This session will review the educational materials and principles applied in a four day workshop series designed to assist mid-career producers determine their costs of production. Pricing for Profit starts with participants identifying key products (and/or markets) and understanding different cost concepts. Getting an accurate estimate of costs is the next step, necessitating a discussion of accrual adjustments, economic depreciation and opportunity costs. Allocation of costs follows with alternative approaches discussed for allocating direct and indirect costs among key products (and/or markets). Once the costs of producing specific products are determined, pricing decisions and strategies are reviewed.
The workshop example farm is a diversified horticultural operation with many products and multiple markets. Workshop exercises focus on four products and address alternative markets for two of the products. Teaching materials will be reviewed during this session and copies made available to session participants.
|Conference||2016 Extension Risk Management Education National Conference|
|Presentation Type||30-Minute Concurrent|