KPI Series: Insight into Productivity KPIs

Tanja Folnovic

Agronomy Expert

In the last blog post we announced a series of blog posts on importance of KPIs in the agriculture industry. To repeat, Key Performance Indicators help an organization define, track and reach its goals. In this blog post, we will explain how to measure productivity KPIs.

Increase in production

Increase in production is best seen in comparison with the year before. The easiest way to calculate that is formula: Production increase = (TY-LY)/LY TY= This year’s production LY= Last year production Increase in production is calculated primary in quantity, but sometimes also in produced goods market value (revenue).

Estimated production potential

This KPI shows how much are you behind your potential. It could be the easiest to understand on one example. If the potential of your apple plantation is 15 tons and your realization is 10 tons, it means that you still have 5 tons to improve to reach your full potential.

Yield per plant/acre

The previous KPI showed us how much yield you can get on your plantation in total. This one calculates only yield per one plant/acre. The unit by which the yield of a crop is measured is kilograms per hectare or bushels per acre. It can be compared with the results of a year before or with average yield farmers get on their plants/acres.

Inputs per output

Even though there are four different input/output KPIs, we will explain them together, because they form one compact unit. Basically, these KPIs show us how much of fertilizers, chemicals, water and work you outlay to get 1kg of crops. Work may be expressed by the man hours or days of work needed to produce that amount of crops. Like the previous one, it can be measured in two ways. The first is comparison with last year’s numbers to analyze did you made progress forward and which inputs influenced on it. The second one is to compare your numbers with the results of other farmers to analyze if you are investing more or less inputs per unit than other farmers do. By analyzing productivity KPIs continuously, you always know what is your efficiency and how are you standing in comparison with others. Agrivi enables users to analyze productivity KPIs with a few clicks and get instant insight on where they are and what should they improve. Next week we are bringing you deep insight into administration KPIs, so stay tuned with us!

Agriculture KPIs