Sign In Question: How do you calculate net farm income?
✅Explanation:
To calculate net farm income, you start with gross income, which is the total revenue generated from agricultural activities. Then, you subtract both fixed expenses (like depreciation, interest, and taxes) and operating expenses (like feed, seed, fertilizer, and labor). The result is the net farm income.
To calculate net farm income, you start with gross income, which is the total revenue generated from agricultural activities. Then, you subtract both fixed expenses (like depreciation, interest, and taxes) and operating expenses (like feed, seed, fertilizer, and labor). The result is the net farm income.
• Formula for Net Farm Income:
Net Farm Income = Gross Income – (Fixed Expenses + Operating Expenses)
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