Use key performance indicators to improve your farm’s financial health

Dec 03, 2025

A lot of Canadian farmers take a big picture approach to their farm’s financial health — a “money in, money out” way of thinking.

Farm management consultants say this strategy is woefully short on details, and not much help to an operator who wants to expand, reduce management stress or build a solid succession plan and it just doesn’t have to be that way, says Eric Olson.

A farmer-turned-banker-turned-farm business consultant, Manitoba-based Olson leads MNP’s farm consulting group. He thinks proper strategic planning fell victim to strong markets that alleviated the need for more granular examinations of overall farm performance.

So, while many farmers can comfortably talk about gross margins (gross income minus input, seed and insurance), they might waffle on the numbers linked to the nitty gritty costs of production. A farmer might be up to date on commodity prices and contracts, for example, but rarely take a hard look at viable ways to improve profits or cut costs.

“Farmers could all benefit from knowing more information about what it costs to run their businesses,” says Olson. His starting point? Key performance indicators (KPIs).

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Video: A Farm Song (Busy) | Parody of A Bar Song (Tipsy) by Shaboozey

Lyrics:

My days begin with workin’, Alarm’s at 5 o’clock,
I Fill 5 gallon buckets, The feeders and the troughs,
This five to nine ain’t workin’, why the heck do I work so hard?,
I can’t worry ‘bout health problems, I can sleep in when I’m gone,

One, here comes the two to the three to the four,
Tell em’ ‘buy another cow, we need plenty more’,
Blue jeans are gettin’ dirty, what else could I ask for,
Oh my, more chores

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
There’s another flock of sheep that still needs feed,
Everybody on the farm gettin’ busy,

Everybody on the farm gettin’ busy,
Everybody on the farm gettin’ busy,

I’ve been working pretty stressed but,
I ain’t changing for some cash,
Lord knows that I’m very blessed (More chores),
But I gotta say it’s hard,
Workin’ outside gettin’ charred,
Living out here on the farm, (more chores)

One, here comes the two to the three to the four,
Tell em’ ‘buy another cow, we need plenty more’,
Blue jeans are gettin’ dirty, what else could I ask for,
Oh my, more chores

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history
There’s another 20 chickens that still need feed,
Everybody on the farm gettin’ busy,

Everybody on the farm getting’ busy,
Everybody on the farm gettin’ busy,

Fun, here on ranch that’s what you can’t ignore,
Might be pretty hard but I love it to its core,
Flannel’s gettin’ dirty, what else could I ask for,
Oh my, more chores (Tell ‘em sing with me)

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
There’s another flock of sheep that still needs feed,
Everybody on the farm gettin’ busy,
Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
Watching cattle in the dark, don’t miss me,
Everybody on the farm gettin’ busy,
(Yeeeeeehaw)
Everybody on the farm gettin’ busy,
Everybody on the farm gettin’ busy,
It’s the best bro, go get yourself a farm