Understand and Calculate COGS for Your Farm
Free Guide for Farmers: A Clear Path to Calculating Cost of Goods Sold
Do you struggle to understand what Cost of Goods Sold (COGS) really means for your farm enterprise or value-added products?
This free guide walks farmers step by step through what COGS includes, how it applies differently to row crops and value-added goods, and how to calculate COGS accurately and confidently.
What You’ll Learn Inside
Whether you grow row crops or produce value-added goods, understanding your true production costs is foundational to running a financially sound farm business. Inside this guide, you will learn how to:
Understand What COGS Is
Gain a practical definition of Cost of Goods Sold in an agricultural context and understand why it is essential for farm record-keeping and financial clarity.
Identify All Direct Cost Components
Learn what expenses to include in your COGS calculation and what costs to reserve for other expense categories.
Calculate COGS Per Unit
Follow a straightforward framework to determine your total production costs and break them down into COGS per unit.
Make Sense of Complex Farm Costs
See how to account for farm products with underlying costs measured in different units (per acre, per pound, per plant, or per batch).
Decide with Confidence
Discover how one farm uses COGS to assess pricing and what strategic options they consider when a product isn’t profitable.
Why This Matters for Your Farm
Many farmers track expenses, but few clearly separate and calculate Cost of Goods Sold by enterprise or product. Without that clarity, it becomes difficult to understand the true cost of production.
This guide is designed to give you a practical system for identifying, organizing, and calculating your production costs so you can better understand the economics of your farm.
Who This Free Guide Is For
✔ Row crop growers
✔ Vegetable and specialty crop farmers
✔ Producers of value-added products
✔ CSA, wholesale, and direct-to-consumer farm businesses
If you want a clearer understanding of your production costs and how to calculate them accurately, this guide was created for you.
