Gross margin: farm glossary
Gross margin is a farm activity’s output value minus the variable costs charged to it for the same period. Feed and supplies used for that activity are examples of variable costs. The amount left contributes towards fixed costs and the wider farm result.
A farm example
For a dairy group, milk and other output values are compared with its feed and other variable costs. Using the same cost categories for another group gives a common basis for comparing the production activities.
Everyday use
HerdMobile’s dated income and expense records provide figures for a margin calculation. Those records supply the sales and cost entries for the group and period being examined.
How HerdMobile helps
Bring your animals, feed stocks and farm accounts together on your Android phone. HerdMobile keeps your daily work moving offline: record events, compare feed quantities and follow sales and payments in one place. Use your own feeds and herd information to prepare a ration, then keep a backup file under your control.
