In any company, purchases or acquisitions necessary for the development of the business are fulfilled, which involve an economic outlay. It also occurs in agricultural firms dedicated to cultivating the land.
These payments can be ordered as an expense or an investment, depending on the purpose of the same. The fundamental aspect that differentiates an expense from an investment is what is expected to be achieved from them. We hope that the investment will generate a return benefit for us in the future.
Meanwhile, the expense is the payment for a good or service with which we cover a need, but from which we do not expect any economic return in the future.
Based on this definition, we can affirm that the acquisition of treatments to improve the yields of a crop is an investment, since this will result in an increase in the production of better quality fruits, which will be sold at a higher price in the market.
But in this area, many times we find profiles of farmers who seek to save on cultivation, cutting investment, based on the premise that you have to save by reducing “the cost per hectare.” And this in the long run translates into: I invest less in treatments and crop care, I earn less with my production and my account balance shows few benefits.
So why do some farmers consider buying quality professional products an expense and apply low-cost products with questionable results to their crops? On many occasions, it is not a problem of ignorance of these ‘economic rules’ but of erroneous approaches in the economy of their exploitation due to lack of training and business mentality.
These wrong premises only take into account the cost per hectare when calculating how much a crop costs.
If we affect the investments made on the kilos harvested and put on the market, our paradigm changes completely and we enter the real sense of the agrarian economy. For this reason, the investments made will be much more profitable with the higher the number of kilos harvested per hectare, and the mathematical formula is as follows: Investment made / kilos harvested and placed on the market. The higher the number of kilos, the less cost per kilo production.
How can we guarantee that the purchase of products for our cultivation is a safe investment?
Trusting in professional manufacturers, with guarantee, with a track record that guarantees the quality and results of their products.