Farm Family Income (FFI) Calculator

Posted by Dinesh on

FFI (Family Farm Income) is one of the basic income indicators. Family farm income is left as compensation to fixed factors of production of the family (labour and capital) and remuneration to the entrepreneur's risks (loss/profit) in the accounting year.

Net result: The net result is the interest to the own capital (equity) invested in the enterprise. If the net result will be negative for many years, the consequence is the reduction of the own capital and the weakening of the solidity. When examining the net result, it is to be noted that the taxes have not been subtracted.

Formula:

Family Farm Income = Net Result + Wages claim
Family Farm Income = Gross Return - Costs without wages claim