Farm gate value

{{about|the specific valuation of an agricultural product as it leaves an agricultural operation|sales of agricultural products directly from a farm to consumers|Farm gate marketing|other uses of the term "farm gate"|Farm Gate (disambiguation)}}

The farm gate value of a cultivated product in agriculture and aquaculture

[http://www.abs.gov.au/ausstats/abs@.nsf/dossbytitle/F276A671BC2F9899CA256F0A007D8CB1 Value of Agricultural Commodities Produced] is the market value of a product minus the selling costs (transport costs, marketing costs).[https://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sis10400 Economics and Marketing: Farm Gate Values for Farm-Raised vs Purchased Calves]

The market value is not the same as the price farmers get for their product, as (if an auction is used), the value they get per weight may be well below the market price. In some cases, the value they get per weight may even be below the breakeven price.[http://farmcityelevator.com/marketing-grain-low-price-market/ Marketing Grain in Low Price Market]{{Cite web |url=https://www.agmrc.org/business-development/getting-prepared/business-and-economic-concepts-and-principles/breakeven-selling-price/ |title=Breakeven Selling Price and Breakeven Volume |access-date=2018-04-22 |archive-date=2017-06-08 |archive-url=https://web.archive.org/web/20170608105926/http://www.agmrc.org/business-development/getting-prepared/business-and-economic-concepts-and-principles/breakeven-selling-price/ |url-status=dead }}

When selling by auction, the price the farmers get for their product is typically lower than the price they get if they sell directly to the consumer (as they are able to set this price themselves).[https://www.usda.gov/media/blog/2016/04/28/farms-sell-directly-consumers-may-stay-business-longer Farms that Sell Directly to Consumers May Stay in Business Longer]

The farm gate value is also lower than the retail price consumers pay in a store as it does not include the additional costs the store makes (shipping, handling, storage, marketing) nor the profit margin the involved companies ask.