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How many acres to pay for employee?
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Brian Smith
Posted 3/11/2019 12:51 (#7373669 - in reply to #7373553)
Subject: quick and dirty answer is


Total expense / gross margin will give you the total revenue $s needed to cover the cost. Say the employee cost all in is $35,000 for everything divided by 30% gross margin would be an additional $116,666 in revenue to cover their cost to break even. Now divide that by your revenue per acre average and you will get a pretty good idea of how many acres farmed goes straight to your employee. Not perfect, but pretty close.
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