David Houghton Fixed Quotations

Simply ceasing activity or dropping production dramatically is not possible. However, many of us are looking at how we can turn fixed costs into variable costs, and options such as contract farming become all the more attractive.

We are not likely to get a sudden drop in production because farmers have fixed costs that must be covered, irrespective of whether they produce.

If you are not stuck with fixed machinery costs and simply hire equipment when necessary, you have far more flexibility in business decisions. You can reduce or increase production dramatically depending on prices.