University of Maryland Extension


Fixed/Overhead expenses

Urban Ag home | Table of contents You incur some fixed/overhead expenses that are not directly associated with the amount of agricultural products you produce. For example, expenses like property taxes, insurance, loan interest, utilities, and office supplies do not vary with the amount of crops...

Variable/Operating expenses

Urban Ag home | Table of contents Variable/Operating expenses are directly tied to producing crops and livestock and usually increase or decrease proportionately to the increase or decrease in production. For example, if you decide to produce more crops, you will need to purchase more seed,...

Calculating expenses

Urban Ag home | Table of contents The other factor that affects profit goals is expenses. As mentioned before, expenses are associated with the inputs required for producing agricultural products. Income minus expenses equals profit. Expenses can be described in different ways but here we will...
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