0
If crop production is low, creating high demand, the buyer comes out ahead because the farmer could have sold for a higher price, had he or she known there would be a smaller supply.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
How much money does a farmer make a day?
A farmer is not paid a salary. He is an independent businessman and his income depends on producing a crop or livestock. A small farm may produce a profit under $50,000 in an average year and a large one could have profits in the millions of dollars. Even a very small farmer will have half a million dollars or more invested in land and machinery. He pays the property taxes, maintenance, fuel costs (this season, it cost $300 each day for diesel fuel for the combine to cut a wheat crop in western Kansas), seed, fertilizer, his own liability insurance, crop insurance, etc. Then he works sunup to sundown and beyond and prays for rain when the crop is planted and dry weather when it is time to harvest. If the prices are high, he probably has a poor crop. When he produces a good crop, so do all the other farmers, so the prices are low.
What do you mean by maximize profits?
profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit
What are the disadvantages of being a farmer?
Very hard work- in some cases, 7 days a week. Bad weather can destroy your crop no matter how hard you work. Low pay. Did I mention hard work?
Why is profit important to a business?
because business is all about the large profit at low budget
How did growing mostly cash crops hurt small farmers?
Prices for in-demand cash crops are set in commodity markets. Therefore, small farmers relying of the crop will suffer low prices if a bumper crop is in excess elsewhere.
What are low yields?
Low yields usually refer to crops. It means that the yield of the crop was lower than predicted by the seed company or farmer.
What are Yields?
Low yields usually refer to crops. It means that the yield of the crop was lower than predicted by the seed company or farmer.
How much money does a farmer make a day?
A farmer is not paid a salary. He is an independent businessman and his income depends on producing a crop or livestock. A small farm may produce a profit under $50,000 in an average year and a large one could have profits in the millions of dollars. Even a very small farmer will have half a million dollars or more invested in land and machinery. He pays the property taxes, maintenance, fuel costs (this season, it cost $300 each day for diesel fuel for the combine to cut a wheat crop in western Kansas), seed, fertilizer, his own liability insurance, crop insurance, etc. Then he works sunup to sundown and beyond and prays for rain when the crop is planted and dry weather when it is time to harvest. If the prices are high, he probably has a poor crop. When he produces a good crop, so do all the other farmers, so the prices are low.
What is a low profit margin?
Where you have a low profit apposed to a higher profit
What happen after the civil war to the farmers debt?
After the Civil War, the farmers debt increased. The reason for this is because the crop prices went way too low.
What do you call it when a farmer leaves plant stalks in the field to stop erosion?
No-till farming: means that farmers leave all of the last crop's residue in the soil while planting the new crop.
What do you mean by maximize profits?
profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit
How much money does a farmer earn?
Ask someone at the reference desk of your local public library for the Occupational Outlook Handbook. It lists all kinds of information you would need to know,(including the salary) of just about any occupation you can think of. A farmer is not paid a salary. He is an independent businessman and his income depends on producing a crop. A small farm may produce a profit under $50,000 in an average year and a large one could have profits in the millions of dollars. Even a very small farmer will have half a million dollars or more invested in land and machinery. He pays the property taxes, maintenance, fuel costs (this season, it cost $300 each day for diesel fuel for the combine to cut a wheat crop in western Kansas), seed, fertilizer, his own health insurance, liability insurance, crop insurance, etc. Then he works sunup to sundown and beyond and prays for rain when the crop is planted and dry weather when it is time to harvest. If the prices are high, he probably has a poor crop. When he produces a good crop, so do all the other farmers, so the prices are low.
What is low profit margin?
A profit margin is the amount you make on an item verses that cost of the initial purchase i.e. Bought a widget at 100 sold at 200 profit 100 Low profit margin is when a very low amount is made on the item.
What are the disadvantages of being a farmer?
Very hard work- in some cases, 7 days a week. Bad weather can destroy your crop no matter how hard you work. Low pay. Did I mention hard work?
What was the Production Budget for On the Down Low?
The Production Budget for On the Down Low was $10,000.
What was the Production Budget for High Heels and Low Lifes?
The Production Budget for High Heels and Low Lifes was $10,000,000.
