Equipment Investment: How Much is Enough?

I just came upon this blog and discovered it to be a great learning resource. The food conversation is dominated by a few issues which obscure the many other factors at work in the growing of food specially from the farmer’s perspective.

Agricultural Economic Insights

Flickr: johnnyalive. Johnny Klemme

by Brent Gloy

The rapid descent of crop prices and resulting margin squeeze have forced farmers to carefully evaluate their financial structure and look for ways to reduce their cost of production. Because prices for inputs such as fertilizer and seed have been slow to adjust, much of the attention has turned to fixed costs such as land rents and equipment costs. These are typically the largest categories of fixed costs on most farms. While we have looked at costs associated with farmland extensively, equipment costs are often very large on many farms and deserving of attention. There is likely great variation in equipment investment and costs across most farms.

View original post 865 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s