Know what every enterprise really earns – and what your prices need to be
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Gross margin – output less the variable costs that go with it – is the standard way farmers, advisers and banks compare enterprises. This workbook works out the gross margin for up to 12 enterprises, per head, per hectare and (for dairy) per litre, keeps scheme payments such as the Sustainable Farming Incentive on a separate line, charges grass and forage costs to the livestock that use them, and then shares out your fixed costs to show a net margin and break-even prices. It compares each enterprise with industry benchmarks you enter, tests what a 10% swing in prices or yields would do, and estimates the tax saved by farmers' averaging.
See how it works
The sheets you will use most, in the order you will use them – shown with the sample data every workbook comes with.
Step 1
The gross margin for each enterprise, after-fixed-cost net margin and break-even prices. What you do: fill in a column per enterprise.
Step 2
Overheads and how they are shared between enterprises. What you do: list costs, pick a basis, set manual %.
Step 3
Whole-farm profit, key ratios and an enterprise summary with break-even prices. What you do: enter other farm income.
Step 4
Your yield, price, variable costs and gross margin against benchmark figures. What you do: enter benchmark figures.
Who it is for
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