Standardized Performance Analysis Integrating Production and Financial Performance

Abstract

A producer led effort through the NCA-Integrated Resource Management (IRM) Coordinating Committee has developed standardized cow-calf enterprise production and financial performance analysis to meet information needs of cow-calf producers. Areas addressed include (1) standardization of terminology and calculation procedure, (2) selection of a minimal set of measures that describe performance and (3) standardization of methodology in enterprise cost accounting. Field testing of the analysis system in 12 states involving 55 herds prior to January 1992 has been extremely successful. This re-emphasizes the desire of producers to have sound production and financial information that they can understand and utilize in decision making. The implementation of NCA-IRM-Standardized Performance Analysis (SPA™) is now underway. This paper briefly summarizes the measures selected, key results of the herds evaluated and future direction of SPA.