AgMargins™ can be used to generate agricultural gross margins. A gross margin is the difference between the gross income and variable costs of producing a commodity. This will assist farmers in making short-term decisions to increase profitability. Variable costs include those associated with crop operations, harvesting and marketing. Gross margins are quoted on a per hectare basis, and also per ML for irrigated crops.

AgMargins™ has been developed for farmers, consultants and researchers to give current estimates of commodity gross margins. It will:

  • Reduce the time needed to update gross margins for changes in commodity and input prices
  • Ensure consistency in the method used to generate gross margins, by minimising pricing and yield inconsistencies
  • Provide regionally specific gross margins based on appropriate yield expectations and input prices
  • Enable annual update of prices across commodities and regions
  • Provide a non-biased analysis for all major production regions
  • Enable routine update of gross margins in response to changes in technologies and practices
  • Be used to investigate new production opportunities across regions