Difference between revisions of "Other Crop Summary"
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This page is a summary of gross margin information based on information entered on the | 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. | This page displays all other crops and no entry of information is required. | ||
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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. | 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. | ||
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 | 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. | ||
Revision as of 01:40, 8 February 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
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.
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.
