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What is break-even cost?

Add all your costs and set your break-even point and start to work towards your profit target.

  • It is all the costs per area unit (e.g. hectare or acre) before a crop’s season can make a profit.
  • It includes the direct production costs (e.g. seed, fertiliser, herbicides,…) 
  • plus overhead costs (e.g. insurance, depreciation or provision for equipment replacement, taxes, labour,…)
  • plus foreign factor costs (e.g. management, rent, interest,…)
  • If you are not sure, ask your financial advisor. 
  • If you are not sure about the Break-even Cost, rather use your higher estimate. 
  • Remember that Break-even Cost is already accounted for when doing a transaction. CropsProfit uses the Break-even Cost specified in the season’s crop marketing, if this cost is not correct just update the season’s crop marketing plan with the correct cost from the correct marketing cycle.
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