i n g r e s o u r c e . When the r ^ ^ are m u l t i p l i e d by t h e i r r e s p e c t i v e p r i c e s Cj_ and the p r o d u c t summed over a l l elements i n column j the r e s u l t i s the o p p o r t u n i t y c o s t o f adding one u n i t of t h e a c t i v i t y r e p r e s e n t e d by column j . I f the p r i c e o f t h i s a c t i v i t y , C , i s g r e a t e r t h a n the o p p o r t u n i t y c o s t ( Z - _ Q <^ (jj) ) t h e n p r o f i t w i l l be i n c r e a s e d by a d d i n g the j t h a c t i v i t y t o the program and c o m p l e t e l y r e p l a c i n g the r e s o u r c e t h a t was most l i m i t i n g . When more t h a n one a c t i v i t y has a n e g a t i v e Z\. - the a c t i v i t y w i t h the most n e g a t i v e v a l u e i s the one t h a t e n t e r s . The i t e r a t i v e p r o c e s s c o n t i n u e s u n t i l a l l - C j ^ _ 0. The Assumptions i n L i n e a r Programming The assumptions i n l i n e a r programming f a l l under f o u r head-ings . 1. A d d i t i v i t y and L i n e a r i t y . The t o t a l q u a n t i t y o f a f a c t o r used must be the sum of i t s i n d i v i d u a l uses and t o t a l p r o d u c t must e q u a l t h e sum o f a l l i n d i v -i d u a l p r o d u c t s . The o u t p u t - i n p u t r a t i o i s c o n s t a n t f o r i n d i v i d u a l a c t i v i t i e s and f o r a l l a c t i v i t i e s c o n s i d e r e d t o g e t h e r hence o n l y c o n s t a n t r e t u r n s t o f a c t o r i n p u t and c o n s t a n t r e t u r n s t o s c a l e are p e r -m i t t e d . I n t e r a c t i o n e f f e c t s are not g e n e r a l l y a c counted f o r .  29 The term ' p r i c e ' r e f e r s to t h e net p r i c e o r r e t u r n t o f i x e d f a c t o r s of p r o d u c t i o n . U n l e s s o t h e r w i s e s p e c i f i e d o r i m p l i e d t h i s w i l l be the meaning i n the d i s c u s s i o n s t h a t f o l l o w . k? 2 . D i v i s i b i l i t y . T h i s a ssumption i m p l i e s t h a t f a c t o r s and u n i t s o f ou t p u t can be used o r produced i n quan-t i t i e s t h a t are i n f i n i t e l y d i v i s i b l e . I t does not r e c o g n i z e the " l u m p i n e s s " t h a t sometimes o c c u r s when add i n g f a c t o r s o f p r o d u c t i o n . ' 3 . F i n i t e n e s s . I t i s assumed t h a t t h e r e i s a l i m i t t o the number of a c t i v i t i e s and r e s o u r c e r e s t r i c t i o n s t h a t need be c o n s i d e r e d . k. S i n g l e v a l u e e x p e c t a t i o n s . The i m p l i c a t i o n s o f t h i s a s s u m p t i o n are t h a t p r i c e s and t e c h n i c a l co-e f f i c i e n t s a r e known w i t h c e r t a i n t y . The assumptions under which the l i n e a r programming model i s s e t up are not as r e s t r i c t i v e as t h e y might appear. The a s s -u mption of a d d i t i v i t y and l i n e a r i t y w i l l not i n g e n e r a l be l i m i t -i n g . I n t e r a c t i o n o c c u r s i n f r e q u e n t l y and r e t u r n s to s c a l e i n 30 d a i r y f a r m i n g appear t o be c o n s t a n t . The a s s u m p t i o n o f d i v i s i b -i l i t y o f f a c t o r s and o u t p u t need not be s e r i o u s . U s i n g an appro-p r i a t e c h o i c e o f u n i t s of i n p u t and output,, q u a n t i t i e s c a l l e d f o r i n the optimum p l a n can be rounded t o t h e n e a r e s t u n i t w i t h -out s e r i o u s e r r o r . The ass u m p t i o n of f i n i t e n e s s i s a v e r y p r a c t i c a l one. The c h o i c e of a c t i v i t i e s f r o m w h i c h the optimum program might be s e l e c t e d was l i m i t e d t o those t h a t appeared to o f f e r the g r e a t -e s t chance of s u c c e s s . The c h o i c e of r e s o u r c e r e s t r i c t i o n s was 3 0 . See, f o r example, E..L. Menzie, 0 . K l a s s e n and F. VanAndel. D a i r y Farm Management Manual, B r i t i s h Columbia Department of A g r i c u l t u r e and U.B.C. Department o f A g r i c u l t u r a l Eco-nomics pp. k6-k8. The e x p e c t e d o p e r a t o r ' s l a b o u r e a r n -i n g s are n e a r l y p r o p o r t i o n a l t o t h e s i z e of o p e r a t i o n as measured by the number of m i l k i n g cows. 1+8 l i m i t e d t o th o s e t h a t appeared to be most c r i t i c a l i n d e t e r m i n -i n g the p r o d u c t i o n p a t t e r n s . The a s s u m p t i o n o f s i n g l e v a l u e e x p e c t a t i o n s f o r a c t i v i t y p r i c e s was approached w i t h some r e s e r v a t i o n s , e s p e c i a l l y i n the case o f p o t a t o e s . I t was f o r t h i s r e a s o n t h a t t e s t s were made to determine the ranges o f p r i c e s t a b i l i t y f o r a c t i v i t i e s r e -commended i n the optimum s o l u t i o n s . Having d i s c u s s e d the a l g e b r a i c f o r m u l a t i o n o f t h e problem and the u n d e r l y i n g assumptions the ne x t s t e p was t o s e l e c t the a l t e r n a t i v e a c t i v i t i e s and to d e f i n e the r e l e v a n t t e c h n i c a l co-e f f i c i e n t s and n e t p r i c e s . The S e l e c t i o n of A l t e r n a t i v e A c t i v i t i e s The g r e a t e s t number o f a c t i v i t i e s c e n t e r around the d a i r y a c t i v i t i e s . The r a t i o n a l e of t h i s d e c i s i o n i s t h a t d a i r y i n g i s the predominant commercial f a r m i n g a c t i v i t y i n the a r e a and the f a c t t h a t the O y s t e r R i v e r f a r m i s s u b s t a n t i a l l y committed to a d a i r y o p e r a t i o n . The predominant type of f a r m i n g i n an a r e a i s a v a l u a b l e g u i d e i n d e t e r m i n i n g the a c t i v i t i e s t h a t a r e l i k e l y t o be the most p r o f i t a b l e . C o n s i d e r i n g t h i s f a c t and the r e -s o u r c e s a l r e a d y committed t o d a i r y i n g the d e c i s i o n was made t o d e f i n e a number of d a i r y a c t i v i t i e s . B o t h the H o l s t e i n and A y r s h i r e breeds are r e p r e s e n t e d a t O y s t e r R i v e r so the d a i r y a c t i v i t i e s i n c l u d e r e p r e s e n t a t i o n s o f each b r e e d . The c h o i c e o f o t h e r a c t i v i t i e s was c o n d i t i o n e d by t h e i r p o t -e n t i a l p r o f i t a b i l i t y compared t o d a i r y i n g , t h e i r demand f o r add-i t i o n a l r e s o u r c e s , the market f o r the p r o d u c t , and the a c t i v i t i e s o t h e r t h a n d a i r y i n g t h a t a re p a r t of the p r e s e n t o p e r a t i o n . The f i n a l c h o i c e was narrowed to two beef a c t i v i t i e s ( c o w - c a l f and a 1+9 c o w - y e a r l i n g o p e r a t i o n s ) one p o t a t o a c t i v i t y , one sheep a c t i v i t y and p u r c h a s i n g a c t i v i t i e s f o r l a b o u r and hay. Beef was c o n s i d e r e d because i t i s p a r t of the p r e s e n t o p e r a t i o n . A sheep a c t i v i t y was i n c l u d e d because of the p o s s i b i l i t y of more e f f e c t i v e l y u t i l -i z i n g the upper f a r m a r e a . The p o t a t o a c t i v i t y was i n c l u d e d w i t h some r e s e r v a t i o n s . On the one hand p o t a t o e s appeared to o f f e r a more p r o f i t a b l e a l t e r n a t i v e t o d a i r y i n g t h a n e i t h e r beef or sheep, and a l s o t h a t p o t a t o e s have been grown s u c c e s s f u l l y on the farm and are. grown s u c c e s s f u l l y i n the a r e a . On the o t h e r hand t h e r e i s an i n i t i a l b a r r i e r t o new growers m a r k e t i n g t h e i r p r o d u c t and f u r t h e r m o r e new b u i l d i n g s and equipment would be r e -q u i r e d . The problem of new i n v e s t m e n t can be h a n d l e d q u i t e r e a d -i l y by i n c o r p o r a t i n g it.-s c o s t , i n t h e f o r m o f d e p r e c i a t i o n and 31 i n t e r e s t on i n v e s t m e n t i n t h e c a l c u l a t i o n of net p r i c e s . The m a r k e t i n g problem f o r p o t a t o e s i s more d i f f i c u l t . M a r k e t i n g i s c o n t r o l l e d t h r o u g h the Courtenay p l a n t o f the B.C. Coast Veget-a b l e M a r k e t i n g b o a r d . New growers are a s s i g n e d a m a r k e t i n g quota of f o u r tons i n each o f the t h r e e m a r k e t i n g c a t e g o r i e s ; e a r l i e s , second e a r l i e s , and l a t e p o t a t o e s . A new grower would have t o o p e r a t e on a s m a l l s c a l e i n i t i a l l y u n t i l h i s m a r k e t i n g quota i n -32 c r e a s e d . D e s p i t e t h e s e l i m i t a t i o n s i t was d e c i d e d t o i n c l u d e a p o t a t o a c t i v i t y based on an e s t a b l i s h e d and s t a b l e ( w i t h r e s p e c t to s i z e ) o p e r a t i o n i n o r d e r to v a l i d l y compare i t w i t h o t h e r e s t -a b l i s h e d o p e r a t i o n s . A second r e a s o n f o r i n c l u d i n g p o t a t o e s was 31 Heady and C a n d l e r , op. c i t . pp. 219 - 220 32 M a r k e t i n g quotas w i l l r e v o l v e a t l e a s t t w i c e and perhaps as many as t w e l v e times i n one y e a r . Quotas are based on a grower's performance o v e r the p a s t f i v e y e a r s . A new grower c o u l d i n c r e a s e h i s quota by o n e - f i f t h o f the q u a n t i t y marketed the p r e v i o u s y e a r . 5o t h a t i f t hey s h o u l d d i s p l a c e part, o f the d a i r y a c t i v i t i e s (as i n f a c t t h e y d i d ) i t would p r o v i d e an i n d i c a t i o n of the p r o f i t -a b i l i t y r e q u i r e d of a n y o t h e r a c t i v i t y t o d i s p l a c e d a i r y i n g i n the f u t u r e . A p u r c h a s i n g a c t i v i t y was d e f i n e d f o r hay b u y i n g t h a t had the e f f e c t of adding to the s u p p l y o f l a n d . Labour p u r c h a s i n g was c o n s i d e r e d under two s e p a r a t e a n a l y s e s . I n one, l a b o u r p u r -c h a s i n g was r e s t r i c t e d to the months of May, June, J u l y , August, and September; i n the o t h e r , l a b o u r purchases were p e r m i t t e d f o r a l l p e r i o d s . P r e l i m i n a r y c o n s i d e r a t i o n was g i v e n to hog, p o u l t r y , s t r a w -b e r r y and t r e e f r u i t p r o d u c t i o n . Hogs were r e j e c t e d because a l l f e e d would have to be p u r c h a s e d and because o f t h e a d v e r s e e f f e c t on p r o f i t , o f t r a n s p o r t a t i o n charges of f e e d to the f a rm and the f i n i s h e d p r o d u c t t o Vancouver. A l s o , e a r l i e r e x p e r i e n c e w i t h hogs was not s a t i s f a c t o r y . O m i s s i o n of hogs was s u p p o r t e d i n correspondence w i t h the l o c a l d i s t r i c t a g r i c u l t u r i s t , who a l s o a d v i s e d a g a i n s t s t r a w b e r r y p r o d u c t i o n because o f the v e r y l i m i t e d l o c a l market. P o u l t r y p r o d u c t i o n was r e j e c t e d because of the c a p i t a l i n v e s t m e n t and s p e c i a l i z e d management r e q u i r e d and the f a c t t h a t r e s u l t i n g p r o f i t d i d not appear t o be h i g h e r t h a n f o r the a l r e a d y e s t a b l i s h e d d a i r y o p e r a t i o n . Tree f r u i t p r o d u c t i o n was r e j e c t e d because o f the l i m i t e d l o c a l market and the l o n g w a i t i n g p e r i o d b e f o r e p r o d u c t i o n b e g i n s . D e f i n i n g the A c t i v i t i e s and Resource R e s t r i c t i o n s . Two fundamental approaches were u s e d i n d e f i n i n g the a c t i v -i t i e s . One i n v o l v e d the use o f p r o d u c t i o n f u n c t i o n s and the o t h e r the use o f r e g i o n a l and budget s t u d i e s . The use of p r o -d u c t i o n f u n c t i o n s i n d e f i n i n g a c t i v i t i e s i s the more d e s i r a b l e 5 i approach i n t h a t i t i s a c l o s e r a p p r o x i m a t i o n t o the concept of d e f i n i n g p r o d u c t i o n p o s s i b i l i t i e s , whereas budget s t u d i e s are t y p i c a l l y based on j u s t one p o i n t of the p r o d u c t i o n f u n c t i o n . The use o f p r o d u c t i o n f u n c t i o n s , however, i s l i m i t e d by those t h a t are a v a i l a b l e , t h e i r r e l e v a n c e f o r the a r e a under s t u d y and the u n i t s i n w h i c h they are d e f i n e d . I t was f e a s i b l e t o d e f i n e some d a i r y c o e f f i c i e n t s u s i n g p r o d u c t i o n f u n c t i o n s w h i l e o t h e r c o e f f i c i e n t s were d e f i n e d u s i n g r e g i o n a l and budget s t u d i e s t o g e t h e r w i t h p u b l i c a t i o n s c o n t a i n i n g p h y s i c a l r e q u i r e -ments f o r l i v e s t o c k . The b e e f , sheep and p o t a t o a c t i v i t i e s were d e f i n e d u s i n g budget s t u d i e s , d u e p r i m a r i l y t o the l i m i t e d a v a i l a b i l i t y o f s u i t a b l e p r o d u c t i o n f u n c t i o n s . The r e s o u r c e r e s t r i c t i o n s used i n t h i s s t u d y were: l a n d , l a b o u r ( f o r n i n e p e r i o d s i n the y e a r ) , b u i l d i n g space and o p e r a t i n g c a p i t a l , t o t a l l i n g f o u r t e e n r e s t r i c t i o n s . The problem of d e f i n i n g r e s o u r c e r e s t r i c t i o n s f o r l a n d and b u i l d i n g s i s s t r a i g h t f o r w a r d . The c o r r e c t number of l a b o u r r e s t r i c t i o n s depends on the p e r i o d s o f the y e a r when i t i s most l i m i t i n g . The w i n t e r months f r o m November to t h e end of F e b r u a r y were a g g r e g a t e d t o f orm one p e r i o d . The r e m a i n i n g months were d e f i n e d s e p a r a t e l y because of the d i f f i c u l t y o f d e t e r m i n i n g a p r i o r i w h i c h was l i k e l y to be the most l i m i t i n g . An o p e r a t i n g c a p i t a l r e s t r i c t i o n was i n c l u d e d p r i m a r i l y to f a c i l i t a t e s p e c i -33 f i c a t i o n of c a p i t a l r e q u i r e m e n t s under the optimum programs. 33 The l e v e l a t w h i c h c a p i t a l i s r e s t r i c t e d i s somewhat i n -d e t e r m i n a t e i n t h a t the s u p p l y depends on budget a p p r o v a l by t h e U n i v e r s i t y a u t h o r i t i e s . The D a i r y A c t i v i t i e s The f i r s t s t e p i n the c o n s i d e r a t i o n o f an e n t e r p r i s e i s t o d e f i n e the p r o d u c i n g u n i t . T e c h n i c a l c o e f f i c i e n t s , v a l u e of o u t p u t and net p r i c e s are t h e n d e t e r m i n e d w i t h r e s p e c t t o the p r o d u c i n g u n i t . I n the case o f the d a i r y a c t i v i t i e s the p r o d u c i n g u n i t was d e f i n e d t o he one cow p l u s h e r s u p p o r t i n g young s t o c k . The c a l c u l a t i o n o f a normal complement o f young s t o c k was based on a h e r d o f 70 m i l k i n g cows and a c u l l r a t e o f 20%. I t has been c a l c u l a t e d t h a t i n o r d e r to m a i n t a i n 70 m i l k i n g cows (on a 31+ 305 day l a c t a t i o n ) a h e r d of 82 cows would be r e q u i r e d . Assuming a c u l l r a t e o f 20% 17 r e p l a c e m e n t s would be r e q u i r e d a n n u a l l y . I t was f u r t h e r assumed t h a t a l l r e p l a c e m e n t s were f a r m r a i s e d and t h a t 25 b r e d h e i f e r s would be m a i n t a i n e d i n o r d e r to a l l o w some c h o i c e i n the s e l e c t i o n o f the 17 r e p l a c e m e n t s . G i v e n a 50$ h e i f e r c a l f c r op and a d e a t h o r f a i l u r e t o c a l f l o s s of 1+ a n i m a l s , 38 h e i f e r c a l v e s would be b o r n each y e a r . Of t h e s e , 13 c o u l d s a f e l y be s o l d a t b i r t h . An excess of r e p l a c e m e n t s t o c k r e m a i n s , but may be j u s t i f i e d as a guard a g a i n s t u n f o r s e e n l o s s e s . As i t becomes ap p a r e n t t h a t some b r e d h e i f e r s w i l l n o t be needed as r e p l a c e m e n t s they are assumed to be s o l d . I n a d d i t i o n i t was assumed t h a t two of the b e t t e r b u l l c a l v e s would be kept each year and s o l d f o r b r e e d i n g purposes a t about 18 months of age. 31+ Seventy cows p r o d u c i n g f o r one y e a r can be e x p r e s s e d as (70) (12) or 81+0 cow p r o d u c i n g months. However on a 305 d a y . l a c t a t i o n t h e number o f cow p r o d u c i n g months i s ( 7 0 ) ( 1 0 ) o r 700. T h e r e f o r e t o m a i n t a i n a c o n s t a n t l e v e l of 70 m i l k i n g cows 81+0 - 700 = 11.6 o r 12 a d d i t i o n a l . 12 cows would be r e q u i r e d . 53: F o l l o w i n g f r o m the above r e a s o n i n g the cow and h e r s u p p o r t -i n g young s t o c k were c a l c u l a t e d as f o l l o w s : COW 1 .0 a n i m a l 26 . 5 H e i f e r c a l v e s (avg. age 6 mos.) 82 . 3 2 3 a n i m a l 20 B r e d H e i f e r s (avg. age 20 mos.) 82 «2kk a n i m a l 35 2 B u l l C a l v e s (avg. age 1 y r . ) 82 . 0 2 k a n i m a l These c a l c u l a t i o n s are based on an average r a t i o o f cows to r e p l a c e m e n t s t o c k , the average b e i n g c a l c u l a t e d between the a c t u a l r e p l a c e m e n t s needed and the number o f each age group m a i n t a i n e d to a l l o w more c h o i c e i n s e l e c t i n g the f i n a l r e p l a c e m e n t s . For some of the c a l c u l a t i o n s i t was c o n v e n i e n t to e x p r e s s the p r o -36 d u c t i o n u n i t i n terms of f e e d consuming a n i m a l u n i t s as f o l l o w s . 1 Cow 1 .0 a n i m a l u n i t 1 H e i f e r ( 1 - 2 y e a r s ) .kk a n i m a l u n i t 1 B u l l ( 1 - 2 y e a r s ) .kk a n i m a l u n i t 1 C a l f (under 1 y e a r ) . 2 5 a n i m a l u n i t The number of a n i m a l u n i t s i n the p r o d u c t i o n u n i t are 1 Cow 1 .0 a n i m a l u n i t . 3 2 3 c a l v e s @ . 2 5 a n i m a l u n i t . 0 8 l a n i m a l u n i t . 2 k k b r e d h e i f e r @ .kk a n i m a l u n i t . 107 , 0 2 k b u l l @ .kk a n i m a l u n i t . 0 1 1 TOTAL ANIMAL UNITS 1.199 35 These animals were i n c l u d e d at the s u g g e s t i o n of t h e f a r m manager i n the b e l i e f t h a t t h e y c o u l d p r o f i t a b l y be s o l d as b r e e d i n g s t o c k a t about 18 months o f age 36 These s t a n d a r d s have been"used by the Economics D i v i s i o n Canada Department o f A g r i c u l t u r e , Vancouver 5k T e c h n i c a l C o e f f i c i e n t s f o r D a i r y A c t i v i t i e s Two approaches were c o n s i d e r e d t o d e f i n e t e c h n i c a l c o e f f i c -i e n t s f o r d a i r y a c t i v i t i e s . 1) The use of budget s t u d i e s and r e g i o n a l a v e r a g e s . 2) The use of m i l k p r o d u c t i o n f u n c t i o n s i n c l u d i n g the use o f the M i s s o u r i P a r t i t i o n E q u a t i o n - a p h y s i o l o g i c a l e q u a t i o n e x p r e s s i n g a f u n c t i o n a l r e l a t i o n s h i p between T.D.N, i n p u t , m i l k o u t p u t 37 and body w e i g h t . I t i s p o s t u l a t e d t h a t the most l o g i c a l b a s i s f o r d e f i n i n g the l a n d r e q u i r e m e n t s f o r d a i r y a c t i v i t i e s i s on the b a s i s o f d i f f e r e n t c o m b i n a t i o n s o f f o r a g e and c o n c e n t r a t e t h a t w i l l produce a given q u a n t i t y of m i l k . W i t h t h i s b a s i s , r e s o u r c e r e -quirements f o r l a n d ( t o grow f o r a g e ) , o p e r a t i n g c a p i t a l ( t o purchase feed) and l a b o u r w i l l d i f f e r . B u i l d i n g r e q u i r e m e n t s w i l l remain the same f o r a l l a c t i v i t i e s . - ^The • * r a t i o n a l e f o r t h i s method o f d e f i n i t i o n i s t h a t o p t i m a l p l a n s t h a t i n c l u d e one o r more of t h e s e a c t i v i t i e s would be e a s i l y implemented i n the s h o r t r u n . A c t i v i t i e s based on d i f f e r e n t types o f b u i l d i n g s and machinery, f o r example, might r e q u i r e s u b s t a n t i a l r e o r g a n i z a t i o n o f the f a r m and/or s u b s t a n t i a l c a p i t a l o u t l a y s . I n view of,.the f a c t t h a t the farm i s a l r e a d y committed, w i t h i n f a i r l y narrow l i m i t s , to a p a r t i c u l a r type of d a i r y oper-a t i o n , c o e f f i c i e n t s based on a knowledge o f the s u b s t i t u t i o n r a t e s between f o r a g e and c o n c e n t r a t e are more p r a c t i c a b l e . 37 Samuel Brody, B i o e n e r g e t i c s and Growth New York, R e i n h o l d P u b l i s h i n g C o r p o r a t i o n , 1945 . v • 7 o . A / T.D.N, an n u a l = . 3 0 5 (L$ P.CM.) + (0 . 0 5 3 V V * ) 365 + 2.1-6W Where T.D.N, i s t o t a l d i g e s t i b l e n u t r i e n t s , F.CM., i s f a t cor-r e c t e d m i l k and\/y i s body w e i g h t o f the a n i m a l . I t i s i n t h i s l a t t e r r e s p e c t t h a t the use o f budget s t u d i e s and r e g i o n a l averages i s r e s t r i c t i v e . Most of t h e s e s t u d i e s s t i p u l a t e c e r t a i n f e e d r e q u i r e m e n t s f o r some average q u a n t i t y of m i l k o u t p u t l e a v i n g l i t t l e o r no room f o r the s u b s t i t u t i o n o f one f e e d f o r a n o t h e r . I n p u t - o u t p u t d a t a are based on an "average cow" i n t h e h e r d so t h a t t h e r e i s no s p e c i f i c a t i o n f o r cows of d i f f e r e n t i n h e r e n t a b i l i t y . The use o f p r o d u c t i o n f u n c t i o n s , on the o t h e r hand, a c h i e v e s a more comprehensive s p e c i f i c a t i o n o f i n p u t - o u t p u t r e l a t i o n s h i p s . The P r o d u c t i o n o f F u n c t i o n Approach I d e a l l y a f u n c t i o n d e r i v e d l o c a l l y i s one t h a t i s b e s t s u i t e d s i n c e i t h o l d s r e l a t i v e l y c o n s t a n t t h e e f f e c t o f e n v i r o n -m e n t a l c o n d i t i o n s . The d e r i v a t i o n o f s uch a f u n c t i o n was beyond the scope of t h i s s t u d y so i t was n e c e s s a r y t o u t i l i z e f u n c t i o n s d e r i v e d by o t h e r s . The c h o i c e o f an a p p r o p r i a t e f u n c t i o n was c o n d i t i o n e d by f o u r f a c t o r s : ( l ) the f u n c t i o n s t h a t were a v a i l -a b l e , (2) the a p p r o p r i a t e n e s s o f those t h a t were a v a i l a b l e i n s a t i s f a c t o r i l y r e p r e s e n t i n g known p h y s i o l o g i c a l c h a r a c t e r i s t i c s of m i l k p r o d u c t i o n , (3) the a d a p t a b i l i t y t o the O y s t e r R i v e r f a r m of f u n c t i o n s d e r i v e d i n o t h e r a r e a s and (I4.) the a b i l i t y t o r e -p r e s e n t b o t h the H o l s t e i n and A y r s h i r e b r e e d s . 38 C o n s i d e r a t i o n was g i v e n t o f u n c t i o n s d e r i v e d by K e r r based 38 T.C.Kerr, The Use and Scope of D a i r y Herd Improvement A s s o c i a t i o n Data i n E s t i m a t i n g the F u n c t i o n a l R e l a t i o n s h i p  Between Feed-Input and M i l k Output F o r D a i r y Cows, U n p u b l i s h e d B.S.A. essay, The U n i v e r s i t y of B r i t i s h Columbia, 1 9 6 3 . 56 39 on F r a s e r V a l l e y d a t a , f u n c t i o n s d e r i v e d by G o s s l i n g based on kO O n t a r i o d a t a and an e x p e r i m e n t a l f u n c t i o n d e r i v e d by Heady e t a l . Comparison of the i s o q u a n t s d e r i v e d from th e s e f u n c t i o n s w i t h t h o s e d e r i v e d u s i n g the M i s s o u r i p a r t i t i o n e q u a t i o n i n d i c a t e d t h a t the f o r m e r f u n c t i o n s were s u b j e c t t o the c r i t i c i s m o f not s p e c i f y i n g s u f f i c i e n t T o t a l D i g e s t i b l e N u t r i e n t s f o r the main-tenance of body w e i g h t and p r o d u c t i o n . A f t e r c o n s u l t a t i o n w i t h the A n i m a l Husbandry Department at U.B.C. the M i s s o u r i p a r t i t i o n e q u a t i o n was chosen as t h e b a s i s f o r d e f i n i n g the d a i r y a c t i v i t i e s . I s o q u a n t s d e r i v e d f r o m t h i s e q u a t i o n and r e p r e s e n t i n g b o t h the H o l s t e i n and A y r s h i r e breeds are shown i n f i g u r e s 3 and k. The c h o i c e of p o i n t s r e p r e s e n t i n g d i f f e r e n t c o m b i n a t i o n s of f o r a g e and c o n c e n t r a t e was somewhat a r b i t r a r y . The g e n e r a l l o c a t i o n of s u c h p o i n t s i s b i a s e d i n f a v o u r of r a t i o n s w i t h l a r g e r q u a n t i t i e s of f o r a g e . T h i s was because w i t h l i n e a r i s o q u a n t s and a p r i c e r a t i o of c o n c e n t r a t e t o f o r a g e almost always g r e a t e r than 1, the l e a s t c o s t r a t i o n w i l l have a maximum of f o r a g e and a minimum of c o n c e n t r a t e . F o r p h y s i o l o g i c a l reasons some c o n c e n t r a t e must be f e d and t h i s minimum was s e t a t 3 . 2 5 l b s . of T.D.N, per day. F o r 39 W.F. G o s s l i n g , "The Economics o f the H o l s t e i n - F r i e s i a n Cow", J o u r n a l o f A g r i c u l t u r a l Economics, v o l . XV, no. k,December -1963. W.F. G o s s l i n g , "The O n t a r i o S h o r t Run M i l k S u p p l y Curve", Canadian J o u r n a l of A g r i c u l t u r a l Economics, v o l . X I I , n o . l kO E.O.Heady, J . A . S c h n i t t k e r , N.L.Jacobson and S.Bloom, M i l k  P r o d u c t i o n F u n c t i o n s , H a y / G r a i n S u b s t i t u t i o n Rates and Ec-onomic Optima i n D a i r y Cow R a t i o n s . A g r i c u l t u r a l E x p e r i -m e n t a l S t a t i o n , Iowa S t a t e C o l l e g e , Ames, October 1956, ( R e s e a r c h B u l l e t i n k k k ) . k l See appendix 13 f o r a comparison of p r o d u c t i o n f u n c t i o n s . ^ 5 7 the same r e a s o n the f o r a g e minimum was s e t at 5.1 l b s . T.D.N, d a i l y . The c o m b i n a t i o n s o f f o r a g e and c o n c e n t r a t e d e f i n i n g the a c t i v i t i e s are shown i n appendix I I L . N i n e t e e n a c t i v i t i e s were o r i g i n a l l y d e f i n e d i n t h i s manner f o r i s o q u a n t s r a n g i n g from 25 l b s . of kf° P.CM. t o 50 l b s . of P.C.M. per day. Subse-q u e n t l y the f o u r l o w e r p r o d u c i n g a c t i v i t i e s were dropped when i t was d i s c o v e r e d t h a t they had n e g a t i v e net p r i c e s . T o t a l T.D.N, r e q u i r e m e n t s (see f i g u r e 3) f o r an average A y r s h i r e cow under s t i p u l a t e d l e v e l s of ou t p u t a re as f o l l o w s : D a i l y D a i l y T.D.N. Requirements Output of ] $ P.CM. Annual b a s i s . 305 day L a c t a t i o n b a s i s . LBS. LBS. II4..I4.5 25.0 17.70 35.0 19.00 1+0.0 20.30 1+.5.0 Body w e i g h t of the a n i m a l was assumed t o average 1100 l b s . , t a k i n g i n t o account some l o s s o f w e i g h t d u r i n g l a c t a t i o n and subsequent recovery;.' d u r i n g the d r y p e r i o d . The method was a l s o used t o r e p r e s e n t an average H o l s t e i n cow except t h a t an average w e i g h t o f 1300 l b s . was u s e d . T o t a l T.D.N, r e q u i r e m e n t s (see f i g u r e I4.) f o r s t i p u l a t e d l e v e l s o f o u t p u t a r e : D a i l y T.D.N. D a i l y Output Requirements. h$> F.C.M. 305 days A n n u a l b a s i s L a c t a t i o n b a s i s LBS. LBS. 19.0 35.0 21.5 1+5.0 22.5 50.0 Lbs T.D.N, concentrate per day (annual basis) CD CO tET •a CD CD CO CD 3 O O et "1 CD O 8 * 59 The s e l e c t e d p o i n t s on the i s o q u a n t s of f i g u r e s 3 and 1+ were used t o c a l c u l a t e l a n d c o e f f i c i e n t s . - The amount o f forages T.D.N, s p e c i f i e d at each p o i n t was c o n v e r t e d t o a c t u a l l b s . of f o r a g e (assuming f o r a g e c o n t a i n s %0% T.D.N.) and m u l t i p l i e d by. 365 days. To t h i s was added the a n n u a l r e q u i r e m e n t s of. the s u p p o r t i n g s t o c k . T h i s t o t a l was then d i v i d e d by 2 0 0 0 l b s . times a y i e l d o f 2.8 tons of hay e q u i v a l e n t p e r a c r e t o a r r i v e a t t h e l a n d c o e f f i c i e n t f o r each d a i r y a c t i v i t y . The l a n d co-e f f i c i e n t s are p r e s e n t e d i n Table X . The p o i n t s i n f i g u r e s 3 and 1+ were used i n c a l c u l a t i n g the f e e d c o s t f o r i n c l u s i o n as p a r t of the o p e r a t i n g c a p i t a l c o e f f i c i e n t s . They a l s o p r o v e d u s e f u l i n p a r t i a l l y d e f i n i n g the l a b o u r r e q u i r e m e n t s . TABLE XC LAND COEFFICIENTS FOR THE DAIRY ACTIVITIES ACTIVITY ACRES A 2 AQ 1. 1314 1.653 1 . 9 6 6 1.31+0 1.731 2 . 1 2 2 1.31+0 1 . 7 3 1 ACTIVITY ACRES A 9 A 10 L l l L12 A: 13 L i 5 2 . 1 2 2 1 . 0 8 3 1.61+0 2 . 1 2 2 1.31+0 1 . 7 3 1 2 . 1 2 2 Other Resource Requirements A l t h o u g h the p r o d u c t i o n f u n c t i o n approach p r o v e d u s e f u l i n d e f i n i n g l a n d r e q u i r e m e n t s by way o f f o r a g e i n p u t s and p a r t i a l d e f i n i n g l a b o u r r e q u i r e m e n t s , i t was n e c e s s a r y t o seek o t h e r Figure 4 Isoquants used to represent pro-duction per day of the Holstein cow based on the Missouri part-ition equation. (Weight per cow= 14 1300 lbs.) 3 5 4 5 5 0 da i l y outputs per cow 6 9 12 15 18 21 Lbs T.D.N, roughage per day (annual basis) 2 4 © .61 s o u r c e s t o determine r e s o u r c e r e q u i r e m e n t s f o r l a b o u r , o p e r a t i n g c a p i t a l and b u i l d i n g space. The main s o u r c e s used were the r e -g i o n a l s t u d i e s c i t e d p r e v i o u s l y f o r Vancouver I s l a n d , and the F r a s e r V a l l e y and the budget s t u d i e s f o r Washington S t a t e . Labour Requirements The l a b o u r r e q u i r e m e n t s f o r the d a i r y a c t i v i t i e s were based 1+2 on s t a n d a r d s f o u n d i n Sorboe and Woodward's s t u d y . These s t a n d a r d s r e p r e s e n t the number of 1 0 h r . days r e q u i r e d a n n u a l l y t o care f o r a u n i t o f crop or. l i v e s t o c k . Because the O y s t e r R i v e r farm o p e r a t e s on an 8 hour day the 1 0 hour day s t a n d a r d s were c o n v e r t e d t o an 8 hour day b a s i s . I t s h o u l d be r e c o g n i z e d t h a t the use o f these c o e f f i c i e n t s i m p l i e s a c e r t a i n l e v e l o f l a b o u r e f f i c i e n c y . Labour e f f i c i e n c y w i l l be a f f e c t e d by the type and q u a n t i t y o f c a p i t a l equipment w i t h w h i c h i t i s combined, and by the form ( p a s t u r e , hay, s i l a g e ) i n w h i c h f o r a g e i s f e d . C o e f f i c i e n t s were a v a i l a b l e f o r d i f f e r e n t methods o f g r o w i n g and h a r v e s t i n g f o r a g e but t h e r e i s no r e f e r e n c e to the degree of m e c h a n i z a t i o n . Under these c i r c u m s t a n c e s i t was assumed t h a t the d a t a r e f e r r e d to "average" farms and t h a t i n t h i s r e s p e c t the O y s t e r R i v e r f a r m was comparable. A n n u a l l a b o u r r e q u i r e m e n t s a r e a u s e f u l c o e f f i c i e n t i n some r e s p e c t s but the demands f o r l a b o u r at peak seasons o f the y e a r i s o f t e n more r e l e v a n t . Labour s u p p l y might be adequate f o r most o f the y e a r b u t f o r a p a r t i c u l a r s e ason o r seasons i t c o u l d be q u i t e l i m i t i n g . C o n s e q u e n t l y i t was d e s i r a b l e t o b r e a k down the t o t a l r e q u i r e m e n t s i n t o s e a s o n a l and monthly components. F o r purposes o f c l a r i t y , r e q u i r e m e n t s f o r growing 1+2 M.M. Sorboe and E.D. Woodx^ard, op. c i t . page 1+9 62 f o r a g e were c o n s i d e r e d s e p a r a t e l y f r o m the r e q u i r e m e n t s o f the chore r o u t i n e . The c a l e n d a r y e a r was d i v i d e d i n t o 9 d i s t i n c t p e r i o d s ; the f i r s t p e r i o d , termed w i n t e r l a b o u r , r e p r e s e n t e d the p e r i o d November 1 s t to F e b r u a r y 2 8 t h . The r e m a i n i n g p e r i o d s were the months f r o m March to October i n c l u s i v e . S i n c e the o r i g i n a l d a t a s o u r c e d i d not e l a b o r a t e on the d i s t r i b u t i o n o f labour., a d i s t r i b u t i o n was made based on t h e b e s t judgement of the w r i t e r . The g e n e r a l p a t t e r n i s t h a t the chore r o u t i n e w i n t e r r e q u i r e m e n t s a r e h i g h and r e l a t i v e l y c o n s t a n t , due m a i n l y t o the demands of f e e d i n g . As the cows g e t more a c c e s s t o p a s t u r e the l a b o u r r e q u i r e m e n t s decrease and r e a c h a f a i r l y c o n s t a n t minimum d u r i n g the g r a z i n g season, ( the r e q u i r e m e n t s f o r the m i l k i n g o p e r a t i o n v a r y l i t t l e f r o m one season t o the n e x t ) . Requirements f o r crops show j u s t the o p p o s i t e p a t t e r n w i t h the t o t a l r e q u i r e m e n t s b e i n g c o n c e n t r a t e d between A p r i l 1 s t and September 3 0 t h and the peak months b e i n g June, J u l y and August. Using t h i s r e a s o n i n g as a g u i d e the' t o t a l r e q u i r e m e n t s 4 3 were a l l o c a t e d i n the manner i n d i c a t e d i n f i g u r e 5« The r e -quirements f o r f o r a g e h a r v e s t i n g and f o r the chore r o u t i n e were the n summed by p e r i o d s . An adjustment f a c t o r was added o r sub-t r a c t e d f r om each p e r i o d s u b - t o t a l r e p r e s e n t i n g the e f f e c t of f e e d i n g more o r l e s s f o r a g e as s p e c i f i e d by the i s o q u a n t s of f i g u r e s 3 and k. The r e s u l t i n g t o t a l i s t h a t p r e s e n t e d i n t a b l e X I . k 3 See appendix 15 f o r d e t a i l s o f the c a l c u l a t i o n o f l a b o u r c o e f f i c i e n t s . 2.0 r forage i.o E 3. O 0 b - C 3.0 i 00 2.0 1.0 1 1 chore routine l i j j l ON Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ure5. Dairy labour requirements of the producing unit by months for growing forage and for the chore routine. a+ T A B L E X I LABOUR C O E F F I C I E N T S FOR THE DA I R Y A C T I V I T I E S 8 Hour Days A C T I V I T Y WINTER MAR. APR. MAY JUNE J U L Y AUG. SEPT. OCT. A-L 7.924 1.6 2.0 1.66 1.775 1.775 1.775 1.285 1.6 A 2 8.012 1.6 2.0 1.66 I.989 1.989 1.989 I.I4.89 1.6 A.3 8.100 1.6 2.0 1.66 2.201+ 2.201+ 2.201+ 1.701+ 1.6 8.032 1.6 2.0 1.66 2.792 2,792 2.792 2.292 1.6 A^ 8.032 1.6 2.0 1.66 2.01+3 2.01+3 2.01+3 1.51+3 1.6 A 6 8.11+1+ 1.6 2.0 1.66 2.312 2.321 2.3211.812 1.6 A ? 7.921+ 1.6 2.0 1.66 1.775 1-775 1-775 1.275 1.6 AQ 8.032 1.6 2.0 1.66 2.01+3 2.01+3 2.01+3 1-51+3 1.6 A 9 8.11+1+ 1.6 2.0 1.66 2.312 2.312 2.312 1.812 1.6 A 1 0 7.852 1.6 2.0 1.66 1.601 1.601 1.601 1.101 1.6 M l 8.008 1.6 2.0 1.66 1.981 1.981 1.981 1.1+81 1.6 A12 8.11+1+ 1.6 2.0 1.66 2.312 2.312 2.312 1.812 1.6 A 1 3 7.921+ 1.6 2.0 1.66 1.775 1.775 1.775 1.275 1.6 A l l + 8.032 1.6 2.0 1.66 1.968 1.968 1.968 1.1+68 1.6 A i 5 8.11+1+ 1.6 2.0 1.66 2.312 2.312 2.312 1.812 1.6 65 O p e r a t i n g C a p i t a l C o e f f i c i e n t s , O p e r a t i n g c a p i t a l c o e f f i c i e n t s were c a l c u l a t e d u s i n g the same r e g i o n a l s t u d i e s o f d a i r y farms on Vancouver I s l a n d and the F r a s e r V a l l e y and the Washington S t a t e budget s t u d i e s . Ex-penses f o r s i m i l a r items were grouped t o a c h i e v e a more r e l i a b l e degree of c o m p a r a b i l i t y between s t u d i e s . Labour c o s t s and f e e d c o n c e n t r a t e c o s t s were c a l c u l a t e d d i r e c t l y from the s e c t i o n s on l a b o u r and l a n d c o e f f i c i e n t s . Labour was v a l u e d at $ l k . 0 0 p e r 8 hour day and c o n c e n t r a t e at $62.00 p e r t o n . Expense items s u c h as v e t e r i n a r y s e r v i c e s and s u p p l i e s , d a i r y s u p p l i e s , a h d e l i v e -s t o c k a s s o c i a t i o n f e e s were e x p r e s s e d on a n a n i m a l u n i t b a s i s and the amount m u l t i p l i e d by the number o f a n i m a l u n i t s i n the u n i t of p r o d u c t i o n . M a c h i n e r y expenses ( v a r i a b l e c o s t s o n l y ) were e x p r e s s e d on a p e r a c r e b a s i s and t h i s amount m u l t i p l i e d by the number of a c r e s o f l a n d s p e c i f i e d f o r each d a i r y a c t i v i t y . A r t i f i c i a l I n s e m i n a t i o n was i n c l u d e d f o r each a c t i v i t y at $8.00 pe r cow. M i l k h a u l i n g was c a l c u l a t e d a t $.200 p e r cwt. m u l t i -p l i e d by the o u t p u t of e a c h a c t i v i t y . I n a l l cases p r o v i s i o n was made f o r the s u p p o r t i n g young s t o c k . The d e t a i l s of c a l -c u l a t i o n are shown i n Appendix 16 and the c o e f f i c i e n t s are p r e s e n t e d i n t a b l e X I I . Net P r i c e s - f o r D a i r y A c t i v i t i e s "The net p r i c e s o f the d a i r y a c t i v i t i e s were c a l c u l a t e d by s u b t r a c t i n g the v a r i a b l e c o s t s ( t h e y are the o p e r a t i n g c a p i t a l r e q u i r e m e n t s ) f r o m the g r o s s v a l u e of o u t p u t . Gross v a l u e of o u t p u t was determined by m u l t i p l y i n g the o u t p u t components of kk Based on average p r i c e s p a i d at O y s t e r R i v e r . 66 the p r o d u c i n g u n i t by t h e i r r e s p e c t i v e market p r i c e . The o u t p u t of the p r o d u c i n g u n i t was composed of m i l k s a l e s and the s a l e of c u l l cows, b r e d h e i f e r s , c a l v e s and y e a r l i n g b u l l s . The c a l c u l , -a t i o n s were as f o l l o w s : 1. M i l k . M i l k s h i p p e d was assumed s o l d as 85$ c l a s s I and 1%% s u r p l u s . A w e i g h t e d a v e r -age based on these p e r c e n t a g e s was c a l c u l -a t e d u s i n g Vancouver I s l a n d m i l k p r i c e averages f o r the p a s t two y e a r s , t o a r r i v e 45 a t a p r i c e o f $ 5 . k 0 per cwt. 2 . B u l l C a l v e s . These were c o n s i d e r e d s o l d w i t h -i n a few days of b i r t h f o r $ 2 0 . 0 0 each. 3 . H e i f e r c a l v e s were a l s o assumed s o l d w i t h i n a few days o f b i r t h , but a t a p r i c e o f $75» k. B r e d H e i f e r s ( t h e excess r e p l a c e m e n t s t o c k ) were assumed s o l d at about 20 months of age f o r $230 each. 5 . C u l l Cow. A y r s h i r e c u l l cows were v a l u e d at $ 1 3 8 . 0 5 and H o l s t e i n s a t $ 1 6 3 . 1 5 - C a l g a r y p r i c e s were a d j u s t e d f o r the r a i l d i f f e r -e n t i a l to Vancouver and f o r t h e i r shipment k6 from O y s t e r R i v e r t o Vancouver. k5 P r o v i n c e o f B r i t i s h Columbia, The M i l k Board A n n u a l  R e p o r t V i c t o r i a , Queens P r i n t e r , 1963, 196k. k6 Dominion Bureau o f S t a t i s t i c s , Q u a r t e r l y B u l l e t i n of  A g r i c u l t u r a l S t a t i s t i c s , Ottawa, Queens P r i n t e r , 1959 - 196k 67 6. B u l l Sales. These were ani m a l s t h a t were r e t a i n e d f r o m the b e t t e r b r e e d i n g s t o c k i n the b e l i e f t h a t t h e y would add revenues at v e r y l i t t l e a d d i t i o n a l c o s t . They were assumed s o l d a t 18 months of age f o r $ 1 5 0 . each. Three a c t i v i t i e s were d e f i n e d f o r each l e v e l of m i l k o u t -put s p e c i f i e d by the i s o q u a n t s o f f i g u r e s 3 and k so t h a t f i v e l e v e l s of o u t p u t a r e r e p r e s e n t e d by t h e l 5 a c t i v i t i e s . The v a l u e of l i v e s t o c k s o l d was however, assumed to be the same f o r a l l a c t i v i t i e s . Remembering t h a t the number of l i v e s t o c k a v a i l -a b l e f o r s a l e was based on a c u l l r a t e of 20% f r o m a h e r d of 82 cows the v a l u e of the u n i t o f o u t p u t was c a l c u l a t e d as f o l l o w s 1. B u l l C a l v e s : 36/82 = .kk a t $ 2 0 . 0 0 2. H e i f e r C a l v e s : 13/82 = . 158 a t $ 7 5 . 0 0 3 . B r e d H e i f e r s : 8/82 = . 0 9 7 a t $ 2 3 - 0 0 k. C u l l Cows: 17/82 = . 2 0 7 a t $ 1 3 8 . 0 5 and $ 1 6 3 . 1 5 5 . Y e a r l i n g B u l l s : 2/82 = . 0 2 k a t $ 1 5 0 . 0 0 To t h i s was added the a p p r o p r i a t e l e v e l of m i l k o u t p u t as spec-i f i e d i n f i g u r e s 3 and k a t a p r i c e o f $ 5 . k 0 per cwt. Gross v a l u e o f o u t p u t , v a r i a b l e c o s t s and net p r i c e s are summarized i n t a b l e X I I f o r each d a i r y a c t i v i t y . B u i l d i n g Space Requirements. The b u i l d i n g space r e q u i r e m e n t s are the same f o r a l l d a i r y a c t i v i t i e s because they were defined i n terms of d i f f e r e n t r e -quirements f o r l a n d , l a b o u r and o p e r a t i n g c a p i t a l . Space r e q u i -68 rements f o r the d a i r y , beef and sheep a c t i v i t i e s are p r e s e n t e d i n Table X I I I . TABLE X I I GROSS VALUE OP OUTPUT, OPERATING CAPITAL COEFFICIENTS AND NET PRICES FOR THE DAIRY ACTIVITIES ACTIV. CWT. GROSS VALUE VARIABLE COSTS NET PRICE MILK OP (1$ P.CM.) OUTPUT (OPERATING CAPITAL COEFFICIENTS) $ $ $ A l 106.75 61+5. «9 ^1+5^1 100.38 A 2 106.75 61+5.89 539.05 106.81+ A3 106.75 61+5.89 515.1+9 130.1+0 \ 122.00 730.91+ 591.27 139.67 A5 122.00 730.91+ 51+9.33 179.61 A6 122.00 730.91+ 528.57 202.37 A ? 106.75 651+.08 566.83 87.25 A 8 106.75 651+.08 51+6.28 107.80 A g 106.75 651+.08 525.83 128.25 A10 137.25 821.1+8 599.10 222.38 A l l 137-25 821.1+8 596.56 221+.92 A12 137.25 821.1+8 571.30 250.18 A13 152.50 903.83 650.50 253.33 A]l+ 152.50 903.83 610.75 293.08 A15 152.50 903.83 565.92 337.91 69 TABLE X I I I BUILDING- SPACE REQUIREMENTS FOR THE DAIRY, BEEF AND SHEEP ACTIVITIES ACTIVITY REQUIREMENTS FOR THE ., .. PRODUCING UNIT ALL DAIRY ACTIVITIES 69.3 s q . f t . BEEF COW-CALF 37.78 s q . f t , COW-YEARLING 57.58 s q . f t , SHEEP 18 s q . f t , SOURCE: M.E. Ensminger, The Stockman's Handbook. D a n v i l l e , I l l i n o i s , I n t e r s t a t e P r i n t e r s and P u b l i s h e r s , 1959, 2nd ed. 7 0 The Beef A c t i v i t i e s Beef e n t e r p r i s e s were c o n s i d e r e d f o r two types of a c t i v i t i e s ; a c o w - c a l f o p e r a t i o n and a c o w - y e a r l i n g o p e r a t i o n . As w i t h the d a i r y o p e r a t i o n the u n i t of p r o d u c t i o n was.one cow and her s u p p o r t i n g young s t o c k . The o u t p u t of each u n i t i n the case of a c o w - c a l f o p e r a t i o n was the s a l e of one c a l f and s a l e of p a r t of a c u l l coxtf. I n the case of a c o w - y e a r l i n g o p e r a t i o n , i t was a 1 0 0 0 l b . s t e e r and p a r t o f a c u l l cow. I n b o t h cases p r o v i s i o n was made f o r f a i l u r e t o c a l f , o r dea t h l o s s e s . The f o l l o w i n g management assumptions were made: 1 ) C a l v e s on the average are b o r n i n the e a r l y p a r t of March. 2 ) I n bo t h types o f e n t e r p r i s e the c a l v e s are weaned i n October. I n the case of a cow-c a l f o p e r a t i o n the c a l f i s c o n s i d e r e d t o be s o l d w i t h i n 2 weeks o f weaning (mid October) and i n the case o f a c o w - y e a r l i n g e n t e r p r i s e the f i n i s h i n g s t e e r was c o n s i d e r e d s o l d as a l o n g y e a r l i n g ( 1 8 months of age) a t 1 0 0 0 l b s . 3) No c o n c e n t r a t e i s f e d to the b r e e d i n g cows, k) Only a l i m i t e d amount of w i n t e r p a s t u r e i s a v a i l a b l e {10%) so t h a t 90% of f o r a g e r e q u i r e -ments f o r the w i n t e r f e e d i n g p e r i o d must be met w i t h s t o r e d f o r a g e 5 ) One b u l l i s capable of s e r v i c i n g k5> cows 6) The c u l l i n g r a t e f o r cows i s 1$% 7 ) A 90% c a l f crop 71 The t e c h n i c a l c o e f f i c i e n t s and net p r i c e s f o r each b e e f a c t i v i t y are p r e s e n t e d i n Table XIV. The l a n d c o e f f i c i e n t s f o r each a c t i v i t y are a f u n c t i o n of t h e i r r e s p e c t i v e f o r a g e r e q u i r e m e n t s . Forage r e q u i r e m e n t s were based on M o r r i s o n ' s s t a n d a r d s and s u b s e q u e n t l y c o n v e r t e d to l a n d c o e f f i c i e n t s u s i n g the p o s t u l a t e d y i e l d of 2 . 5 tons o f d r y m a t t e r +7 p e r a c r e . Labour C o e f f i c i e n t s Labour c o e f f i c i e n t s were c a l c u l a t e d i n the same manner as f o r the d a i r y a c t i v i t i e s . T o t a l r e q u i r e m e n t s were o b t a i n e d u s i n g an average of two independent s o u r c e s of d a t a and the d i s t r i b u t i o n 1+8 by p e r i o d s based on the b e s t judgement of the w r i t e r . F i g u r e 6 shows the d i s t r i b u t i o n by months f o r e a c h a c t i v i t y . i+7 F . B . M o r r i s o n , Feeds and F e e d i n g , C l i n t o n , Iowa The M o r r i s o n P u b l i s h i n g Company, 1959, 22nd ed. ij.8 M. M. Sorboe and E.D. Woodward D a i r y Farming on Vancouver I s l a n d 1 9 6 l op. c i t . p. 1+9; ' J . Strohm ed. P a y o f f to More  Farm P r o f i t s . F o r d Motor Company o f Canada. pT o R e v i s e d f o r C anadian c o n d i t i o n s by C. H. Hodge. o e O J cr C 3 O x : I 00 2 . 0 1.0 0 b cow-yearling operation winter feeding 2.0 1.0 winter feeding f u l l feed ing forage product ion winter f e e d i n g j L no rma l , cho,res , J i L cow-calf operation j forage product ion w i n t e r nor imal ichones i • feeding J t Jan Feb Mar Apr Jun Ju l Aug Sep Oct Nov Dec Figure 6. Beef labour requirements of the producing unit by months for growing forage and for the chore routine. 73 O p e r a t i n g C a p i t a l Requirements^Beef I n c a l c u l a t i n g o p e r a t i n g c a p i t a l r e q u i r e m e n t s c o s t s were b r o k e n down i n t o the f o l l o w i n g c a t e g o r i e s . 1. Labour 2. P u r c h a s e d f e e d 3. P r o f e s s i o n a l s e r v i c e s , v e t i n a r y s u p p l i e s , and. medi-- c i n e s were e x p r e s s e d on a p e r a n i m a l u n i t b a s i s , and m u l t i p l i e d by the number o f a n i m a l u n i t s i n the p r o -d u c i n g u n i t . k. M a c h i n e r y expenses, f u e l o i l and grease were e x p r e s s e d on a p er a c r e b a s i s and the r e s u l t m u l t i p l i e d by the number of a c r e s r e q u i r e d to s u p p o r t the p r o d u c i n g u n i t . Labour r e q u i r e m e n t s as c a l c u l a t e d by a v e r a g i n g the two i n -dependent s o u r c e s , were m u l t i p l i e d by $ l k . 0 0 ( t h e average wage r a t e a t O y s t e r R i v e r ) t o g i v e l a b o u r c o s t . Purchased f e e d r e -quirements were c a l c u l a t e d u s i n g M o r r i s o n ' s f e e d i n g s t a n d a r d s and a f e e d c o n c e n t r a t e c o s t of $62.00 per t o n . C a l c u l a t i o n of c o s t s f o r p r o f e s s i o n a l s e r v i c e s , m e d i c i n e s , and ma c h i n e r y and f u e l expenses were based on A l b e r t a f a r m b u s i n e s s r e p o r t s . Budget s t u d i e s o f beef o p e r a t i o n s i n B r i t i s h Columbia and Oregon were c o n s i d e r e d but r e j e c t e d because t h e y were d e r i v e d under r a n c h k9 r a t h e r t h a n farm c o n d i t i o n s . The d a t a are p r e s e n t e d i n the f o l l o w i n g s e c t i o n on n e t p r i c e s . The o p e r a t i n g c a p i t a l c o e f f i c -i e n t s f o r each a c t i v i t y a re the sum o f the r e s p e c t i v e v a r i a b l e c o s t s . k9 A l b e r t a Department o f A g r i c u l t u r e , Parm Economics Branch, A l b e r t a Farm B u s i n e s s R e p o r t 1963 Edmonton. 7 1 + Net P r i c e s / f o r ;Bee'f- A c t i v i t i e s The v a r i a b l e c o s t s o f o p e r a t i n g c a p i t a l c o e f f i c i e n t s were s u b t r a c t e d f r o m the g r o s s v a l u e of ou t p u t t o y i e l d the net p r i c e , Gross v a l u e o f out p u t x^ ras based on a p r i c e of $ .15 p e r l b . f o r c u l l cows and p r i c e s of $ . 2 1 p e r l b . and $.20 p a r l b . f o r good c a l v e s and good s t e e r s r e s p e c t i v e l y . TABLE XIV TECHNICAL COEFFICIENTS AND NET PRICES FOR THE BEEF ACTIVITIES. RESOURCE COW-CALF COW-YEARLING LAND WINTER LABOUR MARCH LABOUR APRIL LABOUR MAY LABOUR JUNE LABOUR JULY LABOUR AUG. LABOUR SEPT.LABOUR OCT. LABOUR OP. CAPITAL ($ ' 0 0 ) BUILDING SPACE. •' 2 . 5 8 0 days 0 . 5 0 0 days 0.131+ days 0 . 2 3 5 days 0 . 2 3 5 days 0 . 2 3 5 days 0 . 2 3 5 days 0.131+ days 0 . 5 0 0 days . 9 7 3 -v. 3 7 . 7 8 s q . f t . 3.61+0 days 0 . 5 0 0 days 0 . 2 0 0 days 0.1+55 days 0.1+55 days 0.1+55 days 1 , 0 0 0 days 0 . 7 3 0 days 1 .030 days 2.01+1+ •> 5 7 . 5 8 s q . f t . GROSS VALUE OF OUTPUT VARIABLE COSTS NET PRICES $ 1 0 5 . 1 9 $ 9 7 . 2 9 $ 7 . 9 0 $ 219 . 3 0 $ 201+.1+0 $ 11+.73 NOTE: I n one o f t h e a n a l y s e s the n e t p r i c e s were a r t i f i c i a l l y r a i s e d t o determine the e f f e c t i f any,on a p r e v i o u s l y optimum program. The changed n e t p r i c e s were $1+8.67 and $ 3 2 . 3 1 f o r the c o w - c a l f and c o w - y e a r l i n g o p e r a t i o n s r e s p e c t i v e l y . 75 The Sheep A c t i v i t y The sheep a c t i v i t y was i n c l u d e d as a p o s s i b i l i t y t h a t might more e f f e c t i v e l y u t i l i z e the acreage on the upper farm. The e s -t a b l i s h m e n t of a sheep e n t e r p r i s e ..would be c o n d i t i o n a l upon a f a i r l y e x t e n s i v e f e n c e b u i l d i n g o r r e b u i l d i n g program on the upper farm and on the c o n s t r u c t i o n o f s u i t a b l e w i n t e r s h e l t e r on the l o w e r farm. I n the sense t h a t new c o n s t r u c t i o n i s c a l l e d f o r , c o n s i d e r a t i o n of a sheep o p e r a t i o n , d e p a r t s f r o m the l i n e a r programming p r i n c i p l e w h i c h s p e c i f i e s a l l r e s o u r c e s as f i x e d i n the s h o r t r u n . T h i s i s not a s e r i o u s o b j e c t i o n when we c o n s i d e r a somewhat l o n g e r term and when d e p r e c i a t i o n and i n t e r e s t on i n v e s t m e n t are i n c l u d e d as v a r i a b l e c o s t s . The r a t i o n a l e o f t h i s a pproach v i s a v i s t h a t used i n the d a i r y a c t i v i t i e s (where de-p r e c i a t i o n and i n t e r e s t on i n v e s t m e n t were not i n c l u d e d ) i s t h a t i n the l a t t e r case the i n v e s t m e n t has a l r e a d y been, committed and i s no l o n g e r p a r t of the c u r r e n t management d e c i s i o n s . C o n s i d e r -a t i o n o f new i n v e s t m e n t i s a p a r t of c u r r e n t management d e c i s i o n s so d e p r e c i a t i o n and i n t e r e s t must be i n c l u d e d . The c a l c u l a t i o n o f the c o e f f i c i e n t s was based on the f o l l o w -i n g a s s u m p t i o n and management p o l i c i e s : 1. A d u a l purpose b r e e d of sheep would be chosen and the u n i t o f p r o d u c t i o n would be one ewe. 2. The lambing p e r c e n t a g e would be 125$ w i t h ewes b r e d t o lamb i n ' l a t e March. 50 3 . Ewes are b r e d as lambs a t about 9 months o f age. 5>0 F . B . M o r r i s o n , Feeds afrd F e e d i n g op. c i t . page 875« " A t 5 o r 6 y e a r s o f age ewes b r e d as lambs w i l l u s u a l l y have r a i s e d an a p p r e c i a b l y g r e a t e r t o t a l w e i g h t of lambs." 76 Ij.. From May 1 s t t o Nov. 1 s t the ewes (and lambs u n t i l weaning and s a l e ) would f o r a g e on the top f a r m . D u r i n g the w i n t e r months ewes would be housed on the l o w e r farm. 5. S t u d e n t h e l p would be u t i l i z e d i n c a r i n g f o r the sheep d u r i n g the summer months* 6. Lambs would be s o l d i n l a t e August at a w e i g h t of 95 pounds. 7. C a l c u l a t i o n s were b a s e d on a h e r d s i z e of 250 ewes, 192 o f w h i c h would be of b r e e d i n g age. One ram would be a b l e to s e r v e 30 ewes. 8. The peak l a b o u r demands would be as f o l l o w a : -Lambing i n l a t e March. -Docking and c a s t r a t i n g i n A p r i l . - S h e a r i n g o f ewes i n l a t e May. -Weaning and s a l e of lambs i n l a t e August. 9. Lamb l o s s was assumed to be Q%, ewe l o s s 5 $ . As w i t h the o t h e r l i v e s t o c k a c t i v i t i e s , l a n d r e q u i r e m e n t s were based on the f o r a g e r e q u i r e m e n t s o f the ewe (see appendix 20). E s t i m a t e s o f t o t a l l a b o u r r e q u i r e m e n t s were a l l o c a t e d by 5 1 p e r i o d s a c c o r d i n g t o known s e a s o n a l p e aks. The c a l c u l a t i o n of v a r i a b l e c o s t s and n e t p r i c e s was based on a B.C. Department o f 52 A g r i c u l t u r e c i r c u l a r . Table XV i s a summary of the t e c h n i c a l c o e f f i c i e n t s and the n e t p r i c e based on the c a l c u l a t i o n s p r e s e n t e d i n appendix 20. 5 l T o t a l l a b o u r r e q u i r e m e n t s were based on e s t i m a t e s c o m p i l e d by the O n t a r i o Department of A g r i c u l t u r e , Farm Economics and S t a t i s t i c s b r a n c h in.Sheep B u s i n e s s R e p o r t 1962 and Commercial Sheep F l o c k s 1961. 52 B r i t i s h Columbia Department of A g r i c u l t u r e , R a i s i n g Sheep I n B r i t i s h Columbia. V i c t o r i a , 1962 ( L i v e s t o c k c i r c u l a r No.71). 77 TABLE XV TECHNICAL COEFFICIENTS AND NET PRICE .FOR THE SHEEP ACTIVITY LAND 0 . 2 3 1 ac. AUGUST LABOUR 0 . 1 2 5 WINTER LABOUR 0 , 2 0 0 SEPTEMBER LABOUR 0 . 0 5 0 MARCH LABOUR 0 . 2 0 0 OCTOBER LABOUR 0 . 0 5 0 APRIL LABOUR 0.11+5 OPERATING CAPITAL $ 2 2 . 3 5 MAY LABOUR O.lkO BUILDING SPACE l 8 s q . f t . JUNE LABOUR 0 . 0 8 6 JULY LABOUR 0 . 0 8 6 NET PRICE $ 3 . 2 8 The P o t a t o A c t i v i t y The e s t a b l i s h m e n t of a p o t a t o e n t e r p r i s e would r e q u i r e an even g r e a t e r c a p i t a l i nvestment than sheep. N e v e r t h e l e s s because p o t a t o e s appear, a p r i o r i , t o o f f e r c o n s i d e r a b l e o p p o r t u n i t y f o r i n c r e a s e d net r e t u r n s , they were i n c l u d e d . As i n the sheep a c t -i v i t y new in v e s t m e n t was accounted f o r by i n c l u d i n g d e p r e c i a t i o n and i n t e r e s t on i n v e s t m e n t as v a r i a b l e c o s t s . The c a l c u l a t i o n and assumption t h a t f o l l o w were based on c o s t s t u d i e s i n Wash-53 i n g t o n S t a t e and O n t a r i o and on the o p i n i o n of l o c a l a u t h o r i t i e s . The u n i t of p r o d u c t i o n was d e f i n e d as one a c r e and a y i e l d o f 12 tons p e r a c r e was assumed. S i n c e good c u l t u r a l 53 Washington A g r i c u l t u r a l Experiment S t a t i o n s , I n s t i t u t e o f A g r i c u l t u r a l S c i e n c e s , S t a t e C o l l e g e of Washington, P o t a t o P r o d u c t i o n C o s t s i n S e l e c t e d Areas of C e n t r a l  Washington 1954, P u l l m a n , 1958, ( S t a t i o n s C i r c u l a r 3 2 k ) ; O n t a r i o Department of A g r i c u l t u r e , Farm Economics and S t a t i s t i c s Branch E a r l y P o t a t o P r o d u c t i o n C o s t s and  Management, Toro n t o , 1959 . 78 p r a c t i c e s suggest t h a t p o t a t o e s be grown o n l y once e v e r y f o u r or f i v e y e a r s on the same l a n d acreage was l i m i t e d to a maximum of kO a c r e s . The r e q u i r e m e n t s f o r new i n v e s t m e n t i n the form of b u i l d i n g s and machinery were based on t h i s acreage w i t h the r e -s e r v a t i o n t h a t any program a d v o c a t i n g p o t a t o e s a t a s u b s t a n t i a l l y l o w e r l e v e l would be of d o u b t f u l v a l i d i t y . Labour c o e f f i c i e n t s f o r each o f the n i n e p e r i o d s were based on a p r e - h a r v e s t t o t a l of 20 hours p e r a c r e and a h a r v e s t r e q u i r e -ment of I4.8 hours p e r a c r e . T o t a l h a n d l i n g r e q u i r e m e n t s a f t e r h a r v e s t were e s t i m a t e d at 12 hours p e r a c r e . The d i s t r i b u t i o n by p e r i o d s was based on the b e s t judgement of the w r i t e r and i s p r e s e n t e d i n Table XVI. O p e r a t i n g c a p i t a l r e q u i r e m e n t s were d e t e r m i n e d by summing the v a r i a b l e c o s t s a s s o c i a t e d w i t h growing one acre o f p o t a t o e s (See appendix 21) and one y e a r ' s d e p r e c i a t i o n and i n t e r e s t on i n v e s t m e n t f o r the new b u i l d i n g s and equipment t h a t w o u l d be r e q u i r e d . The b u i l d i n g space c o e f f i c i e n t was chosen t o l i m i t the acreage i n p o t a t o e s to kO a c r e s , though i n f a c t 100 tons o f p o t a t o e s r e q u i r e about k300 cu. f t . o f space p l u s space f o r 5k h a n d l i n g . The net p r i c e was c a l c u l a t e d by s u b t r a c t i n g the v a r i a b l e c o s t s (as above) from the g r o s s value o f o u t p u t o f one a c r e . Gross v a l u e o f o u t p u t was c a l c u l a t e d on t h e b a s i s of 12 t o n y i e l d per a c r e and a p r i c e . o f $5k.00 per t o n . 5k B r i t i s h Columbia Department of A g r i c u l t u r e , F i e l d Crops Branch, P o t a t o Growing i n B r i t i s h Columbia. V i c t o r i a , Queens P r i n t e r , 1952, ( B u l l e t i n No. 8 6 r e v i s e d ed.) p. 21. 79 The t e c h n i c a l c o e f f i c i e n t s and net p r i c e are summarized i n Table XVI and the c a l c u l a t i o n s are p r e s e n t e d i n appendix 2 1 . TABLE XVI TECHNICAL COEFFICIENT'S AKD.:NET PRICE FOR THE POTATO ACTIVITY LAND WINTER MARCH APRIL MAY JUNE JULY LABOUR LABOUR LABOUR LABOUR LABOUR LA30UR 1 A c r e 1.^00 days . 3 7 5 days . 5 0 0 days .375 days •375 days .375 days . 5 0 0 days 6 . 0 0 0 days AUGUST LABOUR SEPTEMBER LABOUR OCTOBER LABOUR OPERATING CAPITAL $14.13. BUILDING SPACE 172 sq f t , NET PRICE $ 2 3 2 . 0 0 The I n c l u s i o n o f P u r c h a s i n g and D i s p o s a l A c t i v i t i e s and Resource S u p p l i e s  Having d e f i n e d the t e c h n i c a l c o e f f i c i e n t s and n e t p r i c e s f o r the p r o d u c i n g a c t i v i t i e s t h e nex t s t e p s were t o add the p u r -c h a s i n g and d i s p o s a l a c t i v i t i e s and to d e f i n e r e s o u r c e r e s t r i c -t i o n s . The s u p p l y of a r e s o u r c e w i l l a c t as an e f f e c t i v e c o n s t r a i n t i n m a x i m i z i n g the f u n c t i o n a l o n l y t o the e x t e n t that the s u p p l y cannot be augmented by a p u r c h a s i n g a c t i v i t y . I n p r a c t i c e the s u p p l y o f l a b o u r can be augmented by h i r i n g and the s u p p l y o f l a n d " i n c r e a s e d " by p u r c h a s i n g hay. P r o v i s i o n was made to a l l o w purchases of l a b o u r i n a l l n i n e p e r i o d s and f o r the purch a s e o f hay. The p u r c h a s i n g a c t i v i t i e s were i n c o r p o r a t e d i n t o the pr o b -lem by p l a c i n g a - 1 . 0 c o e f f i c i e n t o p p o s i t e the a p p r o p r i a t e r e s o u r c e and a z e r o e l s e w h e r e . The p r i c e o f the p u r c h a s i n g a c t i v i t y i s 8 0 e x p r e s s e d as a n e g a t i v e t o account f o r t h e f a c t t h a t i t s i n t o -d u c t i o n w i l l s u b t r a c t f r o m p r o f i t s . The d i s p o s a l a c t i v i t i e s have a 1. i n the a p p r o p r i a t e row and column r e p r e s e n t i n g non-use of the r e s o u r c e . Table X V I I shows the i n i t i a l s i m p l e x m a t r i x of c o e f f i c i e n t s ( e x c l u d i n g the u n i t m a t r i x of d i s p o s a l a c t i v i t i e s ) . The s u p p l y of r e s o u r c e s was d e f i n e d i n terms o f the e f f e c t -i v e s u p p l y r a t h e r than the apparent s u p p l y . That i s , l a n d s u p p l y was d e f i n e d e x c l u s i v e of the f a r m s t e a d area^ uncleared-'areas ahd^'arei a l r e a d y committed to a t e a c h i n g o r r e s e a r c h f u n c t i o n . The s u p p l y of l a b o u r was d e t e r m i n e d a f t e r making a l l o w a n c e s f o r h o l i d a y s and v a c a t i o n s . Resource S u p p l i e s 55 LAND A. Lower Farm F i e l d No. 1 E l i t e Seed P l o t s T o t a l A r e a 19.25 a c r e s A r e a A v a i l a b l e f o r farm use F i e l d No. 2 ( n e a r sea) F i e l d No. 3 ( M c l v o r F i e l d ) F i e l d No. LL ( M i d d l e F i e l d ) F i e l d No. 5 ( I n f r o n t o f g r a v e l p i t ) F i e l d No. 6 ( T r a p e s o i d a l f i e l d a d j a c e n t p-Q\the highway, (net) o f l o g house j C o n t i n u e d 9 . 6 7 A c r e s 6.33 Acres 22.20 A c r e s 1 6 . 8 0 A c r e s 8.50 A c r e s 5.00 A c r e s 55 * LAND A. Lower Parm ( c o n t i n u e d ) F i e l d No. 7 (Dyke f i e l d ) 25.30 A c r e s F i e l d No. 8 (Between the highway and M o n t f o r t house) 31.00 A c r e s F i e l d No. 9 (Between M o n t f o r t house and ocean) 28.80 A c r e s F i e l d No.10 ( W i l k i n s o n f i e l d , between the f a r m s t e a d and the ocean) 28.30 A c r e s T o t a l a v a i l a b l e f o r the commercial o p e r a t i o n l 8 l , 9 A c r e s Add non-usable c l e a r e d k.+ 9 . 67 13 . 67  T o t a l C l e a r e d 195.57 A c r e s B. Upper Farm A r e a ( c l e a r e d ) F i e l d No. 1 ( e a s t o f the e n t r a n c e road) 36.00 A c r e s F i e l d No. 2 (west of th e e n t r a n c e road) 59.50 A c r e s F i e l d No. 3 (Low bench) 33.00 A c r e s F i e l d No. k 8.00 A c r e s 136.50 A c r e s . Upper f a r m c l e a r e d acreage was " c o n v e r t e d " to the e q u i v a l e n t i n terms o f l o w e r f a r m a c r e a g e . I n t h i s way i t was o n l y n e c e s s a r y to d e f i n e one type o f l a n d w h i l e s t i l l a c c o u n t i n g f o r the d i f f e r -ences i n p r o d u c t i v i t y . U s i n g y i e l d s of 2.50 tons and 0.75 tons of d r y m a t t e r on the lo w e r and upper f a r m a r e a s r e s p e c t i v e l y , one a c r e o f l o w e r f a r m l a n d w i l l s u b s t i t u t e f o r 2.5 = 3»3k a c r e s o f upper farm l a n d . ~077F The t o t a l u s a b l e a c r e a g e u s i n g t h i s t r a n s f o r m a t i o n i s 55 Acreages were c a l c u l a t e d u s i n g a p a r t i a l s u r v e y complemented by the use o f a e r i a l photographs and a p l a n i m e t e r . §2 1 8 2 . 0 0 a c r e s p l u s 1 3 6 . 5 = 2 2 3 . 0 0 a c r e s . 3.31+ BUILDINGS A. Dairy-L o a f i n g b a r n (1961+) 1+1+' x 167' 106 s t a l l s Covered . H o l d i n g A r e a 121+' x 2 0 ' L o a f i n g and Feeding 167 ' x 77 ' Equipped w i t h c e n t r a l f e e d i n g T o t a l D a i r y A r e a 731+8 s q . f t . B. / Beef B a r n . P o l e Frame C o n s t r u c t i o n . O v e r a l l s i z e 180' x 6 0 ' , 321+ l i n e a l f e e t o f f e e d i n g space a c c e s s i b l e f r o m 1+ pens 18-g-' x 8 l ' f o r a t o t a l l i v e s t o c k a r e a o f 5670 s q . f t . T o t a l A r e a 5670 s q . f t . I t was assumed t h a t d a i r y and beef b u i l d i n g space were i n t e r c h a n g e a b l e so t h a t t o t a l b u i l d i n g space f o r the d a i r y and beef e n t e r p r i s e s was 13018 s q , f t . Feed s t o r a g e space was not 56 c o n s i d e r e d c r i t i c a l . Labour S u p p l y The t o t a l s u p p l y i s composed o f the r e g u l a r f a rm s t a f f p l u s s t u d e n t l a b o u r f o r the summer. An a l l o w a n c e was made f o r the f a c t t h a t most of t h e r e g u l a r s t a f f take t h e i r v a c a t i o n d u r i n g the summer months.. The time a v a i l a b l e f r om the manager f o r ' t h e c ommercial o p e r a t i o n s was e s t i m a t e d a t h a l f t h a t of a . normal worker. The rem a i n d e r of h i s time was t a k e n up w i t h a d -m i n i s t r a t i o n and the non-commercial a c t i v i t i e s . 56 The c a p a c i t y of the 6 s i l o s was e s t i m a t e d at 681+ tons assuming a d e n s i t y o f 1+0 l b s . p e r c u b i c f o o t . 83 The r e g u l a r s t a f f --Manager Herdsmen (3) Mechanic ( l ) Other h e l p (2) 0 . 5 man e q u i v a l e n t s 3 . 0 man e q u i v a l e n t s 1 .0 man e q u i v a l e n t s 2 . 0 man e q u i v a l e n t s S t u d e n t h e l p i s a v a i l a b l e f rom 2 s t u d e n t s f o r t h e summer months, May, June, J u l y and August. The r e g u l a r s t a f f w i l l p r o -v i d e an average o f 2 0 . 5 work days p e r month ( a l l o w i n g f o r v a c a -t i o n s ) and the s t u d e n t s an average of 21+ work days p e r month. A. The l a b o u r s u p p l y f o r the months of May, June, J u l y and August R e g u l a r h e l p Student h e l p 6 . 5 ( 2 0 . 5 ) = 1 3 3 . 7 5 work days p e r month 2 ( 21+ ) = I4.8.OO T o t a l p e r month 1 8 1 . 7 5 ( T h i s was rounded t o 182 days.) B. Labour Su p p l y f o r March, A p r i l , S e p t . and Oct. R e g u l a r h e l p 6.5(21+) 1 5 6 . 0 work days p e r month C, Labour S u p p l y f o r the w i n t e r p e r i o d Nov. 1 s t t h r o u g h t o F e b r u a r y 2 8 t h . 1+ month (156 days p e r month) 621+.00 O p e r a t i n g C a p i t a l S u p p l y The s u p p l y of o p e r a t i n g c a p i t a l i n any one y e a r i s more i n d e t e r m i n a t e t h a n the s u p p l y of o t h e r r e s o u r c e s s i n c e i t l a r g e l y r e s t s on a p p r o v a l o f budget e s t i m a t e s by the U n i v e r s i t y a u t h o r -i t i e s . F o r t h i s r e a s o n t h e a v a i l a b i l i t y o f o p e r a t i n g c a p i t a l was n ot t a k e n t o be a r e s t r i c t i n g r e s o u r c e i n the l i n e a r program-8k raing a n a l y s i s . T h e r e f o r e a l e v e l of $ 7 5 , 0 0 0 . 0 0 was assumed w h i c h s a t i s f i e d the above c o n d i t i o n s and i n a d d i t i o n , a l l o w e d an assessment of the amount of o p e r a t i n g c a p i t a l r e q u i r e d i n the optimum programs.' The i n i t i a l s i m p l e x m a t r i x o f Table X V I I p r o v i d e s a summary of the r e s o u r c e c o e f f i c i e n t s f o r each a c t i v i t y . D a i r y a c t i v i t i e s are r e p r e s e n t e d by numbers 1 t o l 5 ^ w i t h the f i r s t s i x r e p r e s e n t i n g the A y r s h i r e b r e e d and the r e m a i n i n g n i n e the H o l s t e i n b r e e d . A c t i v i t i e s 16 and 17 are the b e e f c o w - c a l f and c o w - y e a r l i n g op-e r a t i o n s r e s p e c t i v e l y . Number 18 i s the sheep a c t i v i t y . Number 19 was l e f t b l a n k and c o u l d have been used to d e f i n e another a c t i v i t y w i t h o u t c h a n g i n g t h e dimensions of the m a t r i x . The p o t a t o a c t i v i t y i s r e p r e s e n t e d by number 2 0 . A c t i v i t i e s 21 to 30 r e p r e s e n t p u r c h a s i n g a c t i v i t i e s f o r hay (number 21) and l a b o u r (numbers 22 to 3 0 ) . Hay p u r c h a s i n g had the e f f e c t of adding to the s u p p l y o f l a n d s i n c e o n l y f o r a g e was assumed grown on the farm. The l a b o u r p u r c h a s i n g a c t i v i t i e s , as p r e s e n t e d , added to the s u p p l y of l a b o u r i n each of the n i n e p e r i o d s but f o r some o f the a n a l y s e s l a b o u r p u r c h a s i n g was r e s t r i c t e d to the months of May, June, J u l y , August and September. F o r these a n a l y s e s the -1. c o e f f i c i e n t s i n the rows r e p r e s e n t i n g the l a b o u r p e r i o d s o f W i n t e r , March, A p r i l and October were r e p l a c e d by z e r o s . D i s p o s a l or non-use a c t i v i t i e s have been o m i t t e d from Table X V I I b u t they would be r e p r e s e n t e d by a s e t of ones r u n n i n g on t h e d i a g o n a l from row 1 column 31 t o row l k column kk. TABLE X V I I THE INITIAL SIMPLEX MATRIX OF REAL ACTIVITIES. RESOURCE LEVEL 1 2 . 3 1+ 5 6 7 8 9 10 LAND 2 2 3 . i . 3 k 1.65 1 .96 1 . 3 k 1 .73 2 . 1 2 i . 3 k 1 .73 2 . 1 2 1 .08 WINTER MARCH LABOUR LABOUR 62k. 156. 7 . 9 2 1 .60 8 . 0 1 1 .60 8 . 1 0 1 .60 8 . 0 3 1 .60 '•':> • 8l 03 1 . 6 0 '/ /•.•> 8-11+ 1 .60 7 i 9 2 1 .60 8 . 0 3 1 .60 8.11+ 1.60 7^.85 1 .60 APRIL LABOUR 156. 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 MAY LABOUR 182. 1 . 6 6 1 .66 1 .66 1 . 6 6 1 . 6 6 1 . 6 6 1 . 6 6 1 . 6 6 1 . 6 6 1. 66 JUNE LABOUR 182. 1 .77 1.99 2 . 2 0 2 . 7 9 2.01+ 2 . 3 1 1 .77 2 . 0 k 2 . 3 1 1 . 6 0 JULY LABOUR 182. . 1 .77 1 .99 2 . 2 0 2 . 7 9 2.01+ 2 . 3 2 1 .77 2.01+ 2 . 3 1 1 . 6 0 AUGUST LABOUR 182. 1 .77 1 .99 2 . 2 0 2 . 7 9 2.01+ 2 . 3 2 1 .77 2.01+ 2 . 3 1 1 . 6 0 SEPT. LABOUR 156. 1 .28 1.1+9 1 .70 2 . 2 9 i . 5 k 1 .81 1 .27 1 . 5 k 1 .81 1 .10 O C T . L A B O U R OPERATING CA?ITAL$-OC) 156. 750. ' 1 . 6 0 ' 5.1+5 1. 60 5 - 3 9 ' 1 .60 5 . 1 5 ' 1 .60 5 - 9 1 1 .60 • 5 . k 9 ' 1 .60 5 . 2 8 ' 1 .60 5 . 6 7 ' 1. 60 ' 5-1+6 1.60 ' 5 . 2 6 1 .60 5 . 9 9 BLDG. SPACE DAIRY OR BEEF 13018. 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 BLDG.- SPACE -. , ..POTATOES 6 8 8 0 . 0 0 0 0 0 0 0 0 0 0 BLDG. SPACE . .. .SHEEP 51+00. 0 0 . 0 0 0 0 0 0 0 0 C o n t i n u e d -TABLE X V I I ( C o n t i THE INITIAL SIMPLEX'MATRIX OF REAL ACTIVITIES RESOURCE • LEVEL 11 . 12 13 15 16 17 18 19 20 LAND 2 2 3 . 1.61+ 2 . 1 2 1.31+ 1 .73 2 . 1 2 1.7Q . - 2 - 2 0 0 . B 3 1 0 1 . 0 WINTER LABOUR 8 . 0 1 8.11+ 7 . 9 2 8 . 0 3 8.11+ 2 . 5 8 3.61+ 0 . 2 0 0 1.25 MARCH 0.50 LABOUR 1. 60 1 .60 1.60 1 .60 1 .60 0.50 0 . 2 0 0 0 . 3 7 APRIL LABOUR 2 . 0 0 2 . 0 0 2 . 0 0 2 . 00 2 . 0 0 0 . 1 3 0.2.0 0.11+ 0 0.50 MAY LABOUR 1 . 6 6 1 . 6 6 1 . 6 6 1 .66 1 . 6 6 0 . 2 3 o.i+5 0.11+ 0 0 . 3 7 JUNE LABOUR 1 .98 2 . 3 1 1 .77 1 .97 2 . 3 1 0 . 2 3 o.j+5 0 . 0 9 0 0 . 3 7 JULY LABOUR.. 1 .98 2 . 3 1 1 .77 1 .97 2 . 3 1 0 . 2 3 0.1+5 0 . 0 9 0 • 0 . 3 7 AUGUST LABOUR 1.9'8 2.31 1.77 1.97 2.31 0.23' 1.00 0 . 1 2 0 0.50 SEPT. LABOUR 1.1+8 1;6M 1 .27 1.1+7 1 . 8 1 0 . 1 3 0 . 7 3 0.05 0 6 . 0 0 OCT. LABOUR - 1 .60 1 .60 1 .60 1 . 6 0 1 . 6 0 0.50 1 . 0 3 0.05 0 • 0 OPERATING 1+.15 ' . CAPITAL 5.96 5.71 6.50 6.11 5 .66 0.97. 2.01+ . 2 2 3 0 BLDCT. " SPACE -DAIRY OR BEEF 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 6 9 . 3 3 7 . 8 5 7 . 6 0 0 0 BLDG .- SPACE - - -. .. .POTATOES 0 0 0 0 • 0 0 0 0 0 1 7 2 . BLDG SPACE .SHEEP 0 0 0 0 0 0 0 0 0 0' C o n t i n u e d -TABLE X V I I (Continued) THE.INITIAL SIMPLEX MATRIX OP REAL ACTIVITIES RESOURCE LEVEL 21 22 23 2k 25 26 27 28 29 : : 30 LAND -1.0 0 0 0 0 0 0 0 - 0 0 WINTER LABOUR 0 -1. 0 0 0 0 0 0 0 0 MARCH LABOUR 0 0 -1. -0 0 0 0 0 0 0 APRIL LABOUR 0 0 0 -1. 0 0 0 0 0 0 MAY LABOUR 0 0 0 0 -1. 0 0 0 0 0 JUNE LABOUR 0 0 0 0 0 -1. 0 0 0 0 JULY LABOUR 0 0 0 0 0 0 • -1. ' • • • ' o • • o • 0 AUGUST LABOUR 0 0 0 0 0 0 0 -1. 0 0 SEPT. LABOUR 0 0 0 0 0 0 0 0 -1 . 0 OCT. LABOUR 0 0 0 •o • • o • • • • -o • • • 0 • ••-o • 0 -1. OPERATING . CAPITAL 1 1 7 , £ 10. .. .10. 10. 10. 10. • 10. 10. 10. 10. BLDG SPACE . DAIRY OR BEEF• 0 0 0 0 0 - 0 0 0 0 0 " BLDG.. .SPACE . . .POTATOES. 0 0 0 0 0 0 0 0 0 0 BLDG. SPACE .SHEEP 0 0 0 0 0 0 0 0 0 0 88 S e t t i n g Up the A n a l y s i s The n e x t s t e p was t o d etermine the a p p r o p r i a t e f o rm o f the a n a l y s i s . The a v a i l a b i l i t y o f an e l e c t r o n i c computer g r e a t l y f a c i l i t a t e d the t a s k o f s o l v i n g the l i n e a r programming problem so i t would have been p o s s i b l e to a n a l y z e a l a r g e number o f d i f f e r -ent s i t u a t i o n s . I t was reasoned however t h a t a more e f f i c i e n t a pproach was to l i m i t the number of a n a l y s e s t o those t h a t p r o -£7 mised to be t h e most m e a n i n g f u l . As a r e s u l t f o u r b a s i c a n a l y s e s were u n d e r t a k e n p o s t u l a t i n g two s e t s o f c i r c u m s t a n c e s . I n the f i r s t , u n r e s t r i c t e d l a b o u r p u r c h a s i n g was compared w i t h l a b o u r p u r c h a s i n g r e s t r i c t e d t o the months of May, June, J u l y , August and September. This c l a s s i f i c a t i o n was chosen to examine the e f f e c t of d e p a r t i n g f r o m the p r e s e n t system where a d d i t i o n a l l a b o u r p u r c h a s i n g i s l a r g e l y r e s t r i c t e d t o the summer months. A l s o , p r e l i m i n a r y s o l u t i o n s s u g g e s t e d t h a t l a b o u r r e s t r i c t i o n s were among the most c r i t i c a l i n a r r i v i n g a t an optimum program thus f o r t i f y i n g the i m p o r t a n c e of an e x a m i n a t i o n o f the two s i t u -a t i o n s . The second s e t of a n a l y s e s compared a s i t u a t i o n t h a t p r e -i n c l u d e d 30 A y r s h i r e cows w i t h one t h a t c o n s i d e r e d a 11 a c t i v i t i e s w i t h o u t r e s t r i c t i o n s . The r e a s o n f o r t h i s c l a s s i f i c a t i o n was to take c o g n i s a n c e of the e x p e r i m e n t a l o b j e c t i v e i n v o l v i n g the A y r -58 s h i r e h e r d . Thus c o n s i d e r a t i o n o f t h e s e s i t u a t i o n s under the 57 The program f o r t h e l i n e a r programming a n a l y s i s was o b t a i n e d f r o m the U.B.C. computing c e n t e r . 58 The A y r s h i r e h e r d at O y s t e r R i v e r i s an i n t e g r a l p a r t of a l o n g t e r m c r o s s b r e e d i n g e x p e r i m e n t . 89 l a b o u r c l a s s i f i c a t i o n mentioned above r e s u l t e d i n f o u r a n a l y s e s . A f i f t h a n a l y s i s was u n d e r t a k e n a f t e r e x amining the r e s u l t s of the f i r s t f o u r . N e i t h e r the b eef n o r the sheep a c t i v i t i e s were p r o f i t a b l e enough t o be i n c l u d e d i n any o f the f i r s t f o u r a n a l -yses so the e f f e c t o f r a i s i n g the p r i c e of t h e s e a c t i v i t i e s w i t h 59 l a b o u r u n r e s t r i c t i v e was examined. The a n a l y s e s may be summarized as f o l l o w s : A n a l y s i s I A n a l y s i s I I A n a l y s i s I I I A n a l y s i s IV A n a l y s i s V c o n s i d e r a t i o n o f a l l a c t i v i t i e s , l a b o u r purchase p e r m i t t e d i n a l l p e r i o d s c o n s i d e r a t i o n o f a l l a c t i v i t i e s , l a b o u r purchase l i m i t e d t o May, June, J u l y , August and September c o n s i d e r a t i o n o f a l l a c t i v i t i e s , 3 0 A y r -s h i r e cows p r e - i n c l u d e d , l a b o u r purchase p e r m i t t e d i n a l l p e r i o d s c o n s i d e r a t i o n of a l l a c t i v i t i e s , 30 A y r -s h i r e cows p r e - i n c l u d e d , l a b o u r purchase r e s t r i c t e d to" the months of May, June, J u l y , August and September t h i s was t h e same as a n a l y s i s I I I except t h a t the n e t p r i c e s of the b e e f and sheep a c t i v i t i e s were r a i s e d . I n each o f the a n a l y s e s a t e s t was conducted of the p r i c e s t a b i l i t y o f a c t i v i t i e s i n the optimum p l a n . I t was u s e f u l t o know the p r i c e range f o r which the p l a n s remained optimum s i n c e a c t i v i t i e s t h a t showed s u b s t a n t i a l s t a b i l i t y about t h e i r net p r i c e c o u l d be recommended w i t h more c o n f i d e n c e . As i t happened o n l y the minimum p r i c e had any p r a c t i c a l s i g n i f i c a n c e f o r p o t a t o e s . They were i n t r o d u c e d t o the maximum a t a net p r i c e of $232. per 59 The h i g h e r net p r i c e c o r r e s p o n d e d to the h i g h e s t market p r i c e s f o r c a l v e s , s t e e r s and lambs over the p a s t f i v e y e a r s . 90 60 acre and a h i g h e r p r i c e would not b r i n g more u n i t s i n t o the p l a n . The R e s u l t s of the Analyses A n a l y s i s I A summary of a n a l y s i s I i s presented i n Table X V I I I . The optimum p l a n recommends 86 cows producing 5>0 l b s . of h$> P.CM. per day, lj.0 acres of potatoes and labour purchasing f o r the win t e r p e r i o d , A p r i l , June, J u l y , August and September. March labour, May la b o u r and October labour are i n excess supply, as i s o p e r a t i n g c a p i t a l and b u i l d i n g space f o r d a i r y (or beef) and sheep. Ten i t e r a t i o n s were r e q u i r e d b e f o r e the optimum p l a n was r e a l i z e d with the f u n c t i o n a l i n c r e a s i n g from $25,890.9+ i n the f i r s t to $33,398.81 i n the l a s t . The o r d e r i n which a c t i v i t i e s e n ter the program depends on the u n i t s i n which they are d e f i n e d . Whether an a c t i v i t y w i l l remain i n the p l a n depends on i t s ' : mar-g i n a l r a t e of s u b s t i t u t i o n w i t h o t h e r a c t i v i t i e s i n terms of the s c a r c e s t r e s o u r c e ( s ) . As the i t e r a t i o n s proceed,the m a r g i n a l r a t e s o f s u b s t i t u t i o n change as other resources become more l i m i t i n g . In the f i r s t i t e r a t i o n of Table X V I I I the t o t a l supply of . 6 1 w i n t e r labour was exhausted i n producing 76.3 u n i t s of d a i r y l£. In the second i t e r a t i o n the remaining supply of September labour was "converted" to a l e s s than maximum amount of potato a c t i v i t y . 60 As mentioned e a r l i e r potatoes were l i m i t e d to a maximum of I4.O acres t o be c o n s i s t e n t w i t h good r o t a t i o n a l p r a c t i c e s . 61 The number of cows was determined by d i v i d i n g the value of the f u n c t i o n a l by the net p r i c e of a c t i v i t y l£. 91 At t h i s p o i n t i t became p r o f i t a b l e t o h i r e w i n t e r l a b o u r so t h a t i t was no l o n g e r r e s t r i c t i v e . A p r i l l a b o u r t h e n became the most r e s t r i c t i v e . I n t u r n i t became p r o f i t a b l e to h i r e l a b o u r f o r A p r i l , August and June as e a c h became r e s t r i c t i v e . No change o c c u r r e d i n the v a l u e of the f u n c t i o n a l between i t e r a t i o n 5 and i t e r a t i o n 6 but the f u n c t i o n a l was i n c r e a s e d i n i t e r a t i o n " ? by removing p o t a t o e s f r o m the p l a n and p u r c h a s i n g J u l y l a b o u r . The a c t i v i t y , d a i r y 15, o r i g i n a l l y came i n at a l e v e l o f 76.3 cows so the e f f e c t o f the l a b o u r p u r c h a s i n g a c t i v i t i e s was t o p e r m i t an i n c r e a s e i n t h e number of cows t o 86.2. P o t a t o e s r e - e n t e r e d the p l a n i n the 9th i t e r a t i o n u s i n g up a l l o f t h e r e m a i n i n g l a n d . The f i n a l r e s t r i c t i o n f o r p o t a t o e s was p o t a t o b u i l d i n g space w h i c h p r o v e d more l i m i t i n g t h a n March l a b o u r so 3 days of March l a b o u r were r e t u r n e d to d i s p o s a l . The S t a b i l i t y of the Optimum Program W i t h R e s p e c t to P r i c e Changes  f o r D a i r y 15 and P o t a t o e s . :-' Remembering t h a t an optimum p l a n has been a c h i e v e d when the 62 net m a r g i n a l revenues of r e a l a c t i v i t i e s not i n the p l a n are g r e a t e r than o r e q u a l to z e r o ( & j - C j > 0 ) , any change i n p r i c e t h a t w i l l cause a n e g a t i v e ft j — C.j w i l l r e s u l t i n a p l a n becoming s u b - o p t i m a l . 6 2 The Zj-C-j v a l u e s r e p r e s e n t the net m a r g i n a l revenues of p r o d u c i n g a p a r t i c u l a r a c t i v i t y . The f a c t t h a t a n e g a t i v e Z , J ~ C j w i l l i n c r e a s e p r o f i t i f the a c t i v i t y i s i n t r o d u c e d i s due to the f o r m u l a t i o n o f the c r i t e r i o n e q u a t i o n , e . g . ••, i f the c r i t e r i o n e q u a t i o n was C j—25 -j a p o s i t i v e v a l u e would add t o p r o f i t . TABLE X V I I I ANALYSIS CONSIDERATION OF ALL ACTIVITIES LABOUR PURCHASE PERMITTED IN ALL PERIODS ACTIVITY OR RESOURCE 'IN DAIRY # l 5 POTATOES WINTER LAB.PUR APRIL LAB.PUR. AUG . LAB . PURCH . JUNE LAB. PUR. JULY LAB. PUR. SEPT.LAB.PURC. POTATOES MARCH LAB.DISP ACTIVITY OR RETURN TO LEVEL OF ACTIVITY RESOURCE OUT FIXED FACTORS IN THE $_ OPTIMUM PLAN WINTER LABOUR SEPT. LABOUR .APRIL LABOUR AUGUST LABOUR JUNE LABOUR JULY LABOUR POTATOES MARCH LABOUR LAND .POTATO BLDG. RESOURCES IN DISPOSAL MAY LABOUR OCTOBER LABOUR OPERATING CAPITAL DAIRY.& BEEF BLDG. SHEEP BLDG.. 2 5 , 8 9 0 . 9 k 2 6 , k 3 1 . 2 7 2 6 , 6 8 8 2 6 , 8 0 6 2 6 , 8 2 7 26, 827 2 7 , 6 4 6 2 9 , 3 4 6 3 2 , 8 1 7 74 99 27 27 95 52 41 3 3 , 3 9 8 . 8 1 86 cows 40 a c r e s 1 2 8 , 3 days 3 1 . 5 days 32.4 days 32 .4 days 37.4 days 240.3 days 4o.O Ac r e s 3.0 3 . 8 days 8.0 days $5 ,773. 7,042 s q . f t . 5,400 s q . f t . NOTE: Number of cows has been rounded to the n e a r e s t whole number. THE STABILITY OF THE OPTIMUM PLAN WITH RESPECT TO PRICE ACTIVITY NET PRICE MAX.STABILITY MINIMUM STABILITY IN.THE.PLAN PRICE PRICE DAIRY #15 $ 3 3 7 . 9 1 POTATOES 2 3 2 . 0 0 $ 4 3 8 . 2 4 $ 3 3 4 - 8 5 $ 1 5 8 . 7 6 NOTE: The r e t u r n t o f i x e d f a c t o r s of. p r o d u c t i o n i s synonymous w i t h the v a l u e of t h e f u n c t i o n a l . 2 j - C j has been d e f i n e d as ]T C ^ r ^ r C . i J J A l t e r n a t i v e l y B J - C J = C d r d j + Z9.iT±i - C^ where the summa-t i o n over i i n c l u d e s a l l rows except the d a i r y row and C d and 63 r d r e f e r t o the d a i r y a c t i v i t y . C o n s i d e r now a change i n the p r i c e of the d a i r y a c t i v i t y . The new Sj-Gj d e s i g n a t e d -&j-Cj ' may-be w r i t t e n Z . - C . 1 = £ k C , r , . + ( Z . - C . ) where the summation over i i n c l u d e s J J . J J J a l l rows o t h e r than the d a i r y row. Now f o r any change i n p r i c e ^ C d such t h a t Z J - C J ' ^ 0 the p l a n of Table X V I I I i s optimum. F o r S j - C j ' ^ 0 the p l a n becomes s u b - o p t i m a l , i . e . i f (1) " ^ ^ d * r d i + ^ i " G i ^ »^ 0 then the p l a n becomes sub-optimum. (2) R e a r r a n g i n g ( l ) we g e t the c o n d i t i o n t h a t A c ^ ^ Z . - C . I f we a r e c o n s i d e r i n g an i n c r e a s e i n p r i c e t h e n ^ C ^ j _ s p o s i t i v e . Z j - C j must a l s o be p o s i t i v e o r t h e p l a n i n Table X V I I I would not be optimum, t h e r e f o r e the c o e f f i c i e n t r ^ j must be n e g a t i v e . S i m i l a r r e a s o n i n g a p p l i e s i n d e t e r m i n i n g the p r i c e below w h i c h the p l a n i n Table X V I I I becomes sub-optimum. That i s , a p r i c e d e c l i n e A C ^ ^  Z j - C j w i l l d e f i n e a new optimum program where r ^ j takes on a p o s i t i v e J v a l u e . The computer o u t p u t c o n t a i n e d the i n f o r m a t i o n of Table X V I I I , the Z j - C j v a l u e s (termed "shadow c o s t s " ) and the f i n a l m a t r i x of the s i m p l e x s o l u t i o n . R e f e r e n c e to the columns headed " v a r i a b l e 63 The rd4 c o e f f i c i e n t s r e f e r r e d t o a r e thos e of the f i n a l m a t r i x w h i c h because o f i t s l e n g t h has been o m i t t e d . 9 4 i n " and " v a r i a b l e o u t " i d e n t i f i e d the d a i r y row. The Z j - C j ' v a l u e s were d i v i d e d by the n e g a t i v e r ^ j c o e f f i c i e n t s i n the d a i r y row to f i n d the s m a l l e s t p r i c e r i s e above w h i c h the p l a n becomes s u b - o p t i m a l . D i v i s i o n by the p o s i t i v e r ^ c o e f f i c i e n t s d e f i n e d the lo w e r l i m i t . The maximum i n c r e a s e i n p r i c e was c a l -6k c u l a t e d as 47.288 o r - 1 0 0 . 3 3 5 . Adding t h i s to the net -0.4713 p r i c e of $337.91 we g e t an upper l i m i t of s t a b i l i t y of $ k 3 8 . 2 k . A t p r i c e s above t h i s the p l a n i n Table X V I I I becomes sub-optimum. P e r f o r m i n g the same c a l c u l a t i o n s w i t h t h e p o s i t i v e r ^ j the maximum decrease i n p r i c e c o n s i s t e n t w i t h s t a b i l i t y was $3.06 . S u b t r a c t i n g t h i s from $337.91 y i e l d s a l o w e r l i m i t o f s t a b i l i t y of $ 3 3 4 . 8 5 . I n the case o f p o t a t o e s i t was o n l y n e c e s s a r y t o d e t e r m i n e the l o w e r l i m i t o f s t a b i l i t y . The s m a l l e s t p o s i t i v e Z j - C -r d j was c a l c u l a t e d t o be $73 . 4 1 • T b e l o w e r range o f s t a b i l i t y was $ 2 3 2 . - $ 7 3 . 4 1 o r $ 1 5 8 . 7 6 . I t i s i m p o r t a n t t o remember i n d i s c u s s i n g p r i c e s t a b i l i t y t h a t we a r e d e a l i n g w i t h o n l y one a c t i v i t y a t a time and a l l o t h e r p r i c e s a i d c o e f f i c i e n t s r e m a i n c o n s t a n t . The range o f s t a b i l i t y f o r the d a i r y a c t i v i t y i s v a l i d o n l y when the p r i c e o f the p o t a t o a c t i v i t y i s h e l d c o n s t a n t , a t i t s o r i g i n a l l e v e l . S i m i l a r l y the lo w e r range f o r p o t a t o e s i s v a l i d o n l y when the p r i c e o f the d a i r y a c t i v i t y i s h e l d c o n s t a n t . T h i s need n ot be a s e r i o u s l i m i t a t i o n when the r e are o n l y two p r o d u c i n g a c t i v i t i e s i n the optimum p l a n . Furthermore the 64 I t i s the a b s o l u t e v a l u e o f the change t h a t i s c o n s i d e r e d . f a c t t h a t the p o t a t o n e t p r i c e ($232.) i s w e l l w i t h i n the l o w e r l i m i t o f s t a b i l i t y (158.76) l e n d s s u b s t a n t i a l s u p p o r t to the recommendation o f a p o t a t o e n t e r p r i s e . I n the case of t h e d a i r y a c t i v i t y (number 15) the net p r i c e i s b i a s e d toward the l o w e r l i m i t so t h a t a p r i c e d e c l i n e g r e a t e r t h a n $3.06 w i l l cause the p l a n t o become sub-optimum. A g a i n , t h i s i s not a s e r i o u s l i m -i t a t i o n because the next h i g h e s t p r i c e d a i r y a c t i v i t y (number lL}.) 65 w i l l e n t e r . A n a l y s i s I I . The second a n a l y s i s i s summarized i n Table XIX. The f u n c t i o n a l was maximized at $30,967.70 o r about $2l|00. l e s s t h a n i n the f i r s t a n a l y s i s where l a b o u r p u r c h a s i n g was not r e s t r i c t e d . The most r e s t r i c t i n g r e s o u r c e s were l a b o u r f o r August, September and the W i n t e r p e r i o d and p o t a t o b u i l d i n g space. Land, though r e s t r i c t i v e i n A n a l y s i s I , was i n excess s u p p l y . A c t i v i t y 15 ( d a i r y ) was the f i r s t t o e n t e r the program, c o m p l e t e l y r e p l a c i n g w i n t e r l a b o u r . I n the second i t e r a t i o n p o t a t o e s e n t e r e d at a l o w e r than maximum l e v e l and e x h a u s t e d the r e m a i n i n g September l a b o u r . September labour, p u r c h a s i n g then became p r o f i t a b l e and September l a b o u r ceased to be a r e s t r i c t i o n * August l a b o u r became r e s t r i c t i v e and was s u p p l e -mented by its.- p u r c h a s i n g a c t i v i t y . I n the f i n a l i t e r a t i o n the s u p p l y of p o t a t o b u i l d i n g space was e x h a u s t e d . The number of cows e n t e r i n g the f i r s t i t e r a t i o n exceeded t h a t i n the f i n a l i t e r a t i o n as p o t a t o e s were g r a d u a l l y i n t r o d u c e d to the maximum p e r m i t t e d by b u i l d i n g s p ace. The range of p r i c e s t a b -65. T h i s was c o n f i r m e d bv c a l c u l a t i n g new Z j - C j v a l u e s for. a c t i v i t i e s U4., 16, 17 and 18 u s i n g a p r i c e f o r a c t i v i t y 15 j u s t below the l o w e r l i m i t o f s t a b i l i t y . Only number llj. had a n e g a t i v e Z j - C j „ i l i t y was c a l c u l a t e d as i n A n a l y s i s I . The p l a n w i l l r e m a i n optimum f o r d a i r y p r i c e s o f $ 3 0 3 . 5 7 to $ 1 1 2 2 . 5 8 and f o r p o t a t o net p r i c e s g r e a t e r t h a n o r e q u a l to $ 1 1 0 . 2 k p e r a c r e . A n a l y s i s I I I . The t h i r d a n a l y s i s i s summarized i n Table XX and c o n t a i n s a b u i l t i n r e s t r i c t i o n of t h i r t y A y r s h i r e cows w i t h a l l o t h e r 66 a c t i v i t i e s r e m a i n i n g as b e f o r e . Labour purchases were p e r m i t t e d i n a l l p e r i o d s . I t i s e s s e n t i a l l y the same as A n a l y s i s I except t h a t the r e s o u r c e s u p p l i e s have been r e d u c e d by t h e r e q u i r e m e n t s f o r the 30 A y r s h i r e cows. The l a b o u r p u r c h a s i n g a c t i v i t i e s d i f f e r o n l y f r a c t i o n a l l y and t h e r e a r e d i f f e r e n c e s i n the q u a n t i t i e s of s u r p l u s r e s o u r c e s . The a c t i v i t i e s e n t e r the p l a n i n the same o r d e r as i n I and r e s o u r c e s a r e e x h a u s t e d i n the same o r d e r . The f i n a l m a t r i x and the Z j - C j v a l u e s are i d e n t i c a l so the same range of s t a b i l i t y a p p l i e s i n b o t h c a s e s . That i s , the p l a n w i l l r e m a i n optimum f o r D a i r y p r i c e s between $ 3 3 k . 8 5 and $ k 3 8 . 2 k and f o r p o t a t o n e t p r i c e s g r e a t e r t h a n o r e q u a l t o $ 1 5 8 . 7 6 per a c r e . The r e t u r n to f i x e d f a c t o r s must be i n c r e a s e d by the net p r i c e of the 30 A y r s h i r e s r e s u l t i n g i n a t o t a l r e t u r n of $ 2 9 , 3 2 k . 5 l . This was $k,0 7 k . 3 0 l e s s t h a n i n • the f i r s t a n a l y s i s due to the lo w e r n et p r i c e of t h e A y r s h i r e a c t i v i t y . 66 The A y r s h i r e cow was r e p r e s e n t e d by a c t i v i t y number 6 . 97 TABLE XIX  ANALYSIS I I CONSIDERATION OP ALL ACTIVITIES LABOUR PURCHASES LIMITED TO MAY, JUNE JULY, AUGUST AND SEPTEMBER ACTIVITY OR RESOURCE IN ACTIVITY OR RESOURCE OUT . RETURN TO FIXED FACTORS LEVEL OF ACTIVITY IN THE OPTIMUM PLAN DAIRY #15 WINTER LABOUR POTATOES SEPT. LABOUR SEPT.LAB.PURCH.AUG. LABOUR AUG. LAB. PURCH .POTATO BUILD. RESOURCES IN DISPOSAL LAND MARCH LABOUR APRIL LABOUR MAY.. LABOUR JUNE LABOUR JULY LABOUR OCT. LABOUR OPERATING CAPITAL DAIRY.& BEEP BLDG. SHEEP BLDG._ . jp— — 2 5 , 8 9 0 . 9 k 2 6, k 3 1 . 2 ? 3 0 , 1 7 2.26 3 0 , 9 6 9 . 7 0 70 cows ko a c r e s 211 .7 days 0 . 9 days 33 • i+ a c r e s 28.2 days .Ok days 5 0 . 0 days k.O days k.0 days 33»2 days $ 1 7 , 5 8 6 . ••• 8 , 1 3 3 . 6 s q . f t . 5,kOO. s q . f t . THE STABILITY OF THE OPTIMUM PLAN WITH RESPECT TO PRICE. ACTIVITY DAIRY #15 POTATOES NET PRICE OP.ACTIVITY $ 337.91 I 2 3 2 . MIN. STABILITY PRICE. . $ 3 0 3 . 5 7 $110.2I(. .MAX. STABILITY PRICE $ 1 , 1 2 2 . 5 8 98 T A B L E XX-.: A N A L Y S I S I I I C O N S I D E R A T I O N O P A L L A C T I V I T I E S , 30 A Y R S H I R E COWS P R E - 1 N C L U D E D , , L A B O U R P U R C H A S E P E R M I T T E D I N A L L P E R I O D S A C T I V I T Y OR A C T I V I T Y OR R E T U R N T O L E V E L O F A C T I V I T Y R E S O U R C E I N R E S O U R C E O U T F I X E D F A C T O R S I N T H E O P T I M U M $ • P L A N D A I R Y #15 W I N T E R L A B O U R P O T A T O E S S E P T . L A B O U R W I N T E R L A B . P U R C H . A P R I L L A B O U R A P R I L L A B . P U R C H . A U G U S T L A B O U R A U G . L A B . P U R C H . J U N E L A B O U R J U N E L A B . P U R C H . J U L Y L A B O U R J U L Y L A B . P U R C H . P O T A T O E S S E P T . L A B . P U R C H P O T A T O E S M A R C H L A B . D I S P , M A R C H L A B O U R L A N D P O T A T O B U I L D I N G S 1 5 , 7 5 3 . 6 4 16,293.97 'l6,55l.++ 16, 6+8.29 16,668.88 16,668.88 17,501.55 19,201.12 22,672.01 23,253.+1 R E S O U R C E S I N D I S P O S A L M A Y L A B O U R O C T O B E R L A B O U R O P E R A T I N G . C A P I T A L D A I R Y . & B E E F B L D G . S H E E P B U I L D I N G . 56 cows +0 acres 128.3 days 31.+ days 32.6 days 32.6 days 37.0 days 2+0.2 days 3.02 days 23.8 days 8.02 days $ 6,885.+5 7,0+1.6 s q . f t . 5,1+00.0 s q . f t . T H E S T A B I L I T Y O F T H E O P T I M U M P L A N W I T H R E S P E C T T O P R I C E . A C T I V I T Y D A I R Y #15 P O T A T O E S N E T P R I C E O F A C T I V I T Y $ 337.91 $ 232.00 M I N . S T A B I L I T Y M A X . S T A B I L I T Y P R I C E P R I C E $ 331+.85 $ 158.76 $ 1+38.21+ 99 A n a l y s i s IV As w i t h A n a l y s i s ' I and I I I , A n a l y s i s II and IV p a r a l l e l each other (see Table-XXI). The order of e n t r y of a c t i v i t i e s and e x h a u s t i o n of resources i s i d e n t i c a l . D i f f e r e n c e s occur i n the q u a n t i t i e s of purchasing a c t i v i t i e s and i n the q u a n t i t i e s of s u r p l u s r e s o u r c e s . The f i n a l m a t r i x of c o e f f i c i e n t s and the Z j - C j values are i d e n t i c a l . The r e t u r n to f i x e d f a c t o r s Is lower than i n A n a l y s i s I I I due to the added labour r e s t r i c t i o n s . The t o t a l r e t u r n to f i x e d f a c t o r s i s o b t a i n e d by adding the product of the 30 A y r s h i r e ? a n d t h e i r net p r i c e s to the value of the f u n c t i o n a l i n the program to a r r i v e at a t o t a l of $ 2 6 , 9 0 0 . 8 0 . Therefore the i n c l u s i o n of the A y r s h i r e herd under c o n d i t i o n s of r e s t r i c t e d l a b o u r purchasing r e s u l t e d i n a r e d u c t i o n of the f u n c t i o n a l of over $2,kOO.OO from the l e v e l a t t a i n e d i n A n a l y s i s I I I . The combined e f f e c t of r e s t r i c t e d labour purchasing and the i n c l u s i o n of 30 A y r s h i r e cows r e s u l t e d i n a r e d u c t i o n of the f u n c t i o n a l of about $ 6 , 5 0 0 . A n a l y s i s V The purpose of t h i s a n a l y s i s was to t e s t the e f f e c t of a moderate i n c r e a s e i n p r i c e of the sheep and beef a c t i v i t i e s . I t i s impossible to apply the t e s t s of s t a b i l i t y used p r e v i o u s l y f o r an a c t i v i t y not a l r e a d y i n the program so an a l t e r n a t e method was sought. I n c r e a s i n g the p r i c e a r b i t r a r i l y , to see i f an a c t i v i t y can be brought i n t o the program i s a t r i a l and e r r o r method, but i t has the advantage of s i m p l i c i t y and i n t h i s p a r t i c u l a r case i t e s t a b l i s h e d a p o i n t . The p o i n t i s t h a t even 100 u s i n g t h e h i g h e s t market p r i c e s over the p a s t s i x y e a r s n e i t h e r the beef nor the sheep a c t i v i t i e s were p r o f i t a b l e enough to d i s -p l a c e the d a i r y a c t i v i t y Vy o r the p o t a t o a c t i v i t y . The most s i g n i f i c a n t c o n c l u s i o n to be drawn f r o m t h e s e a n a l y s e s i s the overwhelming dominance o f the h i g h . p r o d u c i n g d a i r y a c t i v i t y and the p o t a t o a c t i v i t y . I n each case p o t a t o e s have been c a l l e d f o r up to the maximum a l l o w e d by the b u i l d i n g r e s t r i c t i o n ; and a c t i v i t y 15> i s recommended to the maximum, con-s i s t e n t w i t h the r e s t r i c t i o n s of the r e s p e c t i v e a n a l y s e s . . The g e n e r a l l y wide range of p r i c e s t a b i l i t y r e i n f o r c e s the recommend-a t i o n s . I n the case o f the d a i r y a c t i v i t y i n A n a l y s e s I and I I I a r e l a t i v e l y s m a l l drop i n p r i c e fc*$3«06) w i l l cause the p l a n t o become s u b - o p t i m a l but t h i s i s not a s e r i o u s l i m i t a t i o n i n t h a t a c t i v i t y . .11+ i s l i k e l y • : • to - r e p l a c e : someoo.r alL.-of a c t i v i t y : 15« I t i s s i g n i f i c a n t t h a t l a n d was l i m i t i n g o n l y when l a b o u r p urchases were p e r m i t t e d i n a l l p e r i o d s but i n no case was i t 67 p r o f i t a b l e to purchase more " l a n d " . The c o s t o f p u r c h a s i n g an added 2.8 tons o f hay was $117.£0 whereas the net m a r g i n a l revenue of l a n d was $70.21. Only a t p r i c e s be low t h i s w o u l d , hay p u r c h a s i n g have been p r o f i t a b l e . I n A n a l y s e s I and I I I where l a b o u r p u r c h a s i n g was p e r m i t t e d f o r a l l p e r i o d s , l a n d became r e -s t r i c t i v e b u t i n no case was i t p r o f i t a b l e t o "add" t o t h e s u p p l y of l a n d by p u r c h a s i n g hay. I n the o p i n i o n of the w r i t e r the most r e l e v a n t a n a l y s i s f o r the O y s t e r R i v e r f a r m are numbers I I I and IV. I n b o t h a n a l y s e s an A y r s h i r e h e r d of 30 cows i s f o r c e d i n t o the program to be con-67 I t has been p o i n t e d out e a r l i e r t h a t the hay p u r c h a s i n g a c t -i v i t y had the e f f e c t of a d d i n g t o the s u p p l y o f l a n d s i n c e o n l y f o r a g e was assumed t o be grown on the f a r m . 101 TABLE XXI ANALYSIS IV CONSIDERATION OP ALL ACTIVITIES, 30 AYRSHIRE COWS PRE-INCLUDED LABOUR PURCHASES RESTRICTED TO MAY, JUNE, JULY, AUGUST AND SEPTEMBER A c t i v i t y or Resource IN A c t i v i t y or Resource OUT Level Return To of A c t i v i t y Fixed Factors In the Optimum $ Plan  Dairy # l 5 Winter Labour l 5 , 7 5 3 » 6 4 Potatoes Sept. Labour 1 6 , 2 9 3 . 9 7 Sept.Lab. Purch. Aug. Labour 1 9 , 8 0 6 . 3 0 Aug.Lab.Purch. Potato Bui l d . 2 0 , 8 2 9 . 7 0 RESOURCES IN DISPOSAL Land March Labour A p r i l Labour May Labour June Lab our July Labour Oct. Labour Operating Capital $ Dairy & Beef Bldg. Sheep Bldg. The s t a b i l i t y of the optimum plan with respect ACTIVITY Dairy #15 Potatoes NET PRICE" OF ACTIVITY $ 337.91 $ 2 3 2 . 0 0 MIN. STABILITY PRICE $ 3 0 3 . 5 7 $ 110.2+ I4.O Cows 4O Acres 2 1 1 . 7 Days 1 .2 Days 33'k- Acres 2 8 . 2 Days . O4 Days 50 .0 Days 3.7 Days 3.7 Days 33.2 Days 18,704 .35 8 , 1 3 3 . 6 Sq.Ft. 5,400.0 Sq.Ft. to pr ic e . MAX. STABILITY PRICE 1122.58 102 TABLE X X I I ANALYSIS V CONSIDERATION OP ALL ACTIVITIES, 30 AYRSHIRE COWS PRE-INCLUDED, LABOUR PURCHASE PERMITTED IN ALL PERIODS AND THE PRICE OF BEEF AND SHEEP ACTIVITIES RAISED A c t i v i t y o r Resource I n A c t i v i t y o r Resource Out R e t u r n t o L e v e l o f A c t -F i x e d F a c t o r s i v i t y i n the $ Optimum P l a n D a i r y #15 W i n t e r Labour 1 5 , 7 5 3 . 6 k 56 Cows P o t a t o e s Sept. Labour 1 6 , 2 9 3 . 9 7 kO Acres W i n t e r Lab.Purch. A p r i l Labour 1 6 , 5 5 1 . 4 4 1 2 8 . 3 Days A p r i l Lab.Purch. August Labour I6 , 6 k 8 . 2 9 31.k Days Aug. Lab.Purch. June Labour 1 6 , 6 6 8 . 8 8 3 2 . 6 Days June Lab. Purch J u l y Labour 1 6 , 6 6 8 . 8 8 3 2 . 6 Days J u l y Lab. P u r c h P o t a t o e s 1 7 , 5 0 1 . 5 5 3 7 . 0 Days Sept.Lab .Purch. March Labour 1 9 , 2 0 1 . 1 2 24.O.2 Days P o t a t o e s Land 2 2 ,672 . 0 1 March Lab .Dis p . P o t a t o B u i l d i n g 2 3 , 2 5 3 . k l 3 . 0 2 Days Resources i n D i s p o s a l May Labour 2 3 . 8 Days October Labour 8 . 0 2 Days O p e r a t i n g C a p i t a l $ 6 , 8 8 5 . 4 5 ' D a i r y & Beef B u i l d i n g 7 , 0 4 1 . 6 Sq.Pt. Sheep B u i l d i n g 5 , 4 0 0 . 0 Sq.Ft. The S t a b i l i t y of ACTIVITY OF the optimum p l a n w i t h r e s p e c t NET PRICE MIN.STABILITY ACTIVITY PRICE t o pr i c e . MAX.STABILITY PRICE D a i r y #15 # 3 3 7 . 9 1 $ 3 3 4 - 8 5 $ 4 3 8 . 2 4 P o t a t o e s $ 2 3 2 . 0 0 $ 1 5 8 . 7 6 103 - s i s t e n t w i t h one o f the farm's e x p e r i m e n t a l o b j e c t i v e s . A r e -d u c t i o n i n net r e t u r n s was i n c u r r e d but net income was s t i l l s a t i s f a c t o r y , p r o v i d i n g a r a t e of r e t u r n on i n v e s t m e n t of 5*&5fo 68 and 5>.l+$ r e s p e c t i v e l y . P o t a t o e s i n b o t h cases were recommended to the maximum c o n s i s t e n t w i t h good r o t a t i o n a l p r a c t i c e s . The number of cows recommended was 8 6 where l a b o u r was u n r e s t r i c t i v e and 70 cows where i t was r e s t r i c t i v e . I t i s apparent f r o m examining these recommendations t h a t the l a b o u r c o e f f i c i e n t s have been o v e r e s t i m a t e d s i n c e the p r e s e n t O y s t e r R i v e r h e r d o f n e a r l y 1 0 0 cows i s m a i n t a i n e d by the same l a b o u r s u p p l y p o s t u l a t e d i n A n a l y s e s I v. I t "is- u n l i k e l y — -" t h a t such an e r r o r would r e s u l t i n an i n c o r r e c t c h o i c e o f a c t i v -i t i e s s i n c e the same method o f c a l c u l a t i o n was used f o r each a c t i v i t y . The p r i n c i p a l e f f e c t w i l l be an understatement of the farm's c a p a c i t y , hence an u n d e r s t a t e m e n t of net r e t u r n s . The s e l e c t i o n o f a s i n g l e a n a l y s i s as b e i n g most r e l e v a n t f o r the O y s t e r R i v e r farm w i l l depend on the p r a c t i c a l problems o f ; i m -p l e m e n t i n g the two a n a l y s e s . The P r a c t i c a l Problems of Implementing  the Optimum P l a n . The p r a c t i c a l problems of e f f e c t i n g the p l a n are ( l ) R a i s i n g the average p r o d u c t i o n per cow to the l e v e l s s p e c i f i e d i n a c t i v i t y 6 ( A y r s h i r e s ) and a c t i v i t y 15> ( H o l s t e i n s ) . This i n v o l v e s r a i s i n g the average of the A y r s h i r e cows f r o m the p r e s e n t 1 0 , 7 8 + l b s . of m i l k (and J j l 6 l b s . f a t ) to 1 2 , 2 0 0 l b s . of m i l k and +88 l b s . of f a t . The H o l s t e i n average must be r a i s e d f r om 13, +06, l b s . of m i l k w i t h 610 l b s . of f a t to l£, 2^0. lbs: L 68 The r a t e o f r e t u r n on i n v e s t m e n t was c a l c u l a t e d by s u b t r a c t i n d e p r e c i a t i o n f r o m t h e v a l u e o f the f u n c t i o n a l and e x p r e s s i n g the remainder as a p e r c e n t a g e of average net w o r t h . 1CL of m i l k w i t h 620 l b s . o f f a t . (2) The problem o f h i r i n g the ad-d i t i o n a l l a b o u r c a l l e d f o r by A n a l y s i s I I I and (3) The problem of e s t a b l i s h i n g a p o t a t o e n t e r p r i s e and a mar k e t i n g q u o t a . I t s h o u l d a l s o be r e c o g n i z e d t h a t the i m p l e m e n t a t i o n of the recom-mendations o f e i t h e r a n a l y s i s c o u l d take f i v e or more y e a r s . I n c r e a s i n g the m i l k p r o d u c t i o n p e r cow i n v o l v e s the s e l e c -t i o n of s u p e r i o r a n i m a l s and c l o s e a t t e n t i o n t o f e e d i n g p r a c t i c e s . The a n i m a l s must consume s u f f i c i e n t T.D.N.'s t o m a i n t a i n body w e i g h t and t o produce the s p e c i f i e d q u a n t i t i e s of m i l k . The form i n w h i c h I t s h o u l d be f e d depends o n the n a t u r e of the m i l k i s o -q u a n t s . W i t h l i n e a r or near l i n e a r i s o q u a n t s and a p r i c e of a l b . , o f T.D.N, i n c o n c e n t r a t e f o r m g r e a t e r than a l b . of T.D.N. i n f o r a g e form, the l a t t e r s h o u l d be f e d t o the maximum c o n s i s t e n t 69 w i t h consuming s u f f i c i e n t T.D.N. ! s . F o r example, w i t h a cow p r o d u c i n g a t 15>,2£0 l b s . o f k$ F.C.M. i t i s i m p o s s i b l e to-main-t a i n t h i s l e v e l o f p r o d u c t i o n on f o r a g e a l o n e because of i t ' s l i m i t e d stomach c a p a c i t y . I n o r d e r t o m a i n t a i n p r o d u c t i o n a more c o n c e n t r a t e d f e e d must be f e d . Having d e c i d e d t h a t A n a l y s i s I I I and IV were the more r e l e -v a n t , the c h o i c e between the two depends on the f e a s i b i l i t y o f h i r i n g the a d d i t i o n a l l a b o u r s p e c i f i e d i n A n a l y s i s I I I . I f i t i s f e a s i b l e t o h i r e t h i s l a b o u r , t h e n I I I i s s u p e r i o r because of its-.' h i g h e r n e t r e t u r n . H i r i n g one more man on an annual b a s i s would more than s a t i s f y the w i n t e r p u r c h a s i n g r e q u i r e m e n t s and v e r y n e a r l y the r e q u i r e m e n t s i n A p r i l , June, J u l y and August. A d d i t i o n a l l a b o u r f o r p o t a t o h a r v e s t i n g i n September would s t i l l be r e q u i r e d . S u r p l u s l a b o u r would r e s u l t f o r the months of 69 I n the case where the p r i c e o f a l b . o f T.D.N, i n c o n c e n t r a t e f o r m i s l e s s than the p r i c e of a l b . i n f o r a g e form,concen-t r a t e s h o u l d be s u b s t i t u t e d f o r f o r a g e . 10$. March, May, and O c t o b e r , The i d e a l s i t u a t i o n would be to h i r e the added l a b o u r o n l y i n t h e months i n w h i c h i t i s r e q u i r e d . However when s k i l l e d l a b o u r i s r e q u i r e d , y e a r round employment seems the o n l y p r a c t i c a l s o l u t i o n . The problem of h i r i n g the added l a b o u r s p e c i f i e d i n A n a l y s i s I I I may be more i m a g i n a r y t h a n r e a l , remembering t h a t the l a b o u r c o e f f i c i e n t s have been o v e r s t a t e d . The f a c t i s t h a t more cows are p r e s e n t l y b e i n g c a r e d f o r t h a n are c a l l e d f o r i n A n a l y s i s I I I so the recommend-a t i o n s of t h i s a n a l y s i s w i t h r e s p e c t t o l a b o u r r e q u i r e m e n t s ' and the number of cows can be c o n f i d e n t l y a c c e p t e d . The problem of e s t a b l i s h i n g a s u b s t a n t i a l p o t a t o m a r k e t i n g quota i n a s h o r t time i s more d i f f i c u l t . Quotas are used to r e g u l a t e the f l o w of p r o d u c t s t o the a v a i l a b l e markets i n p r o -p o r t i o n t o each grower's p a s t f i v e - y e a r performance. An i n i t i a l q uota of ij. tons o f say, l a t e p o t a t o e s would r e v o l v e not l e s s t h a n t w i c e d u r i n g the f i r s t y e a r and perhaps as many as t w e l v e t i m e s . The quota i n the next y e a r would be one f i f t h of the q u a n t i t y marketed i n the f i r s t y e a r and t h i s i n t u r n would r e v o l v e a number o f t i m e s . I f one assumes t h a t a q u o t a would r e v o l v e an average o f 7 times p e r y e a r over a t e n y e a r p e r i o d i t would take n e a r l y 10 y e a r s to b u i l d a quota l a r g e enough t o market the produce o f J4.O a c r e s (about $00 t o n s ) . However the w r i t e r was a s s u r e d t h a t a l t h o u g h Vancouver I s l a n d was n e a r l y s e l f s u f f i c i e n t i n p o t a t o p r o d u c t i o n , few m a r k e t i n g problems would a r i s e i f ade-quate s t o r a g e f a c i l i t i e s were a v a i l a b l e . I n t h i s way m a r k e t i n g 70 c o u l d be s p r e a d over the w i n t e r and s p r i n g months. I n the 70 L e t t e r to t h e w r i t e r f r om Mr. E. G i l m o r e , S e c r e t a r y , B.C. Coast V e g e t a b l e M a r k e t i n g Board, Richmond, B.C. 106 i n i t i a l y e a r s o f a p o t a t o o p e r a t i o n the acreage w o u l d have t o be c o n s i d e r a b l y s m a l l e r t h a n kO a c r e s and g r a d u a l l y i n c r e a s e d as the m a r k e t i n g quota was i n c r e a s e d . I n p r i n c i p l e the s i t u a t i o n would be t h e same as t h a t e n c o u n t e r e d i n S s^ a b l i ' s M l ^ c a o ^ ' a r - k ^ t i n g l q u o t a f o r m i l k . CONCLUSIONS AND LIMITATIONS The development of f a c i l i t i e s a t O y s t e r R i v e r f a rm has, u n t i l r e c e n t l y , dominated most o t h e r a c t i v i t i e s . P r i o r to the t r a n s f e r of p a r t o f the Campus h e r d i n 1961 t h e r e were no d a i r y animals a t O y s t e r R i v e r . S i n c e t h e n , the s i z e of the h e r d has been i n c r e a s e d from kO cows t o n e a r l y 100 cows. Much o f the f i n a n c i a l l o s s i n -c u r r e d by the farm may be a t t r i b u t e d t o the p o l i c y of e x p a n d i n g the s i z e o f the h e r d and'necessary f a c i l i t i e s . F o r example, con-s i d e r a b l e q u a n t i t i e s o f s u r p l u s m i l k have been s h i p p e d i n an e f f o r t t o i n c r e a s e the d a i l y m i l k q u o t a . A l s o , low p r o d u c i n g cows have been r e t a i n e d w i t h a view t o a d d i n g t o the q u a n t i t y of m i l k s h i p p e d . I t was e n c o u r a g i n g t o note, however, t h a t the f i n a n c i a l p o s i t i o n o f the farm improved s u b s t a n t i a l l y i n the c a l -endar y e a r 196k. Measures of f i n a n c i a l and p h y s i c a l performance were c a l c u l -a t e d and compared w i t h s i m i l a r farms o n Vancouver I s l a n d , i n the F r a s e r V a l l e y and i n Washington S t a t e . Most measures of p h y s i c a l performance i n d i c a t e t h a t O y s t e r R i v e r farm i s on a p a r w i t h o t h e r d a i r y farms i n the a r e a and i n the F r a s e r V a l l e y . An i m p o r t a n t q u a l i f i c a t i o n i n the case of l a b o u r e f f i c i e n c y i s t h a t the U n i v e r s i t y pays more f o r i t s : l a b o u r so t h a t l a b o u r s h o u l d be more p r o d u c t i v e . A l t h o u g h r a t e s of o v e r a l l performance were g e n e r a l l y s a t i s f a c t o r y , t h e y tended to mask p o c k e t s of i n e f f i c i e n c y 107 as was i n d i c a t e d by t h e l a b o u r s t u d y i n the m i l k i n g p a r l o r . F i n a n c i a l measures of performance f o r the O y s t e r R i v e r f a rm d i d not compare as f a v o u r a b l y w i t h the s t u d i e s used f o r comparison. C a p i t a l i n v e s t m e n t i n l a n d and b u i l d i n g s ( p e r cow) was h i g h e r . t h o u g h the a p p a r e n t over i n v e s t m e n t i n l a n d was not a p o i n t of v a l i d c r i t i c i s m i n t h a t the f a r m was a g i f t to the U n i v e r s i t y . However, b u i l d i n g i nvestment p e r cow was i n excess compared t o s i m i l a r d a i r y f a r ms. Gross revenue p e r cow was low but may be e x p l a i n e d by t h e l o w e r p e r c e n t a g e of q u o t a m i l k . T o t a l c a s h c o s t s were n e a r l y one h a l f h i g h e r than i n t h e comparative a r e a s and may be a t t r i b u t e d to the h i g h e r c o s t of l a b o u r and the h i g h e r f e e d c o s t s per cow. The r e s u l t was t h a t the c o s t per cwt. of p r o d u c i n g m i l k a t O y s t e r R i v e r was h i g h e r than i n the c o m p a r a t i v e s t u d i e s and i n excess of- the p r i c e r e c e i v e d . F i n a l l y , the s y s t e m o f f a r m r e c o r d s and accounts has not b e e n d e s i g n e d t o f a c i l i t a t e economic a n a l y s i s . The f i n a n c i a l a c c o u n t s c o u l d be improved by r e - c l a s s -i f y i n g and r e f i n i n g some items o f e x p e n d i t u r e . W i t h the e x c e p t i o n of m i l k p r o d u c t i o n r e c o r d s , p h y s i c a l i n p u t - o u t p u t r e c o r d s are n o n - e x i s t e n t and h e r e i n l i e s one o f the l i m i t a t i o n s of t h i s a ssignment. For example, measures of crop response t o d i f f e r e n t r a t e s of f e r t i l i z e r a p p l i c a t i o n have i m p o r t a n t economic i m p l i -c a t i o n s but because o f the l a c k o f such i n f o r m a t i o n , it$ • i n c l u -s i o n i n t h i s t h e s i s was n o t p o s s i b l e . The q u e s t i o n o f r a t e s of d a i r y f e e d i n g and r a t e s of s u b s t i t u t i o n between f e e d s i s an un-e x p l o r e d a r e a a t O y s t e r R i v e r . Measurement of the q u a n t i t y and q u a l i t y of the f e e d consumed would p r o v i d e u s e f u l i n f o r m a t i o n i n d e t e r m i n i n g the l e a s t c o s t r a t i o n and the optimum l e v e l of 10$ p r o d u c t i o n on the m i l k p r o d u c t i o n s u r f a c e . ' The n o rmative a n a l y s i s has c o n s i d e r e d a l t e r n a t i v e methods of f a r m o r g a n i z a t i o n t h a t showed promise of i n c r e a s i n g net r e t u r n s . C o n s i d e r a t i o n was g i v e n t o f i f t e e n d a i r y a c t i v i t i e s , two b e e f a c t i v i t i e s , one sheep a c t i v i t y and one p o t a t o a c t i v i t y . P u r c h a s i n g a c t i v i t i e s f o r l a b o u r and l a n d were a l s o i n c l u d e d . The t e c h n i c a l c o e f f i c i e n t s were d e f i n e d u s i n g a c o m b i n a t i o n of p r o d u c t i o n f u n c t i o n s , r e g i o n a l s t u d i e s and s y n t h e t i c b u d g e t s . F i v e b a s i c a n a l y s e s were chosen as embodying the most m e a n i n g f u l r e s t r i c t i o n s and ass u m p t i o n s . Two s i g n i f i c a n t c l a s s i f i c a t i o n s o f the a n a l y s e s were made: ( l ) l a b o u r p a r t i a l l y r e s t r i c t i v e v s . l a b o u r u n r e s t r i c t i v e and ( 2 ) c o n s i d e r a t i o n of a l l a c t i v i t i e s as above v s . a p r i o r i i n c l u s i o n o f 3 0 A y r s h i r e cows. I n each o f the a n a l y s e s a c t i v i t y V? ( H o l s t e i n cows) and a c t i v i t y 20 ( p o t a t o e s ) e x h i b i t e d a d i s t i n c t dominance o v e r t h e o t h e r a c t i v i t i e s . The l e v e l a t w h i c h each was recommended de-pended on the r e s t r i c t i o n s i n h e r e n t i n the p a r t i c u l a r a n a l y s i s . The ranges o f s t a b i l i t y w i t h r e s p e c t t o p r i c e changes were c a l -c u l a t e d and the g e n e r a l l y wide range of s t a b i l i t y s u b s t a n t i a t e d the recommendations. A n a l y s i s I I I , though n o t the most p r o f i t a b l e was the more r e a l i s t i c . I t i n c o r p o r a t e d 30 A y r s h i r e cows and was thus con-s i s t e n t w i t h the e x p e r i m e n t a l o b j e c t i v e . I t p r o v i d e d f o r l a b o u r p u r c h a s i n g f o r a l l p e r i o d s and i n c l u d e d c o n s i d e r a t i o n o f a l l o t h e r a c t i v i t i e s . The f u n c t i o n a l was maximized a t $ 2 3 , 3 2 k . £ l , to w h i c h was added t h e net revenue of the A y r s h i r e h e r d ( $ 6 , 0 7 1 . 1 0 ) t o y i e l d a t o t a l of $29,32k.£l. A f t e r a l l o w i n g f o r d e p r e c i a t i o n t h i s r e p r e s e n t e d a r a t e o f r e t u r n on i n v e s t m e n t of %.Q%. 1 0 9 A c o m p a r i s o n o f A n a l y s i s I I I w i t h t h e l e s s r e s t r i c t i v e A i i a l y s i s I i n d i c a t e d t h a t t h e i n c l u s i o n o f 30 A y r s h i r e cows l o w e r e d t h e r e t u r n t o f i x e d f a c t o r s o f p r o d u c t i o n b y $ + , 0 7 + . 3 0 . I n ' A n a l y s e s I I a n d I V l a b o u r p u r c h a s i n g was r e s t r i c t e d t o t h e m o n t h s o f M a y , J u n e , J u l y , A u g u s t a n d S e p t e m b e r . I n c o m p a r i s o n w i t h A n a l y s e s I a n d I I I w h e r e t h e r e w e r e n o l a b o u r p u r c h a s i n g r e s t r i c t i o n s , t h e r e t u r n t o f i x e d f a c t o r s was l o w e r e d . A f i f t h a n a l y s i s was p e r f o r m e d u s i n g h i g h e r p r i c e s f o r t h e b e e f a n d s h e e p a c t i v i t i e s u n d e r , t h e c o n d i t i o n s o f A n a l y s i s I I I b u t t h e r e c o m m e n d -a t i o n s r e m a i n e d u n c h a n g e d . T h e r e c o m m e n d a t i o n s o f A n a l y s i s I I I p o s t u l a t e s u p e r i o r l e v e l s o f m i l k p r o d u c t i o n p e r cow b u t t h e l e v e l s a r e w i t h i n t h e r e a c h o f a c o m m e r c i a l o p e r a t i o n a n d a r e b e i n g r e a c h e d b y t h e t o p c o w s . P o t a t o e s a r e r e c o m m e n d e d t o t h e maximum c o n s i s t e n t w i t h g o o d r o t a t i o n a l p r a c t i c e . I t w o u l d t a k e a n u m b e r o f y e a r s t o i m p l e -m e n t t h e p o t a t o a c t i v i t y t o i t s maximum d u e t o t h e p r o c e d u r e o f a c q u i r i n g a s u f f i c i e n t l y l a r g e m a r k e t i n g q u o t a . A m o r e s e r i o u s l i m i t a t i o n i s t h e q u e s t i o n o f t h e a c c u r a c y o f t h e c o e f f i c i e n t s . I t i s a p p a r e n t t h a t t h e l a b o u r c o e f f i c i e n t s , p a r t i c u l a r l y f o r t h e w i n t e r p e r i o d , h a v e b e e n o v e r e s t i m a t e d . The f a r m i s c u r r e n t l y c a r i n g f o r m o r e cows t h a n w o u l d be p o s s i b l e u s i n g t h e c o e f f i c i e n t s d e r i v e d i n t h i s t h e s i s . H o w e v e r , s i n c e t h e same p r o c e d u r e was u s e d i n d e f i n i n g a l l o f t h e a c t i v i t i e s i t i s u n -l i k e l y t h a t t h e a c t i v i t i e s r e m a i n i n g i n t h e f i n a l p l a n w o u l d h a v e b e e n d i f f e r e n t . The e f f e c t o f a c o n s i s t e n t o v e r - e s t i m a t e o f t h e l a b o u r c o e f f i c i e n t s w i l l be t o u n d e r e s t i m a t e t h e n u m b e r o f cows t h a t c a n b e m a i n t a i n e d a n d t o u n d e r e s t i m a t e n e t r e t u r n s . The ll'D other c o e f f i c i e n t s are r e p r e s e n t a t i v e of p r e s e n t r a t e s of achievement. This t h e s i s has attempted to evaluate the present perform-ance of the Oyster R i v e r farm and t o suggest a l t e r n a t i v e methods of o r g a n i z a t i o n that would improve resource u t i l i z a t i o n . The measures and models used have not been exhaustive but they are thought to l e a d to p e r t i n e n t and u s e f u l recommendations. I l l BIBLIOGRAPHY BOOKS Brody, Samuel, B i o e n e r g e t i c s and"Growth New York, Reinho.lt P u b l i s h i n g C o r p o r a t i o n 19+5 Ensminger, M.E. The Stockman's Handbook D a n v i l l e , I l l i n o i s , ' I n t e r s t a t e P r i n t e r s and P u b l i s h -e r s , 1959, 2nd ed. Heady, E a r l 0 . Economics o f A g r i c u l t u r a l P r o d u c t i o n  and Resource Use, Englewood C l i f f s , N.J. P r e n t i c e - H a l l I n c . 1952 and C a n d l e r , W." L i n e a r Programming Methods, Ames, Iowa The Iowa S t a t e U n i v e r -s i t y P r e s s 1955 and D i l l o n , J.L. A g r i c u l t u r a l P r o d u c -t i o n F u n c t i o n s , Ames, Iowa, Iowa S t a t e U n i v e r s i t y P r e s s , 1961 and Jensen, H.R., Farm Management Ec-onomics , Englewood C l i f f s , N.J. P r e n t i c e -H a l l I n c . 195+ Hopkins, J.A. and Heady, E.O." Farm Records and A c c o u n t s , Ames, Iowa, The Iowa S t a t e C o l l e g e P r e s s , 1955 M o r r i s o n , F.B. Feeds and Feeding C l i n t o n , Iowa The M o r r i s o n P u b l i s h i n g Company, 1959, 22 ed. ARTICLES G o s s l i n g , W.F. "The Economics of the H o l s t e i n - F r i e s i a n Cow" J o u r n a l o f A g r i c u l t u r a l Economics December, 1963 "The O n t a r i o S h o r t Run M i l k S u p p l y Curve"-.Canadian J o u r n a l o f A g r i c u l t u r a l  Economics V o l X I I number I 112 BIBLIOGRAPHY PUBLICATIONS BY CORPORATE BODIES B r i t i s h Columbia Department of A g r i c u l t u r e , L i v e s t o c k B ranch, F e e d i n g D a i r y Cows i n B r i t i s h Columbia V i c t o r i a ( L i v e s t o c k C i r c u l a r No.68) L i v e s t o c k Branch, Care and Feeding o f D a i r y C a l v e s , V i c t o r i a , ( L i v e s t o c k C i r c u l a r No.66) L i v e s t o c k Branch, R a i s i n g D a i r y H e i f e r s From 6 Months t o C a l v i n g , V i c t o r i a L i v e s t o c k C i r c u l a r No, 67 L i v e s t o c k B r a n c h , F e e d i n g Beef i n B r i t i s h Columbia V i c t o r i a ( L i v e s t o c k C i r c u l a r No.6k) L i v e s t o c k Branch, R a i s i n g Sheep i n B r i t i s h Columbia, V i c t o r i a " 1962. ( L i v e s t o c k C i r -c u l a r No. 71) F i e l d Crops Branch, P o t a t o Growing i n B r i t i s h Columbia, V i c t o r i a Queens P r i n t e r , 1952 ( B u l l e t i n No. 86 r e v i s e d ed.) C l i m a t e o f B r i t i s h Columbia. V i c t o r i a Queens P r i n t e r , 1962 Chore-Boy M a n u f a c t u r i n g Company I n c . , Dairyman's Guide  f o r P r o f i t a b l e D a i r y i n g . Cambridge C i t y , I n d i a n a C r o s s f i e l d , D.C, and Woodward, E.D., D a i r y Farming i n the F r a s e r V a l l e y of B r i t i s h Columbia Vancouver, Economics D i v i s i o n , Canada Department of A g r i -c u l t u r e , . 196k Dominion Bureau of S t a t i s t i c s , A g r i c u l t u r e D i v i s i o n , • L i v e s t o c k and A n i m a l P r o d u c t s S t a t i s t i c s . Ottawa, Queens P r i n t e r Q u a r t e r l y B u l l e t i n of A g r i c u l t u r a l S t a t i s t i c s . . Ottawa, Queens P r i n t e r Heady, E a r l 0 . and o t h e r s , " M i l k P r o d u c t i o n F u n c t i o n s , H a y - G r a i n S u b s t i t u t i o n Rates and Economic Optima i n D a i r y Cow R a t i o n s " Iowa A g r i c u l t u r e  E x p e r i m e n t - S t a t i o n R e s e a r c h - B u l l e t i n kkk, 1956 Menzie, E.L., K l a s s e n , 0 . , and Van A h d e l F., " D a i r y Farm Management Manual", B r i t i s h Columbia Department o f A g r i c u l t u r e , UiB'i0:.."Department o f A g r i c u l t u r a l Economics, 1957 l l 3 BIBLIOGRAPHY PUBLICATIONS (Continued) MacHardy, F.V., " S t a n d a r d Time Data F o r S i d e E n t e r i n g and H e r r i n g b o n e M i l k i n g P a r l o r s " , A g r i c u l t u r a l  M a t e r i a l s H a n d l i n g Manual S e c t i o n 1. 1 Ottawa, N a t i o n a l C o - O r d i n a t i n g Committee on A g r i c u l t u r a l S e r v i c e s , Canada Department of A g r i c u l t u r e , Queens P r i n t e r , 1962 O n t a r i o Department of A g r i c u l t u r e , Farm Economics and .  S t a t i s t i c s B r a nch, E a r l y P o t a t o P r o d u c t i o n  Costs and Management"! T o r o n t o , 1958 Farm Economics and S t a t i s t i c s B r a nch, Sheep B u s i n e s s R e p o r t 1962, Toronto Farm Economics and S t a t i s t i c s Branch, Commercial Sheep F l o c k s 1961 Perryman, H., F l e t c h e r , H.',"' et a l . Economics' of M i l k  P r o d u c t i o n , P u l l m a n , A g r i c u l t u r a l E x t e n s i o n S e r v i c e , Washington S t a t e U n i v e r s i t y , 1962 P e t e r s e n , T.A. and Bauer, L. " A l b e r t a Farm B u s i n e s s R e p o r t 1962" Edmonton, Farm Economics Branch, A l b e r t a Department o f A g r i c u l t u r e . P r o v i n c e o f B r i t i s h Columbia, The M i l k B oard A n n u a l R e p o r t , V i c t o r i a , Queens P r i n t e r Sorboe, M.M. and Woodward, E.D., D a i r y Farming on Van- couver I s l a n d 1 9 6 l , Vancouver, Economics D i v -i s i o n , Canada Department of A g r i c u l t u r e , 1961+ Strohm, J . ed. P a y o f f to More Farm P r o f i t s - F o r d Motor . Company o f Canada L i m i t e d . R e v i s e d f o r Canadian c o n d i t i o n s by C.H. Hodge Swanson, J . and Bond, B.J., Market M i l k P r o d u c t i o n C o s t s , .Pullman, I n s t i t u t e of A g r i c u l t u r a l S c i e n c e , Washington S t a t e U n i v e r s i t y , 1959 ( S t a t i o n s c i r c u l a r 377) Washington A g r i c u l t u r a l E x p e r i m e n t S t a t i o n s I n s t i t u t e of A g r i c u l t u r a l S c i e n c e s , S t a t e C o l l e g e of Washing-t o n , P o t a t o P r o d u c t i o n C osts i n " S e l e c t e d Areas  o f C e n t r a l Washington 195U-* P u l l m a n , 1958 ( S t a t i o n s C i r c u l a r 321+) UNPUBLISHED MATERIAL Sleeman, K. J . S o i l Survey R e p o r t o f the U n i v e r s i t y . R e s e a r c h Farm jfZ O y s t e r R i v e r Vancouver I s l a n d , u n p u b l i s h e d paper.Department of S o i l S c i e n c e , U n i v e r s i t y of B r i t i s h Columbia, 19$6 K e r r , T.C. The Use and Scope of D a i r y Herd Improvement  A s s o c i a t i o n Data i n E s t i m a t i n g the F u n c t i o n a l  R e l a t i o n s h i p Between Feed I n p u t and M i l k Output  F o r D a i r y Cows Unpublished'B.S.A. essay, D e p a r t -ment of A g r i c u l t u r a l Economics, The U n i v e r s i t y of B r i t i s h Columbia, 1963 1-.5 A P P E N D I X 116 APPENDIX 1 V a l u a t i o n o f I n v e n t o r i e s . I LAND Land acreage was determined by a p a r t i a l l a n d s u r v e y and by u s i n g a e r i a l photographs and a p l a n i m e t e r . The p a r t i a l s u r v e y p r o v i d e d a check on the a c c u r a c y of the a e r i a l photo t e c h n i q u e . Land V a l u e s were d e t e r m i n e d f r o m the l a n d v a l u a t i o n s c h e d u l e i n the f o l l o w i n g pages. I I BUILDINGS AND EQUIPMENT B u i l d i n g s , f o r the most p a r t , were v a l u e d a t c o s t l e s s de-p r e c i a t i o n t o the p r e s e n t time. The r a t e o f d e p r e c i a t i o n v a r i e d a c c o r d i n g t o the type o f c o n s t r u c t i o n , use, and degree of o b s o l -e s c ence. Newer equipment was v a l u e d i n the same manner but o l d e r equipment was v a l u e d at market v a l u e ( say a t an a u c t i o n s a l e ) o r s c r a p v a l u e . I n g e n e r a l the f o l l o w i n g p r i n c i p l e s were f o l l o w e d i n the v a l u a t i o n o f b u i l d i n g s and equipment. The s t r a i g h t - l i n e method was used except t h a t s a l v a g e or t r a d e i n v a l u e s were not d e d u c t e d from the o r i g i n a l purchase p r i c e to o b t a i n the t o t a l amount t o be d e p r e c i a t e d . R a t h e r , a de p r e -c i a t i o n r a t e based on an e s t i m a t e o f the u s e f u l l i f e o f the a s s e t was a p p l i e d t o the purchase p r i c e . When .the a s s e t had d e p r e c i a t e d t o i t s s c r a p o r t r a d e - i n v a l u e ( i e . an e x - p o s t d e c i s i o n . ) i t was, c a r r i e d a t t h i s v a l u e as l o n g as i t was r e t a i n e d o r had some use. T h i s p r o c e d u r e was f e l t t o be j u s t i f i e d because o f the u n c e r t a i n t y of p r e d i c t i n g (ex ante) t r a d e - i n o r s c r a p v a l u e . C h oice o f a d e p r e c i a t i o n r a t e was made w i t h aview t o a c c u r a t e l y r e p r e s e n t i n g the c a p i t a l l o s s o f the a s s e t . Care was t a k e n t o a v o i d o v e r -117 e s t i m a t i n g the l i f e o f t h e a s s e t so t h a t i n some cases i t ' s u s e -f u l l i f e may have been under e s t i m a t e d . An e r r o r such as t h i s would e r r on the s i d e o f c o n s e r v a t i s m and was f e l t t o be p r e f e r -a b l e t o o v e r - e s t i m a t i n g an a s s e t ' s u s e f u l l i f e . Thus a few a s s e t s c a r r y a h i g h e r value t h a n t h e i r c a l c u l a t e d d e p r e c i a t e d v a l u e . 2 . Items were assumed t o have been p u r c h a s e d i n mi d - y e a r o f the y e a r o f purch a s e and adj u s t m e n t s have been made t o the ne a r -e s t q u a r t e r y e a r . 3. D e p r e c i a t i o n r a t e s do not n e c e s s a r i l y c o i n c i d e w i t h income t a x r a t e s b u t were based on e s t i m a t e s of o b s o l e s c e n c e , use and market v a l u e . k. M a j o r improvements to the houses were added to the depre-c i a t e d value i n t h e y e a r t h e improvements were made and t h i s new value d e p r e c i a t e d at 2^fo. 5 . A s s e t v a l u e s and d e p r e c i a t i o n charges were c a l c u l a t e d to the n e a r e s t d o l l a r . 6. The two R o t o - T i l l e r s have been o m i t t e d from t h e " o p e r a t i o n s i n v e n t o r y " as they are used s o l e l y f o r the E l i t e Seed P l o t s . I l l LIVESTOCK L i v e s t o c k was v a l u e d a c c o r d i n g t o f i x e d i n v e n t o r y v a l u e s based on t h e age and c l a s s of a n i m a l . See (Appendix 5) 118 APPENDIX 2 LAND INVENTORY AND VALUATION LAND Lower Farm T o t a l Acres Gle ared Uncleared 35k. 195.6 @ $325 158.k @ 50 Upper Farm T o t a l Acres C l e a r e d Uncleared Acreage South of McCaulay Road 61+6. 1 3 6 . 5 @ $200. 509.5 @ 30. 500 ' @ $ 30. $ 6 3 , 5 7 0 . 0 0 7 . 9 2 0 . 0 0 7 1 , 1 + 9 0 . 0 0 27,300.00 15,285.00 15.ooo.oo 57,585.00 $ 129,075.00 119 Farm' L a n d ' V a l u a t i o n " Schedule Used by the Comox-Campbell R i v e r D i s t r i c t A s s e s s o r s . LAND CLASS I . ARABLE - no permanent l i m i t a t i o n s Lazo loam. M e r v i l l e loam, Chemainus complex ( v a r i a b l e d r a i n a g e . ) . N a t u r a l P h y s i c a l F e a t u r e s -- L i m i t a t i o n s . G e n t l y s l o p i n g t o s l o p i n g - w e l l d r a i n e d G e n t l y s l o p i n g - m o d e r a t e l y w e l l d r a i n e d L e v e l to d e p r e s s i o n a l - w e l l d r a i n e d E f f e c t i v e l y u n d e r d r a i n e d 1 Land Use --C u l t i v a t a b l e $325, $300, $275 S p e c i a l Crop; I r r i g a t e d Crop $350 Rough c l e a r e d Rough P a s t u r e $150, $100, $175 Permanent P a s t u r e $(250), $200, $175 Unimproved $50, 1+0 Watch Timber I I . ARABLE - Moderate permanent l i m i t a t i o n s Lazo sandy loam, P u n t l e d g e s i l t loam, Tolmie loam, sandy c l a y loam, and sandy loam. A l b e r n i c l a y , F a i r b r i d g e s i l t loam t o s i l t y c l a y loam, Cowichan c l a y loam. N a t u r a l P h y s i c a l F e a t u r e s G e n t l y s l o p i n g to s l o p i n g - w e l l d r a i n e d G e n t l y s l o p i n g and u n d u l a t i n g - m o d e r a t e l y w e l l d r a i n e d L e v e l to g e n t l y s l o p i n g - m o d e r a t e l y w e l l d r a i n e d 1 V a l u a t i o n p r i c e s r e f e r to the p r i c e p e r a c r e . 120 FARM LAND VALUATION SCHEDULE - NUMBER COMOX-CAMPBELL RIVER I I . ARABLE -N a t u r a l P h y s i c a l F e a t u r e s G e n t l y s l o p i n g - i r r e g u l a r - hummocky -w e l l d r a i n e d G e n t l y s l o p i n g - i r r e g u l a r - w e l l d r a i n e d L e v e l t o g e n t l y s l o p i n g - m o d e r a t e l y w e l l d r a ine d S l i g h t l y s t o n y - i r r e g u l a r M o d e r a t e l y w e l l d r a i n e d Land Use. C u l t i v a t a b l e $275, $200, $200. S p e c i a l Crop I r r i g a t e d Crop $300 Rough Cleared,Rough P a s t u r e $135 Permanent P a s t u r e $200, $150, $150 Unimproved $1+5, $1+0, $30 Watch Timber. I I I . ARABLE - Severe permanent l i m i t a t i o n s Cadboro g r a v e l l y sandy loam Shawnigan g r a v e l l y sandy loam Sandwick g r a v e l l y loam Haslam s h a l y loam M e r v i l l e sandy loam Memekay c l a y loam NATURAL PHYSICAL FEATURE. R o l l i n g m o r a i n i c - m o d e r a t e l y s t o n y - w e l l d r a i n e d - droughty G e n t l y u n d u l a t i n g - v a r i a b l e amounts of g r a v e l w e l l d r a i n e d G e n t l y s l o p i n g - w e l l d r a i n e d - deep solum 121 COMOX-CAMPBELL RIVER. I I I . NATURAL PHYSICAL FEATURE G e n t l y s l o p i n g - m o d e r a t e l y w e l l d r a i n e d G e n t l y s l o p i n g - w e l l d r a i n e d A r t i f i c i a l l y d r a i n e d F a i r d r a i n a g e Stone f r e e Land Use. C u l t i v a t a b l e $2k0 S p e c i a l drop I r r i g a t e d Crop Rough c l e a r e d Rough P a s t u r e $120 Permanent P a s t u r e $175, $130 Unimproved $ k 0 , $30 Watch Timber IV. SEMI ARABLE - V e r y severe permanent l i m i t a t i o n s . S o i l type - S p r o a t g r a v e l l y sandy loam Roys t o n g r a v e l l y loam Lazo loamy sand Bowser loamy sand Sayward loamy sand P a r k s v i l l e sandy loam Qualicum g r a v e l l y loamy sand and loamy sand N a t u r a l P h y s i c a l F e a t u r e s R o l l i n g - w e l l d r a i n e d - m o d e r a t e l y s t o n y U n d u l a t i n g - w e l l d r a i n e d - m o d e r a t e l y s t o n y G e n t l y s l o p i n g - w e l l d r a i n e d G e n t l y s l o p i n g - i m p e r f e c t l y d r a i n e d G e n t l y s l o p i n g - i m p e r f e c t l y d r a i n e d 1 2 2 FARM LAND VALUATION SCHEDULE COMOX-CAMPBELL RIVER. IV. SEMI ARABLE-N a t u r a l P h y s i c a l F e a t u r e s L e v e l - f a i r to poor d r a i n a g e - permanent v e g e t a t i o n G e n t l y u n d u l a t i n g t o r o l l i n g - r a p i d d r a i n -age - d r o u g h t y P o o r l y d r a i n e d E x c e s s i v e l y s t o n y Land Use -C u l t i v a t a b l e $ 2 0 0 , $ l £ 0 S p e c i a l c r o p , I r r i g a t e d Crop Rough c l e a r e d Rough P a s t u r e $ 1 0 0 Permanent P a s t u r e $15>0 Unimproved $ 3 0 V. NON ARABLE -S o i l type - Quinsam g r a v e l l y sandy loam Dashwood g r a v e l l y loamy sand and loamy sand Kye g r a v e l l y loamy sand and loamy sand C u s t e r loamy sand C a s s i d y complex Nepturne g r a v e l l y loamy sand and sandy loam A r r o w s m i t h peat N a t u r a l P h y s i c a l F e a t u r e s R o l l i n g to s t r o n g l y s l o p i n g - g r a v e l l y -w e l l d r a i n e d S l o p i n g - m o d e r a t e l y w e l l d r a i n e d - s t o n y -co a r s e t e x t u r e - droughty G e n t l y s l o p i n g to r o l l i n g - w e l l d r a i n e d L e v e l t o g e n t l y u n d u l a t i n g - i m p e r f e c t l y d r a i n e d 1 2 3 PARM LAID VALUATION SCHEDULE COMOX-CAMPBELL RIVER. V. NON ARABLE -N a t u r a l P h y s i c a l F e a t u r e s L e v e l to g e n t l y s l o p i n g - r a p i d to poor d r a i n a g e - r i v e r wash G e n t l y s l o p i n g - w e l l d r a i n e d - c o a r s e t e x t u r e D e p r e s s i o n a l - very poor d r a i n a g e . Land Use. C u l t i v a t a b l e $ 1 7 5 ( r a r e l y ) S p e c i a l Crop I r r i g a t e d . C r o p Rough c l e a r e d Rough P a s t u r e $ 1 0 0 Permanent P a s t u r e $ 1 2 5 Unimproved $ 2 5 to $ 1 2 a t B l a c k Creek Watch Rimber S o i l s o r s o i l phases s t r a t i f i e d t o t h i s group are f o r the most p a r t NON AGRICULTURAL and are o n l y s u i t e d t o a permanent type of v e g e t a t i o n ( g r a z i n g o r f o r e s t r y ) . The s o i l s are c h a r a c t e r -i z e d by the r o u g h topography, e x c e s s i v e s t o n i n e s s , adverse d r a i n a g e , low f e r t i l i t y , c o a r s e t e x t u r e , and e x t r e m e l y low m o i s t u r e h o l d i n g c a p a c i t y . This c l a s s would a l s o i n c l u d e m i s -c e l l a n e o u s l a n d t y p e s . 12+ APPENDIX 3 BUILDING INVENTORY 1961+' D e s c r i p t i o n Y ear I n i t i a l D e p r e c i a t i o n V a l u e Value B u i l t , Cost _ Jan. 1/614. Dec. 31/61+ HOUSES M o n t f o r t House 191+5 Rm."7 a d d i t i o n 1958 Frame C o n s t r u c t i o n $ Rate Amount $ ~* 16,000 2..5 1+00.00 81+00. 8000. " W i l k i n " House 19+5 9,500. 2.5 165.00 6187. 6022. M a j o r C o n s t r u c t i o n 1961 900. House o c c u p i e d by J.. Wicksbn 1936 7,500. 2'..5 11+7.00 5067. 1+920. Major C o n s t r u c t i o n 1958 2.500. House o c c u p i e d by R. T h u l e r 191+8 • 9,500. 2.5 186.00 6800. 6611+. Major r e n o v a t i o n i 9 6 0 800. House o c c u p i e d by W. S t a f f a n s o n I.9I4.O 8,000. 2.5 1 1 1 . 0 0 1+062. 3951. M a j o r r e n o v a t i o n i960 1+50. Manager's House and o f f i c e 1951 9,500. 2.5 187.00 7213. 7026. Rms . 1+ M a j o r r e n o v a t i o n 1962 •600. Adams on (on beach) 1928 i+, 000. 2.5 100.00 1+50. 350. Top Farm House 191+2 3,000. 2.5 38.00 1388. Destroyec BARNS Beef B a r n - p o l e & frame cons t r u c t i o n - c o n c r e t e f l o o r 191+8 22,000. 2.5 700.00 17150. 161+50. D a i r y B a r n .- l o a f i n g type f l o o r w i t h hay s t o r a g e l o f t 1951 53,000. 2.5 1325.00 361+37. 35112. New B a r n A d d i t i o n 1961+ 2.5 — 121+07. M i l k i n g P a r l o r I960 22,000. 5.0 1100.00 18150 . 17050. ^ I n v e n t o r i e s " ' f o r the f i s c a l ' y e a r s 1962-63 and 1963-61+ have been o m i t t e d s i n c e v a l u e s f o r these p e r i o d s are l i n e a r f u n c t i o n s o f the 1961+ v a l u e s . 125 APPENDIX 3 ' B u i l d i n g I n v e n t o r y ( c o n t i n u e d ) D e s c r i p t i o n Y e a r I n i t i a l D e p r e c i a t i o n Value Value B u i l t Cost J a n . 1/614. Deo.31/6+ $ P7ate Amount $ $ I o % BARNS B u l l Pen 1963 1000. 5.0 50.00 975. 925. Machine Shop & Implement Shed 1962 I+300. 2.5 107.00 1+157. 1+050. S t o r e House 191+5 200. 2.5 5.00 107. • 102. Gas & O i l House 1962 250. 2.5 6. 21+1. 235. Old Garage — 50. — — 5o. 50. Garage k Storage Shed near M o n t f o r t House 191+8 1+000. 2.5 100. 21+50. 2350. C o r r a l s , Fence 1961-62 L o a d i n g P l a t f o r m s 1200. 5.o 60. 1110. 1050. 6 S i l o s 38' x 16» i n c l u d e d i n Barns L.D. Fences around f i e l d s and Top Farm 191+8 farms tead - 2000. 2000. Lower Farm Avg. 1958 19328. 6.5 1256. 11790. 10531+. TOTAL $601+3. $131+,l8i+.$l39,l98. 126 APPENDIX 1+ MACHINERY INVENTORY 196k Purchase I n i t i a l D e p r e c i a t i o n Value Value Date Cost t o Rate Amount J a n . l / 6 k Dec.31*6k ,• Farm POWERED EQUIPMENT cb df cb cb • d? Cp yo %p Kp ip 1 3T. Truck (GMC w i t h h o i s t ) 1961 3 0 0 0 . 15 1+50. 1875. I k 2 ^ . 1955 1 |-T. P i c k - u p " Truck, Dodge 1956 1961 IkOO. 15 2 1 0 . 8 7 5 . 6 6 5 . 1 F o r d Model 2N T r a c t o r 191+9 1959 7 0 0 . 10 7 0 . 3 8 k . 31k . 1 N.H. B a l e r #77 1950 1 6 0 0 . - - 1+00. 1+00. 1 B u l l Dozer TD30 David-Brown 1958 7 0 0 0 . 10 7 0 0 . 3 0 1 9 . 2 3 1 0 . TRAILERS 1 5T. Hay T r a i l e r 1963 3 0 0 . 10 3 0 . 2 8 6 . 2 5 6 . farm made, Mat. l a b o u r @' 1.30 per h r . 1 S i l a g e T r a i l e r 1962 1 2 0 . 10 12. 1 0 2 . 9 0 . farm made Mat. & Labour 1 F e n c i n g T r a i l e r 1959 1 0 0 . 10 1 0 . 5 5 - 1+5. f a r m made. 2 Wagons 1956 5 0 0 . 10 5 0 . 1 2 5 . 7 5 . 1 Manure Spreader 1955 N 1 2 0 0 . 10 1 2 0 . 2 k 0 . 1 2 0 . New H o l l a n d 1 A.C. Forage Box 196k 1075. 10 5 k . - 1 0 2 1 . f a r m made 1 Vacuum Tank I960 2 5 k . 10 2 5 . 165 . IkO. f a r m b u i l t Appendix k 127 M a c h i n e r y I n v e n t o r y 196k Purchase Date FIELD EQUIPMENT 1 P l o u g h ( t r a i l i n g Case.-2.f.) 1959 1 P l o u g h (mounted M.F. new) 1955 1 10" Disc.Harrowl955 1 Z i g - Z a g Harrow 1958 1 C h a i n Harrow 1955 1 F i e l d Sweep 1958 l e v e l l e r -farm b u i l t 1 Mounted C u l t . 1949 M.F. (new) 1 Garden R o l l e r 1 F e r t i l i z e r 1957 Spreader,New H o l l a n d . 10' 1 Seed D r i l l 1957 I.H.C. 8' 1 Brady Forage -j Harv 1956 1 Brady Forage Harv 196k 1 Brady Forage Harv 196k 1 Mower,M.F.Semi 1955 mounted #6 1 Mower, F o r d , mounted I960 1 S i d e - D e l i v e r y 1959 Rake 1 Dump Rake;pre-war 1947 I n i t i a l D e p r e c i a t i o n V alue Cost to Rate Amount J a n . l / 6 k Farm , —% Value Dec.31/64 T 100. 200. 150. 150. i5o. 25. 350. 10. 300. 200. 700. 75. 5oo. 700. 8o. k5o. 20. 7 7 10 10 10 7 7 10 10 10 10 7. 14. 15. 21. 16. 50. 45. ~% 69. 81. 50. 65. 25. 25. 100. 10. 163. 108. 49.) 200. 80. 247. 20. 62. 67. 50. 5o. 25. 25. 100. 10. 142. 94. 150. 450. 200. 80. 202. 20. 3 The p a r t s o f two used f o r a g e h a r v e s t e r s were used t o c o n s t r u c t one machine f o r p a s t u r e c l i p p i n g . Appendix 1+ -128 M a c h i n e r y I n v e n t o r y 1961+ P u r c h a s e d I n i t i a l D e p r e c i a t i o n Value Value Date Cost t o Rate Amount J a n . 1/61+ Dec . 3 l / 6 1 + (new/used) Farm  ! $ % $ $ $ FIELD EQUIPMENT ( c o n t i n u e d ) 1 Tedder (Hay) 3 0 . - - 3 0 . 3 0 . 1 Hay F l e f f e r John Deere I960 N 3 0 0 . 10 3 0 . 191+. 161+. 1 B a l e Loader 1955 N 2 0 0 . 7 - 8 8 . 8 8 . :ARD EQUIPMENT 1 Mulkey w i t h m o t o r , e l e v a t o r 1955 6 2 7 . 7 2 5 3 . 2 0 9 . 1 S m a l l e l e v a t o r w i t h motor 1961 8 0 . 7 6. 6 6 . 6 0 . 50 p c " 3" x 2 0 ' i r r i g a t i o n p i p e 1962 5 0 0 . 5 2 5 . 1+69. 1 P o s t - H o l e D i g g e r 1955 2 8 0 . 7 - 1 0 5 . 1 0 5 . 1 P l a t f o r m S c a l e 1956 1 F a i r b a n k s S c a l e 1962 3 5 0 0 . 2 . 5 8 7 . . 3 3 6 8 . 3 2 8 1 . 1-2 Wheel S p r a y e r 1951+ 1+50. 10 0 5 0 . 5 0 . 1 A i r Compressor 1957 152. 7 - 8 1 . 7 0 . 1 Snow Plow 1958 1 0 0 . 5 5 . 7 2 . 6 7 . 1 Water Pump w i t h engine 1956 - - 5 0 . 5 0 . 1 3 0 " Saw-Bench mounted 1957 2 0 . - - 2 0 . 20 . 2 Lawn-Boys 1960 1955 7 0 . 7 0 . 10 7 . 1+6. 7. 3 9 . 7. 2 C h a i n Saws I960 3 0 0 . 10 3 0 . 191+. 161+. 3 'Wheel Barrows 1+6-1+6-20 1955 112. 5 6. 6 0 . 1 Cow L i f t e r 1961 2 5 . 5 1. 2 1 . 2 0 . 5 S m a l l Motors e l e c t r i c 1958 2 5 . 10 - 1 0 . 1 0 . Appendix k -129 M a c h i n e r y I n v e n t o r y 1961+ P u r c h a s e d Date (new/used) I n i t i a l C o s t t o Farm D e p r e c i a t i o n Rate Amount Value V a l u e Jan.l/6k Dec.31/6k YARD EQUIPMENT ? % $ $ C a t t l e Squeeze 195k 270. 5 13. lk3. 129. M i s c . Y a r d E q u i p . - F o r k s , brooms, s h o v e l s , e t c . 200. 200. 200. MILKING EQUIPMENT M i l k i n g P a r l o r Equipment I960 6500. 10 650. k225. 3575. B u l k Tank I960 3500. 10 125. 227k. -B u l k Tank 196k 5795. 10 290. - 5505. A d d i t i o n a l , M i l k i n g S t a l l s 196k 2505. 10 63. - 2kk2. MISCELLANEOUS EQUIPMENT 1 Road Drag 1957 20. - - 20. 20. 8 Water. Troughs 1959 160. 10 8. 12k. 116. SHOP EQUIPMENT 1 E l e c t r i c G r i n d e r l 9 6 3 u 50. 10 5. kO . 35. 2 E l e c t r i c D r i l l s 1955 1955 50. u 20. 10) ) - 16. 16. 1 A r c Welder 1958 300. 7 21. 18k. 163. 1 O x y - a c e t y l e n e 1956 w e l d e r 100. 7 - k8. k 8 . 1 B a t t e r y Charger 1955 25. 5 1. 14. 13. 1 Socket S e t 1955 80. 5 k. k 6 . k2. Other hand t o o l s k60. - - k60. k60. STORES r'f' W e l d i n g rods 50 Nuts & B o l t s 150 P i p e 8c Metals200 kOO. kOO. kOO. Appendix 1+ 130 M a c h i n e r y I n v e n t o r y 1961+ Purc h a s e d I n i t i a l D e p r e c i a t i o n Value Value Date Cost" to Rate Amount J a n . l / 6 4 Dec. 31/614-(new/used) Farm . NEW $ % O i l f i t t e r s ) Chains ) Mowers p a r t s ) B e l t s ) T i r e s & Tubes) 8 0 . 80. 8 0 . 2 L o g g i n g c h a i n s 1955 10. - 1 0 . 10. E l e c t r i c f e n c e s e t s 195+ 6 8 . 5 3 . +0. 3 7 . Bench v i s e 1955 20. - - 20. 20. 3 Grease Guns 1957 60. 10 6. 21. 15 . 3 Y a r d j a c k s I960 60 . 5 3 . 5 0 . 1+7. 2 G r i n d e r s 1957 20. - - 20. 2 0 . TOTAL MACHINERY AND EQU] [PMENT 3 3 3 2 . 221+37. 26 . 9 2 2 . EQUIPMENT USED SOLELY FOR RESEARCH PROJECTS 1 "Merry T i l l e r " 1961 1 8 0 . 15 27. 113. 8 6 . 1 " M u s t a n g " T i l l e r 1962 220 . 15 3 3 . 168. 1 3 5 . TOTAL ALL EQUIPMENT 22718. 27,114-3. 131 APPENDIX 5 LIVESTOCK INVENTORY CALENDAR YEAR 196k A c c o u n t i n g V a l u e $ January 1,196k Number Va l u e $ December Number 31,196k V a l u e $ DAIRY cows k25. 7 2975. 16 6800. 350. 25 8750. 22 7700. 250. k8 12000. 75 18750. 170. 2 3k0. - -85. - - - -TOTALS 82 2ko65. 113 33250. k HEIFERS 3 mos. • - 12 mos. 6k 5050. 5k k255. 13 mos. • - 2k mos. 31 5300. 32 5500. B u l l s 1 100. 10 335. TOTAL ALL DAIRY 178 3k5i5. 209 k33kO. BEEF COWS HEIFERS BRED HEIFERS BULLS STEERS HERD BULLS 200, 150. 102. 65. 60. 500. 33 7 1 15 6 18 6600. 1050. 102. 1300. 390 1080. 500. -8T 41 21 "56" 8200. 3150. 280. 11630. TOTAL ALL BEEF 11022. Lj. The a c t u a l f a r m i n v e n t o r y s h e e t s show a v a l u e f o r each 3 month age group o f young s t o c k . I n t h i s i n v e n t o r y the c l a s s i f i c a t i o n has been condensed. 132 LIVESTOCK INVENTORY 1 9 6 3 - 6 4 DAIRY HERD APRIL 1, 1963 Number Value $ Number APRIL 1, Value $ 1964 AVERAGE NUMBER COWS 82 2 L 1 8 0 . 84 2 5 2 7 0 . 8 3 . 0 HEIFERS 39) 35|: 9 4 2 0 . 47) 49) 9 5 9 5 . 43 Age 1.-2 y r s . 42 BULLS 15" 3 1 0 . 2 115. 8.5 HERD BULLS l 2 0 0 . 1 2 0 0 . 1 172 $ 3 4 1 1 0 . I83 $ 3 5 1 8 0 . X BEEF HERD COWS 35 6 2 5 6 . 39 7 5 0 0 . 37 HEIFERS 22 1250. 26 1 3 2 0 . 24 BRED HEIFERS 18 321+0. - - 90 BULLS if 2 2 0 . 6 5 1 0 . 5 .0 HERD BULLS - - - -97 $ 1 1 4 8 6 . 9 4 $ 1 0 4 3 0 . 133 LIVESTOCK INVENTORY 1962-63 DAIRY HERD "APRIL Number 1, 1962 Value APRIL Number . 1, 1963 Value AVERAGE Number $ $ COWS 7$ 20510. 82 2+180. 78.5 HEIFERS 61 7175. 7U- 9+20. 67.5 BULLS 1 i5o. & 310. 8.0 HERD BULLS 1 200. 1 200. 1.0 138 $23035- 172 $3+110. BEEF HERD COWS +8 5668. 35 6256. +1.5 HEIFERS tt 5000. 22 1250. 38.5 BRED "HEIFERS 2 y r s . 18 32+0. 9.0 STEERS + 220. 2.0 BULLS 26 2+50. 18 520. 22.0 HERD BULLS 1' 35o. .5 $13+68. $11+86. 13+ APPENDIX 6 OPERATING STATEMENTS FOR THE CALENDAR YEAR 1961+ AND, THE FISCAL YEARS 1963-61+ . and 1962-63 OPERATING STATEMENT - CALENDAR YEAR 1961+ 5 M i l k S a l e s ( G r o s s ) L i v e s t o c k S a l e s Dairy-Beef L i v e s t o c k I n v e n t o r y Change Dairy-Beef House R e n t a l Other Income ( p u l p wood) Adjustemnts to income Farm M i l k Consumed 1) by employees 2) by c a l v e s TOTAL ADJUSTED INCOME INCOME $ 3,382,57 5,102.16 + 8,825.00 + 608.00 132.00 1+85,76 $ 11-6,555.92 8,981+. 73 9,1+33.00 1,500.00 336.39 617.76 $67.1+27.80 Continued 5 T h i s r e p r e s e n t s the g r o s s v a l u e o f m i l k s h i p p e d p r i o r t o any d e d u c t i o n s . ••:>:••< 1 3 5 OPERATING STATEMENT - CALENDAR YEAR 196k C o n t i n u e d EXPENSES G e n e r a l Accounts S a l a r i e s and Wages Employer Share o f B e n e f i t s E l e c t r i c i t y I n s u r a n c e Telephone F u e l and O i l R e p a i r s and Maintenance B u i l d i n g s M a c h i n e r y Equipment R e n t a l M i s c e l l a n e o u s T r a v e l l i n g (Farm P o r t i o n ) L i v e s t o c k Accounts Feed T o t a l C o n c e n t r a t e T o t a l Hay p l u s opening I n v e n t o r y , J a n . l 196k 2 OT a t $k5 TOTAL Less I n v e n t o r y Dec.31,196k V a l u e o f Purch a s e d Hay consumed i n 196k Other S u p p l i e s 13,763.25 " k,777.31 900.00 5,677.31 3,200.00 2.k77.31 699.3k $ 32,186.73 1,899.25 ' 1,001.03 l,378.k2 37k.7k 1,796.88 1,017.90 1,393.0k 2,570.06 76.76 991.23 C o n t i n u e d --16,939.90 13.6 . OPERATING-STATEMENT - CALENDAR YEAR 1964' C o n t i n u e d -EXPENSES P r o f e s s i o n a l S e r v i c e s $ .. . . $ D a i r y l i , l 8 . $ 8 6 Beef $0.00 L i v e s t o c k A s s o c i a t i o n Fees R.O.P. 1J68.58 t e s t i n g +35 •00 L i v e s t o c k S u p p l i e s M e d i c i n e s B e dding, Dairy. C l e a n e r , e t c . D a i r y 1,225.28 Beef 75.00 A r t i f i c i a l I n s e m i n a t i o n 1,300.28 D a i r y 3+0.43 Beef 200,00 5+0.43 M i l k H a u l i n g . 1,870.83 D a i r y A s s o c i a t i o n f e e s .234.25 M i l k T e s t i n g and M i s c . Crop Accounts Seed 222.92 F e r t i l i z e r 1,486.13 Other 1.709.05 TOTAL CASH EXPENSES . $68,184.36 DEPRECIATION B u i l d i n g s 6,0.43.00 Equipment 3,332.00 FARM CONSUMED MILK 617.76 9.992.76 TOTAL EXPENSES $78 177.12 6 Expenses f o r the beef o p e r a t i o n are e s t i m a t e s s i n c e no se p a r a t e account was kept o f th e s e i t e m s . 137 RECONCILIATION OF THE MODIFIED 196k OPERATING STATEMENT WITH THE GENERAL LEDGER ACCOUNTS As e x p l a i n e d i n the t e x t the n a t u r e o f the p r e s e n t a c c o u n t -i n g system n e c e s s i t a t e d a r e - c l a s s i f i c a t i o n and r e v i s i o n o f many income and e x p e n d i t u r e items i n o r d e r t o p r e s e n t a t r u e r p i c t u r e o f t h e nst': revenue j p o s i t i o n o f the farm. As a r e s u l t of t h e s e m o d i f i c a t i o n s the d a t a p r e s e n t e d i n the r e v i s e d o p e r a t i n g s t a t e -ments d i f f e r from t h a t i n t h e g e n e r a l l e d g e r a c c o u n t s . A r e c o n -c i l i a t i o n of the two accounts was u n d e r t a k e n to a c c o u n t f o r these d i f f e r e n c e s . The n a t u r e of t h e d i f f e r e n c e s ^Qr§\a§ -follows; 1. The amount shown under m i l k s a l e s i n t h e g e n e r a l l e d g e r a c c o u n t s i s not a g r o s s f i g u r e but i s net of m i l k h a u l i n g , purchase of creamery s h a r e s and o t h e r creamery d e d u c t i o n s . 2. The g e n e r a l l e d g e r accounts show o n l y c a s h r e c e i p t s and cash e x p e n d i t u r e s w i t h the r e s u l t t h a t changes i n l i v e s t o c k i n v e n t o r i e s , d e p r e c i a t i o n and v a l u e of f a r m consumed m i l k are not a c c o u n t e d f o r . 3. The g e n e r a l l e d g e r accounts do not p r o v i d e s u f f i c i e n t r e f i n e m e n t i n a l l o c - a t i n g c o s t s between the two major e n t e r p r i s e s . k. I n some cases t h e r e has not been s u f f i c i e n t d i s t i n c t i o n between expenses t h a t p r o p e r l y b e l o n g t o the commercial o p e r a t i o n and those t h a t b e l o n g under t h e t e a c h i n g and r e s e a r c h s e c t i o n ( e s p e c i a l l y items under account number 270). 5. Some of the income e n t r i e s i n the g e n e r a l l e d g e r were oearned i n the p r e v i o u s y e a r but e n t e r e d i n the c u r r e n t 138 5. y e a r r e s u l t i n g i n an o v e r s t a t e m e n t f o r the c u r r e n t y e a r . 6. E r r o r s i n t a b u l a t i n g r e s u l t e d i n an un d e r s t a t e m e n t of. r e n t a l income. R e c o n c i l i a t i o n of t h e 1961+ R e - C l a s s i f i c a t i o n O p e r a t i n g Statement w i t h the G e n e r a l Ledger Accounts ' The f o l l o w i n g g e n e r a l l e d g e r d a t a was a d j u s t e d t o account f o r t h e above i t e m s . 1. INCOME Cash Income R e p o r t e d i n the General Ledger Accounts M i l k (#578) 14,2,81+1.26 L i v e s t o c k S a l e s (#522) 10,01+2.01 House R e n t a l (#520) 1,001+. 01 Other Income (#523) 91+2.61 Board A l l o w a n c e (#502) 2 2 0 . 0 0 TOTAL CASH INCOME $55,01+9.89 ADD 1. I n c r e a s e i n i n v e n t o r y of 9,1+33.00 l i v e s t o c k 2. Creamery d e d u c t i o n s r e p r e -s e n t i n g h a u l i n g , t e s t i n g , dues and creamery s h a r e s . 3,711+ . 6 6 3 . Value of f a r m consumed m i l k 6 1 7 . 7 6 1+. Understatement of r e n t a l income 1+95»99 $ l l + . 261.1+1 TOTAL $ 6 9 , 3 1 1 . 3 0 DEDUCT 1. Overstatement i n " o t h e r income" . 6 0 6 . 2 2 2 . B o a r d a l l o w a n c e 2 2 0 . 0 0 3 . Excess o f income under l i v e s t o c k s a l e s 8 1.057 .28 1 . 8 8 3 - 5 0 " TOTAL $ 67.1+27."B~0~ OPERATING STATEMENT GROSS INC0ME  67.1+27.8  7 Expenses f o r the be e f o p e r a t i o n are e s t i m a t e s s i n c e no s e p a r a t e account was kep t of t h e s e items 8 T h i s was due t o Income r e c e i v e d i n 1961+ f o r l i v e s t o c k s o l d i n a p r e v i o u s p e r i o d . 139 I I EXPENSES R e p o r t e d in-:,the G e n e r a l Ledger Accounts T o t a l Cash Expenses $67,1+31+. 60 ADD . 1. M i l k h a u l i n g , creamery charge (but not share purchase) 9 2,105.08 2, L i v e s t o c k s u p p l i e s 1,300.28 M e d i c i n e , d a i r y s u p p l i e s A . I . s e r v i c e s i n c u r r e d i n 196k but p a i d f o r l a t e r 1+35.00 3. Farm t r a v e l 991.23 5.371.02 72,806.62 DEDUCT 1. R e - a l l o c a t i o n to non commercial a c t i v i t i e s 1 0 3,203.92 2. Overstatement o f f e e d expenses 665.83 3. Overstatement of p r o f e s s i o n a l s e r v i c e s 670.51 k. Unaccounted o v e r s t a t e m e n t of 82.00 k. 622.26 expense TOTAL ADJUSTED CASH EXPENSE . 68,l8k.36 TOTAL OPERATING STATEMENT . CASH EXPENSE 68,l8k.36 9 The purchase o f creamery shares i s a c a p i t a l i n v e s t m e n t not an o p e r a t i n g expense. 10 The c a s h expenses f o r 196k c o n t a i n e d expenses i n the amount o f $3,203.92 t h a t p r o p e r l y b e l o n g e d under c a p i t a l e x p e n d i t u r e s or under the t e a c h i n g and r e s e a r c h a c c o u n t s . I I LO OPERATING STATEMENT 1963 - 1961+ M i l k S a l e s ( G r o s s ) L i v e s t o c k S a l e s D a i r y 3,1&3.72 Beef 4,W.10 L i v e s t o c k I n v e n t o r y Change D a i r y + 1,070.00 Beef 1,056.00 House R e n t a l Other Income Adjustments t o Income Farm consumed m i l k 1) employees 2) c a l v e s . TOTAL ADJUSTED INCOME CASH EXPENDITURES G e n e r a l A c c ounts S a l a r i e s and Wages Employer Share of B e n e f i t s E l e c t r i c i t y I n s u r a n c e Telephone F u e l and O i l l ) fa r m use 2) employee use R e p a i r s and Maintenance B u i l d i n g s C o n t i n u e d l k l OPERATING STATEMENT 1963-61+ Continued Repairs and Maintenance B u i l d i n g s 5 3 1 . 2 9 Machinery l , 2 8 l . k l Equipment Re n t a l 1 , 7 3 2 . 1 5 M i s c e l l a n e o u s ( t r a v e l , o f f i c e s u p p l i e s , g r o c , c l e a n i n g , e t c .) 7 6 3 . 6 5 L i v e s t o c k Accounts ko,8 7 7 . 8 7 Peed D a i r y l 6 , 0 k 2 . 8 3 Beef 7 5 3 . 2 0 No s u b s t a n t i a l change i n Feed I n v e n t o r i e s P r o f e s s i o n a l S e r v i c e s D a i r y 1,1+39.29 Beef 5 0 . 0 0 k89.29 L i v e s t o c k A s s o c i a t i o n Feed, R .0.P t e s t i n g , l i v e s t o c k s u p p l i e s (medicine, bedding, d a i r y c l e a n e r , e t c .) Da i r y 1 , 2 0 1 . 8 5 Beef 5 0 . 0 0 1 , 2 5 1 . 8 5 A r t i f i c i a l I n semination Dairy 137 .18 Beef 1 , 1 3 7 . 1 8 M i l k Hauling 1 , 6 9 0 . 9 7 D a i r y A s s o c i a t i o n Fees 60 . 0 0 M i l k t e s t i n g and miscellaneous 2 3 . 00 2 0 , k k 8 . 3 2 Group Accounts Seed 1 6 9 . 0 5 F e r t i l i z e r 1,361.1+5 Other 1 . 5 3 0 . 5 0 1+2 OPERATING STATEMENT 1963-6+ Continued $ $ TOTAL CASH EXPENSES 62,856.69 NON-CASH EXPENSES D e p r e c i a t i o n 1) B u i l d i n g s 6,667.00 2) Equipment 2,236.00 8,903.00 FARM CONSUMED MILK 5+3.8+ TOTAL EXPENSES 72,303.53 INCOME: M i l k Sales (Gross) L i v e s t o c k S a l e s Dairy-Beef L i v e s t o c k Inventory Changes Dairy Beef House R e n t a l Other Income Adjustments to income M i l k Consumed by 1) employees 2) c a l v e s TOTAL ADJUSTED INCOME 114-3 OPERATING STATEMENT 1962 - 1963 $ 2,890.7+ 10,252.58 6,075.00 1,982.00 $ 31,863.51| 13,1+3.32 +,093.00 975.00 596.00 132.00 51,198.63 CASH EXPENDITURES: Ge n e r a l Accounts: S a l a r i e s & Wages Employer Share of B e n e f i t s E l e c t r i c i t y Insurance Telephone & O f f i c e 32,0+1.50 l,+99.72 937.11 1,330.83 +89.28 l k k OPERATING- STATEMENT 1962-63 Continued - $ $ F u e l & O i l 1) Farm use 1,666.76 2) Employee use 78.37 1,71+5.13 R e p a i r s & Maintenance B u i l d i n g s 38k.3k Machinery 972.61 1,356.95 Equipment R e n t a l 1,200.00 M i s c e l l a n e o u s ( t r a v e l , o f f i c e s u p p l i e s , g r o c , c l e a n i n g , etc.) 1,526.58 L i v e s t o c k Assoc. Fees, R.O.P. t e s t i n g , L i v e s t o c k s u p p l i e s , (medicines, bedding d a i r y c l e a n e r , e t c . ) k2.227.10 L i v e s t o c k Accounts: Feed D a i r y 11,838.55 Beef 1,800.00 (No s u b s t a n t i a l change i n fee d Invent) 13,638.55 P r o f e s s i o n a l S e r v i c e s Dairy 595.97 Beef 90.00 685.97 1,375.3k D a i r y l,l60.3k Beef 215.00 A r t i f i c i a l I n semination D a i r y 6k. 00 Beef 6k.00 OPERATING Continued -M i l k H a u l i n g D a i r y Assoc. Fees M i l k T e s t i n g & Mi s c . Crop Accounts: Seed F e r t i l i z e r Other TOTAL CASH EXPENSES NON-CASH EXPENSES D e p r e c i a t i o n 1) B u i l d i n g s 2) Equipment FARM CONSUMED MILK 11+5 STATEMENT 1962-63 $ $ 1,1+88.00 60.00 33.33 17,3+5.19 613.00 1,1+71.00 2,08!+.00 60,656.29 6,507.00 3,273.00 527.77 10,307.77 TOTAL EXPENSES $70,961+.06 11+6 APPENDIX 7 C a l c u l a t i o n s of Measures of F i n a n c i a l Performance For The Da i r y E n t e r p r i s e at Oyster R i v e r D e finitions used: 1. Gross revenue means gross d a i r y revenue and i n c l u d e s milk s a l e s , d a i r y l i v e s t o c k s a l e s and in c r e a s e i n inventory of d a i r y animals. 2..:. T o t a l Investment i n c l u d e s the d a i r y apportionment of land, b u i l d i n g s and machinery plus a l l o f the d a i r y c a t t l e . The apportionment i s e x p l a i n e d i n Appendix 8 and may be summarized as f o l l o w s ; Land 12% of $129,080. $92,930. B u i l d i n g s Ihfi of 117,11+9. 86,690. Machinery 12% of 2l+,03l+. 17,305. L i v e s t o c k 100$ of 32,859. 32.859. T o t a l Dairy Investment $229,781+. Investment per cow: 229781+ = $2,837. 81 3. B u i l d i n g Investment per cow was c a l c u l a t e d from Number 2 above, i . e . $86.690 = $1,070. - s i — 1+. Machinery Investment per cow also from Number 2 above: $17.305 = $211+. • 81 5. Gross revenue per man-equivalent. Gross revenue has been e x p l a i n e d above. I t was necessary to s t a n d a r d i z e man-e q u i v a l e n t s to compare with the 8 h r . work day at Oyster R i v e r . The B.C. s t u d i e s used i n comparison d e f i n e d a 1+7 5. man-equivalent as one man working 10 hours per day f o r 312 11 days. A man-equivalent at Oyster R i v e r may be d e f i n e d as one man working 8 hours per day f o r 288 days per year. 312-10 hour days i s e q u i v a l e n t to 390 - 8 hour days, so the r a t i o 390 = 1.35 was used to convert the B.C. s t u d i e s to 2HcJ the e q u i v a l e n t i n terms of the Oyster R i v e r d e f i n i t i o n . 6. Labour Cost per Cow was based on the labour a l l o c a t i o n of Appendix 8 $25319 = v $313-81 7. T o t a l Cash Cost per Cow. The comparative s t u d i e s t r e a t e d the value of operators labour as a r e s i d u a l so i t was necessary to add the v a l u e of t h i s labour to the other cash expenses to make the data comparable to Oyster R i v e r . The value of the operator's labour was c a l c u l a t e d at $+, 032. and added ..to thehcash expenses ;in each study. This i s h i g h e r than the r a t e f o r h i r e d wages but i t seems reasonable i n the l i g h t of the management r e s p o n s i b i l i t y i n v o l v e d . 8. The Cost of Producing 100 l b s . of M i l k . In the case of Oyster R i v e r the a l l o c a t e d expenditure $50,625. (see Appendix 8) v/as used, to which was added de-p r e c i a t i o n on b u i l d i n g s and equipment, b r i n g i n g the t o t a l expense to $57,+83. This was d i v i d e d by the average cwt. of m i l k shipped (7998 cwt.) to y i e l d a c o s t of $7.l8. Costs of producing m i l k f o r the B.C. s t u d i e s were c a l c u l a t e d by summing t o t a l cash expenses, inventory decrease, value of unpaid f a m i l y labour, value of o p e r a t o r labour (see above) 11 M.M. Sorboe and E.D. Woodward, D a i r y Farming on Vancouver  I s l a n d 1961 op. c i t . ; D.C. C r o s s f i e l d and E.D.Woodward, D a i r y Farming i n the F r a s e r V a l l e y of B r i t i s h Columbia 1961 11+8 and d e p r e c i a t i o n on b u i l d i n g s and equipment. T h i s t o t a l was then d i v i d e d by the cwt. of m i l k produced. In the Whatcom County study o p e r a t o r l a b o u r was r e -valued at $1+, 032. which had the e f f e c t of r a i s i n g t o t a l costs by $l,j?0l+.' I n t e r e s t on investment which was pre-v i o u s l y i n c l u d e d was excluded here. Costs of p r o d u c t i o n f o r Gray's Harbor and Lewis Counties were c a l c u l a t e d by summing t o t a l cash expenses, value of operator labour and d e p r e c i a t i o n on b u i l d i n g s and equipment. Inventory changes and unpaid f a m i l y l a b o u r were not a p p l i c a b l e here. 11+9 APPENDIX 8 The A l l o c a t i o n of Expenditure Between the D a i r y and Beef E n t e r p r i s e s at Oyster R i v e r Parm The a l l o c a t i o n of expenditures between e n t e r p r i s e s i s a somewhat a r b i t r a r y d e c i s i o n . Although some items can be r e a d i l y i d e n t i f i e d as belonging to one e n t e r p r i s e or the other many can not. The p r i n c i p l e f o l l o w e d was to a l l o c a t e expenditures on the b a s i s of r e s o u r c e s d i r e c t l y or i n d i r e c t l y consumed. For example^ labour c o s t was a l l o c a t e d on the b a s i s o f the number of f e e d con-suming animal u n i t s i n each c l a s s of l i v e s t o c k ( d a i r y and bee!*). F i r e insurance and b u i l d i n g r e p a i r s were a l l o c a t e d on the b a s i s of b u i l d i n g investment devoted to each c l a s s . Machinery expenses were a l l o c a t e d on the b a s i s of the harvested forage consumed by each ( s i n c e the g r e a t e s t p a r t of machinery use was connected w i t h forage o p e r a t i o n s ) . In the case of e l e c t r i c i t y , telephone and mi s c e l l a n e o u s expenses an a r b i t r a r y a l l o c a t i o n was made. Expense t o t a l s were based on averages of the f i s c a l years 1962-63 and 1963-61+. 15 o The A l l o c a t i o n of Expenditure Between the Beef and D a i r y E n t e r p r i s e s (Continued) Average Expenditure 1962-63, 1963-61+ ITEM AVERAGE 1962-63 1963-61+ EXPENDITURE 12 S a l a r i e s & Wages 29,891.50 26,872.18 28,381.81+ Employer share of b e n e f i t s 1,1+99.72 1,782.81 1.61+1.27 TOTAL COST OF WAGES 30,023.11 E l e c t r i c i t y 937.11 933.18 935.11+ Insurance 1,330.83 1,365.01+ 1,31+7.1+8 Telephone 1+89.28 357.99 1+23.63 F u e l & O i l Farm use 1,666.76 1,611.73 1,639.21+ Empl.ua e 78.37 21+6.1+1+ 321+.81 Repairs & Maintenance B u i l d i n g s 38k. 31+ 531.29 1+57.81 Machinery 972.61 1,281.1+1 1,127.01 Equipment R e n t a l 1,200.00 1,732.15 1,1+66.07 M i s c e l l a n e o u s 1,526.58 763.65 1,11+5.11 12 Only one-half of manager's s a l a r y i s i n c l u d e d h®re. The other h a l f i s a t t r i b u t e d - to the teaching r e s e a r c h aspects of the farm. 151 Average E x p e n d i t u r e s 1 9 6 2 - 6 3 , 1 9 6 3 - 6 3 ( C o n t i n u e d ) ITEM CROP ACCOUNTS: LIVESTOCK ACCOUNTS: DAIRY: Feed P r o f . S e r v i c e s L i v e s t o c k A s s o c , f e e s , t e s t i n g , m e d i c i n e s , e t c . M i l k h a u l i n g D a i r y A ssoc. f e e s M i l k t e s t i n g A . I . EXPENDITURE 1 9 6 2 - 6 3 1963-61L $ 2 , 0 8 + . 0 Q $ 1 , 5 3 0 . 5 0 1 1 , 8 3 8 . 5 5 5 9 5 . 9 7 1 , 1 6 0 . 3 + 1 , + 8 8 . 0 0 6 0 . 0 0 3 3 . 3 3 6 + . 0 0 1 6 , 0 + 2 . 6 3 + 3 9 . 2 9 1 , 2 0 1 . 8 5 1 , 6 9 0 . 9 7 6 0 . 0 0 2 3 . 0 0 1 3 7 . 1 8 AVERAGE EXPENDITURE $ 1 , 8 0 7 . 2 5 • 1 3 , 9 + 0 . 5 9 5 1 7 . 6 3 1 , 1 8 1.09 1 , 5 8 9 . + 8 6 0 . 0 0 2 8 . 1 6 1 0 0.62 BEEF: Feed 1 , 8 0 0 . 0 0 P r o f . S e r v i c e s 90.00 L i v e s t o c k A s s o c . f e e s , m e d i c i n e s , e t c . 215.00 7 5 3 . 2 0 5 0 . 0 0 5 0 . 0 0 1 , 2 7 6.60 7 0 . 0 0 1 3 2 . 5 0 1*2 S U M M A R Y O F T H E A L L O C A T I O N O F E X P E N D I T U R E S •AT O Y S T E R R I V E R FARM B A S E D O N A V E R A G E S F O R 1962-63 A N D 1963-6J+. G E N E R A L A C C O U N T S D A I R Y B E E F 1. S a l a r i e s , w a g e s , e m p l o y e r s h a r e o f b e n e f i t s 25,318.1+8 k , 7 0 k . 6 3 2. I n s u r a n c e 1,001.0k 31+6. k k 3. R e p a i r s a n d M a i n t e n a n c e B u i l d i n g s 3k0.8k 116.97 M a c h i n e r y & E q u i p m e n t 8 l 6 . 7 k 310.27 k . M a c h i n e r y R e n t a l l,062.k6 393.61 5. F u e l a n d O i l 1,1+86.6k 1+77.kl 6. E l e c t r i c i t y 7k8.11 187.03 7. T e l e p h o n e 338 . 9 0 8k.73 8. M i s c e l l a n e o u s 916.08 229.03 C R O P A C C O U N T S 9. S e e d & F e r t i l i z e r 1,177.78 629.1+7 L I V E S T O C K A C C O U N T S F e e d 13,91+0.59 1,267.60 P r o f e s s i o n a l S e r v i c e s 517.63 70.00 A s s o c . f e e s , m e d i c i n e s l , l 8 l . 0 9 132.50 A . I . 100.62 M i l k h a u l i n g 1,589.1+8 D a i r y A s s o c . F e e s 60.00 M i l k t e s t i n g 28.16 =  T O T A L S $50,6 k  k $8,91+9.69 ^3 The B a s i s For the A l l o c a t i o n of Exp e n d i t u r e . 1. A l l o c a t i o n of the T o t a l Wage B i l l (avg. $30,023.11) between the D a i r y and Beef E n t e r p r i s e s . The procedure f o l l o w e d was to apply the work u n i t s t a n d -ards used by Sorboe and Woodward to the average number of animals i n the d i f f e r e n t age groups and thus o b t a i n a measure of the d i v i s i o n of l a b o u r . The d i v i s i o n was f u r t h e r m o d i f i e d by ta k i n g i n t o account d i f f e r e n c e s i n the q u a l i t y of l a b o r r e q u i r e d f o r the two e n t e r p r i s e s - the d a i r y o p e r a t i o n r e q u i r i n g more h i g h l y s k i l l e d l a b o r . The r e s p e c t i v e r a t e 3 used were $ll+. and $12. per 8 hour day, 21+ days per month. Average Inventory of L i v e s t o c k 1962-63, 1963-61+. D a i r y Average Numbers Average A.U.S. Work Standards per animal A n n u a l l y T o t a l Work Units (10 hrs Cows 81 80.75 13.5 1,093.5 Bred H e i f e r s 28.5 16.91+ 2.0 57.0 B u l l s 8.0 2.06 2.0 16.0 Herd B u l l s 1.0 1.00 5.0 5.o H e i f e r Calves 38.0 9.1+9 2.0 76. TOTAL 110.21+ 1,21+7.5 Converting to 8 h r . work u n i t s : 121+7.5 x 10/8 = 1559.37 work u n i t s i5l+ Beef Average Number Average A.U.S. St a n d a r d s p e r A n i m a l A n n u a l l y T o t a l Work U n i t s (10 h r s . ) Cows 3 9 . 5 3 9 . 2 5 3 . 5 1 3 6 . 5 H e i f e r s 9 . 3 . 9 6 2 . 0 1 8 . 0 H e i f e r s 3 1 . 7 . 8 1 2 . 0 6 2 . 0 S t e e r s 3 . 5 1 .59 2 . 0 7 . 0 B u l l s 2 1 . 5 . 3 1 2 . 0 k 2 . 0 Herd B u l l s 1. 1 . 0 0 5 . 0 0 5 . 0 TOTALS 5 8 . 9 2 2 7 0 . 5 C o n v e r t i n g t o 8 h r . work u n i t s : 2705 x 10/8 = 3 3 8 . 1 2 work u n i t s . A l l o w i n g f o r wage r a t e and d i f f e r e n c e s i n t h e q u a l i t y of l a b o u r we have t h e f o l l o w i n g * B e e f : ( 3 3 8 . 1 2 ) ( $ 1 2 , ) $k,057.1+k D a i r y : ( 1 5 5 9 . 3 7 ) ($Lk.) 2 l . 8 3 1 . l 8 $ 2 5 , 8 8 8 . 6 2 The p e r c e n t a g e o f l a b o u r u t i l i z e d by each was c a l c u l a t e d as f o l l o w s : k 0 5 7.kk x 100 = 1 5 . 6 7 $ used by the beef e n t e r p r i s e 257888.62 2 1 . 8 3 1 . 1 8 2 5 ,888.62 = 8 k . 3 3 $ used by the d a i r y e n t e r p r i s e A l l o c a t i o n o f A c t u a l E x p e n d i t u r e D a i r y 8 k . 3 3 $ o f $ 3 0 , 0 2 3 . 1 1 = $ 2 5 . 3 l 8 . k 8 Beef 1 5 . 6 7 $ of $ 3 0 , 0 2 3 . 1 1 = $ k.7 0 k . 6 3 tt 2. The a l l o c a t i o n of In s u r a n c e was based on the t o t a l b u i l d i n g i n v e s t m e n t i n e a c h e n t e r p r i s e . DAIRY BEEP $ $ Value o f L i v e s t o c k , 1962-63,63-61+ 3 3 , 1 2 6 . 1 1 , 7 1 7 . Avg. B u i l d i n g Investment, 1962-63,63-61+ Avg. Barns 3 6 , 7 6 8 . 1 7 , 3 1 6 . R e s i d e n c e s & Other' B u i l d i n g s Houses $31,1+08. Other 1+. 1+1+1. $35,81+9. T h i s amount was a l l o c a t e d on the b a s i s o f l a b o r a l l o c a t i o n Dairy 8I+.33$ 3 0 , 2 3 1 . 5 , 6 l 8 . Beef 1 5 . 6 7 $ TOTAL $ 1 0 0 , 1 2 5 . $31+, 6 5 1 . T o t a l of Both $131+, 7 7 6 . The p e r c e n t a g e a t t r i b u t a b l e to t h e d a i r y e n t e r p r i s e i s $ 1 0 0 . 1 2 5 . = 71+. 29% $131+, 7 7 6 . The beef e n t e r p r i s e was a l l o c a t e d the re m a i n d e r (25.71%) DAIRY: 71+. 29% o f 131+7.1+8 $1.001 .01+ BEEP: 2 5 . 7 1 $ of 131+7.1+3 $ 31+6.1+1+ 156 3 . A l l o c a t i o n o f R e p a i r s & Maintenance. B u i l d i n g s : This was a l l o c a t e d on the b a s i s of the value of b u i l d i n g s u t i l i z e d by the d a i r y and beef e n t e r p r i s e s r e s p e c t i v e l y . (see #1) D a i r y $ 6 6 , 9 9 9 . Beef T o t a l $ 8 9 , 9 3 3 . $ 2 2 , 9 3 + . 7+.+5$ of investment • 2 5 . 5 5 $ of i n v e s t -ment T o t a l B u i l d i n g Repairs $ + 5 7 . 8 1 $3+0.8+ $ 1 1 6 . 9 7 A l l o c a t i o n of Machinery Repairs • $ 1 , 1 2 , 7 . 0 1 . C a p i t a l investment i s used as the r e l e v a n t c r i t e r i a here. C a p i t a l , except f o r m i l k i n g equipment, i s a l l o c a t e d on the basis of forage consumption of each e n t e r p r i s e . Since most of the equipment was o r i e n t e d toward forage h a r v e s t i n g t h i s seemed a reasonable g u i d e . Only consumption of harvested forage was cons i d e r e d . Normal hay p r o d u c t i o n - 8000 bales @ l+O.lbs = 3 2 0 , 0 0 0 . l b s . Normal s i l a g e p r o d u c t i o n 5 s i l o s = 582 tons. Percentage of Feed Consuming Animal U n i t s : Dairy 100 6 5 . 1 7 $ Beef 58.92 169.16 100 3+.83$ 157 Investment Dairy Beef M i l k i n g Equipment $ 6 , 2 8 6 . 0 0 Other Equipment 2370k. (65.17$) I5 .kk7.89 $ 8 . 2 5 6 . 1 1 TOTAL $ 2 1 , 7 3 3 . 8 9 $ 8 , 2 5 6 . 1 1 T o t a l Machinery Investment $29,990.00 Da i r y p o r t i o n 21.773.89 = 72.k7$ 29,990 Beef p o r t i o n = 27.53! T o t a l Repairs $ 1 ,127.01 D a i r y P o r t i o n 72.k7$ of 1 ,127.01 $ 8 l 6 . 7 k Beef P o r t i o n 27.53$ of 1 ,127.01 $310.27 k. A l l o c a t i o n of Machinery Rental was made on the same b a s i s as Machinery Repairs T o t a l $ l , k 6 6 . 0 7 Dairy 72.k7$ of l , k 6 6 . 0 7 = $1 . 0 6 2 . k 6 Beef l k 6 6 . 0 7 - 1062.14.6 = $393.61 5 . A l l o c a t i o n of F u e l & O i l Expense Beef D a i r y Furnace o i l f o r the d a i r y $ 9 0 . 0 0 The remaining (1639.2k - 90) $ l 5 k 9 . 2 k r e p r e s e n t i n g , i n the main v e h i c l e f u e l , o i l and grease was a l l o c a t e d on the same b a s i s as the machinery investment: D a i r y : 72.1+7$ $1,122 .73 Beef: 29.53$ $k26 . 5 l 158 Beef D a i r y C a r r i e d Forward $1+26.5l $1,122.73 The r e m a i n i n g f u e l o i l f o r employee use and can be c o n s i d e r e d a form of wage and c a n be a l l o c a t e d i n the same manner as wages. D a i r y : 81+.33$ of 321+.81 27 3 . 9 1 B e e f : 15.67$ of 321+.81 50.90  TOTAL $1+77.14-1 $1,1+86.61+ T o t a l o f B o t h : $1 ,961+.05. ==================^^ A l l o c a t i o n o f ( l ) E l e c t r i c i t y $935.11+ (2) Telephone 1+23.63 (3) M i s c e l l a n e o u s 1.11+5.11 $2,503.88 There does not appear t o be any v a l i d a p r i o r i b a s i s f o r a l l o c a t i n g the above e x p e n d i t u r e s . However, a f t e r c o n s i d e r i n g the a l l o c a t i o n of the o t h e r g e n e r a l account items a somewhat a r b i t r a r y c h o i c e was made t o a l l o c a t e 80$ of e a c h to the d a i r y e n t e r p r i s e and 20$ to the b e e f . D a i r y Beef 6. (1) E l e c t r i c i t y 935.11+ $71+8.11 $187.03 7. (2) Telephone 1+23.63 338.90 81+.73 8. (3) M i s c e l l a n e o u s 111+5.11 916.08 229.03 9. A l l o c a t i o n of Crop A c c o u n t s : T h i s was done on the b a s i s o f the p r o p o r t i o n of f e e d consuming a n i m a l u n i t s . From the s e c t i o n on the a l l o c a t i o n of machinery r e p a i r s t h i s 1 5 9 was seen t o be: D a i r y 6 5 . 1 7 $ Beef 3l+.83$ D a i r y : 6 5 . 1 7 $ of 1 8 0 7 . 2 5 $ 1 . 1 7 7 . 7 8 Beef: 1 8 0 7 . 2 5 - 1 1 7 7 . 7 8 $629.1+7 160 APPENDIX 9 D i s t r i b u t i o n of T r a c t o r Time' by Parm O p e r a t i o n 1961+ O O O I A < • • • • • • EH - CO O o o X A O -d- r A CO o O EH - r A . d - CM H CM O CO o o- O CM CO H • CO A l o s± O r A - d - I A CM X A _ d vO PH 0^ H tS] H i J < O vO CO ' H • • « S : EH - CO o 1 D 1 o PH CM HH ca EH <3 fo; • PL, w PH O M - . O rH PH CO r A o O m o « • • • 1 K.-H : vO 0^ CO % fo ! - d - r A fo~ ' i 553 CO: • - d -O « < « o o O r A • • • • EH O CO 'i vO CO - d -rH O r A 0 rH rH PH—• « CO CO - d -• • • t-H r A "LA 1 1 EH r A O I A rH O EH O O <J • - • PH :' o^ X A O 1 1 EH 0^ I A CO. H rH i H KH CO <: EH O EH -rH • r— - d - o O O X A - d - o- o rH 1A r - - d - CM CM PH w '3 EH "<g Cj3 > o •p P o h> o 43 SH ft © CD +3 ^ 1H (0 XI - P >J SH XI O O CD (H fl © cd ra f ^ U 43 © fl | 1 t>» © .•d - P 3 fl 43 -H DO £ a) © fl£ -• O TS • © _ d - • cd o O n H H rH © <+H » H ^ o -d SH SH 3 © O S PH © CO '© e •H 43 © © , f l CO 43 © 3 co 5": j>» rH , Q EH 161 APPENDIX 10 D i s t r i b u t i o n of T r a c t o r Time by Months Summer of 1961+ • JUNE JULY H O U R S AUGUST F o r d "Major" 11+2 208 77 Massey F e r g u s o n "35" 98 107 106 Case "503" 51 51 55 F o r d "2N" 58 65 51 NOTE: The an n u a l d i s t r i b u t i o n might be e x p e c t e d t o be s i m i l a r t o t h a t of f i g u r e 2 i n the t e x t . 162 APPENDIX 11 Cost o f O p e r a t i n g Powered M a c h i n e r y PICK-UP TRUCK " TRUCK OPERATION FARGO.(1955) COST OF OPERATION FIXED COST: L i c e n c e : $25.00 I n s u r a n c e : ( E s t . ) $75.00 D e p r e c i a t i o n : P u r c h a s e d 1961 used f o r $11+00. 15$ p e r annum $210,00 I n t e r e s t :.• on In v e s t m e n t : 5$ on $700. $ 35.00 H o u s i n g : l/l£. of Machine Shed Annual Cost $ 6.70 R e p a i r and Ma i n t e n a n c e : 6.2$ of O r i g i n a l Cost $ 86.80 TOTAL FIXED COST $1+38 .50 VARIABLE COSTS Gas: 15 M i l e s p e r G a l l o n a t 2.6/ per g a l . $0.0173 p a r mi. O i l and Grease e v e r y 1000 m i l e s $0.0025 p e r mi. $0.0198 p e r mi. COST PER MILE MILES DRIVEN COST PER MILE 6000 m i l e s $0,073 + 0 . 0 1 9 = $0,092 7000 m i l e s $0,063 + 0.019 = $0,082 8000 m i l e s $0,055 + 0.019 * $0,071+ Appendix 11 16& FIXED COST: L i c e n s e : I n s u r a n c e : TRUCK OPERATION 3-ton G.M.C. (1955)  COST OF OPERATION $ 9 5 . 0 0 $ 75.00 D e p r e c i a t i o n : P urchased 1961 (used) f o r $3000.00 Rate 15$ H o u s i n g : 1/3.5 °^ m a c n i - n e shed a n n u a l c o s t . I n t e r e s t on Inve s t m e n t : 5$ on $1500. R e p a i r s and Ma i n t e n a n c e : 6.2^ o f o r i g i n a l cos t . TOTAL FIXED COST  VARIABLE COSTS Gas. 10 M.P.G. @ (26+l+0)/2/ p e r g a l a O i l and Grease $2 . 5 0 p e r 1000 m i l e s $1+50.00 $ 13.1+0 $ 75.00 $182.00 $890.1+0 $ 0 , 0 3 3 per m i l e $ . 0 0 2 5 p e r m i l e $ .0355per m i l e MILES DRIVEN 6000 m i l e s 7000 m i l e s 8000 m i l e s COST PER MILE 0.150 + .035 0.127 + .035 0.111 + .035 COST PER MILE $0,185 $0,162 $0,114.6 «• T h i s r e p r e s e n t s an average o f f a r m p r i c e and the p r i c e o f f u e l p u r c h a s e d o f f the f a r m 161+ Appendix 11 TRUCK OPERATION FORD SUPER MAJOR COST OF OPERATION D i e s e l FIXED COST: R e n t a l I n s u r a n c e Hous i n g : @ $ 1 0 . p e r $ 1 0 0 0 . l / l ^ o f machine shed a n n u a l cos t L i c e n s e : I n t e r e s t on Inv e s t m e n t : M a i n t e n a n c e : ( E s t i m a t e ) TOTAL FIXED COST  VARIABLE COSTS F u e l . *635 g a l . per h r . @ 2 3 / p e r g a l . O i l and Grease. $ 2 . 5 0 p e r 100 h r . COST PER HOUR HOURS USED 900 h r s . 1000 h r s . 1100 h r s . 1200 h r s . 0 . 5 0 + $ . 1 8 0.1+5 + $ . 1 8 0.1+1 + $ . 1 8 0 . 3 7 + $ . 1 8 $ 3 5 6 . 5 7 3 5 . 0 0 6 . 6 0 5 0 . 0 0 $ 1+14.8.27 .11+6 p e r h r . . 0 2 5 $ .175 COST PER HOUR $ 0 . 6 8 $ 0 . 6 3 $ 0 . 5 9 $ 0 . 5 5 165 Appendix 11 TRACTOR OPERATION  COST OF OPERAT ION FIXED COST: J_ R e n t a l : I n s u r a n c e : $10 per 1000 L i c e n s e : H o u s i n g : l / l 5 of Machine shed annual c o s t . I n t e r e s t on Investment R e p a i r s and M a i n t e n a n c e : ( E s t i m a t e ) TOTAL FIXED COST  VARIABLE COST F u e l . .799 g a l . p e r h r . @ 2 3 / per g a l . O i l and Grease. .025 p e r h r . COST PER HOUR HOURS USED 300 h r s . 1.89 + .209 500 h r s . 1.13 + .209 600 h r s . 0.94 + .209 700 h r s . 0.81 .209 800 h r s . 0.71 + .209 900 h r s . 0.63 + .209 1000 h r s . 0.58 + .209 CASE 530 DIESEL WITH LOADER $ +65.13 +5.oo 6.70 5 o . o o $ 5 6 6 . 8 3 . 1 8 + . 0 2 5 .209 COST PER HOUR $ 2.10 1.314-1,15 1.02 .92 .84 .78 166 Appendix 11 TRACTOR OPERATION  COST OF OPERATION MASSEY-FERGUSON FIXED COST.; 35 DIESEL R e n t a l : f r om i n v o i c e $300.00 I n s u r a n c e : $10 per $100 + 30 6 0 . 0 0 L i c e n s e : 5*00 Housing : 6.70 I n t e r e s t on Investment: R e p a i r s and M a i n t e n a n c e : ( E s t i m a t e ) 5 0 . 0 0 TOTAL FIXED COST $1+21.70 VARIABLE COSTS F u e l «£H-6 g a l . p e r h r . @ 23^ .125 O i l and Grease .025 $.150 COST PER HOUR HOURS USED COST PER HOUR 500 h r s . 0 .81+ + .150 $ .99 600 h r s . 0.70 + .150 . 8 $ 700 h r s . 0 . 6 0 + .150 .75 800 h r s . 0.53 + .150 .68 900 h r s . 0 . k 7 + .150 .62 Appendix 11 167 COST OF OPERATION TRACTOR OPERATION FIXED COST : D e p r e c i a t i o n : 195>0 model. : " pu r c h a s e d 1959 f o r $700 10$ d e p r e c i a t i o n I n s u r a n c e : $10 per 1000 L i c e n s e : Hous i n g : I n t e r e s t on Investment: 5$ on $ 3 5 0 . R e p a i r s & M a i n t e n a n c e : 6.2 on o r i g i n a l i n v estment TOTAL FIXED COST SMALL FORD 2N $ 7 0 . 0 0 1 0 . 0 0 5 .oo .6.70 1 7 . 5 0 1+3. ko $ 1 5 2 . 6 0 VARIABLE COST F u e l . g a l . / h r , O i l and Grease .513 @ 2 6 / per g a l , . 133 . 0 2 5 .158 HOURS USED TOTAL COST 300 h r s . 0 . 5 1 + .158 1+00 h r s . 0 . 3 8 + .158 500 h r s . 0 . 3 0 + . 158 600 h r s . 0 . 2 5 + .158 700 h r s . 0 . 2 2 + .158 COST PER HOUR $ .668 . 5 3 8 .1+58 .1+08 . 3 7 8 168 Appendix 11 COST OF OPERATION TRACTOR OPERATION .CRAWLER FIXED COST : DAVID BROWN T D 30 D e p r e c i a t i o n : P u r c h a s e d new 1958 $7000 Rate 10$ $ 7 0 0 . 0 0 I n s u r a n c e : F i r e , t h e f t , & damage $10 x 3 3 0 . 0 0 H o u s i n g : 2 / l 5 of machine shed a n n u a l c o s t 13*1+0 R e p a i r s and M a i n t e n a n c e : 6 . 2 $ o f o r i g i n a l c o s t 1+31+.00 I n t e r e s t on In v e s t m e n t : 5$ on average i n v e s t -ment of $ 3 5 0 0 . 1 7 5 . 0 0 TOTAL FIXED COST $1,353.1+0 VARIABLE COST F u e l . 1 .0 g a l p e r h r . @ 2 3 / per g a l . $ . 2 3 O i l and Grease. . 0 5 0 TOTAL VARIABLE COST $ .158 COST PER HOUR HOURS USED 100 h r s . / y r . 200 h r s . / y r . 300 h r s . / y r . 1+00 h r s . / y r . 500 h r s . / y r . COST PER HOUR $ 1 3 . 5 3 + . 2 8 $ 1 3 . 8 1 $ 6 . 7 6 + .28 7.01+ $ 1+.50 + . 2 8 9 . 2 6 $ 3.1+7 + . 2 8 3 . 7 5 $ 2 . 7 0 + . 2 8 2 . 9 8 Appendix 11 1 6 9 TRACTOR HOUSING Machine Shop & Shed. B u i l t i n 1 9 6 2 D e p r e c i a t i o n : Z\% on $ k 3 0 0 $ 1 0 8 . 0 0 Maintenance:" P a i n t i n g - l k g a l . per p a i n t i n g % $ 5 * 0 0 per g a l . ... $ 7 0 . 0 0 Each p a i n t i n g l a s t s k y e a r s . O o s t per year $ 1 7 . 5 0 1 7 . 5 0 $ 1 2 5 . 5 0 F o u r - f i f t h s of the b u i l d i n g space i s a v a i l a b l e f o r storage. Therefore the co s t of machinery storage is k/5.of $ 1 2 5 . 5 0 $100.kO There i s room f o r 15 automobile s i z e v e h i c l e s hence the c o s t per v e h i c l e space i s 1 0 0 . k 0 / l 5 .. $ 6.70 TRACTOR INSURANCE Source: Draney Insurance S e r v i c e , Campbell R i v e r F i r e , t h e f t , damage $ 1 0 . 0 0 per $ 1 0 0 0 per y r . L i a b i l i t y on l i c e n s e d t r a c t o r s $ 3 0 . 0 0 p e r y r . 170 Appendix 11. CALCULATION OP MAINTENANCE AND REPAIR ESTIMATES. The p r o c e d u r e f o l l o w e d was t o sum a c t u a l r e p a i r expend-i t u r e and a p o r t i o n of the mechanics s a l a r y ( 6 1 $ ) . T h i s t o t a l was t h e n e x p r e s s e d as a p e r c e n t a g e of the new v a l u e s of a l l equipment i n c l u d i n g r e n t a l equipment. An e x c e p t i o n was made i n e s t i m a t i n g r e p a i r e x p e n d i t u r e s o n r e n t e d equipment. I t was f e l t t h a t the above method of c a l c u l a t i o n would s e r i o u s l y o v e r -s t a t e r e p a i r expenses. R e p a i r e x p e n d i t u r e f o r r e n t e d e q u i p -ment was e s t i m a t e d at $50.00. VALUE OF EQUIPMENT I n v e n t o r y of Machinery and Equipment $28,307. Shop Equipment 600. M i l k i n g P a r l o r Equipment 13,000. Rented Equipment: F o r d Major Massey F e r g u s o n 35 Case 530 and Loader A. C. Blower Manure Spreader 3,566. 3,000. l+,65i. i , 5 o o . 1,200. TOTAL $55.82li. A c t u a l R e p a i r Expenses 61$ of Mechanics S a l a r y $ 1,139. TOTAL 2.310.  $ 3 . W . x 100 = 6.2$ o f new p r i c e 171 APPENDIX 12 The P r e s e n t System o f Accounts a t O y s t e r R i v e r and a Suggested R e - c l a s s i f i c a t i o n . The e f f e c t of the r e c l a s s i f i c a t i o n i s , ( l ) to s e p a r a t e i n as f a r as p o s s i b l e e x p e n d i t u r e items by e n t e r p r i s e and by f u n c t i o n e.g. d a i r y expenses, beef expenses, crop expenses, and c a p i t a l expenses, and (2) t o s e p a r a t e commercial e x p e n d i t u r e s f r o m those t h a t c l e a r l y b e l o n g to the t e a c h i n g and r e s e a r c h s e c t i o n . For example, account 1+0-9000-270 has been u s e d f o r a l l t r a v e l l i n g expenses and f o r f a c u l t y v i s i t s . Only m i s c e l l a n e o u s expenses i n v o l v i n g the c o m m e r c i a l o p e r a t i o n s h o u l d be i n c l u d e d h e r e . PRESENT FARM ACCOUNTS ACCOUNT NUMBER 1+0 9000 U n i v e r s i t y R e s e a r c h Farm, O y s t e r R i v e r 1+0 9000 16k S a l a r i e s and wages kO 9000 205 Employer's share of b e n e f i t s kO 9000 215 Purchases L i v e s t o c k kO 9000 218 House A l l o w a n c e 1+0 9000 22k Land C l e a r i n g kO 9000 227 F e n c i n g and Road Maintenance kO 9000 230 F e r t i l i z e r kO 9000 2 3 k E l e c t r i c i t y kO 9000 238 R e p a i r s and Maintenance (Equipment) kO 9000 2k0 Feed kO 9000 2 k k Gas and O i l Appendix 12 ACCOUNT NUMBER kO 9000 2*0 1+0 9000 262 kO 9000 268 kO 9000 270 1+0 9000 271 ko 9000 272 kO 9000 278 kO 9000 285 kO 9000 362 kO 9000 k36 kO 9000 520 kO 9000 522 kO 9000 523 kO 9000 578 1+0 9015 E x p e n d i t u r e kO 901$ 27k kO 9015 278 1+0 9015 16k Revenue 172 P r e s e n t Farm Accounts I n s u r a n c e R e p a i r s & Maintenance ( B u i l d i n g s ) Seed S u p p l i e s & Expenses Vet & Drugs ( P r o f e s s i o n a l S e r v i c e s ) Telephone Development of F a c i l i t i e s L i v e s t o c k I n v e n t o r y A n i m a l Bedding C a l i t a l Equipment and r e n t a l R e n t a l s (House) L i v e s t o c k S a l e s Other S a l e s M i l k S a l e s TEACHING RESEARCH AND DEVELOPMENT U n i v e r s i t y R e s e a r c h Farm O y s t e r R i v e r T e a c h i n g R e s e a r c h Development T r a v e l & F i e l d Day Development o f F a c i l i t i e s S a l a r i e s & Wages (St u d e n t Help) kO 9015 508 E l i t e Seed S a l e s Appendix 12 173 SUGGESTED RECLASSIFICATION OF OYSTER RIVER FARM ACCOUNTS EXPENSES 1. GENERAL ACCOUNTS; A. S a l a r i e s and Wages B. Employer Share of B e n e f i t s . C. House Allowance D. E l e c t r i c i t y E. Insurance F. Telephone G. F u e l , Separated i n t o two p a r t s ; i . Gas, o i l , grease, and s tove o i l f o r farm op e r a t i o n s i i . Stove o i l used i n re s i d e n c e s of hi r e d ' help H. Repairs and maintenance i . B u i l d i n g s i i " . " Machinery I. Equipment r e n t a l J . M i s c e l l a n e o u s , t r a v e l , o f f i c e s u p p l i e s , g r o c e r i e s , laundry, e t c . 2. LIVESTOCK ACCOUNTS: BY ENTERPRISE (DAIRY OR BEEF) A. Feed B. P r o f e s s i o n a l s e r v i c e s C. R.O.P. t e s t i n g and l i v e s t o c k a s s o c i a t i o n fees D. L i v e s t o c k s u p p l i e s ; drugs and medicines, bedding, f l y s p r a y , d a i r y c l e a n e r , e t c . E. A. I. 3. CROP "ACCOUNTS: A. Seed B. F e r t i l i z e r C Other 1+. CAPITAL ACCOUNTS. A. L i v e s t o c k purchases B. Machinery purchases C. New b u i l d i n g s or extensive r e p a i r s to o l d b u i l d i n g s D. Land development E. Fencing (New) 174 Appendix 12 REVENUE ACCOUNTS ( P A R M OPERATION) 1. House R e n t a l 2. L i v e s t o c k Sales Dairy-Beef 3. M i l k Sales " 1+. Other Income TEACHING- AND RESEARCH ACCOUNTS REVENUE: 1. E l i t e Seed'Sales 2. Other Income GENERAL EXPENDITURE 1. E l i t e Seed Expenditure (Includes t r a v e l l i n g , meals, and a l l other expenses of a d m i n i s t e r i n g and m a i n t a i n i n g the p l o t s ) 2. F i e l d Day Expenses 3. Student Teaching Expenditure (This i s Expenditure t h a t would not have been i n c u r r e d except as a r e s u l t of having taught students) 1+. P u b l i c R e l a t i o n s and F a c u l t y V i s i t s 5>. T r a v e l l i n g expenses not connected w i t h the commercial o p e r a t i o n 6 . M i s c e l l a n e o u s CAPITAL EXPENDITURE A c a p i t a l expenditure account should be provided i f any con-s t r u c t i o n of f a c i l i t i e s i s undertaken that r e l a t e s o l e l y to the non commercial o b j e c t i v e s . 17$ APPENDIX 13 A Comparison of the C h a r a c t e r i s t i c s of P r o d u c t i o n F u n c t i o n s 13 D e r i v e d by K e r r f o r F r a s e r V a l l e y d a t a , G o s s l i n g f o r li+ 15 O n t a r i o d a t a , Heady under Iowa c o n d i t i o n s and the 16 M i s s o u r i P a r t i t i o n e q u a t i o n . K e r r and G o s s l i n g used the s t a t i s t i c a l method based on c r o s s s e c t i o n a l d a t a f rom D a i r y Herd Improvement A s s o c i a t i o n r e c o r d s i n t h e i r r e s p e c t i v e a r e a s . K e r r d e r i v e d f u n c t i o n s f o r H o l s t e i n cows based on II4J4. h e r d s ; Guernseys, (1+2 h e r d s ) , J e r s e y s (33 herds) and a f u n c t i o n f o r mixed h e r d s . The number of A y r s h i r e herds was t o o s m a l l t o w a r r a n t a n a l y s i s . G o s s l i n g based h i s w ork on the p u r e b r e d H o l s t e i n and i n c l u d e d s p e c i f i e d "breed f a c t o r s " by w h i c h a f u n c t i o n c o u l d be m o d i f i e d t o r e p r e s e n t a p a r t i c u l a r b r e e d . B o t h w r i t e r s have f i t t e d t r a n s c e n d e n t a l and q u a d r a t i c type f u n c t i o n s to t h e i r r e s p e c t i v e d a t a . Heady's f u n c t i o n s were, d e r i v e d u s i n g the e x p e r i m e n t a l method. The experiment was con-d u c t e d w i t h 36 H o l s t e i n cows f o r an e x p e r i m e n t a l p e r i o d of 26 weeks w i t h the complete e x p e r i m e n t c o n d u c t e d over a 17 month p e r i o d . He f i t t e d d i f f e r e n t a l g e b r a i c forms of e q u a t i o n s -/ . 13 T. C. K e r r , The Use and Scope of D a i r y Herd Improvement  A s s o c i a t i o n Data i n E s t i m a t i n g the F u n c t i o n a l R e l a t i o n -s h i p "Between .Feed I n p u t and M i l k Output f o r D a i r y Cows, op. c i t . W. F. G o s s l i n g , "The Economics of the Hol3tein F r i e s i a m Cow" op. " c i t . ; W. F. G o s s l i n g , "The O n t a r i o S h o r t Run S u p p l y Curve", op. c i t . E a r l 0.. Heady and o t h e r s . " M i l k P r o d u c t i o n F u n c t i o n s , Hay-G r a i n S u b s t i t u t i o n Rates and Economic Optima i n D a i r y Cow Rat i ons " . op. c i t . Samuel Brody, B i o e n e r g e t i c s and Growth op. c i t . llt-15 16 176 Appendix 13 .' i •'.:' o ;-j . to the e x p e r i m e n t a l d a t a but co n c l u d e d t h a t the q u a d r a t i c f o r m s e r v e d b e s t to p r e d i c t the m i l k p r o d u c t i o n surface'. G o s s l i n g used t h i s e q u a t i o n i n m o d i f i e d f o r m i n comparisons w i t h h i s own and o t h e r f u n c t i o n s . The e f f e c t o f the m o d i f i c a t i o n was 1 . to adapt the e q u a t i o n t o cover the complete l a c t a t i o n p l u s the d r y p e r i o d so t h a t the r e l a t i o n s h i p r e p r e s e n t s a n n u a l i n p u t s and o u t p u t s . 2. t o t r a n s f o r m l i n e a r l y the Iowa c o e f f i c i e n t s f r om pounds o f g r a i n and f o r a g e t o pounds o f T o t a l D i g e s t i b l e N u t r i e n t s f r om each s o u r c e . ( G r a i n at 6 8 . 6 3 p e r cent T.D.N., "Hay" a t 5 0 . 6 5 p e r cent T.P.N.) The c o e f f i c i e n t s i n K e r r ' s f u n c t i o n s were e x p r e s s e d on a d a i l y b a s i s and i t was f o r t h i s r e a s o n t h a t the O n t a r i o f u n c t i o n s and the t r a n s f o r m e d Iowa f u n c t i o n s were e x p r e s s e d on a d a i l y b a s i s ( m i l k o utput d i v i d e d by 3 0 5 days; f e e d i n p u t d i v i d e d by 3 6 5 d a y s ) . The M i s s o u r i P a r t i t i o n e q u a t i o n e x p r e s s e s a f u n c t i o n a l r e l a t i o n s h i p between T.D.N, i n p u t , o u t p u t of k$ F.C.M. and body we i g h t . F o r the purpose of d e f i n i n g t e c h n i c a l c o e f f i c i e n t s r e p r e s e n t -a t i v e w e i g h t s were chosen r e p r e s e n t i n g the A y r s h i r e and H o l s t e i n breeds ( 1 1 0 0 l b s . and 1 3 0 0 l b s r e s p e c t i v e l y ) . I t c o u l d r e a s o n a b l y be assumed t h a t AW on an annual b a s i s would be ze r o i . e . t h a t body w e i g h t might d e c l i n e d u r i n g p r o d u c t i o n but that i t would i n c r e a s e d u r i n g the dry p e r i o d . I t would then be p o s s i b l e to determine T.D.N, r e q u i r e m e n t s g i v e n v a r i o u s l e v e l s of m i l k o u t p u t , and the i s o q u a n t s so o b t a i n e d c o u l d be compared t o i s o q u a n t s 177 f r o m o t h e r s o u r c e s . T h i s method was f o l l o w e d and the i s o q u a n t s f r om d i f f e r e n t s o u r c e s were compared. The g r a p h i c a l comparison i s made i n f i g u r e s ( i ) to ( i v ) . C o n s i d e r i n g , t h e n , the f u n c t i o n s a v a i l a b l e ( i n c l u d i n g the p a r t i t i o n e q u a t i o n ) the next problem was t h a t o f c h o o s i n g the one o r ones most a p p r o p r i a t e . The c r i t e r i a o f a p p r o p r i a t e n e s s i s d e f i n e d i n terms of l ) p h y s i o l o g i c a l c h a r a c t e r i s t i c s o f the m i l k i n g cow, 2 ) the economic i m p l i c a t i o n s of the d i f f e r e n t a l g e b r a i c forms of f u n c t i o n s and 3) the a p p l i c a b i l i t y of the f u n c t i o n s to the O y s t e r R i v e r a r e a . Heady s t a t e s t h a t the most l o g i c a l p r o d u c t i o n s u r f a c e i s t h a t s p e c i f i e d by a q u a d r a t i c e q u a t i o n . The c h a r a c t e r i s t i c s of s u c h a s u r f a c e a r e t h a t i t e x h i b i t s d i m i n i s h i n g m a r g i n a l r e t u r n s as t h e r a t e of f e e d i n g i n c r e a s e s , i t has c u r v e d i s o q u a n t s i n d i c -a t i n g d i m i n i s h i n g m a r g i n a l r a t e s of s u b s t i t u t i o n between the two feeds and m i l k p r o d u c t i o n reaches a h i g h e r l e v e l on f o r a g e and c o n c e n t r a t e t h a n on f o r a g e a l o n e . I t i s , however, p o s s i b l e t o have i s o q u a n t s t h a t are l i n e a r o r n e a r l y l i n e a r i n t h e m i d d l e ranges f o r a p r o d u c t i o n s u r f a c e e x h i b i t i n g these c h a r a c t e r i s t i c s . The f u n c t i o n s d e r i v e d by K e r r and Heady do, i n f a c t , have n e a r l i n e a r i s o q u a n t s i n the m i d d l e r a n g e s . The f a c t t h a t t h e i s o -quants become f a r t h e r a p a r t as p r o d u c t i o n i n c r e a s e s i n d i c a t e s d i m i n i s h i n g r e t u r n s . T r a n s c e n d e n t a l p r o d u c t i o n f u n c t i o n s (on the o t h e r hand) may not conform a d e q u a t e l y to a m i l k p r o d u c t i o n s u r f a c e s i n c e 1) they assume c o n s t a n t e l a s t i c i t y of p r o d u c t i o n and 2) the are c h a r a c t e r i z e d by l i n e a r i s o c l i n e s and 178 i n c r e a s i n g l y wide ranges of r a t i o n s f o r h i g h e r l e v e l s o f m i l k p r o d u c t i o n . The most i m p o r t a n t c r i t i c i s m of b o t h the q u a d r a t i c and t r a n s -c e n d e n t a l f u n c t i o n s when they are compared w i t h the M i s s o u r i P a r t -i t i o n E q u a t i o n i s t h a t a t the l o w e r l e v e l s of o u t p u t t h e r e i s s i m p l y not enough T.D.N.'s a v a i l a b l e f o r maintenance and p r o d u c t i o n ( s ee f i g u r e ( i ) t o ( i v ) ) . At l e v e l s of out p u t of 35 l b s . of F.CM. p e r day and h i g h e r the p a r t i t i o n e q u a t i o n i s o q u a n t s f a l l r o u g h l y h a l f -way between those o f K e r r and those o f Heady. The main c r i t i c i s m of the p a r t i t i o n e q u a t i o n i s t h a t i t does not a l l o w f o r d i m i n i s h i n g r e t u r n s . Furthermore the e q u a t i o n does not s p e c i f y the r a t e at w h i c h f o r a g e T.D.N, s u b s t i t u t e s f o r c o n c e n t r a t e T.D.N. However, the w r i t e r was a s s u r e d by Dr. A. J . Wood of the Department of Animal S c i e n c e t h a t a l i n e a r 1 t o 1 s u b s t i t u t i o n r a t e would be r e a l i s t i c i n t h e m i d d l e r a n g e s . N o t w i t h s t a n d i n g these d i f f i c u l t i e s the M i s s o u r i P a r t i t i o n E q u a t i o n was chosen because i t more a c c u r a t e l y s p e c i f i e d the i n p u t r e q u i r e m e n t s a t each l e v e l of o u t p u t . The f o l l o w i n g e q u a t i o n s and diagrams p r o v i d e a comparison o f p r o d u c t i o n f u n c t i o n s and t h e i r i s o q u a n t s f o r the H o l s t e i n cow. I n cases where t h e r e l a t i o n s h i p was e x p r e s s e d on an annual b a s i s the 17 d a t a were c o n v e r t e d to a d a i l y b a s i s . A f u r t h e r adjustment was n e c e s s a r y where m i l k o u t p u t was e x p r e s s e d i n terms of 3«6$ F.CM. 18 to c o n v e r t i t t o the e q u i v a l e n t of k$ F.CM. The i s o q u a n t s des-i g n a t e d "Heady" are based on G o s s l i n g ' s t r a n s f o r m a t i o n o f Heady's o r i g i n a l q u a d r a t i c , w i t h a f u r t h e r adjustment t o express the r e -l a t i o n s h i p i n terms of d a i l y i n p u t s and o u t p u t s . The IT M i l k o u t p u t was d i v i d e d by 305 days and f e e d i n p u t by 3&5 days. 18 A l i n e a r t r a n s f o r m a t i o n was made t o e x p r e s s m i l k output i n terms o f h$> F.CM. 179 t r a n s f o r m e d q u a d r a t i c f u n c t i o n i s ; (1) M A = 3 . 0 + 8 8 H A + +.2931 G A . - 0.00015" 1 H A 2 - 0.000253 oA 2 _ 0 . 0 0 0 3 0 + H A G A - 523+.0 Where M A i s a n n u a l output i n l b s . of 3 . 6 $ F.C.M. and H A and G A a r e r e s p e c t i v e l y a n n u a l hay and g r a i n i n p u t s i n T.D.N.'s. The t r a n s c e n d e n t a l f u n c t i o n d e r i v e d by G o s s l i n g f o r O n t a r i o d a t a was o f the form (2) M A = 7200 + 0 . 0 0 0 0 H A 0 - ^ ^ . G A 1 ' 8 6 9 ^ 6 . e - ° - 0 0 ° 5 W G A where the v a r i a b l e s a r e t h e same as i n e q u a t i o n ( l ) . G o s s l i n g ' s q u a t r a t i c f u n c t i o n was (3) w = 1.++68Z, + i4 . . i o 5 o z 2 - 0.01015 z:,,2 - 0.06702Z 2 2 _ 0.003+3 Z i Z 2 + 13-1610 Where W i s o u t p u t of 3 . 6 $ F.C.M., Z 2 i s the .amount of g r a i n and c o n c e n t r a t e f e d i n Cwt. o f T.D.N, and Z^ i s the amount of a l l o t h e r f e e d a v a i l a b l e i n cwt. of T.D.N. The q u a d r a t i c f u n c t i o n d e r i v e d by K e r r was, (1) M = +.53 + 3.13C + 3.09R - 0 . O O 8 C 2 - 0.05 R 2 - 0 .085CR where M . i s d a i l y o u t p u t of i+$ F.C.M., C i s d a i l y i n p u t of T.D.N, ( l b s . ) i n c o n c e n t r a t e form and R i s d a i l y i n p u t of T.D.N, ( l b s . ) i n roughage form. The M i s s o u r i P a r t i t i o n E q u a t i o n i s 73 (5) Annual T.D.N. = 0.305 ( a n n u a l l b s . +$ F.C.M.) + (0.053W) I n p u t + 2.1 AW Lbs T.D.N, roughage per day (annual basis) Lbs T.D.N, roughage per day (annua l b a s i s ) CO CO 5 15 o ZJ o 12 o Si-Q. O O o o c i CO 6 F igu re ( i i i ) Compar i son of mi lk isoquants represent ing 3 5 I b s 4 % F . C M . daily for 3 0 5 days. partit ion equation T D N = 19.0 (W=I300) H CO 12 15 18 21 2 4 L b s T.D.N, roughage per day ( a n n u a l bas is ) CO _ J F igu re (iv) Compar i son of milk isoquants represent ing 4 0 lbs 4 % R O M . dai ly fo r 3 0 5 days. G o s s l i n g CO 6 9 12 15 18 21 Lbs T.D.N, roughage per day (annua l basis) 24 181+ APPENDIX ]1+ C a l c u l a t i o n of Land C o e f f i c i e n t s f o r the D a i r y A c t i v i t i e s . G i v e n the chosen p o i n t s on t h e i s o q u a n t s of f i g u r e s 3 and Ij. the f o r a g e r e q u i r e m e n t was c o n v e r t e d t o a l a n d r e q u i r e m e n t . Con-s i d e r i n g . f o r a g e to have a T.D.N, co n t e n t of 5 0 $ , l a n d r e q u i r e -ments were c a l c u l a t e d as f o l l o w s : ( D a i l y T.D.N. Forage req'd) (365 days) (2) " (2000 l b s . ) ( 2 . 5 tons per acre) No distinction-,was made about the f o r m i n w h i c h forage was f e d . I t was assumed t h a t 2 .5 tons of dry matter c o u l d be obtained whether harvested as p a s t u r e , s i l a g e , hay or any combination of these. S i m i l a r l y the forage requirements of the cow were not c o n s i d e r e d to be a f f e c t e d by t h e form i n w h i c h i t was f e d . I t i s r e c o g n i z e d t h a t the form i n w h i c h f o r a g e i s f e d has i m p o r t a n t i m p l i c a t i o n s i n the management of a farm, but f o r purposes o f d e t e r m i n i n g t o t a l r e q u i r e m e n t s and t o t a l s u p p l y i t was assumed not t o be r e l e v a n t . C o n c e n t r a t e r e q u i r e m e n t s , the o t h e r c o - o r d i n -ate on t h e i s o q u a n t s , are c o n s i d e r e d under the s e c t i o n on o p e r a t i n g c a p i t a l r e q u i r e m e n t s . Having c a l c u l a t e d the l a n d r e q u i r e m e n t s f o r the two r e p r e s e n t a t i v e cow w e i g h t s a t d i f f e r e n t l e v e l s of o u t p u t and a t d i f f e r e n t c o m b i n a t i o n s of f o r a g e and c o n c e n t r a t e , i t was n e c e s s a r y t o add the l a n d r e q u i r e m e n t s f o r the s u p p o r t i n g young s t o c k . C o m p o s i t i o n of the r e m a i n d e r of the p r o d u c i n g u n i t : . 107 h e i f e r s age 1-2 y r s . w e i g h i n g 900 # each .011 b u l l s age 1-2 y r s . w e i g h i n g 900 3 each . 1 8 5 c a l v e s under 1 y r . of a g e and w e i g h i n g 200 # each. 185 19 A c c o r d i n g to the M o r r i s o n s t a n d a r d s t h e i r d a i l y r e q u i r e -ments i n terms o f T.D.N, are 10.8 l b s . , 10.8 l b s . and k.k l b s . r e s p e c t i v e l y . G i v e n these r e q u i r e m e n t s the s o u r c e s of T.D.N, w i l l now be c o n s i d e r e d . CALVES. A c c o r d i n g t o O y s t e r R i v e r i n f o r m a t i o n c a l v e s r e -c e i v e an average of 6 l b s . of m i l k per day f o r the f i r s t kO days. I n terms of T.D.N. 'a t h i s r e p r e s e n t s 6 ( l 6 . 3 $ ) = .978 l b s . p e r day f o r kO days. M o r r i s o n f u r t h e r s t a t e s t h a t c a l v e s s i x months of age w i l l e a t about k l b s . of good hay p e r day. I n terms of T.D.N. 'a t h i s i s k (50.0$) = 2 l b s . p e r day f o r a p e r i o d of 10.6 months. As t h e t o t a l r e q u i r e m e n t s are k.k l b s . o f T.D.N, p e r day, the amount t h a t must be s u p p l i e d by c o n c e n t r a t e s i s k.k - 2.00 = 2.1+0 l b s . p e r day a l s o f o r 10.6 months. C o n v e r t i n g t h i s d a t a t o l b s . o f a c t u a l f e e d s t u f f s we have MILK 6 l b s . p e r day f o r 1+0 days 2k0 l b s . CONCENTRATE 2.k0 l b s . T.D.N. (100) (320 days) 69% T . U N . 1065.6 l b s . FORAGE: (k l b s . hay) (320 days) 1280 l b s . hay HEIFERS AND BULLS. 1-2 y e a r s of age. Bot h o f t h e s e c l a s s e s of animals were assumed to consume the same q u a n t i t i e s o f f e e d . M o r r i s o n s t a t e s t h a t w i t h abundant p a s t u r e c o n c e n t r a t e may not be r e q u i r e d i n t h e summer months. I n the w i n t e r f e e d i n g p e r i o d 3 l b s . of c o n c e n t r a t e i s s u f f i c i e n t when accompanied by a n abundant s u p p l y of good q u a l i t y roughage. T.D.N, a v a i l a b l e f rom 3 l b s . of c o n c e n t r a t e i n w i n t e r f e e d i n g (3 l b s . ) (70$) = 2.10 l b s . over a 153 day f e e d i n g p e r i o d the t o t a l r e q u i r e m e n t i s 19 F. M o r r i s o n . Feeds and Fe e d i n g op. c i t . 186 (3 l b s . ) (1*3 days) 1+59 l b s . The remainder of the T.D.N, requirements must come i n the form of f o r a g e . The requirement from forage i s (10.8 - 2.10) = 8.7 l b s . T.D.N, per day f o r 153 days or a t o t a l of 1331 l b s . Converting t o a c t u a l lbs . o f forage we have 1331 x (100) = 2522 l b s . forage -50.0 F o r the remainder o f the f e e d i n g p e r i o d of 212 days a l l the r e -quirements are met from f o r a g e . (212 days) (10.8 l b s . per day) = 2289.6 C o n v e r t i n g to l b s . of a c t u a l forage we have 2289.6 l b s . (100) = 1+519. 50.0 T o t a l Forage r e q u i r e d 70U-1. The summary of forage and concentrate requirements f o r the young s t o c k i s shown i n Table XXIII. The ) t o t a l i s expressed f o r forage and i n terms of hay e q u i v a l e n t . 187 TABLE X X I I I S M A R T OP FORAGE AND CONCENTRATE REQUIREMENTS PER YEAR .FOR.THE.BASIC.PRODUCTIVE.UNIT..(EXCLUSIVE OF THE COW). ANIMAL UNITS CONCENTRATE REQUIREMENTS FORAGE IN BASIC THE UNIT PER . HEAD FOR THE BASIC UNIT PER HEAD FOR THE BASIC .UNIT Lbs . Lbs . Lbs . Lbs. HEIFERS - 900# 1-2 y r s . .107 +59 l 4 - 9 . l l 7 0 l i l . 7 5 3 . + BULLS 900# 1-2 y r s . .100 +59 5 . 0 + 7014.1. 72.8 CALVES 200# under 1 y r . .085 1065 90.52 1280 108.8 TOTAL 114-14-. 67 935. The l a n d c o e f f i c i e n t s o f Table XXIV were c a l c u l a t e d by summing the f o r a g e r e q u i r e m e n t s of the cow and young s t o c k ( f r o m Table X X I I I ) . The t o t a l was the n e x p r e s s e d i n tons and d i v i d e d by a y i e l d of 2.8 tons o f hay e q u i v a l e n t p e r a c r e . 188 TABLE XXIV LAND REQUIREMENTS DAIRY T.D.N. REQ'D PER DAY REQ'D ANNUALLY ACTIVITY TOTAL (LBS.) -FORAGE PORTION (LBS.) HAY EQUIV. (LBS. ) YOUNG STOCK UNIT TOTAL TONS ACRES REQ'D AT 2.8t.Hay EQUIV/AC A l 17.7 9.00 6570. 935. 3.752 1.3k0 A 2 17.7 11. kO 8322. 935. k.628 1.653 A3 17.7 13.80 1007k. 935. 5.5ok 1.966 AL 19.0 9.00 6570. 935. 3.752 1.31+0 A5 19.0 12.00 8760. 935. k.8k7 1.731 A 6 19.0 15.00 10950. 935. 5.9k2 2.122 A ? 19.0 9.00 6570. 935. 3.752 1.3k0 A8 19.0 12.00 8760. 935. k.8k7 1.731 A 9 19.0 15.00 10950. 935. 5.9k2 2.122 A 1 0 21. k 8.k0 6132. 935. 3.033 1.083 A l l 21.k 11.30 82k8. 935. k.591 1.6kO A12 21.1+ 15.00 10950. 935- 5.9k2 2.122 A13 22.69 9.00 6570. 935. 3.752 1.31+0 A l k 22.69 12.00 8760. 935. k.8k2 1.731 Al5 22.69 15.00 10950. 935. 5.9k2 2.122 1 8 9 A P P E N D I X 15" C a l c u l a t i o n o f L a b o u r C o e f f i c i e n t s f o r t h e D a i r y A c t i v i t i e s . L a b o u r c o e f f i c i e n t s w e r e c a l c u l a t e d u s i n g t h e s t a n d a r d s o f 20 S o r b o e a n d W o o d w a r d , No i n f o r m a t i o n was g i v e n o n t h e m o n t h l y d i s t r i b u t i o n s o i t was n e c e s s a r y t o a l l o c a t e t h e t o t a l s b y m o n t h s o n t h e b a s i s o f t h e w r i t e r ' s p e r s o n a l o b s e r v a t i o n s . F o r e x a m p l e , t h e f e e d i n g p o r t i o n o f t h e c h o r e r o u t i n e i s m u c h m o r e t i m e c o n s u m -i n g i n w i n t e r m o n t h s , w h e r e a s t h e p e a k d e m a n d s i n h a r v e s t i n g f o r a g e o c c u r i n J u n e a n d J u l y . R e q u i r e m e n t s f o r t h e c h o r e r o u t i n e w e r e c a l c u l a t e d , s e p a r a t e l y f r o m t h e r e q u i r e m e n t s f o r g r o w i n g a n d h a r v e s t i n g f o r a g e . T h e l a b o u r r e q u i r e m e n t s f o r t h e c h o r e r o u t i n e a n d f o r g r o w i n g t h e n e c e s s a r y f o r a g e w e r e t h e n summed b y m o n t h s . A n a d j u s t m e n t f a c t o r was a p p l i e d t o t h e summer m o n t h s t o t a k e a c c o u n t o f t h e e f f e c t o n l a b o u r r e q u i r e m e n t s c a u s e d b y h a v i n g t o g r o w m o r e o r l e s s f o r a g e ( a s s p e c i f i e d b y t h e i s o q u a n t s o f f i g u r e s 3 and I4.) . A s i m i l a r a d j u s t m e n t w a s made t o w i n t e r r e q u i r e m e n t s t o a c c o u n t f o r h a v i n g t o f e e d m o r e o r l e s s f o r a g e . A w e i g h t e d a v e r a g e o f t h e a m o u n t o f l a n d ( r e m e m b e r i n g t h a t t h e r e a r e 2 b a s i c p r o d u c t i v i t i e s ) r e q u i r e d t o f e e d t h e p r o d u c i n g u n i t was d e t e r m i n e d . I t was a s s u m e d t h a t t h e u n a d j u s t e d s t a n d a r d s ' , a p p l i e d t o t h e f e e d i n g a n d p r o d u c t i o n o f f o r a g e f r o m t h i s a v e r a g e a c r e a g e . The q u a n t i t y o f l a b o u r r e q u i r e d f o r f o r a g e i s a l s o a f u n c t i o n o f t h e f o r m i n w h i c h i t i s h a r v e s t e d . A n o r m a l r a t i o o f a c r e a g e i n p a s t u r e , h a y a n d s i l a g e was d e t e r m i n e d u s i n g t h e f o l l o w i n g g u i d e s ; 1 . t h a t p a s t u r e acreage f o r t h e m i l k i n g h e r d be 2T3 M.M. S o r b o e a n a E . u . w o o d w a r d . D a i r y f a r m i n g o n V a n c o u v e r  I s l a n d 1 9 6 1 , o p . c i t . 190 as l a r g e as p o s s i b l e , w i t h i n the l i m i t s d e f i n e d by e f f i c i e n t forage u t i l i z a t i o n and d i s t a n c e from the farmstead. 2. that because of weather u n c e r t a i n t y i n the h a r v e s t -i n g of hay, as much s i l a g e as p o s s i b l e should be h a r v e s t e d . The upper l i m i t i n t h i s case was the c a p a c i t y of the 6 s i l o s . 3. t h at the remaining acreage be a l l o c a t e d f o r hay and g r a z i n g f o r young st o c k . Pasture i s normally r e s t r i c t e d t o f i e l d s #8,#9, and #10 w i t h a t o t a l acreage of 88.1 acres f o r the m i l k i n g herd(See F i g u r e 1). At a y i e l d of 2 .5 tons of d r y matter per acre 6 3 a d d i t i o n a l acres are r e q u i r e d to f i l l a l l 6 s i l o s ( t o t a l c a p a c i t y of l 5 7 » 5 tons of dry m a t t e r ) . With the normal hay acreage at 6 6 . 9 acres (based on a c t u a l experience) the remaining acreage a v a i l a b l e f o r g r a z i n g i s 1 0 0 . 5 . The data i n summary form i s as f o l l o w s : Pasture 1 8 8 . 6 acres (62.71$ of t o t a l ) S i l a g e 6 3.0 acres ( l 8 . 0 l $ of t o t a l ) Hay 6 6.9 acres ( 1 9 . 2 2 $ of t o t a l ) TOTAL 318 . 5 A p p l y i n g these percentages to the weighted average l a n d requirements expresses the normal r a t i o i n terms of the r e q u i r e -ments of the producing u n i t . M u l t i p l y i n g by the r e s p e c t i v e labour standards and summing, y i e l d s the t o t a l requirements f o r forage of the producing u n i t . This t o t a l was d i s t r i b u t e d by months (see f i g u r e 5 ) and an adjustment f a c t o r a p p l i e d . Winter chore lab was s i m i l a r l y a d j u s t e d . 191 A, Standards Used by Sorboe and Woodward. ANNUAL REQUIREMENTS 10 h r . 8 h r . P r o d u c t i v e - Man P r o d u c t i v e - Man Work U n i t s Work U n i t s . L i v e s t o c k ; . Cow 13.5 16.20 B r e d H e i f e r 2.0 2.k0 C a l f 2.0 2.k0 C r o p s ; Hay (2 c r o p s ) p e r a c r e 1.8 2.16 S i l a g e (2 c r o p s ) 2.5 3.00 P a s t u r e (newly seeded,.top c u l -t u r a l p r a c t i c e s ) 0.2 O.kO B, Ann u a l chore r o u t i n e r e q u i r e m e n t s f o r t h e p r o d u c i n g u n i t . 1.0 cow a t 16.20 16.20 u n i t s ,2kk h e i f e r a t 2.k0 .580 u n i t s ,3kl c a l f a t 2.k0 ,8l8 u n i t s TOTAL 17.60k C, Labour r e q u i r e m e n t s f o r growing Forage. C a l c u l a t i o n of the average amount of l a n d r e q u i r e d f o r the p r o d u c i n g u n i t . From the s e c t i o n on l a n d c o e f f i c i e n t s i t was det e r m i n e d t h a t t h e a v e r a g e l a n d r e q u i r e m e n t a t a y i e l d of 2.5 tons of d r y m a t t e r per a c r e was 1.6l a c r e s . (k.025 tons D.M.) A w e i g h t e d average o f the l a n d r e q u i r e d to produce k.025 tons of d r y m a t t e r seemed d e s i r a b l e t o account f o r t h e d i f f e r e n c e s i n p r o d u c t i v i t y between the low e r and upper farm and th e consequent e f f e c t on l a b o u r r e q u i r e m e n t s . 192 The number o f a c r e s o f top farm l a n d r e q u i r e d to s u p p o r t the p r o d u c i n g u n i t i s k.02.% tons = 5.37 a c r e s . 7 5 tons D.M. per a c r e These acreage r e q u i r e m e n t s ( l . 6 l and 5.37) were th e n w e i g h t e d by the amount o f c u l t i v a t e d l a n d o f each t y p e . 1.61 ac ( 182.0 ) + 5.73 (136 ) = 3.218 ac. - 31B.5 31B.5 U s i n g the f i x e d acreage r a t i o s f o r p a s t u r e , hay and s i l a g e we have P a s t u r e 62.71$ o f 3.218 = 2.019 Hay 19.22$ o f 3.218 = .6l85 S i l a g e 18.01$ of 3.218 = .5805 M u l t i p l y i n g by t h e work u n i t s t a n d a r d s we have P a s t u r e 20$ new .1+038 a t 1.80 0.7268 80$ e s t a b -l i s h e d .615 a t 0.50 O.O876 Hay .6186 a t 2.16 1.3359 S i l a g e .5805 a t 3.00 1.71+15 TOTAL LABOUR REQUIRED 1+. 612 8 h r . days The d i s t r i b u t i o n o f chore r o u t i n e l a b o u r (17.6OI+-8 h r . work u n i t s ) and o f f o r a g e growing l a b o u r (1+.612 8 h r . work u n i t s ) i s shown i n f i g u r e 5 and i n the t a b l e f o l l o w i n g . The t o t a l f o r each month was a d j u s t e d f o r the q u a n t i t y of roughage s p e c i f i e d by the i s o q u a n t s of f i g u r e s 3 and 1+. 1, Growing the roughage; f o r each i n c r e m e n t or decrement of one ac r e from the average ( l . 6 l a c r e s ) the l a b o u r r e q u i r e m e n t was a d j u s t e d by 2.50 - 8 h r . work u n i t s i n the a p p r o p r i a t e d i r e c t i o n . (An average of the per ac r e f o r a g e and hay r e q u i r e m e n t s . ) 1 9 3 2 f Feeding the roughage; f o r each acre change i n l a n d requirements the w i n t e r f e e d i n g c o e f f i c i e n t s (Table XXV) were ad j u s t e d by 0 , 0 7 8 h r , days per month. (Based on a change i n h a n d l i n g requirements of 1,01+ b a l e s of hay per cow p e r day). The f i n a l a d j u s t e d f i g u r e s by months are presented i n Table XXV. Concentrate f e e d i n g is l a r g e l y a u t o m a t i c a l l y handled and i t was assumed t h a t no change i n la b o u r requirements would occur due to changes i n the amount f e d . 1 9 K TABLE XXV LABOUR REQUIREMENTS DAIRY 8 HR.WORK UNITS ACTIVITY WINTER MARCH APRIL Nov. 1 -Feb.20 INITIAL PER.MONTH ADJUST-MENT . TOTAL k. MONTHS % 2.0 -0,019 7.92k 1.6 2.0 A 2 2.0 +0.003 8.012 1.6 2.0 A 3 2.0 +0.025 8.100 1.6 2.0 \ 2.0 +0.008 8.032 1.6 2.0 A 5 2.0 +0.008 8.032 1.6 2.0 A 6 2.0 +0.036 8.1kk 1.6 2.0 A 7 2.0 -0.019 7.92k 1.6 2.0 A 8 2.0 +0.008 8.032^ 1.6 2.0 A 9 2.0 +0.036 8.1kk 1.6 2.0 A 1 0 2.0 -0.037 7.852 1.6 2.0 A l l 2.0 +0.002 8.008 1.6 2.0 A 1 2 2.0 +0.036 8.1kk 1.6 2.0 A 1 3 2.0 -0.019 7.92k 1.6 2.0 A % 2.0 +0.008 8.032 1.6 2.0 A l 5 2.0 +0.036 8.1kk 1.6 2.0 Co n t i n u e d -195 LABOUR REQUIREMENTS DAIRY MAY JUNE JULY ACTIVITY INITIAL TOTAL INI T I A L ADJ. TOTAL INITIAL TOTAL A l 1.66 1.66 1.96 -.185 1.775 1.96 1.775 A 2 1.66 1.66 1.96 +.029 1.989 1.96 1.989 A 3 1.66 1.66 1.96 + .21)4 2.201+ 1.96 2.201+ Al+ 1.66 1.66 1.96 +.832 2.792 1.96 2.792 A 5 1.66 1.66 1.96 +.083 2.01+3 1.96 2.01+3 A 6 1.66 1.66 1.96 +.352 2.312 1.96 2.321 A 7 1.66 . 1.66 1.96 -1.85 1.775 1.96 1.775 . A 8 1.66 1.66 1.96 +.083 2.01+3 1.96 2.01+3 A 9 1.66 1.66 1.96 +.352 2.312 1.96 2.312 A10 1.66 1.66 1.96 -.359 1.601 1.96 1.601 A l l 1.66 1.66 1.96 +.021 1.981 1.96 1.981 A 1 2 1.66 1.66 1.96 +.352 2.312 1.96 2.312 A 1 3 1.66 1.66 1.96 -.185 1.775 1.96 1.775 A l l + 1.66 1.66 1.96 +.008 1.968 1.96 1.968 A i 5 1.66 1.66 1.96 +.352 2.312 1.96 2.312 NOTE: Adjustments f o r changes i n amount o f f o r a g e r e q u i r e d a re s p r e a d e v e n l y over the months of June, J u l y , August, and September. 19S LABOUR REQUIREMENTS DAIRY AUGUST SEPTEMBER OCTOBER ACTIVITY INITIAL TOTAL INITIAL A D j; TOTAL INITIAL TOTAL A-l 1.96 1.775 1.1+6 -.185 1,285 1.6 A 2 1.96 1.989 •1,1+6 •+.029 . .1.1+89 1.6 A 3 1.96 2.20k .1.1+6 .+,21+1+ • .1,701+ 1.6 1.96 2.792 1.1+6 +.832 2.292 1.6 A 5 1.96 2.01+3 1.1+6 + .083 1.51+3 1.6 A 6 1.96 2.321 1.1+6 + .352 1.812 1.6 A ? 1.96 1.775 1.1+6 -.185 1.275 1.6 A 8 1.96 2.0k3 1.1+6 + .O83 1.51+3 1.6 A, 1.96 2.312 1.1+6 + .352 1.812 1.6 A 1 0 1.96 1.601 1.1+6 -.359 1.101 1.6 A l l 1.96 1.981 1.1+6 + .021 1.1+81 1.6 A12. 1.96 2.312 1.1+6 + .352 1.812 1.6 A 1 3 1.96 1.775 1,1+6 -.185 1.275 1,6 A l k 1.96 1.968 1.1+6 +.008 1.1+68 1.6 A i 5 1.96 2.312 1.1+6 +.352 1.812 i ; 6 OPERATING- C A P I T A L REQUIREl'-iEHTS D A I R Y PURCHASED CONCENTRATE LABOR V E T . \ SERV.. , .MACH E L E C T . A C T I V I T Y T D N S ( L B S ) P E R - PER. DAY ANNUM ANNUAL L 3 o . G 0 I\l C . ADD YOUNG STOCK TOTAL COST ANNUAL COST AT. . A T . L B S . $ 6 2 . / t COST $11+. 00 - • $ .... • $ A . I . $ M I L K HAUL • $ M E D * . EXP. D A I R Y F U E L S U P P . G R E A S E $ T E L . M I S C . ' T O T A L $ 1 8 . 7 3175 1+602 il+5 1+71+7 11+7.16 2 1 . 3 9 2 9 9 . 3 8 8 . 0 0 2 1 . 3 5 1 7 . 8 9 1+1.51+ 1 0 . 1 9 51+5.51 2 6 . 3 2299 3332 il+5 31+77 107 .79 2 2 . 3 3 3 1 2 . 5 9 8 . 0 0 2 1 . 3 5 17 .89 51.21+ 1 0 . 1 9 5 3 9 . 0 5 3 3 . 9 11*23 2063 il+5 2208 63.1+5 2 3 . 2 8 3 2 8 . 6 6 8 . 0 0 2 1 . 3 5 1 7 . 8 9 6 0 . 9 5 1 0 . 1 9 515.1+9 1+ 7 . 0 2555 3703 il+5 381+8 1 1 9 . 29 2 5 . 5 6 357.81+ 8 . 0 0 21+. 1+0 1 7 . 8 9 5 3 . 6 6 1 0 . 1 9 5 9 1 . 2 7 5 7 . 0 2555 3703 11+5 38I+8 119.29.22.56 3 1 5 . 9 0 8 . 0 0 21+. 1+0 17.89. , 5 3 . 6 6 1 0 . 1 9 51+9.33 6 I+. 0 11+60 2116 ii+5 2251 6 9 . 7 8 2 3 . 7 5 3 3 2 . 5 3 8 . 0 0 21+. 1+0 17 . 8 9 6 5 . 7 8 1 0 . 1 9 5 2 8 . 5 7 7 10.0 3650 5290 il+5 51+35 168.1+8 2 1 . 3 8 2 9 9 . 3 8 8 . 0 0 2 1 . 3 5 1 7 . 8 9 1+1.51+ 1 0 . 1 9 5 6 6 . 3 3 8 7 . 0 2555 3703 11+5 381+8 119.29 2 2 . 5 6 3 1 5 . 9 0 8 . 0 0 2 1 . 3 5 1 7 . 3 9 5 3 . 6 6 1 0 . 1 9 51+6.28 9 l+.o 11+60 2116 il+5 2261 7 0 . 0 9 2 3 . 7 5 3 3 2 . 5 3 8 . 0 0 21 . 3 5 1 7 . 8 9 6 5 . 7 8 10.19 5 2 5 . 8 3 10 1 3 . 0 1+71+5 6877 il+5 7022 217 .68 2 0 . 3 2 281+.32 8 . 0 0 27.1+5 1 7 . 8 9 33.57 10.19 599.10 11 1 0 . 1 3686 531+2 il+5 51+37 170.10 2 2 . 2 9 3 1 2 . 0 9 3 . 0 0 27.1+5 1 7 . 8 9 50.81+ 1 0 . 1 9 5 9 6 . 5 6 12 6 . LL. 2336 3386 il+5 3531 109.1+6 2 3 . 7 5 3 3 2 . 5 3 8 . 0 0 27.1+5 1 7 . 8 9 6 5 . 7 8 1 0 . 1 9 5 7 1 . 3 0 13 1 3 . 7 1+997 721+2. il+5 7387 2 2 9 . 0 0 2 2 . 3 8 313-38 8 . 0 0 3 0 . 5 0 1 7 . 8 9 1+1.5L+ 1 0 . 1 9 6 5 0 . 5 0 i l l - 1 0 . 7 3902 5 6 5 5 U+5 5790 179.1+9 2 2 . 2 2 3 1 1 . 0 2 8 . 0 0 3 0 . 5 0 1 7 . 8 9 5 3 . 6 6 1 0 . 1 9 6 1 0 . 7 5 15 7 . 7 2807 1+068 il+5 1+213 1 3 0 . 6 0 21.61+ 3 0 2 . 9 6 8 . 0 0 3 0 . 5 0 1 7 . 8 9 6 5 . 7 8 1 0 . 1 9 5 6 5 . 9 2 o p M O £ r—1 P c t H " O O H> O CD ps c t H -1=1 ffq o P -ci c t > P *T) I—1 hi m o a Cb M <-*> X H) H ' O H H* O CD c t ca O 4 c t CD O P H* 4 «<i J> o c t H " <! H* c t H -CD CO 198 APPENDIX 17 -C a l c u l a t i o n of Land C o e f f i c i e n t s f o r the Beef A c t i v i t i e s . I t was c o n v e n i e n t to e x p r e s s the b a s i c p r o d u c i n g u n i t f o r b o t h t y p e s of e n t e r p r i s e s i n terms o f f e e d consuming a n i m a l u n i t s . The d e t e r m i n a t i o n of the number of a n i m a l u n i t s i n the unit- o f p r o d u c t i o n was c a l c u l a t e d as f o l l o w s based on a 15$ c u l l 21 r a t e and a 90$ c a l f c r o p . COW CALF OPERATION Oct. 16 - M a r . 11+ M a r . If? - Oct. 15" A.U. A.U. COW 1.0 1.0 BULL 1/1+5 0.022 0.022 BRED HEIFER - f o r repl a c e m e n t . 1/15 = .067 .067 (.1+1+ A.U.) 0.029 0.029 CALF (.90) (.25) 0.225 TOTAL 1.051 A.U.S. 1.276 A.U.S. COW YEARLING OPERATION T o t a l s as above 1 .05l 1.276 CALF .225 a l r e a d y i n c l u d e d FINISHING STEER -.1+1+ 1.276 A.U.S. 1.716 A.U.S. Requirements Land r e q u i r e m e n t s are based on the f o r a g e needs of the p r o -Land Requirements d u c i n g u n i t . ( S i n c e a l l g r a i n s are assumed to be purchased.) 21 See Page 70 o f the t e x t f o r the g e n e r a l management assumptions. 199 APPENDIX 17 C o n t i n u e d -22 Forage Requirements W i n t e r i n g pregnant beef cows (1000 l b s . ) r e q u i r e s 1 8 . 7 l b s . of d r y m a t t e r d a i l y o r f o r t h e w i n t e r f e e d i n g p e r i o d of 15>2 d a y S j U 5 2 ) ( 1 8 . 7 ) = 28k2 l b s . D.M. F o r the summer g r a z i n g p e r i o d w i t h the cow n u r s i n g a c a l f the r e q u i r e m e n t i s 25 l b s . of dry ma t t e r p e r day f o r the g r a z i n g p e r i o d o f 213 days (213) (25) = 5325 l b s . D.M. TOTAL 8 l 6 7 l b s . The f o r a g e r e q u i r e m e n t s p e r a n i m a l u n i t were c a l c u l a t e d a t 28k2.k + 5325 = 7188 l b s . of Dry M a t t e r 1 . 2 2 5 Requirements f o r a Cow C a l f O p e r a t i o n The a n n u a l r e q u i r e m e n t s p e r a n i m a l u n i t were w e i g h t e d by the number o f a n i m a l u n i t s i n the summer and w i n t e r p e r i o d s r e s p e c t -i v e l y t o a r r i v e a t f i n a l y e a r l y r e q u i r e m e n t s . ( 1 . 0 5 1 A . U ' s . ) ( . k l 6 Y r . ) (7188 l b s . ) + 1 .276 A.U.'s ( . 5 8 k Y r . ) (7188 l b s . ) = 8k99 Lbs. D.M. or k . 2 k 9 tons Requirements f o r a Cow Y e a r l i n g O p e r a t i o n F o r the c o w - y e a r l i n g o p e r a t i o n the c a l c u l a t i o n s were as f o l l o w s : (1.276 A.U.) (,kl6 y r . ) (7188 l b s . ) + (1.716 A.U.) ( . 5 8 k Y r . ) (7188 l b s . ) = 11,019 Lbs.D.M. o r 5 . 5 0 9 tons Land r e q u i r e m e n t s a t a y i e l d of 2 . 5 tons of dry m a t t e r p e r 22 Based on M o r r i s o n ' s , Feeds and F e e d i n g , op. c i t . 2 0 0 a c r e f o r 1. Cow-calf o p e r a t i o n lj..21+9 = 1 . 7 0 ACRES 2 2. C o w - y e a r l i n g O p e r a t i o n 5.509 = 2.20 ACRES -23~-APPENDIX 18 C a l c u l a t i o n o f the Labour C o e f f i c i e n t s f o r the Beef A c t i v i t i e s . Two s o u r c e s o f d a t a were u s e d i n d e t e r m i n i n g l a b o u r r e -quirements and an a v e r a g e of the two was used i n d e t e r m i n i n g the f i n a l c o e f f i c i e n t . The d e t a i l s o f c a l c u l a t i o n a r e as f o l l o w s : Source 1 . F o r d Motor Company o f Canada, PAYOFF TO MORE FARM PROFITS Labour r e q u i r e m e n t s f o r a c o w - c a l f o p e r a t i o n were c o n s i d e r e d under t h r e e s u b - c a t e g o r i e s ( i ) Cow and c a l f c a r e ( i i ) care f o r the s u p p o r t i n g s t o c k ( i i i ) growing the n e c e s s a r y f e e d f o r the cow and s u p p o r t i n g s t o c k 2 3 A. Cow C a l f Requirements S U M M E R " ( i ) Care o f cow and c a l f 2.5 days per annum 2.5 - 2.5 = 10 h r . days 175" 7%3 ( i i ) Care o f s u p p o r t i n g s t o c k ( . 2 7 6 A.U.) ( . 8 3 days p e r a c r e ) . 2 2 9 days 2 3 Summer r e q u i r e m e n t s were assumed to be 50$ o f w i n t e r r e q u i r e m e n t s . 201 A. Cow C a l f Requirements C o n t i n u e d - .229 days SUMMER ( i i i ) Growing f o r a g e (1.70 Ac.) (.167 days p e r a c r e ) .28k days TOTAL 1.31+3 days C o n v e r t i n g , to 8 h r . work days we have (1.31+3) (10) = 1.68 days ~ 7 T WINTER ( i ) Care of cow 10 h r . days 2.5 - .83 1.67 ( i i ) Care of s u p p o r t i n g s t o c k (.051 A.U.) (1.67 u n i t s p e r A.U.) .085 TOTAL 1.755 C o n v e r t i n g t o 8 h r . days we have (1.755) (10) = 2.1938 8 hr. ~"8" u n i t s B. Cow Y e a r l i n g Requirements S U M M E R ( i ) Care of cow and c a l f ( f r o m p r e v i o u s s e c t i o n ) .83 ( i i ) Care of s u p p o r t i n g s t o c k (.276 A.U.) (.83) .229 ( i i i ) Care o f the Feeder A n i m a l (.kk A . U . ) ( .58k Y r . ) .257 ( i v ) Growing the nec e s s a r y Forage 2.20 Ac. a t .167 days p e r Ac. •367 TOTAL 1.68 C o n v e r t i n g to 8 h r . work u n i t s (1.68) (10 ) = 2.10 202 B. Cow Y e a r l i n g Requirements WINTER 10 n r . days t i ) Care of cow 1.67 ( i i ) Care o f s u p p o r t i n g s t o c k (.0^ 1 A.U.) (1.67 p e r A.U. ) .085 (.051 + .225) (1.67 p e r A.U.) .k6l TOTAL 2.216 C o n v e r t i n g to 8 h r . work u n i t s we have (2.216) (10) = 2.77 h r . 8~" u n i t s SOURCE I I . Data from Economics D i v i s i o n , Canada Department of A g r i c u l t u r e . L i v e s t o c k Beef Cows 3.5 work u n i t s p e r a n i m a l p e r y r . Ca l v e s and h e i f e r s 2.0 work u n i t s per a n i m a l p e r y r . S t e e r s 2.0 wprk u n i t s p e r a n i m a l p e r y r . Crops P a s t u r e ( t o p c u l t u r a l p r a c t i c s ) .2 work u n i t s p e r a c r e p e r y e a r . Hay (2 c u t s ) 1.8 work u n i t s p e r a c r e p e r y e a r . Summer r e q u i r e m e n t s f o r care and f e e d i n g of the p r o d u c i n g u n i t were assumed to be $0% of w i n t e r r e q u i r e m e n t s . A. Cow C a l f O p e r a t i o n . 1. Summer Requirements f o r ; ( i ) Care o f the cow and c a l f (assumed to be i d e n t i c a l to care of the cow alone because the c a l f i s n u r s i n g a l l summer. 203 SOURCE I I 10 h r . work u n i t . A. 1 ( i ) 3 . 5 - 3 . 5 = 1 .160 1 3 " ( i i ) Care of s u p p o r t i n g s t o c k ( c a l c u l a t e d f r om the s e c t i o n on l a n d r e q u i r e m e n t s ) ( . 2 7 6 A.U.) ( 1 . 1 6 p e r A.U.) . 3 2 0 ( i i i ) Growing the n e c e s s a r y f o r a g e ( 1 . 7 0 ac.) ( . 8 5 p a s t u r e ) (2.W.U.) = . 2 8 9 ( 1 . 7 0 ac.) ( . 15 hay) ( 1 . 8 W.U.) = .1+59 TOTAL 2.228 C o n v e r t i n g t o 8 h r . work u n i t s we have (2.228) (10) = 2.71+5 ~~8~~ 2. W i n t e r l a b o u r ( i ) Care o f Cow 2 . 3 k ( i i ) Care of S u p p o r t i n g Stock .. - ( . 0 5 1 A.U.) ( 2 . 3 k W.U. per A.U.) = . 0 3 5 TOTAL 2 . 3 7 5 I n 8 h r . work u n i t s t h i s i s ; ( 2 . 3 7 5 ) (10) = ~W B. Cow Y e a r l i n g O p e r a t i o n . Summer: ( i ) Care of Cow and C a l f ( f r o m above) 1 .16 ( i i ) Care o f s u p p o r t i n g s t o c k ( . 7 l 6 A . Y . ' s ( ( 1 . 1 6 p e r A.U.) . 8 3 0 ( i i i ) Care o f f e e d e r A n i m a l ( . 7 5 A.U.) ( 2 . 0 p e r A.U.) 1 .500 20k SOURCE I I B. Summer: ( i v ) Growing Forage Acreage r e q u i r e m e n t s 2 . 1 0 ' 2k P a s t u r e ( 2 . 1 0 ) ( . 8 5 ) ( . 2 0 W.U. p e r AC.) .357 Hay ( 2 . 1 0 ) ( . 1 5 ) ( 1 . 8 0 W.U. per AC.) .567 TOTAL k . k l k I n terms o f 8 h r . work u n i t s t h i s i s ( k . k l k ) ( 10/8) = 5 . 5 3 W i n t e r ; ( i ) Care of Cow (f r o m above) 2 . 3 k 0 ( i i ) Care of s u p p o r t i n g s t o c k ( . 0 5 1 A.U.) ( 2 . 3 k p e r A.U.) .119 ( i i i ) Care of f e e d e r a n i m a l ( 2 . 0 W.U.5 ( . 5 8 k y r . ) 1 .168 TOTAL 3 .627 I n terms of 8 h r . work u n i t s t h i s i s ( 3 . 6 2 7 ) ( 1 0 / 8 ) = k . 5 3 2k I t was assumed t h a t 85$ o f the f o r a g e would be o b t a i n e d f r o m p a s t u r e . 205 SUMMARY OF LABOUR REQUIREMENTS, BEEF U n i t s a r e 8 h r . work u n i t s . DATA SOURCE .Cow-Calf Summer Forage o n l y W i n t e r Cow Y e a r l i n g Summer Forage o n l y W i n t e r F o r d Motor -Company 1.68 .355 2.190 2.10 .896 2.77 CD.A. Study 2.7k .1+58 2.970 5.53 i.n5 1+.53 Average Requirement 8 h r . work u n i t s 2.21 .k06 2.580 3.8l 1.025 3.65 The average r e q u i r e m e n t s were d i s t r i b u t e d i n the manner i l l u s t r a t e d by f i g u r e 6. 206 APPENDIX 19 C a l c u l a t i o n of Net P r i c e s f o r the Beef A c t i v i t i e s GROSS VALUE OF OUTPUT PER YEAR " $ 1. Cow-Calf O p e r a t i o n (90$ c a l f crop) C a l f (.90) (k50 l b s . M$.208 ) = 8k.k8 C u l l cow (.15) (1100 lbs.)(#.1500) = 20.71 S t e e r T o t a l Value of Output 105.19 I I . C o w - Y e a r l i n g O p e r a t i o n C a l f C u l l Cow (as above) 20.71 S t e e r (.90)(1000 lbs.)($.200 ) = 198.59 T o t a l 219.30 C a t t l e p r i c e s were based on C a l g a r y averages f o r t h e p a s t f i v e y e a r s w i t h a l l o w a n c e f o r t r a n s p o r t a t i o n r a t e s t o Vancouver and from O y s t e r R i v e r to Vancouver. NET PRICES I . Cow C a l f O p e r a t i o n Gross V a l u e o f Output $ 105.19 Less V a r i a b l e C o s t s . a. Labour k.788 8 h r . days a t $ l k . 67.03 b. Feed C o n c e n t r a t e n i l c. P r o f e s s i o n a l s e r v i c e s , m e d i c i n e s v e t e r i n a r y s u p p l i e s , c a l c u l a t e d a t $lk.60 p e r A.U. f o r 1.18 A.U. 17.23 d. M a c h i n e r y and f u e l c o s t s c a l c u l a t -ed a t $7.67 p e r a c r e f o r 1.70 ac. 13.03 97.29 NET PRICE $ 7.90 207 Appendix 19 I I . Cow Y e a r l i n g O p e r a t i o n Gross V a l u e of Output $ 2 1 9 . 3 0 25 Less V a r i a b l e Costs a. Labour 8 . k 6 5 8 hr.days a t $ l k . $ l l 8 . 5 l b. Peed C o n c e n t r a t e . C a l f 1 s t . w i n t e r ( . 9 0 ) (1 l b . p e r , d a y ) ( 9 0 days) 2 . 5 l F i n i s h i n g S t e e r ( . 9 0 ) ( 1 7 . 6 0 l b s . per day) ( 9 0 days) kk.19 c. P r o f e s s i o n a l s e r v i c e s , medi-c i n e s , v e t e r i n a r y s u p p l i e s c a l c u l a t e d at $ l k . 6 0 p e r A.U. times 1 .53 A. U. 2 2 . 3 k d. M a c h i n e r y , f u e l and gr e a s e c a l c u l a t e d at 7 . 6 7 p e r a c r e f o r 2 . 2 0 a c r e s I 6 . 8 5 $ 2 0 k . k 0 NET P R I C E $ l k . 7 3 25 V a r i a b l e c o s t s were based on A l b e r t a farm averages s i n c e a v a i l a b l e B.C. d a t a a p p l i e d t o r a n c h c o n d i t i o n s . Farm Economics Branch, A l b e r t a Department of A g r i c u l t u r e , A l b e r t a Farm B u s i n e s s R e p o r t . 208 APPENDIX 20 C a l c u l a t i o n o f T e c h n i c a l C o e f f i c i e n t s and Net P r i c e f o r t h e Sheep A c t i v i t y . 26 As w i t h o t h e r a c t i v i t i e s l a n d r e q u i r e m e n t s a r e a f u n c t i o n 27 of f o r a g e r e q u i r e m e n t s . Forage r e q u i r e m e n t s a c c o r d i n g t o Ensminger are as f o l l o w s : 1. Ewes f o r the f i r s t 100 days o f g e s t a t i o n r e q u i r e an average of 1+ l b s . "medium q u a l i t y f o r a g e d a i l y . I n t h i s case the t i m e - p e r i o d - w o u l d be f r o m November 1 s t tp F e b r u a r y 9 t h . 1+00 l b s . 2. F o r the l a s t 6 weeks o f g e s t a t i o n the f o r a g e r e q u i r e m e n t i s the same but an average of .625 l b s . o f ll+$ p r o t e i n c o n c e n t r a t e i s d a i l y r e q u i r e d Forage (1+7 days) (1+ l b s . ) 188 l b s . C o n c e n t r a t e (1+7 days) (.625) = 29 l b s . 3. Ewes i n l a c t a t i o n r e q u i r e 1+ l b s . of f o r a g e (medium q u a l i t y ) p e r day f r o m A p r i l 1 s t to mid August 11+0 days a t 1+ l b s . 5,60 . l b s C o n c e n t r a t e A l l o w a n c e 1.165 l b s . p e r day f o r 11+0 days = 158 l b s . 1+. Remainder o f y e a r - o n l y f o r a g e i s f e d at a r ate o f 1+ l b s . p e r day. 5. The f e e d a l l o w a n c e f o r rams was the same as t h a t f o r ewes 1121 l b s . D.M. Forage t o t a l f o r ewes 1121 l b s . D.M. C o n c e n t r a t e T o t a l f o r ewes 187 l b s . Add (.032 rams per ewe) 1121 l b s . = 36 l b s . D.M. and (.032) 187 l b s . 6 l b s . T o t a l Forage r e q u i r e d per ewe 1157 lbs.D.M. T o t a l c o n c e n t r a t e r e q u i r e d p e r ewe 193 l b s . 26 See page 75 o f the t e x t f o r g e n e r a l management ass u m p t i o n s . 27 M.E.Ensminger, The Stockmans Handbook op. c i t . 209 Appendix 20 Land r e q u i r e m e n t s a t a y i e l d o f 2 . 5 tons of d r y m a t t e r per a c r e a r e : 1157 = . 2 3 1 a c r e s p e r ewe 2000 x 2 .5 Labour Requirements Sheep The d i s t r i b u t i o n of l a b o u r r e q u i r e m e n t s by months was based 28 on an a n n u a l t o t a l of 7.5 h r s . par ewe. To t h i s was added the r e q i i i r e m e n t s f o r growing the f o r a g e f e d i n the w i n t e r months. The w i n t e r f e e d r e q u i r e m e n t s are 1+ l b s . of f o r a g e per day from November 1 s t t o F e b r u a r y 2 8 t h . o r 120 days. (120) (k.0) ( . 8 9 D.M.) = k27 l b s , D.M. The acreage r e q u i r e d to grow t h i s f o r a g e i s 1+27 = 0 . 0 8 (2000) ( 2 . 5 tons per a c r e ) U s i n g l a b o u r r e q u i r e m e n t s o f 1 .8 - 8 h r . work u n i t s p e r a c r e , the a d d i t i o n a l l a b o u r , d i s t r i b u t e d over the f o u r summer months i s ( 1 . 8 W.W.s) (0.O8 A.C.) = 0 . 0 3 6 8 h r . days p e r month _ l+~ The d i s t r i b u t i o n o f o t h e r l a b o u r took i n t o account the peak l a b o u r demands of a sheep e n t e r p r i s e , namely; la m b i n g , d o c k i n g and c a s t r a t i n g , s h e a r i n g , weaning and s a l e . 28 O n t a r i o Department o f A g r i c u l t u r e , Farm Economics and S t a t i s t i c s B r a n c h . Sheep B u s i n e s s Report 1 9 6 2 210 Appendix 20 LABOUR REQUIREMENTS SHEEP-8 hour work u n i t s p e r Ewe Chore R o u t i n e Growing Forage TOTAL W i n t e r Labour 0 .200 0 . 2 0 0 March 0 .200 0 . 2 0 0 A p r i l 0 . 1 L 5 0.1k5 May- 0 . 1 0 k . 0 3 6 O.lkO June 0.050 . 0 3 6 0 . 0 8 6 J u l y 0.050 . 0 3 6 0 . 0 8 6 August 0 . 8 0 . 0 3 6 0.125 September 0.050 0 . 0 5 0 O c t o b e r 0.050 0 . 0 5 0 OPERATING CAPITAL COEFFICIENTS SHEEP V a r i a b l e c o s t s were c a l c u l a t e d f r om budgets p r e s e n t e d i n the B.C. Department of A g r i c u l t u r e c i r c u l a r . R a i s i n g Sheep i n " 29 3 r i t i s h Columbia and from a s i m i l a r c i r c u l a r f r om O n t a r i o . 1. Labour from p r e v i o u s S e c t i o n 1 .08 30 work u n i t s per ewe a t $ 1 0 . 0 0 $ 1 0 . 8 0 2.. C o n c e n t r a t e . 193 l b s . at $62 p e r t o n 5 . 7 9 3 . V e t e r i n a r y S u p p l i e s . 75 k. Crop and M a c h i n e r y Charges 7 . 6 7 per acre I . 7 6 5 . S h e a r i n g . 7 5 29 Op. c i t . 30 T h i s i s the average r a t e p a i d s t u d e n t s 2 1 1 Appendix 20 O p e r a t i n g C a p i t a l C o e f f i c i e n t s Sheep $ 6. I n t e r e s t and D e p r e c i a t i o n 2.50 TOTAL $ 2 2 . 3 5 NET PRICES SHEEP Net p r i c e s were c a l c u l a t e d by s u b t r a c t i n g the v a r i a b l e c o s t s from the g r o s s v a l u e o f o u t p u t . Case 1 Lamb 8 8 . 5 l b s . a t $.17 $15.01+ C u l l Ewes 21 .81+ l b s . at $.05 1.09 Wool 7 l b s . a t $.50 3.50 C u l l Ram lfJO l b s . a t $.01+ 6.00 TOTAL VALUE $ 2 5 . 6 3 LESS VARIABLE COSTS 2 2 . 3 5 $ 3.28 Case 2 A second case was c o n s i d e r e d where the net p r i c e was i n -c r e a s e d f r o m 3.28 to $ 5 . 0 0 . The budget above i s , i n the w r i t e r ' s o p i n i o n , the b e s t e s t i m a t e of n e t p r i c e , however, i t was u s e f u l to t e s t the s t a b i l i t y o f any o p t i o n a l s o l u t i o n by p o s t u l a t i n g a r e a s o n a b l y h i g h e r n e t p r i c e . A h i g h e r net p r i c e c o u l d o c c u r e i t h e r t h r o u g h h i g h e r market p r i c e s or l o w e r v a r i a b l e c o s t s o r a c o m b i n a t i o n o f b o t h . 212 APPENDIX 21 C a l c u l a t i o n ' o f T e c h n i c a l C o e f f i c i e n t s _ and Net P r i c e f o r the P o t a t o A c t i v i t y -> Land Requirements. The u n i t of p r o d u c t i o n was d e f i n e d as one ac r e so t h i s was the l a n d r e q u i r e m e n t . Labour Requirements. The d i s t r i b u t i o n of l a b o u r r e q u i r e m e n t s i s based on a p r e - h a r v e s t t o t a l of 20 hours p e r a c r e e x c l u s i v e of w i n t e r h a n d l i n g e s t i m a t e d a t 12 hours p e r a c r e , and a h a r v e s t r e q u i r e m e n t of I4.8 hours p e r a c r e . 31 See page 77 o f the t e x t f o r a g e n e r a l d i s c u s s i o n of the p o t a t o e n t e r p r i s e . 213 TABLE MONTHLY DISTRIBUTION OF POTATO 32 LABOUR REQUIREMENTS . Time P e r i o d Hours p e r 8 h r . Work U n i t s A c r e Per A c re W i n t e r 12 1.50 March 3 .375 A p r i l k ,5oo May 3 .375 June 3 .375 J u l y 3 .375 August k .5oo September k8 6.000 October TOTAL 10.00 33 OPERATING CAPITAL REQUIREMENTS 1. Labour f r o m above _ 10 u n i t s a t $11+. 00 $ IkO.OO 2. Seed 11.5 cwt. a t $3.50 k3.75 3. F e r t i l i z e r 1+50 l b s . per acre of 8-20-20 26.32 32 Labour r e q u i r e m e n t s based on the p u b l i c a t i o n s E a r l y P o t a t o P r o d u c t i o n Costs and Management, O n t a r i o Department of A g r i c u l t u r e , op. c i t . , and P o t a t o P r o d u c t i o n C osts i n S e l e c t e d A reas o f C e n t r a l Washington 195k t Washington A g r i c u l t u r a l Experiment S t a t i o n s , I n s t i t u t e of A g r i c u l -t u r a l S c i e n c e s , S t a t e C o l l e g e o f Washington, op. c i t . 33 Based on p e r s o n a l d i s c u s s i o n s w i t h l o c a l a u t h o r i t i e s . 211+ Appendix 21 Co n t i n u e d - OPERATING CAPITAL REQUIREMENTS +. S p r a y i n g B l i g h t 9 a p p l i c a t i o n s of d i a t h a n e Ml+5 a t 2 l b s . p e r acre $ 2 . 5 0 per t r i p $ 2 2 . 5 0 I n s e c t s 2 a p p l i c a t i o n s a t $ 2 . 7 5 5 . 5 0 5 . M a c h i n e r y O p e r a t i n g Costs i n c l u d i n g f u e l , r e p a i r s , g r e a s e 2 1 . 0 0 6 . Sacks and Twine , 2 . 5 0 7 . E l e c t r i c i t y , t e l e p h o n e , i n s u r a n c e 3 . 0 0 TOTAL $26+.77 8 . T r u c k i n g and m a r k e t i n g charges a t Courtenay, $ 1 0 . 0 0 p e r t o n . The d a t a f o l l o w i n g have been rounded to the n e a r e s t d o l l a r O p e r a t i n g C a p i t a l Requirements based on a y i e l d of 1 2 tons p e r a c r e . 1 2 .ton y i e l d : 2 6 5 + 1 2 0 = $ 3 8 5 -CALCULATION OF NET PRICES In c a l c u l a t i n g n e t p r i c e s the va l u e of d e p r e c i a t i o n and i n t e r e s t on inve s t m e n t f o r b u i l d i n g s and equipment was added t o the above. 1 2 t o n y i e l d 3 8 5 + 2 8 ~ • $ + 1 3 . The g r o s s v a l u e of o u t p u t was based on a y i e l d o f 1 2 tons per acre and a p r i c e p e r t o n of $ 5 + . r e s u l t i n g i n a g r o s s v a l u e of $ 6 + 5 . per a c r e . The n e t p r i c e was o b t a i n e d by s u b t r a c t i n g the v a r i a b l e c o s t s from t h i s f i g u r e . $6)4.5. - $ + 1 3 . = $ 2 3 2 . 21.5' APPENDIX 22 A d d i t i o n a l New Investment R e q u i r e d f o r a kO t o 50 Acre P o t a t o E n t e r p r i s e . M a c h i n e r y $ A. 2 - row p l a n t e r Cost $980 D e p r e c i a t i o n 10$ 98.00 I n t e r e s t on h a l f new c o s t 5$ 2k.50 B. D i g g e r Cost $750 D e p r e c i a t i o n 10$ 75.00 I n t e r e s t on h a l f hew c o s t at 5$ 18.75 C. S p r a y e r Cost $500 D e p r e c i a t i o n 10$ 60.00 I n t e r e s t on h a l f new c o s t a t 5$ 15.00 D. C u l t i v a t o r Cost $k25 D e p r e c i a t i o n 10$ k2.50 I n t e r e s t on h a l f new c o s t a t 5$ 10.65 E. P o t a t o h a n d l i n g and g r a d i n g equipment Cost $1000 D e p r e c i a t i o n 10$ 100.00 I n t e r e s t on h a l f new c o s t a t 5$ 25.00 TOTAL M A C H I N E R Y . C O S T $ k 6 9 . k C 3k P r i c e s were b a s e d on the q u o t a t i o n s o f a l o c a l Implement d e a l e r . 216 Appendix 22 POTATO BUILDING INVESTMENT REQUIRED The assumed r e q u i r e m e n t s were 80 p e r c e n t o f a 16 t o n p e r a c r e crop w i t h I4.O a c r e s i n c r o p . (16) (I4.O) (80) = 512. tons Space r e q u i r e m e n t s are 860 s q . f t . (10 f t . deep) per 100 tons p l u s a l l e y space e s t i m a t e d a t \ o f 8 6 0 . The t o t a l r e q u i r e -ment i s 1075 s q . f t . The r e q u i r e m e n t f o r [+0 a c r e s from above i s (1075) ( 5 - 1 2 ) = 5501+ s q . f t . E s t i m a t e d Cost $ 2 . 5 0 p e r s q . f t . o r $ 1 3 , 7 6 0 . D e p r e c i a t i o n 2^% 3kh> I n t e r e s t on h a l f new c o s t at 3hk-> $ 6 8 8 . Cost p e r A c r e M a c h i n e r y and B u i l d i n g s $1,157.U-0 1157.ko = $ 2 8 . 0 3 217 APPENDIX 2 3 Forage M i x t u r e s a t O y s t e r R i v e r Farm. F i e l d No. 1 F i e l d No. 2 F i e l d No. 3 F i e l d No. k F i e l d No. 5 A d j a c e n t t o e l i t e seed p l o t s P e r e n n i a l r y e g r a s s Seeded 1959 Red C l o v e r L a d i n o C l o v e r O r c h a r d Grass A l t a Fescue P e r e n n i a l Rye Gra s s Seeded I960 1+80 l b s 120 l b s 360 l b s 300 l b s 2k0 l b s H i g h l a n d p a s t u r e mix 1000 l b s U. B . C . " S p e c i a l " g r a s s c l o v e r mix 1000 l b s Seeded 1959 P e r e n n i a l Rye Grass 2k0 l b s A l t a Fescue 2k0 l b s O r c hard Grass 6k0 l b s Red Top 2k0 l b s Red C l o v e r k80 l b s L a d ino C l o v e r 160 l b s F i e l d No. 8 Two mixes 2000 l b s Seeded 1962 218 Appendix 23 - Forage M i x t u r e s F i e l d No. 8 N o r t h H a l f O r c h a r d g r a s s Red G l o v e r Kentucky B l u e g r a s s White D u t c h c l o v e r F i e l d No. 7 F i e l d No. 9 F i e l d No. 1 0 Two mixes Seeded 1962 South H a l f i n c l u d i n g No. 6 21+0 T a l l f e s c u e 300 IkO L a d i n o C l o v e r 80 60 Kentucky B l u e g r a s s 80 60. White Dutch c l o v e r kO 500 l b s Seeded 1 9 6 1 A l f a l f a Red C l o v e r Orchard g r a s s A l t a Fescue Rye Grass Red top Seeded 1958 P e r e n n i a l Rye g r a s s A l t a Fescue Orchard Grass Red top White Dutch Clover-Seeded 196k Orchard Grass L a d i n o c l o v e r A l s i k e c l o v e r 500 l ° s 200 l b s 160 l b s 2k0 l b s 200 l b s 2k0 l b s 160 l b s k80 l b s 2k0 l b s k80 l b s 2k0 l b s 320 l b s 300 l b s kO l b s kO l b s 219 Appendix 23 - Forage M i x t u r e s F i e l d No. 10 Seeded 196k Red top kO l b s Reed Canary g r a s s 8 0 l b s TOP FARM Low Bench Red c l o v e r 3 0 0 l b s L a d i n o c l o v e r 2k0 l b s O r c h a r d g r a s s 3 0 0 l b s A l t a Fescue 3 0 0 l b s P e r e n n i a l Rye Grass 3 6 - l b s The remainder o f t h e t o p f a r m i s n a t i v e g r a s s . Note t h a t w e i g h t s o f each g r a s s v a r i e t y i n d i c a t e p r o p o r t i o n s i n r e s p e c t t o the t o t a l mix, they do not r e p r e s e n t a c t u a l amount seeded on a g i v e n f i e l d . I n a d d i t i o n the m i x t u r e s l i s t e d . , o a t s o r c o m b i n a t i o n s of o a t s , peas and v e t c h were seeded a t the same time and h a r v e s t e d f o r silag;e ( e x c e p t the top farm) . 

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