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COST OF PRODUCTION Information Sheet

Agdex #: 821
Author: Colleen Younie
History: Revised December 2013. Original November 2007

Understanding your cost of production is a vital step in any successful business. Cost of production information allows you to make informed decisions, plan for the future and to evaluate the profitability of each aspect of your business.

On a farm, cost of production information allows:

  • A vegetable producer to identify which crops are most profitable,
  • A hog producer to decide at which point they can sell their hogs to maximize their profits,
  • A dairy producer to decide at what price they should purchase more quota, or
  • A beef producer with a feedlot to identify which cow-calf producer sells the most profitable animals.


Below are links to calculators and analyses of cost of production from across Canada. Through the use of these tools, cost of production information can be tracked to contribute to the success of your farm enterprise.





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