What does SGM mean in Accounting?

Standard gross margin

Standard gross margins or SGMs enable the classification of farms according to the type of enterprises on the farm and their relative contribution to overall profitability. The SGM provides a measure of a holding's business size, irrespective of its area and intensity of production. SGMs are calculated per unit area of crops and head of livestock, using standardized SGM coefficients for each type of crop and livestock. Different SGM coefficients are calculated for different geographical regions to allow for differences in profit. SGMs are representative of the level of profit that could be expected on the average farm under "normal" conditions (i.e. no disease outbreaks or adverse weather). Eurostat uses SGMs for collating European Union farm statistics. In the UK, the UK government's June census for agriculture also applies this classification. As the system of classifying business size was developed for use within the EU statistical network, SGMs are measured in euros and presented in size ranges, which relate to European size units (ESU). The resulting figures per hectare of crop and per head of livestock are then totaled for the whole farm. Sizes of holdings are defined, for example, in the UK, as:

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