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Gross margin between two crops

Compare the gross margin per hectare of two crops: revenue minus variable cost, and how much the difference is worth on your area.

Pre-sizing and estimating tool: the results do not replace a design, calculation, or report signed by a qualified professional, nor verification against the applicable standards.

Preliminary estimateRevision 12/11/2026
Crop A
Crop B
Area

Use realistic yield and price for your local market and the variable cost of your crop. The default values are examples only.

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—Gross margin between crops
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Gross margin per hectare of the two crops

Revenue minus variable cost per hectare; the highlighted bar is the one that earns the most.

Tap the chart to see the values.

Margin by change in grain price

Margin per hectare of the two crops if the grain price varies from −30% to +30%.

Tap the chart to see the values.

What if the data changes?

Drag the controls to simulate data different from what you entered (from 30% less to 30% more) and watch the result change instantly.

Tap the chart to see the values.

Margin of the two crops by price

Margin per hectare of each crop when the grain price varies from −20% to +20%.

Step by step with your numbers

The calculation done in steps, with the values you entered.

    The calculation memo gathers this page's inputs, results, equations, assumptions, and references, with fields for project, responsible person, and review. The full report also includes the charts and interpretations, in color. In the print window, choose Save as PDF.

    How to use

    For each crop, enter the expected yield in bags per hectare, the price per bag and the variable cost per hectare. The calculator shows each crop's margin and the difference for the area you entered.

    Worked example

    Crop A: 60 bags/ha at R$ 120, variable cost of R$ 2,400/ha. Crop B: 150 bags/ha at R$ 50, variable cost of R$ 3,000/ha. Area of 100 ha.

    Margin A = 60 × 120 − 2,400 = R$ 4,800/ha. Margin B = 150 × 50 − 3,000 = R$ 4,500/ha. The difference of R$ 300/ha is worth R$ 30,000 on the area, in favor of crop A.

    Precautions

    Method, assumptions, and references

    Equations used

    Revenue (R$/ha) = yield (bags/ha) × bag price (R$/bag)
    Gross margin (R$/ha) = Revenue − Variable cost (R$/ha)
    Difference in area (R$) = [Margin A − Margin B] × Area (ha)

    Assumptions and limits

    • Variable cost includes seed, fertilizers, crop protection products, fuel, operations and drying, but not depreciation or land.
    • Yield and price are the same across the whole area; the calculation does not account for weather risk.
    • Does not consider fixed cost, which should be allocated afterward, nor the rotation effect on the following crop.

    Standards and technical documents

    • CONAB. Custos de produção e séries de preços (periodic publication). Cepea/Esalq, price indicators (periodic publication).

    Frequently asked questions

    Why gross margin and not profit?

    Because gross margin shows what each crop leaves to pay fixed costs and profit. Profit depends on cost allocation, which varies from farm to farm.

    Why doesn't the crop with the highest revenue always have the highest margin?

    Because variable cost changes a lot from one crop to another. A crop with high revenue but high cost can have a smaller margin.

    How to use the calculation with rotation?

    Compare the two crops with realistic prices and yields for your area. Rotation also brings benefits that do not show up in this calculation, such as disease and weed control.

    How does a price change affect the decision?

    The chart shows the effect of a change in grain price. If the two lines cross, the crop that earns more changes with the price.