GRAIN PRODUCTIVITY MODULE
You can’t manage what you don’t measure. That’s the premise behind this Farm Productivity Resource. In order to make productivity improvements on your grain operation, it’s critical to take baseline measurements and track your progress.
According to advice from commodity leaders and cost of production experts, four Key Performance Indicators (KPIs) will have the greatest impact on productivity of your grain operation. This module includes easy-to-use calculations and worksheets for you to calculate your numbers for each KPI.
Take a few minutes to review what is required for you to complete the calculations. You’ll need to gather the required information before you can start inputting numbers and calculating your baseline.
By the end of this module, you will:
- Be able to identify major productivity challenges related to costs
- Implement principles that address outlier costs or production challenges
- Understand market implications with or without on-farm storage
At the end of the module, you will have a report that includes your data and goals as well as tools you can use for on-going tracking.
“We want to know our cost of production per bushel or tonne so we can understand and know what price we need to cover variable costs. If you wait until harvest you will know the exact cost of production per bushel, but this limits informed marketing in advance of harvest.”
– Peter Gredig, Grower
“Grain marketing with or without on-farm storage requires a plan and discipline. For those with storage, the issue that can arise is defaulting to a “hold and hope” strategy where the grower puts the crop in the bin and sits on it waiting for better prices. Every grower has to find their comfort level with how much forward contracting or price taking to do before harvesting or even planting the crop.”
– Peter Gredig, Grower
OMAFRA Field Crop Budgets:
These budget sheets allow for a more detailed look at your cost of production for various crops.
AgriStability Towards Improved Profits (TIP)
Farmers who participate in the AgriStability program can request a management analysis report that looks at the information submitted for AgriStability. The TIP report compares current year performance with the farm’s 5 year average. It also provides industry benchmarks for each line item based on the type of farm and income range. It is an excellent resource to help spot outlier costs that need to be addressed.
http://www.omafra.gov.on.ca/english/busdev/facts/tipreport.htm or call 1-877-424-1300