Definition: Standard gross margin

Category: Agriculture

The standard gross margin (SGM) is the difference between the standardised monetary value of gross production and the standardised monetary value of certain special costs.  This difference is determined for the various crop and animal characteristics (per ha or per animal) at the level of the survey district for each Member State and given in European Currency Units (ECU). By multiplying the areas or the number of animals by the corresponding SGM and then adding the products together, the total standard gross margin of the holding in question is obtained in ECU.