Revenue Per Acre
It shows how much each acre earned before expenses — a land productivity scorecard.
Formal definition
Revenue per acre equals total farm revenue divided by acres in production for the enterprise.
Why it matters
Farmers compare enterprises by per-acre economics; low revenue per acre with high rent or mortgage is unsustainable.
Where you see it
- Crop enterprise budgets
- USDA extension publications
- Farm credit applications
- Co-op pooling reports
- Agribusiness case studies
Worked example
- Total revenue: $640,000.
- Acres farmed: 800.
- Revenue per acre = $640,000 ÷ 800 = $800/acre.
- Interpretation: Each acre generated $800 in revenue this season.
How Business metrics calculates it
Revenue ÷ Acres.
Where people fool themselves
Revenue per acre on irrigated vs. dryland in the same average hides the pivot. Split fields if you make decisions by field.
Run it on your own numbers: the Agriculture & Farming calculator.