COGS for farmers: what it is, how to track it, and why it matters

Do you struggle to understand what Cost of Goods Sold (COGS) really means for your farm enterprise or value-added product?

This free guide walks farmers step-by-step through what COGS includes, how to calculate COGS accurately, and how it applies differently to row crops, value-added products, services, and events.

A clear path to calculating Cost of Goods Sold

$FREE

There are all types of farms and we’ve attempted to build a guide that is helpful no matter what you sell. We think you’ll find it useful if you are a:

✔ Commodity grower

✔ Specialty crop farmer

✔ Producer of value-added products

✔ Service provider (ex. grazing or bee-keeping)

✔ CSA, wholesale, or direct-to-consumer farm business

✔ Farm offering farm tours, farm stays, or on-farm workshops

Why COGS maters 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 producing your crop or product and nearly impossible to price for profitability.

This guide is designed to give you a practical system for identifying, organizing, and calculating your COGS so you can better understand the economics of your farm. We especially hope you’ll give it a read if:

• you have good sales, but struggle to have enough cash to keep your business going

• you have ideas for how to market your product, but don’t seem to have the money leftover to invest in marketing

Often these are signs that something is off with your COGS. Let’s figure out what it is!

About Ellen: From Field to Grant Writer

I help farmers turn ideas into funded projects through the Value Added Producer Grant (VAPG). Since founding Ellen Rawley Creative & Strategy in 2016, I’ve secured over $5 million in federal grant funding for farm businesses and $3 million for farm support organizations.

I know what it’s like to be in the trenches: hand-harvesting rice in Thailand, selling lettuce at the Ferry Building Farmers’ Market, and launching a jam line for McEvoy Ranch taught me what it takes to grow crops and sales. I’ve helped launch countless farm products, with features in Martha Stewart’s American Made Shop, Food & Wine Magazine, Oprah’s favorite things, and even on national television.

My work is about closing the gap between mission and money so businesses can thrive without compromising the values that sparked their passion.