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Comparison of Costs of Wheat Production in Saskatchewan and the U.S. Northern Plains
Author(s) -
Glaze Dargan,
Schoney Richard
Publication year - 1995
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.1995.tb00129.x
Subject(s) - bushel , variable cost , acre , agricultural science , fixed cost , production cost , agricultural economics , variable (mathematics) , cash , production (economics) , economics , geography , mathematics , environmental science , engineering , finance , microeconomics , mechanical engineering , mathematical analysis
This paper compares I989 average variable costs for U.S. northern plains and Saskatchewan spring wheat producers. Producers are divided into three cost groups. There are more statistically significant differences between cost groups within a country than between the two countries. Relative to other producers within the same country, low‐cost producers in both countries had higher yields per bushel, most bud lower variable inputs both per acre and per bushel, and most had lower debt loads. In terms of intercountry comparisons, low‐cost producers in Saskatchewan and the U.S. northern plains had nearly identical average variable cash costs. While mid‐ and high‐cost Saskatchewan producers had significantly lower average variable cash costs, they were almost entirely offset by higher fixed costs.