Do you know the contribution margins of your field crops?

The vegetation cycle is slowly but surely coming to an end and that means operations now have time to stop and take a deep breath again. It also means farmers will start reflecting on the year past and ask themselves what they can do even better next year. They often like to pick up and read through their accounting statements when doing so. Yet, is that really enough when trying to make the right decisions?
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· “Which crop is more profitable for me? Winter wheat or grain maize?”
· “Was the late fertilisation of the winter wheat worthwhile?”
· “How high are my production costs for one hectare of potatoes?”

To answer these questions, there is no way around the contribution margin. However, doing calculations by hand with a pen and paper or even in Excel is very time-consuming.

Diagram of contribution margin accounting for farming
In very simple terms, the contribution margin is calculated based on the market performance of a production process (e.g., winter wheat) less the associated variable costs. The market performance consists of the sales proceeds. The variable costs primarily consist of the operating resources used for the production. Thus, when doing calculations by hand, all of the work procedures have to be copied from the field mapping service in order to determine the costs. That is a lengthy process and is often the reason why accounting statements tend to be used for business analyses instead.

Automatically calculate contribution margins with 365FarmNet.

As a 365FarmNet user, time-consuming contribution margin accounting is now a thing of the past. By easily documenting your work using the 365Crop app on your smartphone or our portal on your PC, almost all of your data and numbers are already available. All you have to do is enter the cost of your operating resources and machinery. You can now view the contribution margins of all of your crops per field and per hectare.
Calculate contribution margin in the field map

What are you waiting for?
Maintain a clear overview of your costs and revenues and start documenting digitally today!

Make the right decisions in the future.

The contribution margin not only helps you review the completed harvest, but more importantly, helps you plan your farming operation.

“Better to plant winter wheat or grain maize?” – Naturally, balanced crop rotation is essential for maintaining soil fertility. Nevertheless, there is still a certain amount of leeway when it comes to optimising crop rotation not just for the soil, but for your wallet as well.

“Are the last 20 kg N of rapeseed worth it?” – As you know, maximum yields do not necessarily mean maximum profits. Use your resources efficiently with regard to the new Fertiliser Ordinance. How about a comparison of the production intensity? With the contribution margin accounting in our portal, you can find out straight away which is more worthwhile!

“Are all of the areas I lease profitable?” – In recent years, lease prices have risen non-stop. Can you say with certainty that you are achieving a profit from all areas?

Stop relying on gut feeling alone and start making the right decisions based on numbers and facts. Register for free right now at 365FarmNet.

Press contact

Klaus-Herbert Rolf
rolf@365farmnet.com