Work out cost of cultivation instantly with clear inputs, formula shown and shareable results.
Cost of cultivation adds the three variable cost blocks — inputs, labour and machinery or irrigation — and then a 10% allowance for interest on working capital, land revenue, insurance and incidentals. This is the A2+FL style operating cost against which gross returns should be judged.
Cost of cultivation
Cost per ha = inputs + labour + machinery, plus 10% overhead and interest allowance
Yes if you want a true economic cost. Official A2+FL costing values family labour at the prevailing wage; leaving it out flatters profitability.
Include it for owned land as an opportunity cost if you are comparing crops against leasing the land out. For a simple cash-flow view, use paid rent only.