Library

From Cash Records to Cost of Production

Summary

What’s the best way to summarize financial information about a farm/ranch enterprise? Taking a look at cost of production per unit—animal, acre, bushel—is a good way to get a measure of profitability. This provides a benchmark to be used in comparisons over time and comparisons among enterprises. By analyzing production costs, a better understanding of the relative importance of different expenses and ideas about how to better control costs will be gained.