Enterprise Efficiency Reports

The Enterprise Efficiency reports show the projected efficiency of each cattle, sheep, and goat grazing enterprise during each of the next five years.

Enterprise Efficiency = Enterprise Gross Margin ÷ Total GUMs Consumed

The result is expressed as return per GUM and answers an important question: How much can I expect each enterprise to return per unit of grass consumed, given my current plan?

Enterprise Efficiency creates an apples-to-apples comparison between competing grazing enterprises. While Gross Margin shows how much an enterprise is projected to contribute, Enterprise Efficiency accounts for the amount of grazing resource required to generate that margin. This allows enterprises with different species, production systems, and grazing requirements to be compared based on their projected return from the grass resource they consume.

How to use it: Use Enterprise Efficiency to make informed choices among competing grazing enterprises and evaluate how the ranch's grass resource could be allocated toward greater profitability.

For example, if a stocker enterprise is projected to return more per GUM than the cow-calf enterprise, you can use Ranch Vision to evaluate whether expanding the stocker enterprise and reducing—or potentially eliminating—the cow-calf enterprise would improve overall ranch profitability. Likewise, if a ewe-lamb enterprise generates a greater return per GUM than a stocker enterprise, you can evaluate the financial impact of expanding the ewe-lamb enterprise and contracting or eliminating the stocker enterprise.

As you model these management changes, use the Grazing Demand reports to observe how the ranch's grass resource is reallocated. Together, the Enterprise Efficiency and Grazing Demand reports allow you to develop a new ranch plan that considers both the financial return generated per unit of grass and the resulting allocation of the ranch's grazing resource.