Carrying out an e-Profit Monitor (ePM) for 2016 should be a current priority for drystock farmers. After all, your farm is a business and every business is built on financial performance. The first step involved is to download and print the Teagasc drystock profit monitor input sheet. This input sheet can be found online when you search “e-profit monitor input sheet” and it breaks down the required information into various sections. Alternatively, if completing yourself, log in to ICBF Herdplus, select “applications” and then “profit monitor” – although it is paramount that you know exactly what you’re doing if attempting your own profit monitor on Herdplus.
Entering your direct payments and livestock trading information is the first step to filling out the ePM input sheet. “Sales & Direct Payments” is the first section to be filled. The value of your basic payments and other premia are required here. All this information can be found on agfood.ie (see pic The other section that requires income information is “Livestock Sales and Purchases Details”. The information needed for this can be found in your ICBF Herdplus account under applications > profit monitor > sales and purchases summary (above right).
Livestock opening, closing & average details
“Livestock opening, closing & average details” is the next section to fill out on your input sheet. This section will give the average number of stock on the farm over the year, as well as looking at the livestock inventory. It is vital to record inventory changes from the year. This information can again be accessed through the profit monitor section of your ICBF Herdplus account under applications > profit monitor > monthly livestock > livestock summary. It is then up to you to give a realistic valuation of your current stock.
Variable and fixed costs
Variable and fixed costs are the final sections of the input sheet to be filled out. Many farmers may find it difficult to dig out the information required, but there are a number of sources available. Our advice here is to contact feed suppliers, merchants and vets that you buy from and ask them to print account summaries for 1 January 2016 to 31 December 2016 – they should be happy to do so. As well as an ePM, Teagasc recommends filling in the Teagasc cost control planner sheet. This will keep track of all expenses over the course of the year and it will leave them readily available for transferring on to your ePM input sheet. There is a lot of crossover with fixed costs and although they’re not easy to calculate, they’re vital to understand. Average fixed costs per hectare on drystock farms are around €500. Buildings are usually depreciated by 10% annually and machinery typically 10% to 20%, depending on the circumstance. Where do you rank?
Analysing your form
When filled in, send your ePM input sheet to your Teagasc business and technology adviser for completion. The most important part of the process is to then sit down and analyse your completed profit monitor. Are your feed bills too high? Are you spending too much on fertiliser? Do you have enough kg of output for the stock you are carrying? Examine where the strengths and weakness are within your system and use this information as a tool to improve your margin for 2017. See the profit monitor targets and how you compare to the 2015 BETTER farm profit monitors in Table 1.
The targets: