Farm Gross Margin Guide

Farm Gross Margin Guide

Ag Excellence Alliance, with the support of the Sheep Industry Fund (SIF), is pleased to be able to continue to bring you this highly valued platform on expected gross margins for broadacre cropping and livestock enterprises in South Australia. It incorporates the latest information on input and output pricing to give estimates of the relative profitability of different farm enterprises, as an aid to decision making in enterprise selection.

Each year farmers are confronted with an array of challenges brought on by the vagaries of weather, production and marketing.

Tightening margins are driving the need for a more robust examination of the risks and rewards of the enterprise alternatives. A healthy examination of gross margins of alternative enterprises is an effective tool in assisting with the decision-making process.

Excel Editable Gross Margin Guides

These editable Excel versions have been developed by Ag Ex Alliance with funding from the South Australian Grains Industry Trust and the Sheep Industry Trust. Only a basic understanding of Excel is required to use these tools. They aim to provide an easy-to-use mechanism for adjusting representative Gross Margins to individual circumstances. Alternative scenario analysis allows the user to compare varying enterprise mixes. Scenario analysis of price changes, production levels, or inputs can be quickly and easily undertaken. Outputs include expected Gross Farm Income, individual cost components, Gross Farm Profit and Cash Flow (peak debt).

Whole farm business analysis is undertaken in the "Crop and pastures" file, with livestock GM returns input as the income for the "pasture gross margins".

 

Important

Download and save the files onto your computer, before opening and using. If they are opened directly from the web site the programs will not work.

After opening the file, accept the "Disclaimer" and then “click” on the "Instructions" sheet and read, before using the program."

  • Funded by the South Australian Grains Industry Trust & South Australian Sheep Industry Fund

  • Date: July 2024 - June 2025

  • Project Lead: Michael Wurst

  • Budget: $7,000