HVG Germany: Hopfen



Other costs and expenses

A number of other costs are added to the costs determined from the farmer's hop file and the fixed costs. For the farm they are partly expenses and partly calculative costs.

  1. Private expenses: costs which can be directly allocated to the farm and are necessary for its upkeep
  2. Taxes: property tax, private taxes
  3. General farm expenses: bookkeeping, telecommunications, contributions, further training, etc.
  4. Private expenses of a provident nature: insurance (health insurance, nursing fund), social contributions, old age pension, commitment to retired owners

Now there are two critical points which are often forgotten when looking at the costs: interest rates and producer's income. To secure the farm's assets it is essential that these factors are taken into account:

  1. Calculatory interest rate: a hop-grower with about 15 hectares has an operating capital which amounts to approx. 800,000 €.
    Inflation-adjusted he has to earn more through his farm than a comparative investment produces on the capital market, so he can maintain the assets of his business and reinvest.
  2. Calculatory producer's income: is often forgotten and settled with the farm's profit. Also compensation for the family should be taken into consideration as if all the work had been done by outsiders.

In our example we shall estimate all these costs at 40,000 €

When these costs are divided by the full hop-yielding acreage, for this farm there are the following results:

40.000 € / 17,3 ha = 2.312,1 € / ha additional costs