Pricing Farm Products

Where should pricing start?

Start with cost. You cannot choose a sound price until you know what it costs you to produce one unit: one dozen eggs, one pound of beans, one bunch of herbs. Include seed or animals, feed, packaging, fuel, supplies, fees, depreciation on equipment and labor.

If you have not tracked costs yet, begin now. Even rough numbers from a single season give you something to improve. Keep the numbers in one place so you can update them each season.

Check your costs again whenever feed, supply, fuel or packaging costs change noticeably. A price that worked last season may not work this one, and small cost increases add up quickly across many units.

How do I count my own labor?

Many new farmers leave their own time out of the cost, and that is how a busy farm ends up earning very little per hour. Track hours for each enterprise for a few weeks, including harvest, washing, packing, driving and selling. Then decide what hourly value you want to assign to your time.

Selling takes time as well. A market day includes loading, setup, selling, tear-down and cleaning. Include it in your accounting for the products you sell there.

• Production hours
• Harvest, washing and packing
• Travel and market time
• Record keeping and customer messages

How do I check what the market will bear?

Look at what comparable products sell for in your area, through the channels you use. Visit markets and farm stands, check local grocery and co-op shelves, and note the range. USDA Agricultural Marketing Service publishes market reports for some products and regions, which can help with a general sense of price movement.

Compare like with like. A product raised or grown differently, or sold fresher or more conveniently, can reasonably differ in price. Do not assume the lowest price in the market is the one to match.

Pay attention to the price of what you buy, too. Customers compare you with other choices they have, which include store shelves, other farms and doing without. Learn who your real alternatives are.

What pricing methods can I use?

Cost-plus pricing adds a margin to your cost per unit. Market-based pricing starts from what similar products sell for and checks that your costs fit. Most farms use a mix: cost sets the floor, and the market shows how far above it you can go.

Wholesale and retail prices differ for good reasons. Wholesale buyers need room to resell, and you save on time and packaging. Decide in advance the lowest price you will accept in each channel, and walk away from sales below it.

How do I change prices without losing customers?

Raise prices gradually and explain the reason briefly, such as higher feed or supply costs. Customers who value quality will usually accept reasonable changes, and some who leave were never going to be profitable. Test a change at one market or with one product before applying it everywhere.

Keep an eye on sell-through. If everything sells out in the first hour, your price may be too low. If much is left over week after week, the product, presentation or price needs attention.

Presentation affects what people will pay. Clean packaging, clear labels, a tidy display and a friendly explanation of how you grow or raise the product can all support a fair price, as long as every claim you make is true and meets local labeling rules.

What legal points affect pricing?

Selling by weight or count may be regulated, and scales used for sales may need to be certified. Rules vary by state and locality, so ask your state department of agriculture or weights and measures office. Sales tax rules on farm products also vary, and a tax preparer or your state revenue office can explain what applies to you. Your state department of agriculture can also tell you whether labeling, licensing or inspection rules apply to the product you want to price and sell, since those costs belong in the price too.

How should I handle discounts and bulk sales?

Discounts should be planned, not improvised. Decide in advance whether you offer a bulk price, a subscription price or an end-of-day markdown, and work out what each does to your margin. A discount that brings in volume you cannot supply, or that cuts below cost, hurts rather than helps.

Keep records of every sale, including discounts and what was left unsold. Review them each month to see which products and channels actually pay and which only look busy.

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