Break-Even Price Per Unit

It is the minimum price you need per bushel, head, or unit to cover all costs — zero profit, zero loss.

Formal definition

Break-even price per unit equals total production costs divided by expected yield in units (bushels, head, bales, etc.).

Why it matters

Farmers compare break-even to futures, contracts, and cash bids before planting and at harvest.

Where you see it

• Crop enterprise budgets from extension offices
• USDA cost-of-production reports
• Farm credit loan packages
• Co-op pooling statements
• Grain marketing plans

Worked example

1. Total production costs: $400,000.
2. Expected yield: 50,000 bushels.
3. Break-even = $400,000 ÷ 50,000 = $8/bushel.
4. Interpretation: You need at least $8/bushel to cover costs at planned yield.

How Business metrics calculates it

Costs that must be covered ÷ Units. Read whether debt is included on the card.

Where people fool themselves

Break-even that excludes family labor and land rent is the price at which the farm pays everyone except the people who live there. Decide if that is the question you meant to ask.

Run it on your own numbers: the Agriculture & Farming calculator.