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FM
Former Member

Urgent diversification of the rice and sugar industries

Dear Editor, I would like to commend all those involved in putting together the National Rice Industry Conference. The feature address by the President and the presenters covered most of the concerns in the industry, except its sustainability. The farming community was well represented and did air its concerns, mostly on timely payment by millers, ways of bringing down the cost of production and paddy price for the coming crop. Unfortunately, no firm decision was made on any of the concerns, and no mention was made on sustainability of the industry. It was highlighted that the number of farmers are getting smaller and holdings are getting larger, obviously for a reason. Naturally, the bigger farmers are better equipped to have a greater return on investment, because of lower cost of production and higher yields. Lots of numbers have been thrown around for cost of production; however, I have decided to consider the numbers presented by Mr John Tracey, as they seem most realistic. Consider $80,000 for cost of production of one acre and the farmer gets 30 bags per acre and is paid $3000 per bag. Then his profit per acre per crop is $10,000. For two crops per year its $20,000 per acre. The National minimum wage per month is $50,000; that is $600,000 per year. This shows that a farmer should cultivate a minimum of 30 acres of paddy before he can make the minimum wage, which is impossible for the farmer, wife and children to support. There are many farmers who cultivate much less than this acreage, resulting in lots of dissatisfied farmers. A farmer cultivating five acres will only earn $100,000 per year. The problem is compounded by the fact that there is not any other form of employment available on a regular basis. Obviously, this is the root cause of the problem, but was still not addressed at the Conference. Bottom line is that it’s not a rice industry issue, but a social issue. It is important that this issue is addressed urgently and a solution found. The best and only solution at this time is diversification, which will result in less acreage under paddy cultivation, resulting in less rice production, which might not be a bad idea, as we are very vulnerable, because of having to market about 75 per cent of our production, while only about five per cent of world’s production is traded. Mr Kuldip gave a 32 per cent of cost for labour, which is way too high, as the industry is relatively mechanised, and the farmer is left with lots of spare time, which can only be taken up by him doing another job. A farmer cultivating five acres of paddy, earning $100,000 per year, which is just minimum wage for two months, lives way below the poverty line. With diversification, he can work wonders by earning lots more in a year, and keeping himself beneficially occupied year round. An ADP (Export Agriculture Diversification Programme) should be introduced and involves three Clusters: Fruit and vegetables, livestock and aquaculture/ aquaponics. This was implemented recently but failed miserably, mainly because of non-involvement of stakeholders and the authority. This system can be implemented, both in the rice and sugar industries. Consider a rice farmer or a Guyana sugar Corporation (GuySuCo) employee with five acres of land. There will be a mixture of livestock, fruits and vegetables and aquaculture/aquaponics. The mixture will be: Aquaculture/aquaponics – two acres to produce 5000 fish per acre livestock… A combination of two dairy cows and six goats… zero grazing. Fruits and vegetables – a mixture of cassava, sweet potatoes, black eye, boulanger, tomato, pepper, sorrel, passion fruit, pumpkin, water melon,etc. The layout is very important, as the aquaponic system will be used to allow the farmer to utilise the water from the fish pond as a fertiliser and a source of moisture, resulting in a high priced organic crop. It is assumed that the farmer and his family (when available) will work six days per week at six hours per day, earning $5 000 per day; that is $30,000 per week equal $120,000 per month equal $1,440,000 per year against $100,000 per year if he were cultivating paddy and will also be occupied year round. At the end of the day, he will also have lots more available by sale of vegetables, milk, fish, and sale of live animals (goat and cattle).

Investment For the farmer to get started, the following will have to be done. 1. He will have to fence the five acres. 2. Dig two ponds a ton acre each. Acquire fingerlings and feed, infrastructure for drainage and irrigation already in place. 3. Acquire two dairy cows capable of producing two gallons milk each per day and six goats (ewes, capable of their off springs getting to 100 lbs at the end of one year and producing three births of two each in two years), utilising Artificial Insemination (AI) for both cattle and goats.

4. Gardening tools 5. Planting materials 6. Finance (fixed and variable) The farmer will expect some initial help from the Government as it’s a new idea to be executed. The five acres owned by the farmer, whether leased or transported has lots of value and can be held as security at a development bank, at an affordable interest rate. Because of the nature of the different crops to be cultivated, after a couple months, the farmer can start receiving income providing the market is available.

Markets Very, very important that this is assured before the farmer goes into production.

Technology The relevant agencies will have to become active. These are: NAREI – National Agricultural Research and Extension Institute GLDA – Guyana Livestock Development Agency NGMC – New Guyana Marketing Corporation

Respectfully, Beni Sankar, A A

Replies sorted oldest to newest

Mansur Ali tried diversification already. There were not enough technical people to implement the plans. Agriculture was kept mainly in Indians areas.

The PNC never cooperated with the PPP's development plans. Now they can try their own style of development for a change. 

R

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

Nehru
Originally Posted by Nehru:

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

The PPP did nothing about it in their 23 years in power?

Mr.T
Originally Posted by Mr.T:
Originally Posted by Nehru:

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

The PPP did nothing about it in their 23 years in power?

You must be stupid to think that the PPP did nothing in 23 years.  When last you went back to Guyana.  haven't you seen the transformation from a bankrupted country in 1992 to the most progressive one in 2015.

R
Originally Posted by Ramakant-P:
Originally Posted by Mr.T:
Originally Posted by Nehru:

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

The PPP did nothing about it in their 23 years in power?

You must be stupid to think that the PPP did nothing in 23 years.  When last you went back to Guyana.  haven't you seen the transformation from a bankrupted country in 1992 to the most progressive one in 2015.

You see how dem  guys progressed from coke in de poke to coke in de plane?

cain
Originally Posted by cain:
Originally Posted by Ramakant-P:
Originally Posted by Mr.T:
Originally Posted by Nehru:

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

The PPP did nothing about it in their 23 years in power?

You must be stupid to think that the PPP did nothing in 23 years.  When last you went back to Guyana.  haven't you seen the transformation from a bankrupted country in 1992 to the most progressive one in 2015.

You see how dem  guys progressed from coke in de poke to coke in de plane?

Yes!  The Indians are using the stupid blacks to do that.

R
Originally Posted by Ramakant-P:
Originally Posted by cain:
Originally Posted by Ramakant-P:
Originally Posted by Mr.T:
Originally Posted by Nehru:

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

The PPP did nothing about it in their 23 years in power?

You must be stupid to think that the PPP did nothing in 23 years.  When last you went back to Guyana.  haven't you seen the transformation from a bankrupted country in 1992 to the most progressive one in 2015.

You see how dem  guys progressed from coke in de poke to coke in de plane?

Yes!  The Indians are using the stupid blacks to do that.

Dah was one heck of a black pilot they ketch banna. You see the picture yet of dat black guy?

cain
Originally Posted by Ramakant-P:
Originally Posted by Mr.T:
Originally Posted by Nehru:

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

The PPP did nothing about it in their 23 years in power?

You must be stupid to think that the PPP did nothing in 23 years.  When last you went back to Guyana.  haven't you seen the transformation from a bankrupted country in 1992 to the most progressive one in 2015.

Why, after 23 years do the rice farmers have this problem?

 

Please do not suggest that these problems only emerged 2 months ago.

 

It is dishonest for a PPP supporter to expect that APNU/AFC will deliver in 2 months what they PPP failed to, or chose not to, in 23 years!

FM

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

Z
Originally Posted by caribny:
Originally Posted by Ramakant-P:
Originally Posted by Mr.T:
Originally Posted by Nehru:

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

The PPP did nothing about it in their 23 years in power?

You must be stupid to think that the PPP did nothing in 23 years.  When last you went back to Guyana.  haven't you seen the transformation from a bankrupted country in 1992 to the most progressive one in 2015.

Why, after 23 years do the rice farmers have this problem?

 

Please do not suggest that these problems only emerged 2 months ago.

 

It is dishonest for a PPP supporter to expect that APNU/AFC will deliver in 2 months what they PPP failed to, or chose not to, in 23 years!

It did, with the loss of 30% market!  I hope something turn soon.

FM
Originally Posted by Django:

Is Beni still in the large scale rice business??

he was developing land some where in the

Blairmont area to plant rice.

The last I heard, he was. They had suffered some financial setback sometime in the past.

Z
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

Beni almost went belly-up and struggled to save his home from bankers.  He gambled on a high leverage model, but rising interest rates and sinking prices sent him upside down in a jiffy.

 

However, scale does matter and small farmers should think of another model as it becomes at best subsistence on a good day.

 

The days of small farmers for commodity commercial farming are over.  This is for the big boys. Maybe the GoG should look into importing high-yielding cows from India for these small farmer to diversify.  Large-scale high yielding farms are the ay to go.

FM
Last edited by Former Member
Originally Posted by Zed:
Originally Posted by Django:

Is Beni still in the large scale rice business??

he was developing land some where in the

Blairmont area to plant rice.

The last I heard, he was. They had suffered some financial setback sometime in the past.

Good for him.

 

Django
Originally Posted by baseman:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

Beni almost went belly-up and struggled to save his home from bankers.  He gambled on a high leverage model, but rising interest rates and sinking prices sent him upside down in a jiffy.

 

However, scale does matter and small farmers should think of another model as it becomes at best subsistence on a good day.

 

The days of small farmers for commodity commercial farming are over.  This is for the big boys. Maybe the GoG should look into importing high-yielding cows from India for these small farmer to diversify.  Large-scale high yielding farms are the ay to go.

Why go to India,we got some cows here in US. There is a guy 20 miles from where i live is big in milk production,i had a chat with him he breeds the cows when they finished producing milk,sell the cow to the beef industry.

Django
Last edited by Django
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

FM
Originally Posted by Django:
Originally Posted by baseman:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

Beni almost went belly-up and struggled to save his home from bankers.  He gambled on a high leverage model, but rising interest rates and sinking prices sent him upside down in a jiffy.

 

However, scale does matter and small farmers should think of another model as it becomes at best subsistence on a good day.

 

The days of small farmers for commodity commercial farming are over.  This is for the big boys. Maybe the GoG should look into importing high-yielding cows from India for these small farmer to diversify.  Large-scale high yielding farms are the ay to go.

Why go to India,we got some cows here in US. There is a guy 20 miles from where i live is big in milk production,i had a chat with him

he breeds the cows when they finished producing milk,sell the

cow to the beef industry.

Because they have some high-yielding tropical tough cows with low maintenance.  But, if there are other good sources, yes, why not.

FM
Originally Posted by VVP:

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

I think it is when you looking at professional and mechanization.  5 acres hardly support.  I have a relative with 10 acres, did the math and decided not to cultivate rice.  Rice did not justify his time.  If you have no alternative, fine, but you are subsistence.

FM
Last edited by Former Member
Originally Posted by baseman:
Originally Posted by caribny:
Originally Posted by Ramakant-P:
Originally Posted by Mr.T:
Originally Posted by Nehru:

The PNC and their Two House Slaves are all about TALK band NO Action. DONT FORGET, WE STILL WAITING FOR THE FEED, CLOTHE AND HOUSE PROGRAM TO START. BE REMINDED, THIS PLAN WAS PUT IN PLACE IN 1973.

The PPP did nothing about it in their 23 years in power?

You must be stupid to think that the PPP did nothing in 23 years.  When last you went back to Guyana.  haven't you seen the transformation from a bankrupted country in 1992 to the most progressive one in 2015.

Why, after 23 years do the rice farmers have this problem?

 

Please do not suggest that these problems only emerged 2 months ago.

 

It is dishonest for a PPP supporter to expect that APNU/AFC will deliver in 2 months what they PPP failed to, or chose not to, in 23 years!

It did, with the loss of 30% market!  I hope something turn soon.

Perhaps was the opposition at the time fault,it had to be them who cause it,what you think Baseman?

cain
Originally Posted by baseman:
Originally Posted by VVP:

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

I think it is when you looking at professional and mechanization.  5 acres hardly support.  I have a relative with 10 acres, did the math and decided not to cultivate rice.  Rice did not justify his time.  If you have no alternative, fine, but you are subsistence.

I was not sure why Zed ask for marginal cost.  I think you have to be in the 100s of acres for you to be okay in rice.

FM
Originally Posted by Django:
Originally Posted by Zed:
Originally Posted by Django:

Is Beni still in the large scale rice business??

he was developing land some where in the

Blairmont area to plant rice.

The last I heard, he was. They had suffered some financial setback sometime in the past.

Good for him.

 

You sure dis is what u wanted to say banna?

cain
Originally Posted by cain:
Originally Posted by Django:
Originally Posted by Zed:
Originally Posted by Django:

Is Beni still in the large scale rice business??

he was developing land some where in the

Blairmont area to plant rice.

The last I heard, he was. They had suffered some financial setback sometime in the past.

Good for him.

 

You sure dis is what u wanted to say banna?

Good for him he was able to pull thru the financial set back.

Django
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

Z
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

FM
Last edited by Former Member
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

When one is making a decision, one would use both the marginal and average cost in the analysis. 

Z
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

When one is making a decision, one would use both the marginal and average cost in the analysis. 

True.  What's your field?  Marginal costs could be misused by economists sometime.  I know perfect examples but I cannot get into such discussions publicly. 

FM
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

When one is making a decision, one would use both the marginal and average cost in the analysis. 

In addition to marginal revenue.

Z
Originally Posted by Django:
Originally Posted by baseman:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

Beni almost went belly-up and struggled to save his home from bankers.  He gambled on a high leverage model, but rising interest rates and sinking prices sent him upside down in a jiffy.

 

However, scale does matter and small farmers should think of another model as it becomes at best subsistence on a good day.

 

The days of small farmers for commodity commercial farming are over.  This is for the big boys. Maybe the GoG should look into importing high-yielding cows from India for these small farmer to diversify.  Large-scale high yielding farms are the ay to go.

Why go to India,we got some cows here in US. There is a guy 20 miles from where i live is big in milk production,i had a chat with him he breeds the cows when they finished producing milk,sell the cow to the beef industry.

Whether the cows are imported from India or the US, some horny bulls must be included on the list, to multiply the stock in Guyana and save foreign currency.

FM
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

When one is making a decision, one would use both the marginal and average cost in the analysis. 

True.  What's your field?  Marginal costs could be misused by economists sometime.  I know perfect examples but I cannot get into such discussions publicly. 

 

I am a retired Guyanese who loves to read, lie in my hammock and enjoy coconut water.

Z
Originally Posted by Zed:
 

I am a retired Guyanese who loves to read, lie in my hammock and enjoy coconut water.

Do you live in Guyana currently?  You don't have to answer if you don't want to.

FM
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

Marginal costing is all well and good as long as you have achieved critical mass and have assets to leverage beyond critical mass.

FM
Originally Posted by baseman:
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

Marginal costing is all well and good as long as you have achieved critical mass and have assets to leverage beyond critical mass.

How do you know when you achieved critical mass?

FM
Originally Posted by VVP:
Originally Posted by baseman:
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

Marginal costing is all well and good as long as you have achieved critical mass and have assets to leverage beyond critical mass.

How do you know when you achieved critical mass?

Good question, I would say when most of your key productive assets are fully or almost fully utilized.

FM
Originally Posted by VVP:
Originally Posted by Zed:
 

I am a retired Guyanese who loves to read, lie in my hammock and enjoy coconut water.

Do you live in Guyana currently?  You don't have to answer if you don't want to.

I do live in Guyana but visit my children and grandchildren for two months during the summer.

Z
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:
 

I am a retired Guyanese who loves to read, lie in my hammock and enjoy coconut water.

Do you live in Guyana currently?  You don't have to answer if you don't want to.

I do live in Guyana but visit my children and grandchildren for two months during the summer.

Cool.  Give us some unbiased opinions of what's happening there once in a while.

FM
Originally Posted by baseman:
Originally Posted by VVP:
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:

Let us get back to what Beni wrote.

1 how many rice farmers have only 5 acres? I know that there is an increase in size of plots but have no figures.

2. The cost of production figure at $80000 per acre seems high. What is the marginal cost of production per acre for small farmers as against large farmers?

3. Beni has not addressed the issue of market prices as against cost of production in his diversification proposal. The cost factors small versus large operations will come into play. Also, the issue of market saturation within the country and how we compete in the international market if the aim is to export.

4. His production numbers are sketchy and seem to be optimistic. obviously, the income stream seems very weak. Goats growing to be 100 lbs. in one year?  2 gallons of milk per day for the whole year?

5. Banks need to see a strong income stream if they are to lend start-up money for infra-structure, etc. will need an agric development bank.

6. Beni might want to do a demonstration project, put his money where U.S. Mouth is. Why is he not doing this if there is money to be made?

 

what do people here think?

 

 

So what you think is the reason for the article?  5 acres does seem small for a rice farmer.

 

How would you calculate the marginal cost for no. 2?  Lets say the 5 acre farmer has to buy a combine compared to a 5000 acre farmer buying a combine.

It would not be wise for the farmer who has 5 acres of land to purchase a combine, unless he plans to use it to cut other farmers' rice. The larger farmer will have a lower marginal cost becUse of the size and the efficiencies that result.  The marginal cost in no. 2 will be the added cost as one increase a unit of production, in this case a bag of paddy.

 

the days of the small farmer are slowly going because we need to be very efficient if we hope to successfully compete in the international rice market. In the old days, it was difficult to survive on five acres but farmers did it because of family labour and their labour. Additionally, farmers worked "day hand" for others so when they needed the extra labour, they were able to get it without additional monetary costs. Additional labour was available to be hired. Later, farmers paid to have their fields ploughed and for combines to reap. Rice production has been mechanized, the children do not want to work on the paddy fields any more and the green revolution introduced Varieties that are heavily dependent on pesticides and fertilizers, thereby increasing the cost of production. In this environment, the small farmer is continually squeezed out. Many small farmers, anecdotal evidence suggests are renting out their land to larger farmers and receive a monetary rent or a certain number of bags of paddy per acre rented.

You do have the concept of marginal cost correct.  However, I do not think you could do a marginal cost analysis to compare a 5 acre guy to a 5,000 acre guy.  I think average cost per acre might be more useful.

 

In terms of marginal costs if the 5 acre guy reaps 150 bags the cost of his last bag might be pretty much the same as his first.  For the large guy with 150,000 bags his marginal cost for last bag could be close to $0 or it could be the cost of a new combine if he needs a new combine to cut the last bag.

Marginal costing is all well and good as long as you have achieved critical mass and have assets to leverage beyond critical mass.

As far as I understand it, critical mass is related to full utilization of resources and sustainability. Sustainability more so in change process. Many small farmers cannot leverage. most often, the only asset they have is their home or some cows, sheep, etc. they are disinclined to go into debt. Often, two bad crops in a row drive them over the edge. Very often political imperatives keep these small farmer class going and stop the process of concentration in a free market process.

Z
Originally Posted by Zed:
Originally Posted by VVP:
Originally Posted by Zed:
 

I am a retired Guyanese who loves to read, lie in my hammock and enjoy coconut water.

Do you live in Guyana currently?  You don't have to answer if you don't want to.

I do live in Guyana but visit my children and grandchildren for two months during the summer.

Zed,enjoy the retirement,in the next two years i can retire,thinking

about spending the winter months in Guyana,I am hoping the crime

situation change.

Django

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