The Flow of Money in an Agri Business

Assets

Operating costs

• Assets are those things that you have to buy in order to produce, e.g. land, buildings, machines.
• Assets are things you can re-sell.
• Assets are usually expensive.
• Assets are not bought regularly.

(Operating costs are those things that are bought regularly (e.g. monthly or quarterly) to produce a crop)

• Materials.
• Diesel, Oil, maintenance.
• Commission to the market agents.
• Office supplies.
• Water and electricity.