How do you measure up to this target figure? The Teagasc BETTER Farm Advisory Programme uses gross margin to compare farms and the target has been to achieve a gross margin of €1,000/ha. To arrive at the net margin, you need to subtract fixed costs from the gross margin. From this figure, variable costs are subtracted to arrive at a gross margin. This the liveweight produced on your farm. Purchases are subtracted from sales and adjusted for inventory to arrive at a gross output. It is calculated through a number of steps. Profit is also referred to as net margin or "the bottom line". Profit is the measure of the return your business creates and is essentially the reward for unpaid family labour, management and the owner's investment in the business. It is the starting point for assessing your own farm's performance and is also a requirement under the Knowledge Transfer (KT) Programme. If not already done, you should complete your PM for 2016. As the PM must be completed for each year of the KT programme, you can look back on the progress and profit or loss made on your farm. So, some searching of paperwork records may be required for accurate figures. Remember, what you put in is what you get out. However, at the end of the day, it is you that is providing the input information, costings and output figures to them. The PM is a complex exercise to complete, a professional Agriculturist, such as a Teagasc Adviser or Agricultural Consultant who is used to the ins and outs of the PM will be needed. The electronic Profit Monitor is a very useful management tool that will help you evaluate the performance and output of your farm over the 3 years of the KT Programme.įor Teagasc clients and other farmers who participated in the Beef Technology Adoption Programme (BTAP), they will be familiar with the working of the Profit Monitor, what figures, costings and output results are needed etc. So what's next on the Agenda? A common denominator for all KT programme participants, whether they are dairy, beef, sheep, tillage, equine or organic farmers, is that they must complete a Profit Monitor for each of the 3 years of the KT programme duration. By now, most farmers involved in discussion groups will have attended at least three KT discussion groups meetings and/or may have attended a KT National Event that has been approved by the Department of Agriculture. The Knowledge Transfer (KT) programme has proved to be very popular with the drystock sector, with large numbers of farmers participating in discussion groups throughout the western region.
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