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Thesis (M.A.)—University of Nebraska—Lincoln, 1959. Department of Agricultural Economics.


Copyright 1959, the author. Used by permission.


This thesis is an analysis of some of the problems of uncertainty associated with the selection of farm dairy building in eastern Nebraska. Farm buildings are the second largest and the most long lasting investment made by farmers. Since such structures are built only infrequently, a wide general knowledge of the economics of farm building does not develop at the farm level. When construction errors, usually costly, occur, farmers may have to live with their mistakes for a considerable time before correction is economically feasible. Although risk and uncertainty surround the decisions regarding all farm enterprises, few require the long-term amortization period that buildings do.

Adoption of loose walk-thru housing has become commonplace among dairymen in eastern Nebraska. A survey by the University of Nebraska in January 1959 indicated that 37 percent had already adopted the loose housing barn and that by 1960 86 percent will use this type of building.

This thesis is addressed to the problems associated with investing in a loose housing walk-thru barn. The analysis will be limited to consideration of the following objectives: 1. To ascertain to what extent building material affects annual cost of loose housing barns. 2. To determine the effect of fast amortization on annual costs.

Advisor: Howard W. Ottoson