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[ENG] From Management to Data: Building a More Efficient Farm

federicocaroliagro
27 ago
Tempo di lettura: 5 min

Agriculture is increasingly discussing technology, automation, artificial intelligence and precision farming.

But there is another technology that may be even more important, and is often underestimated: the ability to make decisions based on reliable data.

A farm may have fertile land, excellent varieties, modern machinery and high-quality production.

But if it does not accurately know its costs, the margins generated by different crops, the profitability of individual fields and the efficiency of its activities, it becomes difficult to understand where value is actually being created.

This is where digital farm management comes into play.

It is not simply about using software.

It is about building a system in which data becomes a tool for making better decisions.

Agricultural data is not only agronomic

When we think about data in agriculture, we usually imagine information such as:

  • soil moisture;

  • temperature;

  • irrigation;

  • fertilization;

  • production;

  • quality;

  • weather conditions.

But there is another equally important category:

economic and management data.

How much does it cost to produce one hectare?

How much does labor account for?

What is the cost of water?

How much does a specific field operation cost?

Which fields generate the highest margins?

Which crop is actually the most profitable?

These questions are not always easy to answer.

Yet these are precisely the kinds of information that can determine an investment decision.

Knowing production costs changes the way farming is managed

The selling price of a product is not the same as its profitability.

Two farms can sell the same product at the same price and achieve completely different economic results.

The difference may lie in their costs.

Labor, energy, fertilizers, crop protection products, irrigation, depreciation, field operations, transportation and financial costs all contribute to the final result.

For this reason, understanding the real cost of production is one of the fundamental elements in assessing farm competitiveness.

Without this information, decisions risk being based exclusively on turnover.

But turnover and profitability are not the same thing.

From the overall business to the individual crop

One of the most interesting aspects of digitalization is the ability to move from the farm level down to the individual crop or field.

Imagine a farm growing several blueberry varieties.

Overall turnover may be positive.

But are all varieties generating the same margin?

And are all fields equally efficient?

Probably not.

Differences in yield, harvesting costs, management, product quality or selling prices can significantly affect profitability.

Having a detailed view therefore makes it possible to understand where the farm is actually making money and where it is simply generating turnover.


Labor management is one of the key challenges

In agriculture, labor often represents one of the largest cost items.

This is particularly true for labor-intensive crops such as fruit and berries.

Knowing how many hours are required for a specific operation makes it possible to compare:

  • fields;

  • varieties;

  • seasons;

  • training systems;

  • management techniques.

This information can be extremely valuable when evaluating an investment.

If a new technique reduces the number of hours required for specific operations, the benefit is not merely operational.

It can be quantified economically.


Investing without knowing the numbers is a risk

New greenhouses, plantations, irrigation systems, machinery, protection structures, automation and digital technologies can represent significant investments.

Before making an investment, the key question is:

how much value will it actually add to the farm?

The answer requires data.

A new machine may increase productivity, but how will it affect costs?

A new plantation may increase production, but what will be the cost per kilogram?

A new variety may achieve a higher selling price, but what additional costs will it require?

Economic management makes it possible to turn these questions into scenarios and simulations.


Budgeting and control: looking forward, not only backward

Financial statements tell us what has already happened.

A budget allows us to think about what could happen.

This difference is fundamental.

A farm needs to plan purchases, investments, labor, production and cash flows before activities take place.

An effective control system makes it possible to compare:

planned budget → actual result → deviation → cause → corrective action.

This is the step that transforms accounting from a simple administrative requirement into a management tool.


Digitalization makes data more accessible

One of the challenges of traditional farm management is information fragmentation.

Economic data in an Excel spreadsheet.

Agronomic information in another document.

Invoices in an accounting system.

Working hours recorded separately.

Production data written down during harvesting.

The problem is not necessarily the amount of data.

It is the lack of integration.

A digital platform can help collect and organize this information in a structured way, making it easier to use.

This is where technology becomes truly valuable.

Not when it produces more data.

But when it allows different types of data to be connected and transformed into useful information.


Precision agriculture also needs economic precision

Precision agriculture allows water, fertilizers and crop protection products to be applied more accurately.

But another type of precision should accompany agronomic precision:

economic precision.

If a technology saves 10% of water, that saving should be translated into an economic value.

If a machine reduces working hours by 15%, the benefit should be calculated.

If a strategy increases production, the corresponding increase in production costs should also be understood.

Only by integrating these two levels can we determine whether an innovation is truly worthwhile.


Data and sustainability can speak the same language

Agricultural sustainability also requires measurement.

Reducing water, energy, fertilizer or crop protection product use is important.

But quantifying these changes makes it possible to understand how effective a specific strategy really is.

Economic management can therefore interact with environmental indicators.

A farm can aim to:

  • produce more;

  • reduce waste;

  • use fewer resources;

  • improve productivity;

  • increase profitability.

These objectives are not always in conflict.

In many cases, greater efficiency means greater sustainability and greater competitiveness at the same time.


The role of the consultant is changing

Digitalization is also changing the role of agricultural consultants.

The consultant can no longer simply analyze historical data.

They need to help the farm interpret it.

The question is not only:

"How much did we produce?"

It is also:

"Why did we achieve this result?"

And above all:

"What can we do to improve it?"

This requires the ability to combine agronomic, economic and technological expertise.


Agrogestia: Turning Management into a Growth Tool

The competitiveness of a farm does not depend exclusively on production quality.

It depends on the ability to understand, control and improve every stage of the process.

This is precisely where Agrogestia fits in, with an approach focused on farm management and business control.

The objective is not simply to collect numbers.

It is to transform numbers into useful information for agricultural entrepreneurs.

Knowing production costs means being able to evaluate prices more effectively.

Knowing the margin generated by a crop means being able to decide where to invest.

Knowing the efficiency of an operation means being able to identify where improvements are possible.

And knowing your numbers means, above all, having greater control over future decisions.

In an increasingly technological, competitive and uncertain agricultural sector, economic management is no longer something that comes after production.

It is an integral part of production.

Because the farm of the future will not simply be the one that produces more, but the one that knows how to transform its data into better decisions. info@agroconsulenze.com www.agrogestia.com


 
 
 

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