Introduction to Benchmarking in Farming

Created Feb. 7, 2024 by William Kanyi

Data Collection-Analysis-Comparison

OVERVIEW

After identifying the problems, performance indicators and benchmark farms, you are now ready for fieldwork. In this lesson, you will learn how to collect the data and information needed for benchmark process, comparison of data and interpreting differences in the data. Your learning group will visit benchmark farms to collect data and other pertinent information for comparison and analysis. The information collected in the identification category will be compared against the data collected at this category of benchmark process in order to identify gaps in performance. The lesson will cover step five, six and seven of the benchmarking process. By the end of this lesson, your learning group will compare and analyze data collected to identify performance gaps. The objective of these steps is to come up with a comparison inventory sheet identifying and analyzing gaps in performance.

SUBJECT AND KEY TERMS

Data, Information, Comparison inventory sheet, Analysis, Comparable data, Production, Inputs, Inventory, High fixed cost, Loss gross margin, Gaps and Causes.

OBJECTIVES

  • Participants will be able to identify pertinent data for benchmarking purposes.
  • Participants will be able to review collected data and analyze it.
  • Participants will be able to compare data in order to identify issues and areas of opportunity.

RESOURCES

Reading - Click here: Farm Business Analysis Using Benchmarking

               Part 2 (pg. 77-111)

READING INSTRUCTIONS

Read this section with an eye to completing the suggested tasks, the reading will guide you in data collections process, performance comparison, and interpreting resulting information. The reading is a practical guide to developing a data comparison and analysis worksheet, you should engage in the outlined tasks with the intention of drafting a working document for your farm. The objective of this reading is to guide you in finding performance gaps and causes.

ACTIVITIES

  • Collect data and information on benchmark farms
  • Develop a comparison inventory sheet    
  • Visit identified benchmark farms
  • Conduct interviews/observations to collect data.
  • Record and Compare benchmark farm and your farm data.
  • Interpret results and develop a worksheet.    

DISCUSSION

  • How will the data be collected?
  • How will the data be recorded for comparison?
  • What are the causes of the root problems?
  • What are the challenges and successes of data collection, comparison and analysis process?

CHECK FOR UNDERSTANDING

  • What are some tips for collecting information on from benchmarking?
  • What type of data is needed for benchmarking purposes?
  • What methods are used in data collection and information generation?
  • Which are the two forms of record collection?
  • What are the key area of comparison?
  • What are some tips for identifying root causes and gaps in performance?

SUMMARY

This requires the collection of data from both the learning group and the benchmarking farms. Information and data from all sources should be consistent since this will form the basis for the comparisons to be made of the farm businesses in question. Some other factors to be considered are: (i) the quality of the data, (ii) the cost and time involved in collecting it, and (iii) ways in which the data can be shared with other farmers. Comparisons of the performance of the farm business with the benchmark farm are made at this step in the process. Financial and technical indicators are used to compare performance and identify differences (gaps). These differences can suggest weaknesses within the farming system and its parts and the reasons for them. Alternatively the differences may suggest strengths in the farming system and its parts as well as the underlying reasons for them. This in turn, could suggest opportunities for improvement. The performance comparisons results in a better understanding of the causes of a problem and these in turn can lead to finding solutions. Once areas of improvement have been identified, it is useful to examine the benchmark farms in more detail. Digging beneath the data will help to understand what a particular farmer is doing better than the farmers in the learning group. More importantly, it will help them to understand how it is being done (Kahan 2013, p. 24-25).

                                                 Click to continue to: Share-Plan for Change-Monitor and Evaluate

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