Calculate farm revenue, costs, profit margin, and break-even price for your crop enterprise.
Calculate farm revenue, costs, profit margin, and break-even price for your crop enterprise. Get instant, accurate results for your farm.
A farm budget estimates income and expenses for a crop enterprise. The key metrics are net profit, profit per hectare, profit margin, and break-even price. Use this calculator before planting to assess profitability and during the season to track performance.
A: Profit margins vary widely by crop and year. Row crops (corn, wheat, soybeans) typically have 5-15% margins. High-value vegetables and fruits can achieve 20-40% margins but require more labor and management. A margin below 5% is risky — one bad weather event or price drop can turn profit into loss. Diversify crops to spread risk.
A: Break-even price = Total variable cost per hectare ÷ Expected yield per hectare. This is the minimum price you need to cover all variable costs. To also cover fixed costs, use total cost (variable + fixed) ÷ yield. Knowing your break-even helps you decide when to sell forward contracts and whether a crop is worth planting.
A: Yes. Even if you do not pay yourself a wage, your labor has opportunity cost — you could earn money working off-farm. Include a reasonable wage for your own labor (e.g., $15-25/hour) to get a true picture of profitability. If the budget only works with "free" owner labor, the enterprise may not be sustainable long-term.