The average cost of producing a bushel of wheat was $3.97 for producers surveyed in 1998, ranging from about $1.25 to more than $6 per bushel. The cost of producing wheat generally declined as farm size increased. Regional differences in production practices and growing conditions were major influences on production costs and yields among wheat producers. Producers in the Prairie Gateway, a major wheat region, produced wheat at an average cost of $3.63 per bushel, the lowest cost among regions. Most high-cost farms and very large farms were in the Southeast region; these farms tended to be more diversified than farms in other regions, so wheat contributed a smaller share to their total farm income.