Question

A farmer sells what he grows in his fields. How is the total cost price calculated? What does a farmer spend on his produce before he can sell it? What are the other expenses besides seeds, fertilizers and transport?

Answer 1

The farmer, in order to calculate the total cost price of his produce, needs to consider all the expenses associated with the growing and selling of his produce.

Following are the things on which farmer spends money before he can sell it.

1. Time and energy 

2. Ploughing and tilling 

3. Irrigation and electricity cost 

4. Harvesting and cleaning 

5. Packing

As given above, there are a multiple of costs to be included besides seeds, fertilizers and transport for the farmer to price its produce appropriately.