Farm Credit East released a briefing report indicating the importance of benchmarking for farm businesses. Operating a profitable farm business can be a challenge, but benchmarking can be a beneficial tool to improve earnings.
“It’s been said that what gets measured can be improved. And by offering our customers the ability to compare their own financials against peers in the same industry and geographic region, Farm Credit East is helping Northeast farmers be more successful,” said Tom Cosgrove, Farm Credit East vice president. “Benchmarking is an important way to find areas where your operation is doing well and areas where there is an opportunity to improve.”
The first critical step to improving a business’s profitability is accurate, current financial information and analysis of that information to pinpoint action steps to improve a business’s bottom line. With this information in place, benchmarking can compare a business to its industry peers and identify where the business exceeds standards and areas where it falls behind. A plan for the business can then be created accordingly.
This report from Farm Credit East explains some of the key measures that are used for comparing a farm to benchmark data. The report also highlights benchmark data from sample industries, such as ag retail, equine, greenhouse, cash field, vegetables, potato, orchard fruit and dairy.
To view the full Farm Credit East Knowledge Exchange Report, Farm Credit East Benchmarking Can Show the Way to Higher Profits, visit the website. For farmers that would like to obtain additional information on Farm Credit East’s benchmarking programs email Chris.Laughton@FarmCreditEast.com or contact your local branch office.