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Simple benchmarking ‘invaluable’ to arable businesses

Strutt and Parker outlined key performance indicators which all arable farmers can monitor at the Cereals Event


Alex   Black

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Alex   Black
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Simple benchmarking ‘invaluable’ to arable businesses

Many farmers may put off benchmarking due to it seeming like a ‘dry and tedious process’ but it can be invaluable in getting businesses in the best possible shape.

 

Speaking at Cereals Strutt and Parker head of farming Will Gemmill outlined six ‘easy to calculate’ benchmarks for arable farmers to concentrate on.

 

The six KPIs:

  • Cropped hectares per arable labour unit
  • Litres of gas oil per cropped hectare
  • Horsepower per cropped hectare
  • Drilled hectares per metre of drill
  • Cropped hectares per metre of sprayer boom
  • Combined hectares per metre of combine

 

“This can highlight areas where costs savings might be found and where it might be beneficial to dig deeper into the financials.”

 

Mr Gemill said with the reduction or even loss of direct support payments, currently worth more than £200/ha, farming businesses needed to be as fit as possible to cope.

He also highlighted businesses’ need to review the most economical options when it came to hiring machines, contractors, sharing equipment and joint ventures.

 

“No two farms are the same, but by calculating their costs and considering the logistics of making a change to their strategy, growers can get some answers to some searching questions such as: Would hiring a machine be more economical for the hours it does, could a contractor do the same job at the same cost or could sharing a combine with a neighbour work logistically?” he said.

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