10 Oct 2018

Farmer decisions create top performing farms

The AHDB’s latest Horizon report indicates that the top 25% of UK farms will remain profitable no matter what the outcome of Brexit.  

The report, which looked into the characteristics of the top performing farms, has suggested that it’s the decisions made by farmers that dictate the differences between the top and bottom performing farms, and not outside factors.

Hence there is scope for businesses to thrive regardless of what the government dictate over the coming months.

Eight key characteristics of top performing farms:

  1. Minimise overhead costs

Controlling costs was the highest rated farmer to farmer tip for becoming a top business with all the high-performing farms identified as having lower overheads.

Suggestions to achieve this include; considering whether an older machine can be kept longer but maintained better, collaborating with neighbours and negotiating harder with contractors.

  1. Invest in people

Looking after employees, whatever the industry is a fundamental step that is often overlooked. Offering training, involving the team in decision making and letting them own areas of the business may not mean much to you, but it does to others.

  1. Attention to detail

Recording, measuring and evaluating key performance indicators is an important step in identifying areas for improvement and change. You would be surprised how several small changes can make an incremental difference to overall performance.

  1. Set goals and budgets

Setting out ambitions and long-term goals was a characteristic of the top farms with those who compile complete farm budgets significantly more profitable.

Communication with business partners to make sure everyone is working towards the same goals was one of the main tips within the report.

  1. Benchmark

Being able to compare your business with others who are running a similar system or farming in the same area will help you identify what could be achieved and areas of improvement. Attending farmer meetings is a great way of sharing this type of information.

  1. Understand the market

Interacting with the people buying your goods can add value and keep costs down if the farm can then produce what customers require.

  1. Embrace change and innovation

This relates to having a positive attitude. In the report, the top performing farms are those who listen and are happy to have a go at adopting and implementing new ideas that may take them out of their comfort zone.

  1. Specialise

More specialised farms tend to be the most efficient. Fewer enterprises means fewer overheads and it makes it easier to ensure each enterprise is an efficient and optimal size.

Read more like this here

 

Sign up to our newsletter

Get it now

Search for new diversification ideas

Search here

Find the products or services YOU need

Find an expert

Access exclusive member content

Get it now

Contact us for help and advice

Get in touch