How can I calculate the break-even point on my products to help with pricing?

How can I calculate the break-even point on my products to help with pricing?

Answer: To find your break-even point and set prices for your products it is crucial to know your costs of production. Check out the ATTRA publication Understanding Organic Pricing and Costs of Production. This publication covers techniques for determining your costs of production as well as systems used to set prices in organic production. Also, see the ATTRA publication Planning for Profit in Sustainable Farming. This publication covers cost of production but also introduces enterprise budgets for individual crops. You can use enterprise budgets to determine what crops are making you money and what crops are not. The following list identifies some available farm financial software tool resources that can help with determining break-even points, as well as other farm business planning and recordkeeping.Software ToolsB Systems Inc. has offered software for production agriculture operations for more than 30 years.www.fbssystems.comCenter for Farm Management at the University of Minnesota provides educational programs and software tools for real-world farming situations.www.cffm.umn.eduFarm Books Accounting Software covers such tasks as payroll, invoicing, bill tracking, check writing and inventory management. www.farmbooksaccounting.comFarm Works Software offers software for farmers and agribusinesses, including accounting, mapping, field and livestock records, and many other options.www.farmworks.comIowa Farm Business Association has farming software called PC Mars, which is available at no cost to association members.www.pcmars.comQuickBooks is a standard accounting program that some agriculture experts recommend for making the transition to computerized record keeping. www.agecon.okstate.edu/quickenRed Wing Software offers CenterPoint Accounting for Agriculture software, which covers taxes, production, inventory, payroll, and financing, as well as “what if” growth scenarios and other topics.www.redwingsoftware.comSpecialized Data Systems develops agriculture software for farms and ranches. www.farmbiz.comVertical Solutions offers EasyFarm record-keeping software for farms and ranches. www.easyfarm.com A free spreadsheet tool called Veggie Compass can track financial and production aspects of your farm.www.veggiecompass.com/tools/Note: Mention of specific company names or products does not constitute endorsement by NCAT, ATTRA, or USDA.