We calculate Cost of Production for Wool, Lamb, Beef and Crop enterprises.
Profit is made when prices received exceed costs of production. Consequently many farmers are interested in their cost of production, and also how it compares with other farmers. |
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Two measures of Cost of Production
We calculate cost of production two ways:
- Comparative Cost of Production
In this case we do not include interest costs, thereby providing a fairer comparison between farms.
- Total Cost of Production
In this calculation interest costs are included.
Our Farm Business Farm Planner Software makes the calculations simple
The stock schedules and other data we prepare as part of business planning, provide information which is required in calculating cost of production. Our Farm Business Planner software automatically feeds this data into the cost of production calculations thereby simplifying the process.
