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Cost-conscious and profit-minded? Enroll in AgriProfit$

 
  From the November 5, 2018 issue of Agri-News
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 Calling all Alberta producers who would like a customized business analysis of their own operation while comparing their farm’s performance to provincial benchmarks – at no charge. Ann Boyda, livestock economist with Alberta Agriculture and Forestry, explains how participating in AgriProfit$ helps producers look at the cost of production for every enterprise on their farm.

“Producers are constantly challenged to manage their resources given fluctuating costs, prices and climatic conditions,” says Boyda. “AgriProfit$ provides a structured approach for decision making.”

The program retrieves, organizes, processes and analyzes the information that a participating producer provides. “A team of specialists with AgriProfit$ analyzes the physical and financial aspects of the farm business,” explains Boyda. “Together, the producer and the team produce performance indicators that gage current performance and serve as a base for choosing the best courses of action. It increases the chances of a good decision being the right decision.”

“A good decision is an informed decision,” she adds. “The analysis provided by AgriProfit$ to participating producers allows them to do so.”

AgriProfit$ can help producers with:

  • Enterprise mix decisions – Which enterprises are positively contributing to the whole farm financial picture.
  • Purchasing and marketing decisions – Know the expected breakeven levels - to cover variable costs, total costs, or breakeven yields – when setting pricing targets for inputs and outputs.
  • Investment decisions – Make the right investment in capital assets by showing what the farm can afford to pay for these assets.
Boyda encourages producers to enroll in the program. “There is a time commitment, and the first year’s submission requires a substantial amount of data to be compiled – like building and machinery investment lists - but subsequent years builds on this foundation. We are especially looking for crop and beef operations. Because of the high level of details needed, the AgriProfit$ team assists with the process by framing the questions to improve estimations. They also ensure the results are relevant and understood.”

AgriProfit$ participants receive:

  • A detailed financial analysis of their farm.
  • A detailed economic analysis by enterprise, such as cow-calf enterprise, cereal and oilseeds enterprise.
  • Production costs and returns on a per unit of output basis, such as per bushel, per tonne, per pound weaned.
  • Production costs and returns on a per unit of investment basis, such as per acre, per cow.
  • Benchmark reports comparable by region, soil zone, size and type of operation, etc.
  • Returning participants receive their own multi-year report to assess the performance of their farm business and enterprises over time.
  • AgriProfit$ applied research information and bulletins.
Boyda adds that achieving good representation in samples is crucial to delivering useful insights. “We are looking to drive broader participation this year, and we need cost-conscious profit-minded producers to join the program. Year-over-year comparison of your own operation is important, but it is helpful to have benchmark numbers to compare as well. It can help you answer the following questions. Am I on the right track? Am I excelling in certain areas, and are there other areas that can be improved? What are others doing?”

Find more information about AgriProfit$. To enroll, go to www.agriculture.alberta.ca/agriprofits. Registration is open until November 30, 2018. After signing up, a business specialist will make contact to arrange an on-farm visit between January and March, 2019. AgriProfit$ business specialists will be at Agri-Trade in Red Deer on November 7 and 8.

Contact:
Ann Boyda
780-422-4088

 
 
 
 
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For more information about the content of this document, contact Ann Boyda.
This document is maintained by Christine Chomiak.
This information published to the web on October 30, 2018.