Crop Gross Margin
Calculator
Results
- Gross revenue per hectare
- 1,890
- Gross margin per hectare
- 740
- Break-even yield (t/ha)
- 5.47619
- Total harvest (t)
- 540
Farming results
| Gross revenue per hectare | 1,890 |
| Gross margin per hectare | 740 |
| Break-even yield (t/ha) | 5.47619 |
| Total harvest (t) | 540 |
formula-map diagram
- Gross revenue per hectare
- 1,890
- Gross margin per hectare
- 740
- Break-even yield (t/ha)
- 5.47619
- Total harvest (t)
- 540
Formula map
Formula
Gross margin = yield × price − variable costs= 1890
Note
Simplified agronomic model: results use the rates, grades and coefficients you enter and ignore soil type, weather, variety and local regulations. Confirm with a soil test, the product label and an agronomist before applying anything.
More in Farming and crops
See all →Frequently asked questions
What is gross margin and how does it differ from profit?+
Gross margin is revenue minus variable costs directly attributable to growing the crop (seed, fertiliser, chemicals, fuel for field operations), but it excludes fixed costs like land rent, machinery depreciation, and labor overhead. It measures the crop's contribution to covering those fixed costs, not the farm's overall profit.
Why compare crops on gross margin rather than yield or revenue alone?+
A high-yielding or high-revenue crop can still have a poor gross margin if its input costs are proportionally higher, so gross margin lets you compare which crop actually contributes more to the farm's bottom line per hectare, not just which one produces the most.
Should I include my own labor in the variable cost side?+
It depends on your purpose — for a straightforward crop comparison, unpaid family or operator labor is often left out of variable costs and treated as a fixed or overhead cost, but if you're evaluating whether a crop justifies hired labor, that labor cost should be included as variable.
Does gross margin account for price risk?+
No — the calculation uses the prices and yields you input, typically an expected or historical average, so it doesn't itself capture the risk that actual price or yield could be lower. Running the calculation at a pessimistic price or yield scenario alongside the expected case shows how sensitive the margin is to that risk.
Can gross margin per hectare be misleading when comparing crops with different growing seasons?+
Yes — a short-season crop with a modest margin can still outperform a long-season crop with a higher margin once you account for margin per day of land occupied, especially if the short-season crop allows a second crop in the same year. Consider margin per day of occupancy for rotation decisions, not just margin per hectare per crop.