The Working Group Arable and Vegetable crops of SAI Platform has assigned Andersons Easterns’ Jay Wootton to develop and make a farmers tool to understand the relation of financial performance and overall farm sustainability.
The tool is the key for a better educated conversation and learning between farmers and their customers. It allocates the cost of production for a particular crop to its revenues. By doing this, the direct impacts per crop of energy use for a tractor, fertilizers, crop protection but also labor and land costs become visible and hence manageable. But there is even more, by understanding this mechanisms it also supports the healthy impact of crop rotation. It shows that lower costs have to be made for almost all inputs.
‘This is a useful tool for measuring the health of the business, and is relatively easy to use’, says Tony Worth (Farmer and Chairman of the European Initiative for the Promotion of Sustainable Agriculture (EISA)). ‘We find it helpful in our business for comparing with other similar businesses who use the same tool. It means that we are comparing like with like.’
There are three entry levels to allow you for easy use and playing. The more you know the more sophisticated level you can use to understand your farm and to try ‘what if?’ scenario’s.
“This simple spreadsheet can help farmers learn the impact of crop rotation or the relation between cost of a crop and the revenue’, says Mark
Pettigrew (Agricultural Sustainability Manager PepsiCo Europe). Robin Griffiths, a potato farmer from Shropshire, testifies: ‘I have been using the
financial tool to help my sustainable farming efforts, and I have seen how sustainability and productivity are linked. This tool I can use to understand financial benefits and what if scenarios.’
The financial tool for farm sustainability is freely available on the SAI Platform website.To view the tool and other related documents, click here.
For more information:
Peter Erik Ywema, General Manager, SAI Platform
+31 184 609 001
peywema AT saiplatform.org