With fertiliser prices reaching record levels, being able to adapt to changing costs and sale prices is more important than ever. Many farms we have spoken to say they have “a feel’ of input spending, but they also know that they could be recording the figures more accurately and using the information more. This update to fieldmargin means you have more of the information you need at your fingertips.
Always know your cost of production and potential margins
At fieldmargin, our goal is to make it easier for farmers to keep good records and have all the information they need at their fingertips for farm decision making. Our new “Gross Margins” feature will help you see how your fields and crop types are performing financially. Tracking your total spend and margins for each field has never been easier.
What are gross margins?
A gross margin of a field or crop type is the income produced minus the variable costs of production.
Variable costs can be anything that you apply to your fields that changes based on the area you are producing or rate applied. For example if you reduce the amount of fungicide applied to your wheat then the variable costs associated with growing it will reduce too.
A gross margin does not show you your profit because it does not include your overhead or fixed costs. Fixed costs are things like permanent staff time, machinery depreciation or buildings.
However, gross margins do allow you to compare the relative profitability across fields and between crop types that require similar overheads. This makes it a great measurement tool for taking control of both your finances and your farm management.
Compare crop performance across your farm
Gross margin analysis of crops is a very good indicator of how much each particular crop contributes to covering the overhead costs of the farming business and therefore its bottom line.
With gross margin reports on fieldmargin, you can compare this information easily in charts or tables. This will help you to decide what to do more of, what to do less of and where you need to re-evaluate your production strategy.
Plot a path to higher profits
When your costings are up to date and easy to access, you can measure the financial impact of a lot that is going on in business. You can take that a step further by modelling what would happen if you tweaked this or that. It’s powerful stuff. Although it is difficult to predict prices, yields and costs, it is still better to evaluate your options based on available information and your own estimates.
Instantly share current spend costs and field performance with advisors
If someone else is advising you then there is even more reason to keep accurate data from the field. With this release, sharing your total spend and outputs for each field has never been easier. If advisors can see real-time inputs records then they can offer you the most up-to date advice and tailor recommendations to your current situation.
Why not try Benchmarking in 2022? The best way to find out how your business is performing is to compare it again other similar farm. The data you capture on fieldmargin can be used in Bench marking tool. For example, in the UK AHDB’s Farmbench provides a platform for you to evaluate your fixed costs and, in turn, improve your understanding of the strengths of your business.
Someone’s still got to punch the numbers into a spreadsheet for hours at a desk, right? Actually, no.
The great thing about fieldmargin farm management software is that the vast majority of your data entry can be done from your mobile in the field – with practically no desk time needed.
Went you set up a Field Job on your mobile you can instantly add spray inputs and rates linked from the pesticide database. Input totals for fields and farms are automatically worked out for you when you mark work as complete.
Then fieldmargin nudges you periodically to update work records. And suddenly, reports and data happen while you are in the field.
In summary, good knowledge of your spending helps you see how your farm is doing.
“Farms with more information, make more money”.(Source: Horizon, AHDB 2018)
Besides real-time costs of what’s in the ground now, it can help tell you what should be growing their next year and beyond. Those sorts of insights will help you steer the ship with more confidence.
The big variation in input and sale prices means that gross margins is an increasingly important number year on year. At fieldmargin we are really pleased we can offer this tool to help in 2022 and beyond.
Want to read more? Click here to read 6 examples of how gross margins can be used in practise.
Costings and gross margins is a PLUS + PRO feature. You can upgrade here or start a 14-day free trial here. Currently we are running a January sale – save 50% when you subscribe to PRO.
How to view your reports
Tap the reporting tab on the web platform side bar to access your reports. Find our step-by step instructions for gross margins here.
At fieldmargin we strive to make easy-to-use reporting systems. Struggling with anything? Message us and let us know. As ever, we’d love to know what you think. Email email@example.com or call +44 203 289 4200, our support is here to help.
One thought on “Feature release: Introducing gross margins to reporting”