Gross Margins/ Cost of Establishment

Question 1

Gross Margin for Feed Wheat (acres)

Answer 1

Income
3.5 tonne per acre @ 270 per tonne = £945 per acre

Variable Costs
Seed @ £25 per acre
Fert @ £250 per acre (assume bought this week)
Sprays@ £100 per acre
Sundries @ £10 per acre

Total = £385 per acre

GM = £560

Question 2

Gross Margin Wheat (HA)

Answer 2

Income @7.5 tonne per ha (£275 per tonne)

Total Income £2063

Variable Costs
Seed £66
Ferts £575
Sprays £265
Sundries £23

Total Costs £929

Gross Margin of - £1,134