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Why it’s Important

Enterprise analysis is critical to identifying which crops are most profitable and where problems exist. Often, all the various crops get lumped together so the financial analysis covers the operation as a whole. To truly get a handle on productivity and efficiency, each crop or project should undergo a cost of production calculation.

1.Lets get started

Use the worksheet below to calculate your direct costs of production for various crops:
Download

2.Making Improvements

 

If you’re considering hiring labour, think about growing crops that will be easy for new hires to pick, wash, and pack to maintain quality control.

With respect to cost of production, focus on the top performers. You may decide to stop growing certain crops that are less profitable, or that take up storage space (like potatoes). Consider partnerships with other farms that may be able to grow some crops more efficiently. If you’re considering hiring labour, think about growing crops that will be easy for new hires to pick, wash, and pack to maintain quality control. Other considerations include crops that are easier to grow or that generate more revenue over other crops.

Example

One leek sells for $1.00 at the farmers market, and you can grow 150 leeks in one bed = $150/season revenue from leeks.

VS

$400- $600 revenue per harvest for salad mix/ bed, and you can grow salad mix four times per season = $1600 – $2,400/ season revenue from salad mix.

That’s a huge impact on your bottom line. Make wise decisions about which crops to grow.

3.Goal Setting

Please create an account to access the goal setting section. This will allow you to login at anytime in the future so you can evaluate how you’ve progressed. You will be given examples of steps you can take to help reach your goal, and will have the opportunity to indicate what your steps will be. Be sure to upload your completed KPI forms in order to access them in the future.

 

 

Additional resources:

“Simple technology like putting a misting system in your greenhouse so you don’t have to spend 2 hours per day in the spring to water can have a big impact”
– Amanda Bilek, Owner
Chilligo Creek Farm

“Even something simple like adding wheels to greenhouse tables can save on labour. The tables can be rolled outside for hardening off in the spring, instead of carrying trays out individually.”
– Amanda Bilek, Owner
Chilligo Creek Farm

“Look at the weather forecast for market day. If it’s going to rain all day on Saturday, sales will go down. If you can, delay harvesting and bring less product to the market that day.”
– Amanda Bilek, Owner
Chilligo Creek Farm

“Recent research on processing tomatoes in Ontario has shown yield increases of up to 81% on a range of soil types with the use of properly scheduled irrigation.”
– OMAFRA

“It’s very important to measure water use. Few irrigators use flow meters to track their water use. The natural tendency of growers in Ontario is to under irrigate. When growers do a better job of tracking water use, they tend to use more water but productivity increases. So amount of water used per unit produced may actually decrease.”
– Rebecca Shortt Engineer, Water Quantity, OMAFRA

Additional Resources:

http://www.agrability.org/wp-content/uploads/2016/05/Small-Farm-Guide-to-Purchasing-Equipment.pdf

https://www.fcc-fac.ca/en/ag-knowledge/knowledge/buy-or-lease-farm-equipment-which-option-is-right-for-you.html

https://www.bdc.ca/en/articles-tools/employees/pages/default.aspx

Software Helps with Labour Tracking: https://www.fruitandveggie.com/companies/croptracker-welcomes-ontario-berry-growers-association-20292

http://www.omafra.gov.on.ca/english/busdev/facts/16-025.htm

http://www.omafra.gov.on.ca/english/livestock/urbanagbib/sellingyourproducts.htm

www.omafra.gov.on.ca/english/engineer/irrigation.htm

http://www.farmfoodcareon.org/wp-content/uploads/2017/08/Measuring-Water-Fact-Sheet.pdf

http://www.farmfoodcareon.org/wp-content/uploads/2017/08/Self-Assessment-Irrigation.pdf

Ontario CSA Farm Directory: http://csafarms.ca/wp/

Local Food and Farm Co-op Ontario: https://www.localfoodandfarm.coop/

Ontario Farm Fresh Marketing Association: http://ontariofarmfresh.com/about-us/

http://smallfarmcanada.ca/2014/understanding-regional-food-hubs/