Total farm operating costs as a percentage of gross income — how many cents of each dollar earned are consumed by running the business, before finance and drawings.
Efficient grain businesses keep operating costs below about 70% of gross income; averages sit higher, and the ratio climbs sharply in low-yield or low-price years.
GRDC GroundCover ↗A lower ratio is real financial resilience: it builds the cash cushion that covers interest, funds machinery and carries the farm through a dry year. A ratio creeping up over time is an early warning that costs are outrunning production.
Silo pulls each of these from the sources the operation already uses, and keeps the figure current automatically.
Grow total tonnes to dilute fixed overheads across more production.
Review machinery, labour and finance — the largest fixed costs — per tonne.
Benchmark and competitively quote major input purchases each year.
Total farm operating costs as a percentage of gross income — how many cents of each dollar earned are consumed by running the business, before finance and drawings.
You need: Total operating expenses ($), Depreciation ($), Gross income ($). Silo pulls each of these from the sources the operation already uses and keeps the figure current automatically.
Efficient grain businesses keep operating costs below about 70% of gross income; averages sit higher, and the ratio climbs sharply in low-yield or low-price years.
Grow total tonnes to dilute fixed overheads across more production. Review machinery, labour and finance — the largest fixed costs — per tonne. Benchmark and competitively quote major input purchases each year.
Connect the software, spreadsheets and records you already keep, and Silo keeps every benchmark on this page current automatically.
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