Benchmarking is one of the most powerful business tools available to farmers. By comparing farm performance against similar businesses, you can identify areas for improvement, highlight strengths, and make informed decisions that boost profitability.
But benchmarking only works if it is done well. At Promar International, we see some common mistakes that limit its value. Here are five to avoid.
1. Using incomplete or inaccurate data
Benchmarking is only as accurate as the data it uses. Relying on estimates, leaving out hidden costs, or overlooking family labour can distort results. This can lead to overconfidence or missed opportunities.
Tip: Keep records up to date and ensure all costs, including machinery depreciation, housing, and unpaid labour are included. Use audited accounts or reconciled figures from a recognised accounting system.
2. Comparing with the wrong group
Comparisons only make sense when they are like-for-like. A spring-block calving herd in Devon cannot be directly compared with a high-yielding, all-year-round herd in Cheshire.
Tip: Work with a benchmarking provider that groups similar systems together so your comparisons are meaningful. You can also compare with previous years for your own business.
3. Looking only at costs, not outputs
Cutting costs is important but focusing on spend alone risks undermining output. For example, saving money on feed could harm fertility or reduce milk yield, costing more in the long run. It is also important to understand what level of profit a business needs to produce to cover private drawings, taxation and loan capital repayments also known as the profit requirement for a business.
Tip: Balance costs with outputs such as milk from forage, margin per litre, and fertility rates.
4. Treating benchmarking as a one-off exercise
One year’s figures only provide a snapshot. Real insight comes from tracking data over time and spotting trends, ideally at least three years. This shows whether changes on farm are delivering results.
Tip: Review benchmarking data annually as part of your business planning. Working with Promar means you will get consistent year-on-year comparisons, helping you track progress and measure the impact of changes on your farm.
5. Not acting on the results
The biggest mistake is gathering the data but failing to act on it. Benchmarking should lead to practical changes, whether that is reducing feed rates, feed cost, age at first calving or improving forage utilisation.
Tip: Use benchmarking to set goals and monitor progress. Small, targeted actions can deliver big returns.
Turning figures into action
Benchmarking is not about criticising farm performance. It is about giving farmers confidence, direction, and the ability to make better decisions.
Promar International works with UK farmers to provide accurate benchmarking, practical advice, and tailored business support. Our consultants help ensure that data translates into real improvements in profitability and resilience.
Want to improve your farms benchmarking? Fill in the form below and a member of our team will be in touch, alternatively call us today on 01270 616800.
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