University of Maryland Extension

What is profit?

Author: 
Dale M. Johnson, Extension Specialist, Farm Management


Urban Ag home
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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.

 
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