The farm gate value of a cultivated product in agriculture or aquaculture is the net value of the product when it leaves the farm, after marketing costs have been subtracted. Since many farms do not have significant marketing costs, it is often understood as the price of the product at which it is sold by the farm (the farm gate price).
The farm gate value is typically lower than the retail price consumers pay in a store as it does not include costs for shipping, handling, storage, marketing, and profit margins of the involved companies.
Famous quotes containing the words farm and/or gate:
“Farm policy, although it’s complex, can be explained. What it can’t be is believed. No cheating spouse, no teen with a wrecked family car, no mayor of Washington, DC, videotaped in flagrante delicto has ever come up with anything as farfetched as U.S. farm policy.”
—P.J. (Patrick Jake)
“A young child is no longer simply a child; he or she is a preschooler, poised at the starting gate in the race of life.”
—Neil Kurshan (20th century)