Gross margin analysis can be used to evaluate the financial performance of various enterprises of a farm business within the short term. This analysis can assist in allocating limited resources (like land) to their existing enterprises to find which combination optimizes profit. If a beef cattle producer has land allocated to specific uses (e.g., pasture, crops), the reallocation of this land has implications for the farm’s net income. For example, cow-calf producers must choose between maintaining pasture and hay land or converting it into cash crop production. These decisions are driven by ecological considerations (e.g., risk of erosion, too rocky), personal preference and the potential profitability of each land use. Gross margin is the total revenue derived from an enterprise less the variable (direct) costs incurred in that enterprise (e.g., feed, fuel, seed). This can be reported for the whole enterprise or per unit of output. For example, land allocation can be considered o
Colin Penner, who farms about 3,700 acres an hour's drive north of the U.S. border, crunched up a handful of plump canola pods and blew the chaff into a stiff prairie breeze. A small pile of tiny black seeds remained in his palm. Last summer, high heat and harsh sun scorched canola's yellow flowers and ruined their pollen, knocking down yields across Western Canada. This summer, smoke from nearby wildfires shrouded the July skies and protected Penner's young crop from the sun's burning rays, resulting in more seeds per pod and more pods per plant. RELATED: Should Canada sprint to replant trees after intense wildfire years? "Look at all these pods," he said. He would wait to see what the harvest brings, but "smoke will likely be a positive thing." Protection from extreme heat As Canada's western provinces experience the second-worst wildfire season in decades, driven by hotter and drier conditions due to climate change, some canola farmers say they are seeing an unexpected benefit
By Clint Cameron, Director, Ontario Federation of Agriculture
Charlottetown, Prince Edward Island – Agriculture and Agri-Food Canada
The Government of Canada is committed to taking decisive action to strengthen Canada’s economy and global competitiveness. Today, the Canadian Food Inspection Agency (CFIA) is delivering on this commitment through a suite of regulatory changes aimed at reducing red tape and supporting economic resiliency for Canada’s agricultural sector.
RSVP for Inaugural Canadian Beef Industry Conference to add comments!
Join Ontario Agriculture