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 clear, practical definition of Cost of Goods Sold in an agricultural context and understand why it is essential for farm recordkeeping and financial clarity.
✔ Identify All Direct Cost Components
Learn what to include in your COGS calculation, from seed, amendments, irrigation, and harvest labor for row crops to ingredients, processing, packaging, and production labor for value-added products.
✔ Calculate COGS Per Unit
Follow a straightforward framework for determining your total production costs and breaking them down into COGS per unit. See how to calculate per-pound, per-case, or per-jar costs so you understand exactly what it takes to produce each item.
✔ Apply COGS to Row Crops and Value-Added Products
Review side-by-side examples that demonstrate how COGS is calculated differently for field-grown crops versus processed goods, helping you adapt the framework to your own operation.
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.
