Finance Tools

Farm Break-Even Price Calculator

Calculate the minimum crop price per unit needed to break even based on costs and expected yield.

Break-even price answers: “What minimum price per unit do I need to avoid losses?” It combines fixed costs (overhead) and variable costs (per-unit).

Costs

Fixed costs ($)

Rent/land payment, equipment payments, insurance, overhead, admin, etc.

Variable cost (per unit, $)

Seed/feed, fertilizer, chemicals, drying, hauling—anything that scales with yield.

Production assumption

Expected yield (total units)

Use bushels/tons/pounds—any unit is fine as long as price and variable cost match.

Total cost

$70,000

Break-even price

$2.80 / unit

Fixed cost per unit: $1.60 / unit

Total variable cost: $30,000

Tip: Try a lower yield or higher variable cost to stress test downside risk.

How it works

Total variable cost = expected yield × variable cost per unit
Total cost = fixed costs + total variable cost
Break-even price = total cost ÷ expected yield

FAQ

Does break-even include profit?
No. It’s the minimum price to avoid losses. Add a target profit per unit on top if needed.

What yield should I use?
Use a realistic base case, then stress test with a lower yield (bad weather) to see price risk.

What if I don’t know variable cost per unit?
Start with an estimate, then adjust as you get better input costs. Variable cost matters a lot when yield is high.

How to use this farm break-even price calculator

Enter your fixed costs (rent, equipment payments, overhead, insurance, etc.).
Enter variable cost per unit (seed, fertilizer, hauling, drying, etc.).
Enter expected yield (total units).
Calculate to see your break-even price per unit.

Example

If fixed costs are $40,000, variable cost is $1.20/unit, and expected yield is 25,000 units:

Total variable cost = 25,000 × $1.20 = $30,000
Total cost = $40,000 + $30,000 = $70,000
Break-even price = $70,000 ÷ 25,000 = $2.80 per unit

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