Nice cost data for a broad array of agricultural commodities. For use in teaching Perfect Competition.

Given my limited editing skills in Excel, I condensed some cost data on various agricultural commodities. All costs are projected costs for the 2014 planting season.

All this and MORE can be found at the terrific US Dept of Agriculture Economic Research center.

It is conveniently organized by cost category:  Variable Costs and Fixed Costs.

What is even more EXTRAORDINARY and helpful when teaching the cost structure of a firm is the fixed costs includes "implicit costs", or Opportunity Costs.

The implicit costs are (1) unpaid labor---the farmers opportunity cost of farming and not doing something else. (2) Capital Recovery (depreciation AND "the rental rate of Capital").  (3) Land---the opportunity cost of using the land for farming the particular commodity as opposed to using it for something else.

Students can quantify and graph the respective cost curves (AVC, AFC, ATC, MC), then find the current market price for a commodity and observe if the "firm/farmer" is making economic profit, loss or "normal profits".  These are all important terms in AP Microeconomics.

Hope this helps in your teaching/learning.

These are the COSTS PER ACRE PLANTED for each commodity.

AP Micro Example: Perfect Competition and a change in cost AND Market Price. Does not get better than this!!

For Teachers and/or Students of Microeconomics here is an excellent article you can use to illustrate how changes in variable costs and a change in market price affects a producer ("Firm") that operates in a "Perfectly Competitive" market.
Dairy farmers squeezing white gold from cows

Most milk manufactured in Wisconsin becomes cheese, but it’s also turning into white gold for dairy farmers in America’s Dairyland, because demand has never been higher and prices for it are rising at meteoric rates. 

A dramatic increase in dairy exports and limited milk production have combined to create the near-record high prices dairy farmers are receiving for their milk from customers like cheese producers. 

Combined with the near-record low prices they’re paying for corn to feed their cows, dairy farmers should see increased profits through this year, a leading dairy economist said.
“This is the dairy farmers’ year to enjoy,” said Mark Stephenson, the director of the UW-Madison’s Center for Dairy Profitability. 

Read more: http://host.madison.com/business/dairy-farmers-squeezing-white-gold-from-cows/article_c5ecf6f1-88a3-55e7-98b9-0a60be9857fb.html#ixzz2tm3OU2Mf

Let's go to the GRAPHS!  Each slide has has its own narration so I will let them speak for themselves.  If you see any errors or omissions please let me know. 

I hope this helps you understand changes in costs and prices in a Perfectly Competitive Market.