Producing a bushel of wheat cost U.S. farmers an average of $2.07 in variable cash expenses in 1989. Individual farm costs ranged from less than $1.37 to more than $3.49 per bushel. Wheat acreage, yields, and regional differences among producers influenced wheat production costs. Differences in regional production practices and adverse weather conditions were major influences on production costs and yields. Dry weather and warm temperatures reduced already low subsoil moisture levels throughout the Plains in 1989, resulting in lower wheat yields. Low snowfall and low temperatures caused freeze damage in some parts of the Central and Southern Plains region (CO, KS, NE, OK, and TX), resulting in that region's accounting for 64 percent of all farms in the high-cost group.