Total farm operating costs expressed as a percentage of gross enterprise revenue — answering how many cents of every dollar earned are eaten up by running costs.
Top-performing operations keep operating costs below 65–70% of gross income; industry averages sit at 78–85%.
Agriculture Victoria LFMP ↗A lower ratio reveals true financial resilience: it builds a cash cushion to cover interest, fund improvements and ride out dry periods, keeping the focus on an efficient system rather than chasing revenue with expensive inputs.
Silo pulls each of these from the sources the operation already uses, and keeps the figure current automatically.
Increase total liveweight produced to dilute fixed overhead per kilogram.
Review large overhead expenses and seek cheaper contract alternatives.
Benchmark input purchases through competitive quoting.
Total farm operating costs expressed as a percentage of gross enterprise revenue — answering how many cents of every dollar earned are eaten up by running costs.
You need: Total operating expenses ($), Depreciation of assets ($), Gross revenue ($). Silo pulls each of these from the sources the operation already uses and keeps the figure current automatically.
Top-performing operations keep operating costs below 65–70% of gross income; industry averages sit at 78–85%.
Increase total liveweight produced to dilute fixed overhead per kilogram. Review large overhead expenses and seek cheaper contract alternatives. Benchmark input purchases through competitive quoting.
Connect the software, spreadsheets and records you already keep, and Silo keeps every benchmark on this page current automatically.
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