Figure 1
This added value does not yet constitute the Simplified accounting income of the farm. Indeed, the company must still pay salaries to its employees (and the corresponding social security contributions payable by the employer), pay rents or leases most often, as well as various taxes and duties on production (property taxes for example).
In addition, the farm also receives other sources Simplified accounting of income, mainly operating subsidies, which, specific to agriculture, represent on average between a third and a half of the added value depending on the year.
It may receive, secondarily, insurance compensation. Once all these transfers are taken into account, we obtain the gross operating surplus (EBE), which corresponds to the capacity of the farm to generate income through its activity.
Finally, we deduct from the
EBE the financial expenses (in particular the lebanon phone number library interest on loans) and an estimate of the annual depreciation (wear and tear) of fixed assets (tractors, robots, machines, installations and agricultural buildings, etc.), also called “depreciation”.
These depreciations do not correspond to a real expenditure and an actual cash outflow, but to the equivalent of what the farmer would have to spend over the period to maintain the same the new tier offers members level of capital as at the start.
This gives the result for the financial year
Which allows us to say whether the agb directory company is making a profit or a deficit in the accounting sense.
A slightly different logic consists of deducting from the EBE all loan repayments (and not just interest charges as for calculating the result) as well as the social contributions that the farmer pays for himself, which are real cash outflows: we obtain a “available” (also called “available balance”), from which the farmer can draw to actually use an income or to (self-)finance new investments.