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Glossary term

Production Cycle

Definition

A production cycle is the stretch of time from planting or buying animals to harvesting or selling them.

Technical definition

A production cycle is the period spanning the inputs, growth, and sale of an agricultural commodity, over which costs are incurred and revenue is eventually realized.

Why it matters

Operating loans are typically structured around the production cycle, since that's when costs hit and revenue arrives.

Example

For an annual row crop, the production cycle runs roughly from planting through harvest and sale.

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