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The Flow of Money in An Agri-Business
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Sources of income generation:
Where 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:
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Assets |
Operating costs |
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(Operating costs are those things that are bought regularly (e.g. monthly or quarterly) to produce a crop)
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The Flow Of Costs In An Agri-Business
