How digitized KPI tracking powers smarter investment
Key performance indicators (KPIs) are the backbone of modern farming, but how producers track them is changing as digital tools replace spreadsheets and guesswork, giving farmers more confidence when making decisions.
“For the majority of farms we’ve worked with, a receipt capturing and processing application that integrates with your bookkeeping software is usually the most impactful,” says Taylor Phillips, chief technology officer at Maverick Ag. “They’re inexpensive, easy to use and dramatically reduce data entry.”
Phillips says that small shift to using an app on your smartphone to gather KPI data can save hours each month and make data cleaner and more useful.
“Think about how impactful it would be for your bookkeeper to have all of your receipts and the extracted data ready to be posted in their software with a click of a button,” he says.
On a day-to-day basis, say, for example, you want to optimize your input costs but need more details. Capturing receipts into an app means you can track spending and do a cash flow analysis. With that data, you can then determine which metrics you want to monitor, which will help you to decide whether to stay consistent or improve spending. An app can also be set to track specific spending.
Start with cash flow
Phillips recommends beginning with something simple.
“A spreadsheet that maps out your cash flow is a great first step,” Phillips says. “Current bank balance, sales and planned expenditures or budget – these give you a clear picture of where you stand.”
Once you’re comfortable collecting the data and digital KPI tracking, implement digital tracking in other areas of the farm. Phillips says to find the right fit by balancing cost, integration, utility, stability and data security.
“You want something that connects to your other systems, provides real value in automation and will still be around next year,” Phillips says.
Put AI to work
Start small, focus on impact and build good habits.
Artificial intelligence is playing a larger role in how farms measure and interpret KPIs. Tech companies are investing to increase AI capabilities and push the function to clients.
“I look forward to a future where farms are able to automatically cross-reference diverse data sets like agronomists’ notes, weather data and historical prices to unlock patterns that weren’t visible before,” Phillips says.
Despite all the new tools, Phillips’ advice remains simple: start small, focus on impact and build good habits. “Focus on a small project with big impact and an easily formed habit,” he says. “Something that saves time and builds consistency is how you turn data into something useful.”
From an AgriSuccess article by Tim Parent.
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