Cost control in agriculture is about knowing the real cost per hectare and treatment—not just what was purchased. In Agdir, purchase prices are linked to actual consumption per field and treatment. This provides an accurate cost picture and the basis for smarter purchasing and budgeting based on data rather than assumptions.

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Cost Control in Agdir – From Purchase to Result‍

Agdir records purchase prices per batch/lot and automatically allocates costs based on actual consumption per treatment. This way, each treatment and each field gets its true costs—and the gap between budget and results becomes visible and explainable.

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Three Levels of Cost Control

• Treatment Level
  Cost per spraying, fertilization, or other individual operation including all inputs.
• Field Level
  Total cost per field for all treatments throughout the season.
• Crop Level
  Comparison of costs between crops and evaluation of profitability per crop.

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How the Cost Picture Is Built Automatically

• Purchase Registration
  All purchases are recorded with unit price and linked to batch/lot for precise allocation.
• Consumption Allocation
  When treatments are carried out, purchase costs are distributed based on actual use per field.
• Cost Tracking
  Each journal entry automatically receives cost data that can be summarized across treatments and fields.
• Comparative Analysis
  Costs are compared against budgets, previous years, and similar fields to identify deviations and opportunities.

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Practical Benefits of Cost Control

• Budget Adjustment Based on Actual Consumption
  Next year’s budget is built on documented use, not assumptions.
• Field-Level Profitability Analysis
  See which fields delivered the best return on input investment.
• Supplier Comparison
  Compare total cost (price + effect) between different suppliers of the same product type.
• Seasonal Optimization
  Identify cost peaks and shift purchases to more favorable times.

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Purchase Optimization Based on Consumption Data

• Historical Consumption Analysis
  Use 2–3 years of consumption data to plan purchases with the right timing and volume.
• Seasonal Variations
  Adjust purchase volumes based on weather forecasts and crop status.
• Quality vs. Price Evaluation
  Compare treatment effect against cost to find the optimal balance between quality and economy.
• Supplier Negotiations
  Use actual consumption data as the basis for volume agreements and price negotiations.

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Cost Categories and Analysis

• Direct Treatment Costs
  · Plant protection products
  · Fertilizers
  · Seeds
  · Additives

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• Indirect Costs (Optional)
  · Fuel per treatment
  · Machinery wear per hour/hectare
  · Labor time per operation

• Cost per Unit
  · Per hectare
  · Per treatment
  · Per liter/kilo of product

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Benchmarking and Comparison

• Internal Comparison
  Compare costs across your own fields to identify efficient practices.
• External Comparison (Anonymized)
  Compare against regional averages (where data is available).
• Historical Development
  Track cost trends over time and adjust strategies accordingly.

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Reports and Financial Management

• Monthly Cost Reports
  Overview of accumulated costs and comparison against budget.
• Treatment Analysis
  Cost and effect of different treatments to optimize future choices.
• Season Summary
  Complete financial analysis at season’s end with learning points for next year.
• Export to Accounting
  Cost data can be exported directly to accounting systems for further financial processing.

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Practical Examples of Cost Optimization

• Fertilizer Purchases
  Historical data shows 15% lower costs when buying in November vs. March. Plan storage accordingly.
• Pesticide Rotation
  Comparisons show that rotating between two products gives 20% better cost efficiency than using a single product.
• Field Optimization
  Field A has 30% higher treatment costs than comparable Field B. Analyze causes and adjust practices.

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Integration with Financial Systems

• Accounting Systems
  Automatic transfer of costs to accounts, allocated to the correct accounts and cost centers.
• Budgeting and Planning Systems
  Use actual consumption data as the basis for next year’s budgets.
• Insurance Systems
  Documented inventory values and treatment costs as a basis for insurance settlements.

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Summary‍

Cost control pays off by showing where every krone goes and what effect it delivers. When purchases are optimized based on actual consumption and treatment effectiveness, both budgets and profitability improve.
Start by registering purchase prices and activating cost tracking per treatment—and you’ll quickly see how real cost data improves both budgets and decisions.