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Cattle Boards
Grasses, Pastures & Hay
Cost of pasture grazing
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<blockquote data-quote="1wlimo" data-source="post: 849992" data-attributes="member: 16646"><p>When calculating enterprise potential returns I would always use "Gross Margins"</p><p></p><p>These are calculated on a head or per acre basis.</p><p></p><p> Sales (minuses stock replacment costs)</p><p></p><p>Minuse Variable costs like Vet, feed, etc dirrectly atributed to that crop, or animal.</p><p></p><p>The resulting figure the "Gross Margin" is then comparable between different enterprises on the same land. The Gross margin hasto cover the "Fixed costs" which are Rent, Labour, Fencing, interest, machinery, etc.</p><p></p><p>While there are errors in the system it is a good guide to year to year performance, and a good comparrison tool.</p><p></p><p>It is a good idea to ensure that the over all margin over fixed costs forfills the profit requiremtens. Profit being required for depreciation, loan repayments, and personal drawings etc.</p></blockquote><p></p>
[QUOTE="1wlimo, post: 849992, member: 16646"] When calculating enterprise potential returns I would always use "Gross Margins" These are calculated on a head or per acre basis. Sales (minuses stock replacment costs) Minuse Variable costs like Vet, feed, etc dirrectly atributed to that crop, or animal. The resulting figure the "Gross Margin" is then comparable between different enterprises on the same land. The Gross margin hasto cover the "Fixed costs" which are Rent, Labour, Fencing, interest, machinery, etc. While there are errors in the system it is a good guide to year to year performance, and a good comparrison tool. It is a good idea to ensure that the over all margin over fixed costs forfills the profit requiremtens. Profit being required for depreciation, loan repayments, and personal drawings etc. [/QUOTE]
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