Break-even point as a tool for managing crop production processes

the aim of the study is to analyze the methods of calculating the break-even point as a tool for managing the processes of plant production. Methods: the methods used in the presented study are economic methods of calculating the break-even point, the monographic method and the comparison method. Findings: the study contains a basic calculation of the break-even point for the production and sale of grain; a refined calculation of the break-even point for the production and sale of grain was made by including in the formula a single tax paid when applying a single agricultural tax; a calculation of financial strength indicators for the production and sale of grain was made. Conclusions: the basic calculation of the break-even point of grain production and sales showed the following result: the basic break-even point was 13.97 centners per hectare with the actual grain yield of 25 centners per hectare; after introducing the amount of the single tax into the formula, 14.35 centners per hectare were obtained in the revised calculation of the break-even point of grain production and sales; the revised calculation of the break-even point in physical terms, which is more valuable for making management decisions, showed its increase by 0.38 centners per hectare; the calculation of the production leverage showed that with a 1% decrease in price, a decrease in profit by 2.35% of the original value is possible, with a 10% decrease in price, profit can decrease by 23.5%.

agricultural production, grain, crop yield, break-even point, single tax, financial strength, production leverage