Module 5 Summary

The main message in this module is to note how everything we do on the land (through production) is related to costs and revenue and ultimately, profit.  The inputs producers use and how they combine them, including the technology they use, defines the cost and graphically, the cost curves (variable and fixed costs).  Anything that leads to a reduction in costs will enhance profit. Anytime we see an increase in prices, producers stand to increase profits and will have to produce a smaller quantity to be operating in the black (profitably).

At this point, I encourage you to look at news articles that discuss inputs costs and prices and try to determine whether producers will be better off, or worse off. You could also explore the effects of science, technological developments and best management practices as ways to increase yields and/or reduce costs.  It’s important to see how all these elements are connected.  The better we treat natural resources, the more sustainable our businesses will be, environmentally, socially and economically.  Isn’t cool how everything fits together?