In 1978 Nebraska farmers produced approximately 77.7 million bushels of winter wheat on dryland acres. The three basic production systems used were wheat fallow (2-yr. rotation), wheat-fallow- corn or sorghum often referred to as the three year' rotation, and continuous wheat. Detailed production cost studies assist wheat growers in compiling their operation costs to other growers with similar production conditions and acreages of wheat. Cost of production information is a function of yield, variable cash costs, fixed costs, and the acres of wheat produced. A study of this type estimates production costs at one point in time. Annual revision of production cost figures is necessary as fuel and other input prices change.