Farm Business Costs

Published: 10 Feb 2014

Farm business costs fact sheet

Do you know where your money is going? Can you justify it?

Key Points

  • Top farm businesses understand their expenditure in five key cost areas: Variable Costs, Overhead Costs, Financial Costs, Personal Costs and Capital Costs. 
  • Good cost management is central to running a profitable farming business. It is not just about reducing costs but understanding the returns. 
  • Understand why costs are grouped which will assist with enterprise analysis and business decision making. 
  • Costs tend to increase over time – review them regularly and look for savings. 
  • It is important to know the impact of costs on both your profit and loss and your cash flow.

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GRDC Project Code AES00006

Region National, North, South, West

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Region: National; North; South; West