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MGGA COP (Dec 1 2016)

created using Mundus Presentation template
published by Anton Bekkerman

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COST OF PRODUCTION

A Brief Overview

Where did this come from?

And what does it mean?!

Producer Meetings

1.  What's a "representative" farm? 2.  Over the course of one growing cycle...what do you do?

Thank You to Those Who Contributed

Funding Support

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

Indirect costs

Depreciation & Investment Overhead Land

Looking long or short term? Are these items paid off?

Time Considerations

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

Exchange rates

Geopolitics

www.AgEconMT.com

A source for timely and objective agricultural and natural resource economics research and information

Dr. Anton Bekkerman

[email protected] 406-994-3032

Infographic, more detailed budget, and all economics resources

Dr. Kate Fuller

[email protected] 406-994-3032

www.AgEconMT.com