Gann Valley, SD | tmgsssn - 11/6/2012 13:54
You can't really figure in opportunity cost into cost of production. You don't spend that money you just don't receive it. IMO. However you do need to figure out more than just seed and fert. Insurance,machinery, a lot of stuff cost you money weather you plant and grow anything.
We can raise wheat for under 250 per acre "here" with rent and harvest. Just barely thou. True cost is almost impossible to pin down if you pay custom harvesters because of hauling and breakeven on fixed cost changes with every bu of yield change. It's all a big guess. There is some profit on our farm with 8-9 dollar wheat if we can make an average crop.
You can't really figure oppertunity costs into cost of production? Well YEA HAW!! That's great news! In that case it costs me ZERO to feed my horses. The bales are just right there in my hay yard. They are paid for. They cost me nothing, because evidently the fact that I could sell them for $180/ton isn't a cost. Say.... maybe I should take in horses for other people, I could charge them a nickel a day for hay and it would be all profit.
Wait.
What?
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2013 HRW Cost of Production??
