The Milk Producer - November 2008 - (Page 24)

Nov Finance:New Template 10/29/2008 12:43 PM Page 1 FARMFINANCE By Sharon Laidlaw Learning to succeed Benchmarking is an easy way of measuring how your farm stacks up to the competition H ow does your farm compare to others in your area? What should you do to improve your farm business? Are you making the right type of improvements? These are all questions dairy producers regularly consider. The answers can be found by benchmarking your farm against a group of similar farms. Understanding your financial profile is critical to your farm’s success. By comparing your performance against your peers, you can determine your farm’s strengths and weaknesses and areas for improvement. Benchmarking can also help determine what successful farms are doing in areas like reproduction, milk quality and calf health, and how you can implement those practices on your farm. It is an easy way to see how one measures up to the competition. Today’s dairy producers want to know how they can improve their farm business, where they stand compared to their peers and what gains can be made. Technological advancements in animal genetics, plant science, farm equipment and crop science mean there is always some new product or technique to learn about. Whether it’s upgrading your skills through a college course, exchanging ideas with neighbours and friends, or learning on the job, all involve gathering information you can apply on your farm. Producers, as business owners, can use benchmarking to address complex financial matters, improve management practices on the farm and increase competitiveness. Participating in a farm business club could help ensure your farm’s future success. Farm business clubs have proved very successful for producers at the grassroots level. Essentially, a group of farmers gets together a few times a year at someone’s farm, usually on a quarterly basis, to discuss and share experiences and knowledge on various subjects. Also known as production and marketing clubs, farm business clubs exist in many different forms and focus on a number of subject areas relevant to club members. Being able to draw on the unique skills-sets of each member is the main idea behind the concept. Speakers, including industry specialists, are often called upon to discuss issues on a variety of areas of interest to club members. Agriculture and Agri-Food Canada (AAFC) has also developed a free financial tool entitled Benchmark for Success that lets you input basic financial information on your farm business. It then generates a report that compares your financial performance with that of your peers. The financial information you provide is not collected by AAFC and is intended for personal use only. Starting a farm business club in your area could be a useful learning tool. Whether it’s inviting a local banker to speak about the benchmarks bankers use to determine a farmer’s credit worthiness or simply getting together with two or three neighbours to discuss what seed varieties performed best in your area, club members can gain a better understanding of the issues and opportunities that affect them on the farm. By capturing the best practices out there and applying them to your operation, you can help ensure your farm’s future viability. With files from Rick Hirtle and John Hunt, partners with BDO Dunwoody in Salmon Arm, B.C. and Hanover, Ont., respectively. They can be reached at rhirtle@bdo.ca and jhunt@bdo.ca. 24 | November 2008 | MilkPRODUCER

Table of Contents for the Digital Edition of The Milk Producer - November 2008

The Milk Producer - November 2008
Contents
Editor's Notes
DFO�Chair's Message
Dairy Update
DFC Promotion
Farm Finance
Forage Fallout
Issues Update
Research
Applied Science
Markets
New 'N' Noted
Back Forty

The Milk Producer - November 2008