Effects of Borrowing From Commercial Lenders On Farm Organization With Particula
Effects of Borrowing From Commercial Lenders On Farm Organization With Particula
C B Chester Bird Baker
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Machinery investment Rate at which $1 additional expense returns $1, assuming other resources used at level of geometric means. b Geometric mean of values for farm records used. c Beginning livestock inventory plus purchased livestock and feed. d The investment optimum must be adjusted to annual basis by a factor "k" which accounts for the depreciation rate and rate at which to discount future returns. The average quantity of resources in each category actually used is given in Table 3, columns... 2 and 5. As would be expected, the greatest difference between the two groups of farms is found in the livestock- and-feed and soil- fertility inputs. The lower outlays for soil- fertility inputs in the livestock area reflect the complementary relation between livestock and crop systems of farms in the area. With substantially 1 The estimate of optimum machinery investment seems unduly large in the grain area. This is due partly to the fact that it is stated in terms of inventory, or capital sums, instead of an annual input, as in the case of the other resources.
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