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Evaluating Marketing Outlets Using Whole-Farm Records

Summary

Chase (2006) showed that enterprise records are useful in evaluating pricing, product mix, and production changes, at the individual crop level. Moreover, Chase (2008) indicated that enterprise production and transaction cost records can be used to evaluate marketing alternatives. But what if you don’t have detailed enterprise records? What if you only have access to whole-farm records that are not broken down by crop or enterprise? This publication will illustrate how whole-farm records can be used to evaluate various marketing outlets. Keep in mind the illustrations outlined are examples only. Marketing costs vary significantly by specific marketing outlet depending upon the volume of sales that can be made at that outlet compared to the costs of moving those products.