Which of the following is an example of a non-variable cost in farming?

Equipment depreciation represents a non-variable cost in farming because it is an expense that remains relatively fixed over time, regardless of the level of production or the amount of crop produced. Depreciation is the systematic allocation of the cost of a tangible asset (in this case, equipment) over its useful life. This means that whether a farmer produces a high yield or a low yield, the equipment depreciation cost does not fluctuate significantly with production levels.

In contrast, other choices such as seeds, labor, and fertilizers are typically considered variable costs. These costs change in direct proportion to the level of production; for instance, as a farmer increases production, the amount spent on seeds and fertilizers generally increases as well. Labor may also vary based on the amount of work required for different levels of production, making it variable as well. Understanding the difference between fixed and variable costs is crucial in farm management since it helps with budgeting, forecasting, and financial planning.