Barley production costs are compared for five states and three Canadian provinces. A stochastic simulation, incorporating yield and exchange-rate risk, is used to characterize regional cost advantages in terms of probabilities.

North Dakota net farm income declined in 1997 due to adverse weather conditions and low prices. The total income loss in 1997 was estimated to be $394 million, which was divided into $290 million due to weather and diseases, and $104 million due to lower-than-average prices. Net farm income...