One of the areas RMPP were asked to look at was whether we could pull together a small number of KPIs that would be helpful to sheep and beef farmers, easy to understand and has standard ways to calculate them. A representative group of rural professionals, software developers and MPI came together with the goal of identifying a core set of measures which are fundamental to measuring the performance of a farm business.
The group identified around 50 potential measures which were relevant to a farm business, but distilled this down to 9, a mix of both financial and production, which they agreed are the key measures for a farm business.
Standard definitions were created for the inputs, calculations and uses of these.
|- Gross Farm Revenue|
|- Farm Working Expenditure Ratio|
|- Earnings Before Interest Taxes Rents (EBITR)|
|- Economic Farm Surplus |
|- Yield |
|- Reproduction Rate|
|- Live weight gain |
|- Feed conversion |
|- Pasture Utilisation|
The first on-line tools allowing you to calculate these measures for your farm business will be available via the RMPP Knowledge Hub in August, with others following later in 2017. These will enable year on year on-farm trends to be identified and comparison within region and farm class.
Early in 2018 we will also have a downloadable booklet which can be printed off or read online and will explain more about the KPIs, why they are important and how they are calculated - watch this space!