Impressive yields at harvest don’t mean a lot if the costs to grow the crop outweigh the price at marketing time. On this episode, we dive into the importance of calculating breakeven prices and yields to improve profitability. From understanding how much yield you need to cover your costs, to incorporating things like family living expenses and opportunity costs, there are many considerations to be made. Enterprise budgeting to understand those expenses and determine breakeven prices and yields can be time-consuming, but we’ll also talk about how UNL’s ag budget calculator program can streamline the process. 

Larry Van Tassell is a professor in Agricultural Economics and director of the Center for Agricultural Profitability here at UNL.

Read more at https://cap.unl.edu/management/using-breakeven-analysis-better-decisions.