Difference between revisions of "Cane Summary"
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This page is a summary of gross margin information based on information entered on the | ===What is this page?=== | ||
This page is a summary of gross margin information based on information entered on the [[Cane Assumptions]], [[Cane Growing Costs]] and [[Scenario Assumptions]] pages. | |||
This page displays a table broken up into cane crop classes, a farm column and no entry of information is required. The table has sections for area/yield/CCS, gross margin per hectare, gross margin for area grown, gross margin per tonne, and labour and fuel. | |||
* '''Tip:''' This page (or any other page) can be printed or saved as a PDF by right clicking on the page and selecting "Print". | |||
===Economic Theory=== | |||
====Gross Margin==== | |||
'''Gross margins''' are calculated by subtracting variable costs from gross income. Comparing the cane '''gross margins''' of two different farming systems is a useful way to examine the profitability of adopting new management practices, which helps to inform farm management decisions. | |||
[[ | * If you have no Other Crops and were only aiming to develop a cane '''gross margin''' then you can skip to the [[Farm Performance Indicators]] page. | ||
[[ | [[File:Gross Margin Formula.png|1000px|frameless|center|link=]] | ||
====Operating Return==== | |||
However, farm managers also need to account for any changes in fixed costs that might occur from the adoption of new practices as well as any required capital expenditures on new equipment. If so, a comparison of '''operating return''' would be a more precise indicator of relative profitability. '''Operating return''' is displayed on the [[Profit]] page. | |||
* If you have no Other Crops please continue to the [[Depreciation]], [[Assets]] and [[Fixed Costs]] pages. | |||
[[File:Cane Summary 2.png |1400px|frameless|center|link=]] | |||
[[Cane Growing Costs]] ⇐|⇒ [[Other Crop Assumptions]] | |||
Latest revision as of 23:04, 28 June 2023
What is this page?
This page is a summary of gross margin information based on information entered on the Cane Assumptions, Cane Growing Costs and Scenario Assumptions pages.
This page displays a table broken up into cane crop classes, a farm column and no entry of information is required. The table has sections for area/yield/CCS, gross margin per hectare, gross margin for area grown, gross margin per tonne, and labour and fuel.
- Tip: This page (or any other page) can be printed or saved as a PDF by right clicking on the page and selecting "Print".
Economic Theory
Gross Margin
Gross margins are calculated by subtracting variable costs from gross income. Comparing the cane gross margins of two different farming systems is a useful way to examine the profitability of adopting new management practices, which helps to inform farm management decisions.
- If you have no Other Crops and were only aiming to develop a cane gross margin then you can skip to the Farm Performance Indicators page.
Operating Return
However, farm managers also need to account for any changes in fixed costs that might occur from the adoption of new practices as well as any required capital expenditures on new equipment. If so, a comparison of operating return would be a more precise indicator of relative profitability. Operating return is displayed on the Profit page.
- If you have no Other Crops please continue to the Depreciation, Assets and Fixed Costs pages.
