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.
Was this article helpful?