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Advanced breakeven analysis of agricultural enterprise budgets

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  • Carl R. Dillon

Abstract

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.

Suggested Citation

  • Carl R. Dillon, 1993. "Advanced breakeven analysis of agricultural enterprise budgets," Agricultural Economics, International Association of Agricultural Economists, vol. 9(2), pages 127-143, August.
  • Handle: RePEc:bla:agecon:v:9:y:1993:i:2:p:127-143
    DOI: 10.1111/j.1574-0862.1993.tb00262.x
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    Cited by:

    1. Blank, Steven C. & Orloff, Steve B. & Putnam, Daniel H., 2001. "Sequential Stochastic Production Decisions For A Perennial Crop: The Yield/Quality Tradeoff For Alfalfa Hay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-17, July.
    2. Jan Syrůček & Luděk Bartoň & Jiří Burdych, 2022. "Break-even point analysis for milk production - Selected EU countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(6), pages 199-206.

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