Farm Productivity Measures Meaningless

For immediate release

Farm Productivity Measures Meaningless

The use of farm productivity measures is meaningless and of no value whatsoever to farmers, according to farming business specialist Peter Floyd.

“We’ve been lectured on the need to increase productivity by researchers and industry leaders for at least five years, but the way they have chosen to measure it is part of the reason for over 70% of dairy farmers made a loss last year,” says Floyd.

“It’s almost as if they wanted a low figure so they could justify changes to the way research is focused and funded.”

There are better ways of measuring farm business success, but Floyd believes the only one that is of real value is 'daily profit per kilogram of dry matter eaten by stock'.

“Combining this measure with the daily return on invested capital allows farmers to maximise their business efficiency,” he says.

“It’s not rocket science, and any farmer can tap into the system to harness it. The beauty of it is that it identifies very clearly what parts of the farm business are most profitable so that farmers can focus on them.”

Peter Floyd is the Managing Director of eCOGENT Farming Business Systems
www.eCOGENT.biz

ENDS

© Scoop Media