From cattle to lambs, wheat to grains, it’s your job to keep everything alive and healthy. That includes your finances. We’re looking at the best agriculture Key Performance Indicators (KPIs) to measure in the farming industry, so you can get back to tending your stock.
1. Operating profit: This core metric tells you how much revenue is being generated by the business after costs and overheads have been accounted for. Operating profit can be expressed on a per animal or per hectare basis, giving you a clear view of how you’re doing against your business goals.
2. Yield of stock: Any number of things could impact your yield – natural disaster, extreme weather, disease, the list goes on. Slim margins will keep the hardiest of farmers up at night worrying, so tracking this KPI is crucial. As with your operating profit, ensure you divide your yield into departments so you can see the areas that might be holding you back.
3. Feed and water consumption average: Your goal is to keep this KPI on a set average, so you know it’ll be a set amount of expenditure throughout the year. Of course, some hotter months will see the need for additional water, so you can add this increase to your forecast. If your expenditure dips, why?
4. Profitability per field/department: This metric will help you work out which areas need more attention. If you can calculate how much profit each area of your farm is turning over in a given period, you can consider expanding that.
5. Wages to revenue %: Measure this operational metric to see when seasonal changes dictate the need for more or less staff. Forecasting will help you make a solid decision on whether you can afford more staff or not.
Visit our KPI Library for examples and calculations for the Key Performance Indicators relevant to your farm.Learn more about calculating your operating profit here.Calculate your yield here.Get your feed and water metric in your forecast so you can prepare for the peaks and troughs of the year.Calculate your revenue per employee in the Futrli KPI Library.