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:
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.
User data is not collected, stored or
retained for any BCRC interactive calculator. Please note that by
exiting or refreshing the page, all data will be automatically cleared
and cannot be recovered.
Land Allocation Gross Margin Calculator
Step 1: Enter in Cow-Calf data into yellow cells. Grazing costs will be automatically calculated from the pasture land values.
Cow - Calf Enterprise
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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| 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 | |
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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 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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