Date of this Version
Cornhusker Economics (December 2011)
Overall, average projected cash costs per unit of production for 2012 are almost 15 percent higher than the 2011 projections made in April.
Some of this increase is due to a higher labor wage. Twenty dollars per hour was used as the wage rate in 2012, compared to $12 per hour in 2011. Wage rates vary substantially from one producer to the next, and there is no suitable index for determining a representative wage. It is not likely that actual wages paid increased that much from one year to the next, so this change represents an adjustment upwards as well as an estimated increase.