Agricultural Economics Department


Date of this Version



Cornhusker Economics (May 2012)


Published by University of Nebraska–Lincoln Extension, Institute of Agriculture & Natural Resources, Department of Agricultural Economics. Copyright © [2012] Board of Regents, University of Nebraska.


A few months ago I was talking with a producer and I mentioned that I worked with farmers on calculating cost of production, among other things. He posed the question of why do farmers really need to know their cost of production? Sure, five or six years ago when margins were tight cost of production was important in marketing their crop, but what’s the point with the increase in crop prices and wide margins?