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Advanced breakeven analysis of agricultural enterprise budgets
Author(s) -
Dillon Carl R.
Publication year - 1993
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1993.tb00262.x
Subject(s) - economics , variable cost , agriculture , yield (engineering) , production (economics) , variable (mathematics) , fixed cost , total cost , point (geometry) , microeconomics , industrial organization , agricultural economics , mathematics , ecology , mathematical analysis , materials science , geometry , metallurgy , biology
Advanced conceptual techniques for breakeven analysis of agricultural enterprise budgets are developed and applied. Breakeven points of a single agricultural enterprise, breakeven points between enterprises, and elasticities of breakeven points between enterprises are defined and mathematically derived. Breakeven equations were reduced to computational formulas for several budget components: output price, yield, input price, input requirement, variable cost, fixed cost, and total cost. Application of the advanced breakeven techniques provide evidence that both rice and wheat production seem especially desirable for the Arkansas Delta region in light of a fluctuating economic environment.