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A new approach to estimating agricultural costs of production



A new approach to estimating agricultural costs of production



Agricultural economics research United States Dept of Agriculture Economic Research Service 35(4): 9-14



Current concepts and procedures used by the U.S. Department of Agriculture (USDA) to estimate farm enterprise costs of production are inadequate for describing economic conditions of various producer groups. The 1981 Agriculture and Food Act gives USDA greater flexibility in estimating production costs. This article describes new procedures for developing estimates that deal with problems of unrealized farmland capital gains, cash flow, and returns to the resources of production.

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