How does depreciation impact farm cash flow? Expert answers

Depreciation is one of the invisible costs that silently consumes the rancher's wealth. Zootechnician Gustavo Sartorello, in the series "A Conta do Boi," raises the crucial question: when looking at the capital assets of the farm (tractors, barns, fences), does the producer consider that they lose value every day and include this loss in the business account? The specialist explains that depreciation is a real cost that, if ignored, makes the wealth disappear over time. A tractor worth R$ 200,000, for example, can depreciate by R$ 10,000 in one year. If the producer does not record this loss and does not set aside the equivalent amount, they lose half of the wealth in 10 years. "The wealth disappears silently," warns the zootechnician. Check it out: A serious mistake is to ignore depreciation when the asset is financed. The payment method (financing) does not change the fact that the asset loses value. In this scenario, the producer has two simultaneous outflows that pressure the ...