AgriProfit$ – Benchmark Your Cost Of Production Performance1 year ago -
“AgriProfit$ is accepting registration this fall and will be scheduling data collection for the 2019 production year between January and April 2020,” says Ann Boyda, livestock economist with Alberta Agriculture and Forestry.
AgriProfit$ investigates the profitability, financial efficiency and risk-bearing ability of the entire farm operation. It examines how each enterprise interacts with one another and affects profitability.
“The program helps producers understand their performance and profitability over time, and how their operation compares to other like-businesses,” she explains. “It looks at how the contributions from each enterprise – cow-calf, backgrounding, forage, pasture, crops – contributes to the whole picture. Individual enterprise performance compares the effectiveness of specific inputs when producing income, such as feed for livestock.”
She adds that AgriProfit$ lets producers compare their individual farm performance to their peers.
“Knowing basic performance benchmarks are valuable as they provide context within your production region or type of production system. Participating producers find out what is possible, best practices and a way to measure their own progress towards their own farm goals.”
What is involved
Participating producers need to collect and organize the data for their farm’s income, expenditures, inventories of assets and liabilities. They receive a guide to help them navigate through the collection process. A business specialist also visits the farm to help gather the needed data into an electronic survey.
“In return for the time and effort needed to compile this information, the producer receives a report on the performance of their operation,” she adds.
This report includes the whole farm balance sheet, income statement and enterprise cost and returns examined on a per unit of production basis – per bushel, per tonne, per pound weaned, etc. – and on a per unit of investment basis – per acre, per cow.
Participating producers also receive a benchmark report of similar operations. “This comparison provides an idea of whether they may need to consider actions to increase revenue or reduce costs.”
Boyda says that AgriProfit$ ensures that information is on an ‘apples to apples’ basis. “Data has to be compared in a consistent manner across farms with consistency in inventory valuation, asset valuation, net income calculations and depreciation, for example.”
AgriProfit$ is a free service. Producer information is held in strict confidence. Only aggregated, non-identifying information is published.
Learn how to enroll in AgriProfit$.
Source: Alberta Ag