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. © 2021. Web Accessibility

University programs, activities, and facilities are available to all without regard to race, color, sex, gender identity or expression, sexual orientation, marital status, age, national origin, political affiliation, physical or mental disability, religion, protected veteran status, genetic information, personal appearance, or any other legally protected class. If you need a reasonable accommodation to participate in any event or activity, please contact your local University of Maryland Extension Office.