SRBeef
Well-known member
Doc, There is exactly the same problem in grain farming - emphasis on the YIELD (bu/acre) often with little regard for the costs to produce that yield.
Makes for good talk at the coffee shop or elevator or sale barn but not good talk at the bank.
Simply put, it is the NET INCOME (=profit) that counts, not the GROSS INCOME (=sales).
Very often, Maximum Profit does NOT occur at maximum yield.
I use the analogy of the 500 lb pumpkin raised for the fair. Sure you can do it: water it every day, fertilize it every week, thin all others, etc. but do you make any money on it?
Jim
Makes for good talk at the coffee shop or elevator or sale barn but not good talk at the bank.
Simply put, it is the NET INCOME (=profit) that counts, not the GROSS INCOME (=sales).
Very often, Maximum Profit does NOT occur at maximum yield.
I use the analogy of the 500 lb pumpkin raised for the fair. Sure you can do it: water it every day, fertilize it every week, thin all others, etc. but do you make any money on it?
Jim