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What are the profitable patterns of crops and livestock for areas in Central South Dakota? This is a question that farmers in South Dakota are especially concerned with at the present time. The farmer is always faced with the problem of planning the most profitable farm organization and operation, but the problem at the present time is emphasized by the current action programs in irrigation and soil conservation which stress the need for more legumes and livestock in the farm organization. If the economist is to aid the farmer and the action programs, an insight to the question posed above must be sought. The budgeting technique is one of the economic tools of analysis that is used to determine the most profitable farm organization and operations for irrigation and soil conservation farming. This technique involves a rigorous economic analysis of alternative farm organizations and alternative methods of production. Although the budgeting method is useful in an economic analysis of income potentials, the budget is no better than the information upon which it is based. The purpose of this paper is to relate the physical input of feed to the physical output of livestock products in such a way that the most economical level of feeding can be determined by budget analysis.

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South Dakota State College


Agricultural Economics