Crop gross margin calculator
Will the crop pay? Put in your own yield, price and growing costs to see what is left a hectare and for the paddock - plus the yield and price you need just to cover the costs.
What the crop leaves you
Income $825/ha (2.5 t/ha × $330/t) less variable costs of $448/ha.
To cover the variable costs you need 1.28 t/ha at $330/t, or $178/t at 2.5 t/ha.
- Cost a tonne
- $179.30
- Each extra tonne leaves
- $308.70
- Return on each $1 spent
- $1.84
- Variable costs, whole area
- $89,650
Where the money goes (variable costs a hectare)
- Seed $35 8%
- Fertiliser $120 27%
- Chemicals $90 20%
- Fuel & contract $110 25%
- Other $40 9%
- Freight & storage $45 10%
- Levies & selling $8 2%
Gross margin $/ha if yield or price is 20% lower or higher
| Yield | $264/t | $330/t | $396/t |
|---|---|---|---|
| 2 t/ha | $92 | $222 | $353 |
| 2.5 t/ha | $213 | $377 | $540 |
| 3 t/ha | $335 | $531 | $727 |
How we work it out
- Income: yield × price + any other income from the crop. Variable costs: seed, fertiliser, chemicals, fuel/repairs/contract and other costs a hectare, plus freight × tonnes and levies as a % of the grain income.
- Gross margin: income − variable costs, a hectare and × your area. Cost a tonne: variable costs ÷ yield.
- Break-even yield: the costs that don’t change with yield ÷ what each tonne leaves after freight and levies. Break-even price: the price that just covers every variable cost at your yield.
This is arithmetic on your own numbers, not a price or yield forecast or advice. A gross margin leaves out overheads such as rates, wages, machinery depreciation, interest and your own time, so a positive margin still has to pay those. Work out what your machinery really costs with the machinery cost calculator, the tonnes and truck loads with the harvest calculator, and your inputs with the seeding rate and fertiliser calculators. Nothing you type is stored or sent anywhere.
Need hay, land or machinery?
Buy and sell hay, farm land and machinery from farmers and dealers on the REALM Marketplace.