There are two methods of determining the cost of producing crops—the cost-accounting method and the ratio method. The common method is the cost-accounting system, as employed by farm management investigators. For example, it has been found that the average farmer in the corn belt puts about twenty hours of man labor and fifty hours of horse labor on the average acre of corn. This divides up roughly into three hours of man labor and twelve hours of horse labor for plowing, three hours of man labor and twelve hours of horse labor for disking and harrowing, three-fourths of an hour of man labor and one and one-half hours of horse labor for planting, six hours of man labor and twelve hours of horse labor for cultivating, six hours of man labor and twelve hours of horse labor for husking, two hours of man labor and five hours of horse labor for manuring and miscellaneous. In addition to the man and horse labor charges are machinery expense, seed, manure or fertilizer, insurance and depreciation on the general overhead charges, and the rent of land. With man labor at 35 cents an hour, horse labor at 18 cents an hour, land rent at $12 an acre, and machinery and miscellaneous expenses at $4 an acre, the total cost of producing an acre of corn in 1919 was about $32. On extra good land, the rent was as high as $18 or $20 an acre, and the cost of an acre was increased accordingly. However, on extra good land the yield was decidedly above the average. The average acre yield in Iowa in 1919 was forty bushels, or the cost of producing a bushel of corn was roughly 80 cents on the farm in the month of December. The 1919 crop was decidedly above the average; with an average crop it would have cost the Iowa farmer right around 90 cents a bushel in such a year as 1919. The ratio method when applied to corn corroborates the farm management investigational method. The ratio method is based on the supposition that the cost of producing corn varies with the cost of man labor, horse labor and machinery. For the sake of convenience, it is taken that the cost of horse labor varies with the price of corn, oats and hay, and that the price of agricultural machinery varies with that part of Dun’s index known as metals. Roughly, it is figured that of the cost of producing corn in Iowa, 35 per cent is represented by land charge, 20 per cent by man labor, 15 per cent by corn (used either as seed or fed to horses), 10 per cent by hay fed to horses, 5 per cent by oats fed to horses, 10 per cent by Dun’s metals, and 5 per cent by Dun’s miscellaneous. Dun’s metals are given a lag of two years, and Dun’s miscellaneous of one year, owing to the fact that machinery and the miscellaneous overhead expenses entering into the cost of corn production become felt rather slowly.