Advanced breakeven analysis of agricultural enterprise budgets

Advanced conceptual techniques for breakeven analysis of agricultural enterprise budgets are developed and applied. Breakeven points of a single agricultural enterprise, breakeven points between enterprises, and elasticities of breakeven points between enterprises are defined and mathematically derived. Breakeven equations were reduced to computational formulas for several budget components: output price, yield, input price, input requirement, variable cost, fixed cost, and total cost. Application of the advanced breakeven techniques provide evidence that both rice and wheat production seem especially desirable for the Arkansas Delta region in light of a fluctuating economic environment.


Issue Date:
1993-08
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/173188
PURL Identifier:
http://purl.umn.edu/173188
Published in:
Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 09, Issue 2
Page range:
127-143
Total Pages:
18




 Record created 2017-04-01, last modified 2018-01-22

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