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New Purdue tool giving farmers a clearer picture on the cost of production

An ag economist says a new tool from Purdue’s Center for Commercial Agriculture could help producers calculate the cost of production.

Chad Fiechter says the platform utilizes local data to give farmers a more accurate financial picture.

“Just knowing and having some confidence creates better outcomes for producers,” he says. “We wanted to create a starting point that was region specific to help determine what would be the best use for these working capital dollars.”

He tells Brownfield calculating the right cost per acre could also help farmers make better management decisions.

“That cost of production number can change based upon your yields and those fall prices,” he says. “It also creates a sensitivity table where if yields were to change this much, prices would change this much, and this is what you can expect. It gives producers the ability to think through different options.”

Fiechter says the tool is available to all U.S. farmers and is supported by funding from the Indiana Soybean Alliance and the Indiana Corn Marketing Council.

Click here to access the site.

AUDIO: Chad Fiechter, Purdue University