How do you calculate profit per acre?

Subtract total cost per acre from expected revenue per acre. With $1,080 revenue and $920 cost, profit per acre is $160. Divide that by revenue ($160 / $1,080) to get a 14.8% margin.

What is a good profit per acre for row crops?

It varies by crop, region, and land cost, but in a typical Corn Belt cash-crop budget many growers target $100 to $250 per acre over full cost. A margin near 15%, like the $160 on $1,080 example here, is a workable but not comfortable year.

Should cost include cash rent and land cost?

That depends on the decision. To judge an enterprise's return above operating inputs, use variable costs. To decide whether to keep rented ground or buy land, load rent and land ownership cost into total cost so profit reflects the real hurdle.

Why is my margin percent different from another farm's?

Margin is profit divided by revenue, so two farms with the same $160 profit look different if one grosses $1,080 and another grosses $1,400. Higher-revenue crops usually show lower percentage margins even when dollar profit is strong.

Profit per acre vs. yield: which matters more?

Yield drives revenue but does not pay bills on its own. A 220 bu/ac corn field can lose money if inputs are high, while a modest yield with disciplined costs can clear $160/ac. Profit per acre is the number that decides.

How do I use profit per acre to compare fields?

Run the same revenue-minus-cost math for each field using its own yield, price, and input load, then rank the results. The lowest-profit acres are your first candidates for a different crop, renegotiated rent, or dropping the lease.

Agriculture, Soil, Fertilizer & Farm Operations calculator

Profit Per Acre Calculator

Profit per acre is the single number that tells a grower whether a field pays its way after everything is planted, sprayed, and hauled. It subtracts your fully loaded cost per acre from expected revenue per acre, so it captures the actual dollars left over on each acre rather than a gross yield figure that hides input inflation. Farm managers, ag lenders, and crop-share landlords use it to compare corn against soybeans, decide which rented ground to keep, and stress-test a season before seed goes in the ground. In a year of $6 fertilizer and thin commodity prices, a $30 swing in per-acre profit across 1,500 acres is a $45,000 decision.

What this calculator does

Estimate profit per acre from crop revenue per acre, cost per acre, and reference revenue basis.
Use it to compare crop plans, rented ground, yield scenarios, marketing prices, or input spending choices.
It computes net profit per acre (revenue minus total cost) and the profit margin as a percent of your revenue basis.

Formula used

Profit per acre = revenue per acre - cost per acre
Margin percent = profit per acre / reference revenue basis

Inputs explained

Expected crop revenue per acre: Use expected yield x price, plus program or byproduct revenue if included.
Total crop cost per acre: Include the full cost basis you want to compare against revenue.
Revenue basis for margin calc: Usually the same as expected revenue per acre for margin percent.

How to use the result

Use it when building a crop budget, comparing enterprises or fields, negotiating cash rent, or checking whether a marketing price locks in a positive margin.
It is a per-acre snapshot at the numbers you enter; it does not model yield risk, price volatility, or the difference between cash and economic costs like unpaid family labor and land opportunity cost.

Current U.S. benchmarks

U.S. manufacturing runs at 75.6% of capacity (Federal Reserve, Jun 2026). New factory orders are up 2.3% year over year (Census).
Industrial natural gas averages $4.9 per Mcf (EIA, Apr 2026), down 7.7% from a year earlier, with industrial electricity at 8.66 cents per kWh. Process heating and refrigeration budgets track both.

Common questions

How do you calculate profit per acre? Subtract total cost per acre from expected revenue per acre. With $1,080 revenue and $920 cost, profit per acre is $160. Divide that by revenue ($160 / $1,080) to get a 14.8% margin.
What is a good profit per acre for row crops? It varies by crop, region, and land cost, but in a typical Corn Belt cash-crop budget many growers target $100 to $250 per acre over full cost. A margin near 15%, like the $160 on $1,080 example here, is a workable but not comfortable year.
Should cost include cash rent and land cost? That depends on the decision. To judge an enterprise's return above operating inputs, use variable costs. To decide whether to keep rented ground or buy land, load rent and land ownership cost into total cost so profit reflects the real hurdle.
Why is my margin percent different from another farm's? Margin is profit divided by revenue, so two farms with the same $160 profit look different if one grosses $1,080 and another grosses $1,400. Higher-revenue crops usually show lower percentage margins even when dollar profit is strong.
Profit per acre vs. yield: which matters more? Yield drives revenue but does not pay bills on its own. A 220 bu/ac corn field can lose money if inputs are high, while a modest yield with disciplined costs can clear $160/ac. Profit per acre is the number that decides.

Last reviewed 2026-05-12.