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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).
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This article is about the specific valuation of an agricultural product as it leaves an agricultural operation. For sales of agricultural products directly from a farm to consumers, see
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as it does not include the additional costs the store makes (shipping, handling, storage, marketing) nor the profit margin the involved companies ask.
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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
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The market value is not the same as the price farmers get for their product, as (if an
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Economics and
Marketing: Farm Gate Values for Farm-Raised vs Purchased Calves
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The farm gate value is also lower than the retail price consumers pay in a
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of a product minus the selling costs (transport costs, marketing costs).
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Farms that Sell
Directly to Consumers May Stay in Business Longer
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Definition according to the OECD Glossary of
Statistical Terms
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115:"Breakeven Selling Price and Breakeven Volume"
20:. For other uses of the term "farm gate", see
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125:2018-04-22
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Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
