A simple budget before the season prevents unpleasant surprises.
Costs to list
- Seed, fertilizer, chemicals.
- Water and energy (pumping, fuel).
- Labour and machinery (own or hired).
- Bags, transport and storage.
- Interest and land cost, if any.
Revenue
Expected yield × price, using conservative numbers.
Key numbers
- Cost per acre and break-even yield (total cost ÷ price).
- Break-even price (total cost ÷ expected yield).
- Margin and what happens if yield falls 20% or price drops 20%.
Use it
Compare crops on margin, not just yield. Focus spending on inputs with the best return, and cut those that do not pay. Update the budget with real numbers after the season.
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