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Cost of Production

Take the uncertainty out of your decisions by calculating your cost of production.

Understand Your Cost of Production

Knowing your cost of production is a powerful management tool. Watch a short video to see how cost of production can help bring confidence and clarity to your management decisions.

Learn how Cost of Production Is Different From Other Records You Keep

View our quick guide of understanding financial records.

Take the Cost of Production Course

Start with the Financial Terms course to begin laying the foundation.

  • Review key financial terms around costs, breakeven, and cost of production
  • Key differences among financial documents and how to use them
  • Test yourself on financial terms

  • Review the difference between cash and accrual accounting
  • Explore the four steps to calculating cost of production
  • Practice calculating cost of production and breakeven

  • Find out which records are relevant for calculating cost of production
  • Sort through and classify records needed for cost of production
  • Walk through a sample calculation and try your hand at doing the math

  • Analyze an operation to find red flags and opportunities
  • Make recommendations based on cost of production
  • Use cost of production to make decisions about when to sell or whether you can afford a purchase
Farm Credit Services of America teammate speaking with customer next to farm equipment


Your financial officer is a great resource to help you calculate your cost of production. Contact your local office for a consultation.