Use benchmarks to identify potential strengths, weaknesses, opportunities and threats to your operation
‘Cost and returns benchmarks provide valuable management information for producers,’ explains Manglai, crops economist with Alberta Agriculture and Forestry.
‘These averages are calculated from the individual producer’s data collected for the growing season through the AgriProfit$ program. This helps producers compare their unit costs to real average crop production costs.’
Manglai says this process enables producers to measure and manage specific areas of their operation with a focus on improved profitability. ‘Managing unit costs of production is one of the most significant strategies producers can employ to ensure profitability and longevity of their business.’
The cost and returns benchmarks for crops and forages are analysed by crop and soil zone. Soil zones include black, brown, dark brown, grey, Peace, irrigated regions and dryland regions.
For each crop and soil zone combination, benchmarks list average costs and returns for the region plus an average of the top performers.
‘The total versus top performers’ comparison is designed to highlight the profit and risk associated with the pursuit of cost reduction, operational improvement or focused management strategies. Benchmarks also contrast costs and returns on owned versus rented land, indicating potential profit opportunities.’
Source : alberta.ca