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Productive or Profitable? Understanding Your Gross Margin Analysis to Grow Your Profitability

October 19, 2022 @ 11:00 am 12:30 pm

North American agriculture could be described in one statement. “Productive but not profitable.” For decades the primary messaging to farmers and ranchers has been to become more productive. This messaging has worked wonderfully. Agriculture is more productive than we have ever been. However, on average our farms and ranches are no more profitable than they have ever been. When considering all economic costs, most farms and ranches operate at a loss more often than they make an economic profit. Becoming more productive has not made our farms and ranches more profitable. Are we focusing on the wrong thing? In this webinar, Dallas Mount with Ranching for Profit, will focus on changing the conversation from productivity to profitability by teaching you to better understand your gross margin per unit.

Gross Margin/Unit tells you the economic efficiency of your enterprise. You will learn how each production unit contributes to covering the overheads and profit of the business. Learning this measure is much more informative about how the enterprise is doing than a measure of productivity.

In the webinar Dallas will cover:

  • Key differences in economics and finance
  • Understanding enterprises on your farm/ranch
  • What is gross margin?
  • How do we calculate gross margin?
  • Where to find opportunities to improve profitability on your farm/ranch

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