What key performance indicators should I track in my farm business?

Setting and tracking key performance indicators (KPIs) is essential for long-term farm success. After all, you can’t manage what you can’t measure, right? How do you know if you’re on track if you haven’t figured out where you want to go?

Start with defining what success means to you, your farm, family and farm team. Profit and productivity are usually the first things that come to mind. What about health and harmony? Growing the skills and confidence of the team? Positioning the operation for a successful transition?

It’s crucial to choose KPIs that align with your goals. Next, determine the best way to measure success and track your progress toward reaching your goals.

Here are some KPIs you may want to think about for your farm:

• Financial prosperity – cost of production, profitability, liquidity and cash flow, and debt repayment
• Production/productivity – yield, quality, labour, equipment and livestock efficiency, animal health and welfare
• Market growth – customer satisfaction and loyalty, market share, pricing, sales, products sold
• Technology and innovation – use of smart technology, return on investment, new products or processes, operational efficiency