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:
“In common with other rural regions much of the Iowa farm lore concerns the coming of company. When the rooster crows in the doorway, or the cat licks his fur, company is on the way.”
—For the State of Iowa, U.S. public relief program (1935-1943)
“I have come to the conclusion that the major part of the work of a President is to increase the gate receipts of expositions and fairs and by tourists into town.”
—William Howard Taft (1857–1930)