According to a survey by farm consultants The Anderson Centre, the top quartile of dairy farmers in England earn an average of £120,000 more than the lowest 50%. The paper, which was initially released in 2018, discusses the elimination of farm subsidies and the introduction of “public money for public goods” as the UK’s new agriculture policy would be centered on rectifying market failure rather than providing public benefits. The research also examined the cattle, lamb, cereal, and oilseed sectors.
The research looked at data from the Farm Business Survey, comparing pairings of farms in the top 25% and worst 50% of performance. The key elements were agricultural costs, agricultural production, contracting, farm area, stocking rate, enterprise mix, milk price, and agri-environment initiatives.
The survey highlighted six key characteristics of high-performing farmers: a merciless emphasis on expenses, stocking rate, focusing on what you’re excellent at, understanding what the market demands, knowing what you want to accomplish, and attention to detail. Top performers spend less of their budget on overheads like equipment and more on variable expenditures like fertilizer. They also work to improve land productivity and the quality of grass and forage produced.
Furthermore, top-producing farms control expenses while maintaining expenditures for cow health and productivity. They understand what the market demands, such as keeping milk clean and ensuring optimal seasonality for processors. They also know what they want to do, such as communicating with business partners and family members and creating yearly budgets to demonstrate where the year is headed. They also recognize and frequently analyze their farm’s Key Performance Indicators (KPIs).
