Resources / Grain / Gross margin per hectare
Grain · Financial · Margin

Gross margin per hectare

$620/ha

Crop revenue minus the direct variable costs of growing it — seed, fertiliser, chemical, fuel and contract — divided by effective cropping hectares. By stripping out fixed overheads it fairly compares crops, paddocks and rotations.

Worked example · Crop revenue − variable costs ÷ ha
$620 $430 $505 $560 2023 2024 2025 2026
Crop revenue − variable costs ÷ ha
The benchmark

Winter-crop gross margins in medium-rainfall NSW swing widely with season and price — often $300–700/ha in a solid year — with the top operators consistently at the upper end through better yield and cost control.

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What it signals

Gross margin per hectare is where yield, grade, price and cost finally meet. It reveals whether an expensive, high-input crop actually out-earned a leaner one, and which rotations are genuinely carrying the farm rather than just filling the paddock.

Data required to calculate
Crop revenue$Variable costs$Effective cropped areaha

Silo pulls each of these from the sources the operation already uses, and keeps the figure current automatically.

How to improve it
01

Rank rotations on gross margin, not yield, and shift area to the winners.

02

Protect grade to defend the revenue side of the margin, not just yield.

03

Hold variable costs flat while lifting tonnes to widen the margin.

Questions & answers

What is gross margin per hectare?

Crop revenue minus the direct variable costs of growing it — seed, fertiliser, chemical, fuel and contract — divided by effective cropping hectares. By stripping out fixed overheads it fairly compares crops, paddocks and rotations.

What data do you need to calculate gross margin per hectare?

You need: Crop revenue ($), Variable costs ($), Effective cropped area (ha). Silo pulls each of these from the sources the operation already uses and keeps the figure current automatically.

What is a good gross margin per hectare benchmark?

Winter-crop gross margins in medium-rainfall NSW swing widely with season and price — often $300–700/ha in a solid year — with the top operators consistently at the upper end through better yield and cost control.

How do you improve gross margin per hectare?

Rank rotations on gross margin, not yield, and shift area to the winners. Protect grade to defend the revenue side of the margin, not just yield. Hold variable costs flat while lifting tonnes to widen the margin.

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