Farm Gross Margin and Enterprise Planning Guide 2018

Published: 1 Feb 2018

The choice of enterprises within a farm system remains a complex decision with a range of possible scenarios. There is generally no best bet system - differences in climate, soil type, market access, labour and management all contribute to the need for land managers to negotiate a system which fits their individual needs. A general outcome being sought from the farming system is profit maximisation at an acceptable level of risk.

The gross margin for a farm enterprise is one measure of profitability that is a useful aid to enterprise planning. The calculation of gross margins can be the starting point for construction of cash flow budgets and assessment of whole farm profitability. They can also be used to assist in assessing the opportunity to develop new farm enterprises.

Interactive gross margin guide

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Region: National; South

ISSN: 2207-2349 (print)

ISSN: 2207-2357 (Online)