For application to specific circumstances, professional advice should be sought. The Department of Primary Industries Queensland has taken all reasonable steps to ensure the information in this publication is accurate at the time of publication. Readers should ensure that they make appropriate inquiries to determine whether new information is available on the particular subject matter. Gross margins are determined by deducting variable costs from the gross farm income of a crop. However, they do provide a useful tool in terms of farm budgeting and estimating the likely returns or losses of a particular crop.
Gross margins are currently available from a variety of sources for a range of crops in Queensland.
Most gross margins will contain a disclaimer to this effect. An example of a gross margin worksheet has been included in this note. Before planting, gross margins can be useful in deciding which crops are likely to be the most profitable. Gross margins can be used as a predictor model under a range of conditions before the season starts or to generate 'break even' figures for yields or prices. While using projected figures, they are merely a predictive tool.