The Teagasc eProfit Monitor is an online financial analysis tool that is available to all Teagasc clients in Ireland. Hundreds of farmers in Ireland are using this benchmark tool to improve the results of their technical and economic management of the farm
The farmer,John Dunne has participated in the Farmer Journal/Teagasc BETTER Farm Programme where e-profit Moniters and Farm Plans were used to increase productivity and economic performance on farms.The Teagasc eProfit Monitor is an online financial analysis tool. The focus of the eProfit Analysis is the most recently completed production year. Data can be entered and reports viewed online, by either the farmer or his/her adviser using their own computers. Farmers and their advisers can work together to enter the information as accurately as possible and therefore ensure that the programme can produce an accurate report on the farms financial year.
Typical information required for an eProfit Monitor analysis will include some of the following:
- Details of the product sold off the farm- both amounts sold (kgs of liveweight), and the total value (€) of all sales
- Details of all farm expenses/production expenses and overheads that were incurred in the operation of the farm business during the year
- The latest set of farm accounts- Balance sheet, Profit and Loss, Capital Account
The focus of the programme is to allow users to get a detailed financial breakdown on their business by looking at each enterprise (dairy, cattle, sheep, tillage) and by analysing each enterprise in turn by its principle unit of production (litre of milk, kg of beef, tonne of grain). Your own farm figures can be compared with Teagasc target figures for your farming system and areas of weakness and strength can be identified. Areas of weakness can then be tackled and targets set for ongoing monitoring throughout the year using the Teagasc Cost Control Planner.
Your farm can be analysed on a whole farm basis and/or on an individual enterprise basis. If you are a member of a discussion group your group co-ordinator can pool your farm data with data from the other farms in the group to produce group analysis reports. These can be useful for discussion purposes and can also be used to benchmark your own farm business performance.
An eProfit Monitor analysis carried out on your farm on a yearly basis will keep you in tune with how your farm business is performing. Comparing the latest yearly analysis with previous years will allow you to monitor your progress in achieving your yearly targets
The major challenge for the farmer was the need to change and improve the technical and financial performance of the farm. The tool has been Implemented as part of the Farmers journal/Teagasc BETTER Farm Programme over a 4 year period. The main values/benefits were improved technical performance, improved financial performance and being able to measure performance.
A relevant bottleneck and challenge was getting the time to input the data and making use of the data/results. Key successes were increased financial performance and returns, increased income, and detailed information and knowledge on finances and profitability.
The main lessons to learn from this good practice is that by constant measuring and recording the financial performance you can improve further your margins and profits. Next to important impacts on the economic performance this tool also allows to reduce GHG per kg of output due to higher levels of productivity. Better cost control reduced some inputs. Improved technicial efficency produced younger cattle for finishing all year round assisting the cash flow of the farm.
For more information about the TEAGASC e-Profit please consult:
https://www.teagasc.ie/animals/dairy/financial/the-teagasc-eprofit-monitor-pm/
Authors: Paul Crosson and Richard Lynch - TEAGASC