COMPOSITION OF CURRENT OPERATING COMPOSITION OF TOTAL PRODUCTION
“¢· EXPENSES, KY AND U.S., I949-58 EXPENSES, KY AND U.S., I949—58
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‘ KENTUCKY u.S. KENTUCKY us. ‘
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-* ITEMS _ OF_CAPI TAL - I II , II I III III [I,~IIIIjIII:I‘;II.I~IIi¤gI.;L~=‘III· I I I
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__   Fig. 2.- These charts show a breakdown of the items con- total production expenses for Kentucky and U.S. farmers
  __, stituting current operating expenses and those involved in for the decade 1949-58.
. ¥¢¥_i.
I . .
’· I'.; Current Operating Expenses family labor thus more than offset Kentuckys greater
About one-fourth of Kentucky farmers, current ex- $P€Cr¥rhZ€*tr0h in high lahdr €r0P$ Such 35 rOhw€0·
I  _ pense outlay, the largest category, goes for the repair Kentucky farmers spend substantially larger pro-
_ and operation of capital items (Fig. 2). This includes portions of operating expense on fertilizer than the
I outlays for gasoline and oil for machinery operation national average. Reductions in acreage allotments of
‘ I and the repair and maintenance of buildings and tobacco have caused farmers to increase fertilizer use
wp equipment. The national outlay is a smaller propor- in Kentucky to offset acreage losses with higher yields.
'_ tr0h· The drrrerrihw rh?~Y be €XPlarh€d by rh€ fact that Seed and miscellaneous expenses round out the
` I K€htUCkY has $rhdll€r r*rrrrI$» and larger PrOP0rtr0hS Or current operating expenses, with Kentucky and U. S.
v total investment are spent on buildings and machinery. IHOIIOTIIOIIS about CIIIIIII {OI- these CIIt€g(,IICS_
- This makes higher machine and building costs per acre
Y, of crops. Total Production Expenses
· C0$r Or Prrrchirwd feed. th€ h€Xr most hhP0rr&hr Current operating expenses are the largest item of
' cast item for K€hhr€kY f€rrrh€r$I Ihrrkw UP H $m€‘~ll€r farm production expense outlay, with no material
" P1'0P01`ti0¤ at €U1'F€hr €XP€hS€ outlay than hir th€ difference in the proportions for Kentucky and the
‘*E h¥r'd0h· Kdhrrrck}/S greater d€P€hd€hw Oh Pdsrhrw nation. However, fixed expenses have increased rela-
_ f01` hV€$r0€k feed rrhd the r€l?*rrV€l}’ lohg Prrsrhrh tively more than operating expenses in the period
56850h mwh lower fwd Ohrl*IY$ €9IhPdr€d with rh? from 1949 to 1958. Fixed expenses were about one-
rest ef th€ Uhiwd St¤t€5· fourth of total expenses during 1949-50, but now they
t Hired labor outlays rank next in importance for near 30 percent of the total because interest and
Kentucky and average only slightly less than for the depreciation costs have increased as the total invest-
— f United States. The greater availability and use of ment in agriculture has increased.
KENTUCKY FARM AND Horn; SCIENCE-—\VIN'l`ER 1960 7
1
‘ t