COST OF PRODUCTION
A Brief Overview
Where did this come from?
And what does it mean?!
1. What's a "representative" farm? 2. Over the course of one growing cycle...what do you do?
Thank You to Those Who Contributed
Key Questions Answered
Costs, in dollars per acre
Break even (direct costs only): $4.51
ARC or PLC payment?
Two-year cycle, harvest in 2016
Depreciation & Investment Overhead Land
Looking long or short term? Are these items paid off?
Tips and Ideas
Pick the low-hanging fruit: What are the easiest data to gather?
Try to get a historical perspective: 5-10 years
Organize, organize, organize: time consuming but worth it
Want a Budget for Your Operation?
Ideas to Get You Started
A Good Starting Spot
Other Useful Information
Data are nearly non-existent; 1996 was last large-scale data collection effort
MT Dept of Ag 2014 models: goo.gl/SbVUsZ
North Dakota (northwestern) is most consistent source, but is it representative?
NDSU 2016 models: goo.gl/I10fyB
Northern Idaho is closest match, but most recent version is 2014
U. Idaho 2014 models: goo.gl/kYYNq8
Remember to Benchmark
How you might feel about your operation before benchmarking to others...
...and how you might feel after benchmarking to others
How Representative Is This Number?
In other words...
Collaborative Work to Identify Cost of Production Benchmarks in Montana
Operating Costs, 2013-14
Land Lease Costs, 2013-14
Stay On Top of the News
2018 Farm Bill
TPP / NAFTA
A source for timely and objective agricultural and natural resource economics research and information