There is an adage that if something matters, it should be measured. The concept of benchmarking goes one step further and adds comparison. The New Mexico Farm and Ranch Management (NM-FARM) Program seeks to offer the ability to compare financial data:

• Against a farm’s own historic trends
• Against local averages
• and to anonymously compare costs of production to similar operations.

Benchmarking can be an “internal” or “external” process.

• Internal benchmarking looks at changes within your business from one accounting period to the next.
• External benchmarking compares your operation to others in similar type businesses or in completely different businesses.

These comparisons allow farmers to set realistic financial goals and identify areas for potential improvement. The unique challenges faced by New Mexico farmers and ranchers make it important for comparisons to be available among similar producers in the same region.

For more on financial benchmarking, click here to see the University of Minnesota Extension page.

This page was last updated 8/28/2024.