ABSTRACT
Beef producers are confronted with a menagerie of decisions to be made while attempting to increase production and economic efficiency. Shrewd business judgment requires the use of a sharp pencil and the application of sound production management practices. This discussion addresses two concepts that are important for beef producers to understand, these concepts are the value of beef produced and the production cost dilution. Probably no aspect of the beef business has received more attention than have production costs. Probably no aspect of the beef business has received more attention than have production costs. Any cow-calf or stocker producer who has purchased pastureland in recent years can testify to the impact of highly inflated land prices and high interest rates on production costs. The producer usually recognizes that a relatively high proportion of his costs are fixed. Land ownership, taxes, equipment, and other costs must be met regardless of level of production.
