Date of this Version
Held, Larry J. and Helmers, Glenn A. (1980). Growth and survival of Nebraska Panhandle wheat farms under selected financial conditions (Research Bulletin No. 295)
Simulation was used to analyze impact of land expansion alternatives, self-imposed borrowing limits, starting equity conditions, and land appreciation upon a firm concurrently seeking growth and survival over a projected 15-year period (1976-1990). An average-sized 960-acre (389 ha) Nebraska Panhandle wheat-fallow farm served as the representative firm. Standard production practices and technologies were used for computing costs. Machinery and operating costs were assumed to inflate five percent annually. Dryland wheat acreage was valued at $375 per acre ($926.63 per ha) in 1976 and was allowed to appreciate at an annual rate of four percent. A hypothetical series of three cyclical price and three cyclical yield patterns were built around projected 15-year trends to portray situations of both favorable and unfavorable returns. Three price patterns in conjunction with three yield patterns resulted in a combination of nine price-yield situations.