Where to begin with benchmarking your farm business — AgEx ’17 Preview

Stock image. (Debra Murphy/RealAgriculture, 2016)

How often do you stop and take time to evaluate how well your farm business is performing? And how do you determine whether an area of the business is performing well or needing improvement?

The first step in benchmarking a farm’s financial performance is to compare it to itself, to understand historical performance. From there, you need to find broader, aggregate data — financial ratios or other metrics — that reflect comparable farms or businesses, explains Terry Betker, president and CEO of Backswath Management.

Terry Betker, Backswath Management

“I don’t think the purpose of the benchmark is for a farmer to say ‘I have to be exactly like that.’ It’s just context. ‘What are other farms doing and how does it compare to what we’re doing? How might we use that information to improve or get our own operation to a different place?'”

Together with Heather Watson of Farm Management Canada, Betker will be leading a session on benchmarking at the upcoming Agricultural Excellence Conference in Ottawa November 21-23.

Betker joined Kelvin Heppner to discuss the process of benchmarking, as well as what to do with this information in a family business. (Terry will also lead a workshop at the AgEx Conference on how and when to discuss farm finances within a family setting.) Listen below:

 

RealAgriculture News Team

A team effort of RealAgriculture's videographers and editorial staff to make sure that you have the latest in what is happening in agriculture.

Trending

Wheat prices jump into August — This week in the grain markets

This week, winter wheat prices touched a three-year high, but it didn’t last. Chicago SRW wheat prices for September 2018 gained 5 per cent or about 26 cents US/bushel to close at $5.56. While the December 2018 contract was up 5.4 percent — or nearly 30 cents — to finish a tad under $5.80. In…Read more »

Related

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.