The two break-even numbers
- Break-even yield = total cost per hectare ÷ price per unit. Below this yield, the crop loses money at the expected price.
- Break-even price = total cost per hectare ÷ expected yield. Below this price, the crop loses money at the expected yield.
Knowing both before planting tells you how much room you have for a bad season or a price drop — and when it makes sense to lock in a price.
What to include
Seeds, fertilizer and lime, crop protection, machinery (fuel, repairs, depreciation), labor, land rent or the opportunity cost of your own land, insurance, interest and freight. Leaving costs out makes every crop look profitable.
Frequently asked questions
Should I include my own land if I don't pay rent?
Yes — use what you could rent it for. Otherwise you can't tell if farming it beats renting it out.
Does it include taxes?
Not separately. Add them to "Other" if you want after-tax figures.
Can I compare crops?
Run it once per crop with its own costs, yield and price, and compare profit per hectare.