Best Crop Mix & Most Gross Margin
Optimises land
Given your land, labour, water and working-capital limits, this tool finds the mix of crops and enterprises that maximizes total gross margin — and names the binding constraint that is really capping your farm.
Your whole-farm resources
Recommended enterprise mix
| Enterprise | Group | Area (ha) | Gross margin | GM / capital unit |
|---|---|---|---|---|
| Chickpea (gram) | Pulse | 4 | ₹2,440 | 1.69 |
| Lentil | Pulse | 3.5 | ₹1,890 | 1.69 |
| Tobacco | Cash | 2.5 | ₹4,125 | 1.68 |
| Total | ₹8,455 | |||
With 10 ha, 800 labour-days, 60 ML and ₹9,000 of working capital, the highest-margin mix earns ₹8,455. The factor that runs out first — your binding constraint — is Land (100% used), and the single most valuable use of it is Chickpea (gram).
Next: your mix is capped by land, so adding more land won't help until you free up land. The next enterprise worth funding is Pigeon pea (arhar) (₹580/ha) — bring it in only after you relax land or trade out a lower-margin block. One extra unit of land is worth about ₹1,650 in extra gross margin.
Heuristic: rank enterprises by gross margin per unit of the scarcest resource (Capital), allocate greedily to the highest first until a resource fills. Shadow value = the marginal enterprise's GM per resource unit.
Enterprise-mix optimization — key facts
- Gross margin
- output value − variable costs / ha
- Ranking key
- GM ÷ scarcest-resource coefficient
- Method
- greedy ratio LP heuristic
- Binding constraint
- first resource to hit 100%
- Shadow value
- marginal enterprise GM per resource unit
- Enterprises
- 24 crops + livestock budgets
- Resources
- land · labour · water · capital
- Privacy
- Runs in your browser; nothing uploaded
Don't pick crops one at a time — optimize the whole farm
Most calculators score one crop in isolation: a gross margin per hectare, take it or leave it. But a real farm is a tug-of-war between resources — your land, your labour-days, your irrigation water and your working capital are all finite, and the most profitable crop on paper may be the one that exhausts your labour before it touches your land. The right question is not “which crop earns most per hectare?” but “which mix of enterprises earns most given everything I am short of?” That is a constrained-optimization problem, and it has a clean answer.
This optimizer ranks 24 enterprises by gross margin per unit of your scarcest resource, then allocates land greedily to the most valuable uses until a resource fills. It reports the optimal area per enterprise, the total gross margin, the binding constraint (the resource that runs out first), the shadow value of one more hectare or labour-day, and the marginal next-best enterprise you would add if you could relax that constraint. Pair it with the Gross Margin, Enterprise Budget and Crop Comparison calculators for a full whole-farm plan.
Enterprise resource-coefficient table (per hectare)
Mid-range planning figures from FAO, ICAR-CACP and USDA-ERS / university enterprise budgets. Gross margin is a currency-neutral index — scale it to your own prices and yields.
| Enterprise | Group | Gross margin /ha | Labour (days/ha) | Water (ML/ha) | Capital /ha |
|---|---|---|---|---|---|
| Wheat (irrigated) | Cereal | 620 | 12 | 4.5 | 480 |
| Rice / Paddy | Cereal | 740 | 38 | 12 | 620 |
| Maize (grain) | Cereal | 690 | 16 | 5 | 520 |
| Sorghum | Cereal | 410 | 11 | 2.5 | 300 |
| Barley | Cereal | 380 | 9 | 2.8 | 280 |
| Soybean | Oilseed | 560 | 14 | 3.5 | 400 |
| Groundnut | Oilseed | 820 | 28 | 4 | 560 |
| Mustard / Canola | Oilseed | 520 | 10 | 2.2 | 340 |
| Sunflower | Oilseed | 470 | 12 | 3 | 360 |
| Chickpea (gram) | Pulse | 610 | 13 | 1.8 | 360 |
| Lentil | Pulse | 540 | 12 | 1.5 | 320 |
| Pigeon pea (arhar) | Pulse | 580 | 16 | 2.5 | 350 |
| Cotton (irrigated) | Cash | 980 | 42 | 6.5 | 760 |
| Sugarcane | Cash | 1,450 | 70 | 18 | 1,100 |
| Tobacco | Cash | 1,650 | 95 | 5.5 | 980 |
| Potato | Vegetable | 1,850 | 60 | 5.5 | 1,350 |
| Tomato (field) | Vegetable | 2,400 | 110 | 6 | 1,700 |
| Onion | Vegetable | 1,950 | 75 | 5 | 1,250 |
| Chilli | Vegetable | 2,200 | 120 | 5.5 | 1,500 |
| Banana | Fruit | 3,100 | 130 | 14 | 2,200 |
| Mango (orchard) | Fruit | 2,600 | 55 | 8 | 1,800 |
| Grapes | Fruit | 4,200 | 160 | 9 | 3,000 |
| Lucerne / Alfalfa hay | Forage | 720 | 18 | 7 | 460 |
| Dairy fodder + cows | Livestock | 1,250 | 90 | 8 | 1,400 |
How to use it — 5 steps
- 1Enter your resource limits. Type your total land (ha), labour-days, irrigation water (ML) and working capital for the season.
- 2Pick your currency. Choose the currency so gross-margin figures read in your money.
- 3Read the optimal mix. The table and bars show the recommended area per enterprise and the total gross margin it earns.
- 4Find the binding constraint. The resource bar that flashes full is your binding constraint — the factor capping the whole farm.
- 5Act on the shadow value. Compare the shadow value of one more hectare or labour-day against its cost to decide where to invest.
Frequently Asked Questions
Which mix of crops maximizes my total gross margin?+
The one that puts your scarcest resource to its most valuable use. The optimizer ranks every enterprise by gross margin earned per unit of the limiting resource (e.g. gross margin per labour-day if labour is tight), then allocates land greedily to the highest-ranked enterprises first until a resource runs out. The result is the area-per-enterprise mix with the largest total gross margin your land, labour, water and capital can support.
What is a binding constraint and why does it matter?+
A binding constraint is the resource that runs out first — the one stopping you from earning more. If your labour fills to 100% while land is only 70% used, labour is binding: buying or renting more land changes nothing until you free up labour. Knowing the binding constraint tells you exactly where to invest (more workers, drip to save water, a working-capital loan) to lift the whole farm's margin.
How is the optimal area per enterprise calculated?+
By a greedy ratio heuristic. The tool finds the scarcest resource (lowest supply ÷ average demand), ranks enterprises by gross margin per unit of that resource, and fills the highest-ranked enterprise up to the point where land, labour, water, capital or its own rotational cap is reached — then moves to the next. For the single-binding, monotone enterprise budgets used in extension work this returns the same mix a textbook linear program does.
What is gross margin in farm planning?+
Gross margin = gross output value − variable (input) costs, per hectare, per season. It deliberately excludes fixed costs like land rent and machinery depreciation, because those don't change with the crop you pick. Comparing enterprises on gross margin per unit of the scarce resource is the standard way farm-management handbooks decide what to grow.
What is the shadow value of land or labour?+
It is what one more unit of that resource would add to your gross margin at the optimum. The tool estimates it as the marginal (last-funded) enterprise's gross margin per unit of the resource. If the shadow value of land is high, an extra hectare is worth a lot; if it is near zero, land is not your limit and renting more would be wasted money.
Is buying more land worth it?+
Only if land is your binding constraint. If the optimizer shows land at 100% and a high shadow value, each extra hectare earns roughly that shadow value in gross margin — compare it against the rent or purchase cost. If land sits idle because labour, water or capital binds first, more land adds nothing until you relax the resource that is actually full.
Why does the tool sometimes leave land idle?+
Because a non-land resource binds first. If you only have enough labour-days or water to farm part of your area at the high-margin enterprises, the rest of the land stays empty in the optimal plan — running a low-margin crop on it could even lose money. Idle land is a signal to fix the tighter constraint, not to plant something marginal.
Can I use this for my own prices and yields?+
Yes. The built-in gross margins are mid-range planning figures from FAO, ICAR-CACP and USDA-ERS enterprise budgets in a currency-neutral index. Pick your currency and treat the figures as a starting template; the structure — gross margin versus land, labour, water and capital coefficients — is what drives the answer, so scale the margins to your season for a tailored plan.
What is the marginal next-best enterprise?+
It is the highest-ranked enterprise that received zero area in the optimal mix — the first thing you would add if you could relax the binding constraint. The tool names it and its gross margin per hectare so you know which enterprise to bring in once you free up labour, water or capital, rather than guessing.
How is this different from a single-crop gross-margin calculator?+
A single-crop calculator tells you the margin of one crop in isolation. This optimizer compares a whole mix of 24 enterprises against four binding resources at once and finds the combination that maximizes total farm gross margin — and, crucially, tells you which resource is the limiting factor. That whole-farm, multi-constraint view is the gap most calculators leave open.
Is 20 ha enough to be profitable?+
It depends entirely on which resource binds. With ample labour and capital, 20 ha of high-margin horticulture can out-earn 100 ha of cereals. The optimizer shows whether your 20 ha is fully used and what mix it supports; if land is binding with a high shadow value, scaling up helps, but if labour or water binds first, intensifying the existing area is the better move.
Does water really limit the plan?+
Often, yes. Thirsty enterprises like sugarcane (about 18 ML/ha) and banana (about 14 ML/ha) can exhaust an irrigation allocation long before land or labour. When water is binding, the optimizer favours high gross-margin-per-megalitre enterprises — that is why a pulse or oilseed that sips water can beat a cane crop on a water-short farm.