Construct a per hectare gross margin
Economics – Biological systems (Cash Flow budget)
Paper, Order, or Assignment Requirements
Using the data below, and an excel spreadsheet, construct a monthly statement of farm business
income and farm expenditure. You will need to work out the calendar of operations for each
enterprise, and then determine the monthly costs and receipts. Find the totals for each income and
expenditure category and derive income, expenditure and net return totals for the farm business for
each month, and for the year as a whole.
B. Gross margins
Construct a per hectare gross margin (the difference between gross income and operating costs, expressed
per hectare of the crop) for sorghum, wheat, and barley. If you prepare your Cash Flow Budget correctly,
you can easily use that information to calculate your gross margins
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