Major economic indicators for assessing the profitability of farming operations – A practical approach

Anuja, A R and Vipinkumar, V P and Gills, Reshma and Jenni, B (2025) Major economic indicators for assessing the profitability of farming operations – A practical approach. In: Breakthrough Expedition: Science Camp Manual on Experiential AgriAnalytics: Field-to-Lab Knowledge Pathways for BSc (Agri) students of Kerala Agricultural University. ICAR- Central Marine Fisheries Research Institute, Kochi, pp. 159-168.

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Abstract

Farming is not just about growing crops—it's about running a successful business. Whether a farmer is growing bananas, vegetables, or rearing livestock, they must make smart economic decisions to ensure that their work is profitable, sustainable, and efficient. To do this, we rely on economic indicators—tools that help farmers measure and evaluate the financial performance of their farming activities. These indicators provide answers to key questions like: Am I making a profit from my farm? How much return do I get for every rupee invested? When will I recover the money, I spent? Is my cost of production too high? At what point will I break even?

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