Cost of Production for Vegetables

What is cost of production?

Cost of production is the total cost of growing, harvesting, packing and selling a crop, divided by the amount you sell. It is the number that tells you the lowest price at which a crop pays for itself. Without it, pricing is guessing.

Calculate it by crop where you can, and by bed or field. A crop that is easy to grow but slow to harvest may cost more than one that takes more care in the field but picks quickly.

Include both the cost of growing and the cost of getting the crop to the customer. Packing, cooling, delivery and market time are part of the real cost, even when they feel like separate chores.

Which costs belong on the list?

Divide costs into direct and shared. Direct costs belong to a single crop: seed or transplants, soil amendments based on a soil test, row cover, stakes, trellis, crates, packaging and labels. Shared costs serve the whole operation: land costs, irrigation, tools, insurance, vehicles, fuel, utilities, marketing and fees.

Add depreciation on equipment that wears out, such as tillers, tarps and tools. Your tax preparer can explain how depreciation is handled for taxes, but for your own planning you simply spread the cost of an item across the years it will last.

Do not forget the cost of land, even if you own it. Property taxes, mortgage interest, upkeep and the use of the land for something else are all real costs, and an extension advisor can help you decide how to include them in your planning.

• Seed, transplants and soil amendments
• Irrigation, water and energy
• Row cover, stakes and trellises
• Crates, bags and labels
• Market fees and travel

How do I account for labor?

Labor is often the largest cost in vegetable production and the one most often left out. Keep a simple time log for planting, weeding, watering, harvesting, washing, packing and selling. Even a few weeks of notes show where hours go.

Harvest and post-harvest handling take longer than most beginners expect. Washing, sorting, bunching and cooling all count, and so does the time you spend removing damaged produce.

What about losses and yield?

Not everything you plant becomes something you sell. Weather, pests, disease, poor germination, culls and unsold produce all reduce sales. Track what you plant, what you harvest and what you actually sell for each crop, then use your own numbers rather than published averages.

Extension services publish crop budgets and general guidance on yields for your region. Use them as a starting point, but check them against your own records and conditions. Do not assume that a figure from another climate or another scale of farm will apply to yours.

Record what you pay for each input at the time you buy it. Prices change from year to year, and a past record gives you better numbers than memory when you build next season's budget.

How do I turn the numbers into a decision?

Divide total cost by marketable units for each crop. Compare it with the price you expect to receive. If cost exceeds price, look for the biggest cost: labor, losses or low yield. Sometimes a change in spacing, variety or harvest method solves the problem; sometimes the crop is simply not worth growing at that scale.

Look also at return per hour and per square foot of bed. A crop with a modest price but quick harvest and high yield per bed can beat a high-priced crop that needs constant attention.

How can I keep this simple?

Use one notebook or spreadsheet with a row per crop and columns for cost categories, hours, harvest and sales. Update it weekly. At the end of the season, review it and write three changes for next year.

Ask your extension office for crop budget templates. Many are free and give a useful structure even if their numbers need adjusting.

What should I do about crops that do not pay?

When a crop does not cover its cost, you have four choices: raise the price, cut the cost, raise the yield or stop growing it. Look first at the largest cost, which is usually labor or losses, and test one change at a time so you can tell what helped.

Some crops are worth growing at a small loss because they bring customers to your table or fit well in a rotation. If you keep one for that reason, write down why and review it each year, so the decision is deliberate.

Last reviewed: November 12, 2026. Written by the Homestead & Small Farm Editorial Team. See our editorial policy.