Business Models and Cost Management in Growing Crops

Abstract

Business models outline how to create and deliver value for its customers. It defines the core elements like value proposition, target market, revenue streams, and cost structure. In agriculture, they help farmers and agricultural businesses to optimize resources, enhance efficiency and contribute to the overall profitability of the farming operation. There are many business models, but here specific ones to growing crops are explained. The role of a Cost and Management Accountants is integral to the success of a business model; they help in designing and implementing a costing system by identifying the cost elements, classifying them and allocating them to different products or activities to arrive at the cost of production and also develop strategies to reduce costs and optimize profits.