Everyday Economics

Economic decisions have invaded farm production and business management. The traditional manager is challenged to continually evaluate the economic consequences of production decisions, management methods, and marketing strategies.

Specialists in farm management have had difficulty getting audiences to economic educational programs, depending primarily on production topic meetings to broach the economic issues. Producer meetings and field days attract far more participants than meetings on management topics. Farm management specialists need to find a way to bring economic education to these everyday events to reach a larger number of producers.

Every field day, tour, and on-farm demonstration represents an opportunity to teach everyday economics to farmers. Kansas State University area agricultural economists are using "fill-in- the-blank" posters to show production costs and returns for crop and livestock enterprises at research station field days and during on-farm demonstrations. Machinery and equipment lined up for show or to make room in the shop for visitors during these events display placards listing the costs of machine ownership and operation. Grain handling facilities, livestock confinement systems, dairy barns, and other farm real estate improvements bear similar posters showing the costs, expected useful life, and per unit production costs of building, maintaining, and paying taxes on these improvements.

Farm field days give farm management specialists a chance to use actual farm records to generate ownership and production cost estimates. Visiting farmers can easily compare their own situations to their neighbors. Skeptics can compare notes, and the ensuing discussions create the interest and climate for everyday economic education. Extension specialists and researchers can learn when the farmers "fill in the blanks" with data from the farm's recordbooks. Variable costs, per unit costs, or breakeven costs of production estimates set the stage for further discussion of marketing alternatives or strategies where gross returns cover expected costs.

Agricultural profitability is an important issue faced by farm operators and the Extension System serving them. Just as economics is an everyday part of farming, economics can be included in everyday educational programs for farmers.