CB19100: The Flow of Money in an Agri Business | Stride

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Sources of income generation:

Were Does the Money/capital go to in an Agri Business?

An Agri-business or farm will need money to pay for:
Land

Buildings
Machines
Loans
Labourers
Materials
Diesel, Oil, Maintenance
Commission to market agents
Office Supplies
Water and Electricity

We normally define the things we buy as follows:

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.