Time is running out if you want to enrol in AgriProfit$.
Producers have until mid-January to sign up for the business analysis program, said Pauline Van Biert, a research analyst with Alberta Agriculture and Forestry.
After providing their farm information, participants receive a detailed analysis that drills right down to their own cost of production (such as the cost per pound of calf weaned, cost per tonne of hay, or cost per bushel of barley).
“In working with Alberta producers we’ve learned that while two farms may look pretty similar on the outside, their costs and profits can vary widely for a number of reasons,” said Van Biert. “Differences in profitability have more to do with differences in their costs of production and less about commodity prices. In knowing these differences and using their own numbers, farm managers can better control their business.”
While financial statements summarize the activity of the business, they don’t dig down to how each activity, crop, or enterprise contributes to the overall farm profitability, she noted.
“AgriProfit$ breaks down the farm into enterprises, like a cow herd or grains or forages. Each enterprise is reported on individually and can be looked at as a unit to see where there are strengths or weaknesses. AgriProfit$ also brings it all back together into a farm analysis so farmers can also see their overall farm picture.”
Provincial averages, or benchmarks, are also provided to participants. AgriProfit$ is for the 2016 production year and producers are sent forms to fill in. A farm visit is made between January and March to finish up and pick up the forms.
“Producers tell us that they have become more effective at analyzing; budgeting and planning; and that they are making better management decisions,” said Van Biert. “They understand what their long-term average costs are, can identify targets for what their costs should be, and are more effective at identifying business options and opportunities.”
The only cost for the program is in the time invested in it.
“In return, the producer receives a business analysis of their own farm, using their own numbers, to use in making profitable management decisions.”
For more information or to register, contact Pauline Van Biert at 780-415-2153 or [email protected].