Production Costs Matter

Authors

Roger Wilson, University of Nebraska-LincolnFollow
Cory Walters, University of Nebraska-LincolnFollow

Date of this Version

2015

Document Type

Article

Citation

Cornhusker Economics May 20, 2015

Comments

Copyright 2015 University of Nebraska-Lincoln

Abstract

Production costs matter. Understanding relationships between costs and uncertain output is important in decision making. In the current grain price environment, a stronger understanding of costs and their interaction with other decisions (i.e., risk management), can minimize economic hardship or, in the extreme, reduce the probability of farm liquidation.