Production targets and business plans
A production target is how much of which crop you plan to grow (for example, 2 tonnes of tomato from 0.1 hectare). A business plan writes down:
- the crop and the area, chosen with soil, season, water and market demand in mind;
- the cost: seed, manure, fertiliser, water, labour, tools, transport, rent;
- the expected yield and selling price;
- the expected profit, and what could go wrong (weather, pests, price fall).
A good plan is realistic, in writing, and checked again after the season.
Managing production processes
Crop work has a calendar: land preparation, sowing, irrigation, manure, weeding, pest and disease care, harvest and storage. Missing the right time can cut yield.
- Make a work calendar with dates, people and costs.
- Keep records: what was done, when, how much it cost, and how the crop looked.
- Check quality and safety: use only the allowed amount of any chemical and wear protection.
- Compare plan and result, then improve next season (plan, do, check, act).
Distribution and sales
Produce can be sold in a mandi (market yard), to a trader, to a shop or school, through a farmers group, or directly to buyers (farm gate, online, weekly market). More steps between farmer and buyer often mean a lower share for the farmer. Grading, clean packing and storage can raise the price. Processing (making flour, pickles, juice) adds value.
Income = quantity sold × price. Profit = income − total cost. If cost is more than income, it is a loss.
Environment-friendly crop production
Farming should leave soil, water and air healthy for the next season and the next generation.
- Compost, manure and green manure feed the soil.
- Crop rotation and mixed cropping break pest cycles and keep nutrients balanced.
- Integrated pest management: use natural enemies, traps and neem first; chemicals only when needed.
- Save water: drip irrigation, mulch.
- Reduce waste: use crop leftovers as compost or feed instead of burning.
Fewer chemicals often means lower cost, healthier soil and safer food.
Try it
Plan a tiny crop: ten pots of spinach. List the seed, soil, water and time. Set a target and note the cost. In the 3D, find a combination of yield, price and cost where profit is exactly zero (the break-even point).
Key formulas and definitions
- Income = quantity sold × price per unit
- Profit = Income − Total cost (negative profit = loss)
- Yield per hectare = total harvest ÷ area
- Cost per kg = total cost ÷ kg harvested
- Break-even price = total cost ÷ kg sold
Worked examples
1. A farmer harvests 1,500 kg of tomatoes from 0.5 hectare. Find the yield per hectare.
Yield = 1500 / 0.5 = 3,000 kg per hectare.
2. Total cost of growing onions is Rs 24,000. The farmer sells 2,000 kg at Rs 18 per kg. Find income and profit.
Income = 2000 × 18 = Rs 36,000. Profit = 36,000 − 24,000 = Rs 12,000.
3. The cost is Rs 30,000 for 1,500 kg of potato. What is the cost per kg, and the lowest price per kg for no loss?
Cost per kg = 30,000 / 1,500 = Rs 20. The break-even price is Rs 20 per kg; below it there is a loss.
4. A grower sells 600 kg of spinach directly at Rs 25/kg. A trader would buy it at Rs 18/kg. How much more does she earn selling directly?
Direct: 600 × 25 = Rs 15,000. Trader: 600 × 18 = Rs 10,800. Extra = Rs 4,200.
Common mistakes
- Forgetting some costs, such as the farmer own labour, transport and storage, so profit looks bigger than it is.
- Calling income the same as profit. Profit is what is left after cost is taken away.
- Thinking more chemicals always give more profit. They raise cost and can harm soil and helpful insects.
- Not keeping records, so it is impossible to find where money was lost.