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

  1. Total revenue: $640,000.
  2. Acres farmed: 800.
  3. Revenue per acre = $640,000 ÷ 800 = $800/acre.
  4. 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.