The primary resource of grazing livestock operations is grass. In essence, ranchers are grass farmers who convert grass into marketable products such as meat,fiber, and live animals. 

To compare different grazing livestock enterprises, a rancher must determine the return of each enterprise relative to the amount of grass resource it consumes.This measure is called enterprise efficiency. It is calculated by dividing the gross margin of a grazing livestock enterprise by the total grazing unit months (GUMs) it consumes. Enterprise efficiency indicates how effectively an enterprise converts grass into profit.

Calculating the enterprise efficiencies of various grazing livestock enterprises is a powerful decision-making tool for ranch managers.  Ranch Vision automatically calculates the enterprise efficiency for each grazing livestock enterprise on your ranch.