Every Farm Has Different Goalposts – Setting Goals and Defining Success

What does a “successful” Canadian beef farm look like? How do you define success on your farm?

Canfax and the Beef Cattle Research Council recently released the results from their Canadian Cow-calf Cost of Production Network. The project collected data from 115 beef producers across Canada and summarized production benchmarks such as cow size, weaning weight and calf mortality. The network also looked at profit and expense benchmarks like feed costs, cow depreciation, enterprise revenue and more. A detailed summary of these results can be found here.

Interested in the Canadian Cow-Calf Cost of Production Network?

Producers receive:

  • Opportunity to learn from and share experience with other similar producers
  • $500 honorarium
  • Farm summary of production system including physical performance indicators
  • Summary of the whole farm, cow-calf enterprise and retained ownership enterprise, with 2020 baseline and five years of historical indexing
  • Summary of future farm scenarios

Sign up at: https://www.canfax.ca/COPNetwork.aspx

While profit and production numbers are often touted as measures of success, participants in the Cost of Production Network pointed out that fiscal targets are not their only focus. Success looks different for every farm because individual goals and values vary. Some producers may put a spotlight on strategies to increase revenue and reduce costs while other farmers view success as working well with family members or having less overall stress. All definitions are important and worth striving for.

Andre and Katie Steppler were named Manitoba Region’s Outstanding Young Farmers (OYF) in 2020. They manage the cattle division of Steppler Farms, where they run purebred and commercial Charolais herds as well as the recent addition of a registered Black Angus herd.

While winning the OYF award may be the very definition of success for most farmers, Steppler, who works alongside his three brothers, their families and his parents near Miami, Manitoba, is quick to point out that there is no single goal or target that makes their multigenerational farm work. “It’s about shared visions and goals and it’s a revolving thing,” he says. “You can’t stand still.” Continue reading

Canadian Cow-calf Cost of Production Network – 2021 Results

 



You may know what you want out of your operation, but do you record what you put into it? Knowing the difference between what you get and what you give is essential for profitable decision-making. This is the purpose of calculating cost of production.



The Canadian Cow-calf Cost of Production Network launched in 2020 with the objective to benchmark different production systems across Canada. Baseline data was collected from 115 producers who attended virtual focus groups between January and March 2021. This created 25 cow-calf and 3 dairy-beef production systems. These benchmarks are the first set in a standardized pan-Canadian process looking at the many types of cow-calf production systems across the country. The network only requires data to be submitted every five years; and should reduce response burden for producers while allowing for improvements to be tracked into the future. Results from the 2020 reference year are now available online  Continue reading

A New Approach to Cost of Production Benchmarking

This is Part Three of a three-part series (see Part One and Part Two).

Editor’s note: this article is also available in French. Download the translated version here. 

When getting a clear financial picture for your operation, basic record keeping often isn’t enough. That’s why it’s essential to know your cost of production.

While many aspects of the industry are uncertain, thankfully there is the opportunity to examine what can be, for the most part, controlled – your cost of production.  As a producer, the ability to measure and manage those components of your operation that are within your control is a powerful tool. Why not take advantage of that tool by signing up to participate in an upcoming focus group?

The Canadian Cow-Calf Cost of Production Network (CDN COP Network) will develop benchmarks for specific production systems and ecoregions across the country. Scenarios will be developed for what future farms could look like utilizing the 5% Rule to identify where incremental improvements could be made around productivity, input costs, and output prices. Each production system will have its own set of limitations and opportunities where greater focus may be beneficial. Continue reading

Networks Make The Dream Work

This is Part Two of a three-part series (see Part One and Part Three).

Editor’s note: this article is also available in French. Download the translated version here. 

As the industry has been rocked by COVID-19, volatile market prices and uncertainty have occurred. There is an opportunity for producers to examine what they can control – their cost of production. During the boom years when prices are high it is easy for costs to get out of hand. You may be considering changes to your operation but are not sure where you will get the biggest bang for your buck.

The Canadian Cow-Calf Cost of Production Network (CDN COP Network) will develop benchmarks for specific production systems and ecoregions across the country. Scenarios will be developed for what future farms could look like utilizing the 5% Rule to identify where incremental improvements could be made around productivity, input costs, and output prices. Each production system will have its own set of opportunities, limitations, and areas where greater focus may be beneficial. Consider cattle operations with different production systems:

  • A beef operation in the east is considering raising dairy-beef but is uncertain about the costs and management changes needed to succeed.
  • A small, land-locked operation may be utilizing multiple income streams from multiple different commodities to manage risk. The focus is on using each acre in different ways throughout the year to generate revenue.
  • A large, specialized operation may be focused on economies of scale in purchases and sales and efficiencies in labour productivity.

When looking at competitiveness and profitability, each region needs to evaluate the limitations and opportunities unique to them. Is land, labour, or capital the limitation? Will the biggest impact for the operation come from reducing input costs, or improving productivity, or increasing price? Continue reading

Why a Cost of Production Network?

This is Part One of a three-part series (watch for Part Two and Part Three in the coming weeks).

Editor’s note: this article is also available in French. Download the translated version here. 

Canada is the sixth largest beef exporter in the world. Live cattle to the United States are also a substantial business. Cost of production and price competitiveness are key aspects to any major exporting commodity, along with regulatory environment and available resources. The beef industry must be profitable and competitive to secure land, labour, and capital otherwise those investments will go into other commodities that provide a greater return on investment.

The Canadian Cow-Calf Cost of Production Network (CDN COP Network) has been developed collaboratively with provincial coordinators and funded by the Beef Cattle Research Council. Industry has taken a lead role in coordinating the Network working with local expertise in each province. This information will support cow-calf producers as they evaluate how to evolve with new technologies and enhance competitiveness in an international marketplace. Continue reading