Benchmarking a Waste of Time for Farmers

Benchmarking a Waste of Time for Farmers

Benchmarking and historical financial records are largely a waste of time in farm management, according to farm business specialist Peter Floyd.

"After decades of trying all sorts of ways to make farm businesses pay I have come to the conclusion that benchmarking is not worthwhile because each farm business is different farmers' visions, their abilities, and their properties are all different," says Floyd.

"All that benchmarking tells you that your production is different, and that doesn't help. Similarly, although historical financial records are necessary for tax, they are of little value for managing a farm business properly."

Floyd also finds that discussion groups, which he once supported fully, are less relevant to today's farm businesses. Farmers are better off putting time into identifying and recording the critical success factors on their own properties, he says.

"Figuring out the best ways to make your business more profitable is actually not difficult, but it does take time and effort. You have to collect the right information, have the right analyses done, and know how to use the results to make your own decisions," says Floyd.

"And you have to do that yourself. Being accountable to yourself is the top line the vital bit that has the vision and does the thinking which has a major impact on your bottom line."

ENDS

© Scoop Media