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What happens next
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Kooiker
Posted 10/4/2017 08:02 (#6286493 - in reply to #6286462)
Subject: RE: What happens next



featherfarmer - 10/4/2017 07:42  If and when you are looking at going broke from loses in hogs, would you cut production, or produce more?




Depends on the cost structure, whether you're talking about increasing fixed costs to produce more or producing more without adding any fixed costs.

Applies to grains as well and cash rent on land is a fixed cost, you pay the same amount regardless of what you produce.    That is why very few won't be trying to produce maximum bushels again in 2018.











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