Description
Compare supplied economic and cash cost totals.
Farm economic terms require explicit cost scope, subsidy treatment, price-index bases, moisture conventions and period rates. A partial input cost per output differs from total economic cost, while an insurance scenario excludes unsupplied policy limits. A nominal margin is conditional on supplied amounts and assumptions.
Compare supplied economic and cash cost totals.
When to use this tool
Use Farm Cash Vs Economic Cost Gap when you already have cashCost, economicCost and need to compare supplied economic and cash cost totals.
How to use the tool and how it works
- Enter cashCost, economicCost. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read signedGap. Use the output convention below.
Return economicCost-cashCost with signs preserved.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| cashCost | Cash Cost | Required. Finite number. |
| economicCost | Economic Cost | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| signedGap | Signed Gap | Required. Finite number. |
{
"input": {
"cashCost": 12,
"economicCost": 17
},
"output": {
"signedGap": 5
}
}Limitations and assumptions
- Definitions and currency must match. No imputed component is estimated, accounts reconciled or actual opportunity cost or profitability established.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile actual farm accounts, contracts, policy terms and forecasts. Use complete cost, risk and valuation methods when local per-unit terms or scenarios cannot establish profitability, obligations or appropriate financial decisions.
References
Similar or alternative tools
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