Gross Margins Calculator
Land Allocation Gross Margin Calculator
Gross margin analysis can be used to evaluate the financial performance of various enterprises of a farm business within the short term. A gross margin analysis can assist in allocating limited resources (like land) to their existing enterprises to find which combination optimizes profit.
The pre-populated numbers are intended as examples, not benchmarks.
In the results section, the cow-calf and pasture enterprises are combined to reflect the use of pasture to generate income from calves in extensive grazing operations.
Definition: For this calculator, Gross Margin refers to the total income derived from an enterprise minus the variable costs incurred in the enterprise. Instructions:
User Guide:
Please input your data into the yellow cells.The pre-populated numbers are intended as examples, not benchmarks.
In the results section, the cow-calf and pasture enterprise are combined to reflect the use of pasture to generate income from calves in extensive grazing operations.
Step 1: Enter in Cow-Calf data into yellow cells. Grazing costs will be automatically calculated from the pasture land values.
Cow - Calf Enterprise
Total Mature Cows
Direct Costs
$/cow
Winter Feed Costs
Hired Labour
Other
Grazing Costs
Direct Costs per Cow
Total Direct Costs
Cattle Yield
Average weaning weight (pounds)
Weaning Rate %
Average cull cow weight (pounds)
Total Cull Cows
Revenue
$/lb
Average Wean Calf Price
Average Cull Cow Price
Revenue per Cow
Total Revenue (Gross Product)
Step 2: Enter in data for Pasture, Hay and Crop land into yellow cells. Enterprises may be left blank when not relevant.
| Land Use | Pasture | Hay/forage for Livestock | Hay/forage for Sale | Cash Crop | Cash Crop | Cash Crop |
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| Direct Costs | $/acre | |||||
| Direct costs are production costs directly associated with that enterprise. | ||||||
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| Contract Labour |
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| Other |
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| Direct Costs per acre |
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| Total Direct Costs |
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| Crop Yield | ton/acre | ton/acre | lbs/acre | lbs/acre | lbs/acre | |
| Yield per acre |
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| Revenue | $/acre | $/ton | $/ton | $/ton | $/ton | $/ton |
| Fair Market Value (crop price) |
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| Pasture revenue is based on fair market value for pasture rent. | ||||||
| Revenue per acre |
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| Total Revenue (Gross Product) |
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Step 3: Results
| Cow-Calf Enterprise | Cow-Calf |
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| Gross Margin |
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| Gross Margin per Cow |
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| Gross Margin Ratio = Gross Margin / Revenue |
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| Land enterprises | Pasture | Hay/forage for Livestock | Hay/forage for Sale | Cash Crop |
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| Gross Margin per acre |
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| Gross Margin Ratio = Gross Margin / Revenue |
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| Cow-Calf + Pasture | Hay/forage for Livestock | Hay/forage for Sale | Cash Crop | |
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| Gross Margin |
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| Gross Margin per acre |
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| Gross Margin Ratio = Gross Margin / Revenue |
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