Break even in farming

Farmer’s, even if they know their costs, face a problem in that they can’t do anything about crop prices. If the price is above break even, it may even make sense to rent more land to grow more.
And of course, if a farmer knows the break even ‘cost’ per acre/hectare then they can try to get the best price above that.

Here is a good article showing the costs of corn this year, and working out a break even price. It’s a good example of the application of break even analysis.




About martinjquinn

I am an accounting academic, accountant and author based near Dublin, Ireland.

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