Difference between revisions of "Other Crop Summary"

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====Economic Theory====
====Economic Theory====
Gross margins are calculated by subtracting variable costs from gross income. Comparing the 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.
Comparing the gross margins of different fallow crops is informative and helps users to make fallow crops choices that enhance whole-of-farm profitability. If growers are evaluating the profitability of growing fallow crops they have not grown before then they would need to consider any changes in fixed costs that might occur and/or any required capital expenditures on new equipment. If so, a comparison of operating return would be a more precise indicator of relative profitability, which would require completion of the [[Assets]], [[Depreciation]] and [[Fixed Costs]] pages.
 
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, which would require completion of the [[Depreciation]], [[Assets]] and [[Fixed Costs]] pages, and then analysis of the returns on the [[Compare FPI]] page.





Revision as of 03:00, 10 November 2022

This page is a summary of gross margin information based on information entered on the Other Crop Assumptions, Other Crops Growing Costs and Scenario Assumptions pages.

This page displays all other crops and no entry of information is required.

Tip: This page can be printed or saved as a PDF by right clicking on the table and selecting "Print".

Economic Theory

Comparing the gross margins of different fallow crops is informative and helps users to make fallow crops choices that enhance whole-of-farm profitability. If growers are evaluating the profitability of growing fallow crops they have not grown before then they would need to consider any changes in fixed costs that might occur and/or any required capital expenditures on new equipment. If so, a comparison of operating return would be a more precise indicator of relative profitability, which would require completion of the Assets, Depreciation and Fixed Costs pages.


Other Crop Summary 2.png


Other Crops Growing Costs ⇐|⇒ Machinery Setup