Initiative to encourage more farmers to benchmark is a spectacular success

A survey of over 1,200 farmers shows that the number of farmers using benchmarking has almost tripled in the space of two years.

The survey of farmers from all sectors (roughly 200 from arable, beef, sheep, dairy, poultry, pigs and horticulture across England and Wales) revealed that 24% are now benchmarking compared to 9% in 2002.

Jon Woolven , FCC Director said “I’m delighted that so many British farmers are now benchmarking. This is a tribute to their growing professionalism and to the work of many benchmarking supporters on the ground. Knowing your true cost of production and comparing these figures in a confidential way is critical to making business decisions. Farmers that benchmark are in the best position to face the new marketplace after CAP reform.”

But despite widespread support for the concept, with 47% wanting more information about benchmarking, Woolven warns against complacency. He adds: “We must not rest here. International competition is fierce and getting into benchmarking clubs, where you are among your peers, and which we regard as ‘best practice’, is a great way to get to develop action plans to cut costs and add value.”

FCC, who commissioned the survey, launched its national benchmarking initiative providing free Starter Packs to farmers in 2002. FCC pays tribute to a wide variety of partners, including the Red Meat Industry Forum, banks, consultants, the farming press and government offices that have helped achieve a much greater awareness of benchmarking.

The top three reasons farmers gave for using benchmarking were:

• 60% said it helped them understand their costs better

• 45% said it helped reduce their costs

• 33% said it improved their returns

Once involved in benchmarking the frequency of using services was high, with 36% of farms using services ten times or more each year. The majority (59%) of those involved in benchmarking do it with friends and associates.

The biggest drivers of awareness of benchmarking in the farming community are press (36%) and consultancies (22%).

Alongside the survey figures were a whole raft of positive comments from the agricultural sector, including one from the poultry sector that said: “Quite simply, benchmarking is good for agriculture as it keeps the sector on its toes.”