University of Maryland Extension

What is profit?

Dale M. Johnson, Extension Specialist, Farm Management

Urban Ag home
| Table of contents

Definition of profit

Profit is the calculation of income minus expenses. Urban farms produce crops, livestock, and other products for sale which generates income. To produce these products, inputs are required such as seed, compost, feed, labor, machinery, structures, etc. Subtracting the expenses associated with these inputs from sales income results in profit.

Previous page: Chapter 2: Economic assessment and risk management
Next page: What about not-for-profits?

Maintained by the IET Department of the College of Agriculture and Natural Resources. © 2020. Web Accessibility