Project Overview Get started
The arable farm is a business and the crop must contribute to making money. Crop Performance considers both the value of the crop produced and the inputs used to create that output.
- Identify the market the crop is grown for and its requirements.
- Record crop output: area, expected and actual yield, selling or contract price and quality.
- Record variable costs such as seed, fertiliser, sprays, contract operations, labour and other costs.
- Calculate and analyse the crop’s gross margin and identify opportunities for improvement.
Learning Outcomes Know this
- Understand how crop output and variable costs affect financial performance.
- Explain how yield, quality, selling price and market requirements affect crop output.
- Calculate a crop gross margin from output and variable costs.
- Analyse the largest variable costs and consider where management could change.
- Use simple “what if” scenarios and break-even yield to assess financial risk.
- Use employer or agronomist discussion to make realistic recommendations for the next season.
Workplace Activities Do these
- Discuss the crop with your employer and/or agronomist when harvested and, where possible, again once it has been sold.
- Collect crop, area, expected yield, actual yield, quality and selling or contract price information.
- Record variable costs for seed, fertiliser, sprays, contract operations, labour and other variable costs.
- Calculate output £/ha, total variable costs £/ha and gross margin £/ha.
- Analyse the three largest variable costs and identify an input that could potentially be managed differently.
- Test the effect of a 10% fall in yield, a 10% fall in selling price and a 10% increase in the largest variable cost.
- Calculate break-even yield and compare it with actual yield.
Performance Field Log Record details
Use the field log to collect the figures needed for the crop performance analysis.
- Crop output: crop, area, expected yield, selling/contract price, actual yield, quality and output £/ha.
- Variable costs: seed, fertiliser, sprays, contract operations, labour, other variable costs and total variable costs £/ha.
- Gross margin: output £/ha less total variable costs £/ha.
- Financial analysis: three largest inputs, a cost that could be managed differently, “what if” scenarios and break-even yield.
- Employer/agronomist review: what could be done differently next season and your own recommendation.
Gross Margin Analysis Analyse this
Crop Gross Margin – Making the Crop Pay
Use the figures collected in your field log. Actual farm figures should be used wherever possible; if they cannot be shared, use appropriate figures supplied by your employer/agronomist.
| Calculation | Figure |
|---|---|
| Output £/ha | £________________ |
| Less variable costs | £________________ |
| Gross margin | £________________ /ha |
Then analyse the result:
- Which three inputs cost the most?
- Which input could potentially be managed differently, and why?
- What happens to the gross margin if yield falls by 10%?
- What happens if selling price falls by 10%?
- What happens if the largest variable cost increases by 10%?
- Which scenario has the greatest financial impact?
- What is the break-even yield, and how far above or below break-even was the crop?
Evidence Ideas Portfolio proof
- Crop output, yield, quality and market or contract information.
- Variable cost figures for the crop, including seed, fertiliser, sprays, contract operations and labour.
- Gross margin calculation showing output, variable costs and gross margin per hectare.
- Analysis of the three largest variable costs and the input you would consider managing differently.
- “What if” calculations for yield, selling price and the largest variable cost.
- Break-even yield calculation and comparison with actual yield.
- Employer/agronomist discussion and your recommendation for improving future performance.
Discussion Points Mentor input
Ask your employer/agronomist: “Looking at the performance and gross margin of this crop, what could be done differently next season to improve its financial performance?”
Record their response, then explain what you would recommend and why.
Observe & Gather Table Fill in
Use this table to collect the crop performance figures you need for this section. Discuss the results with your employer and/or agronomist and use the information to write your summary for OneFile.
| Crop Performance | |
|---|---|
| Figures to Collect | |
| Crop Output | Variable Costs: |
| Crop: | Seed: |
| Area: | Fertiliser: |
| Expected yield | Sprays etc: |
| Selling/contract price: | Contract operations: |
| Actual yield: | Labour: |
| Quality: | Other variable costs |
| Output £/ha | Total Variable Costs £/ha |
| Crop Performance | |
| Discuss with employer and / or agronomist how the crop performed both when harvested and if possible once crop has been sold and got actual sales figures. | |
Remember to upload your evidence to OneFile.
Crop Performance: Analyse Understand Report Write up
Project Brief – Crop Gross Margin: Making the Crop Pay
Using the crop you have monitored, work with your employer/agronomist to produce a gross margin for the crop. Use actual farm figures wherever possible. If actual financial information cannot be shared, use appropriate farm figures supplied by your employer/agronomist.
Analyse your margin
- Calculate output £/ha − variable costs £/ha = gross margin £/ha.
- Identify the three inputs that cost the most.
- Choose an input that could potentially be managed differently and explain why.
- Calculate the effect on gross margin if yield falls by 10%, selling price falls by 10% and the largest variable cost increases by 10%.
- Identify which scenario has the greatest financial impact.
- Calculate the break-even yield and compare it with the actual yield.
- Ask your employer/agronomist what could be done differently next season, then give your own recommendation and explain why.
Sentence starters
- “Overall, the crop performed…”
- “The crop achieved a yield of… which compared with the expected yield…”
- “The quality of the harvested crop was… because…”
- “The main factors that influenced crop performance were…”
- “The main inputs used to produce the crop were… and these cost…”
- “The largest variable cost was… which accounted for…”
- “The crop produced an output of approximately £… per hectare, while variable costs were…”
- “This gave the crop a gross margin of… per hectare.”
- “The biggest financial risk to this crop was…”
- “Having discussed the results with my employer/agronomist, I would…”
- “To improve the performance, profitability and sustainability of this crop in the future, I would…”
Remember to upload your evidence to OneFile.