Using Breakeven Analysis for Better Decisions
One of the merits of enterprise budgeting is the value of statistics obtained by producers as they engage in decision-making activities. Some of the easiest and most useful computations that can be obtained from enterprise data are breakeven values. As the name suggests, a breakeven gives the price or yield required for the revenue obtained from the enterprise to equal the costs encumbered to produce that revenue.
In this article, Center for Ag Profitability Director Larry Van Tassell explains how to calculate breakeven prices and yields, and how the Agricultural Budget Calculator can help speed the process.