Farm gate value

Farm gate value

The farm gate value of a cultivated product in agriculture or aquaculture is the net value of the product when it leaves the farm, after marketing costs have been subtracted. Since many farms do not have significant marketing costs, it is often understood as the price of the product at which it is sold by the farm (the farm gate price).

The farm gate value is typically lower than the retail price consumers pay in a store as it does not include costs for shipping, handling, storage, marketing, and profit margins of the involved companies.

References

* [http://www.mass.gov/czm/wpgloss.htm Definition according to the Massachusetts Office of Coastal Management]
* [http://stats.oecd.org/glossary/detail.asp?ID=940 Definition according to the OECD Glossary of Statistical Terms]


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