Financial benchmarks help producers fine-tune goals

The Canadian Cow-calf Cost of Production (COP) Network has released new whole-farm financial benchmarks to help producers measure profitability and identify opportunities to strengthen their bottom line.

The COP Network is an initiative of Canfax Research Services, funded by the Beef Cattle Research Council, to create standardized, pan-Canadian benchmarks for cow-calf production systems.

Producer data is collected every five years, with annual indexing applied to provide insights into costs, productivity, and potential areas for improvement. The goal is to enhance industry competitiveness by supporting a cycle of continuous improvement and innovation.

Since launching in 2021, the COP Network has gathered standardized data from more than 235 producers nationwide, building 64 benchmark farms that reflect a wide range of production systems.

Practical data to guide decision-making

The new whole-farm benchmarks show that top-third performing farms achieve net income equal to 30 per cent of total farm revenue, with the balance allocated to inputs (50 per cent), depreciation (10 per cent), and overhead (10 per cent). In comparison, lower-performing farms averaged 17 per cent net income, often weighed down by higher depreciation and overhead costs.

Unlike production records, which focus on day-to-day efficiency, COP benchmarks emphasize financial resilience and long-term sustainability. By spotlighting profitability instead of productivity alone, the network aims to give producers practical, financially based data they can use to compare results, identify strengths and weaknesses, and make informed business decisions.

Read the full fact sheet on Whole Farm Financial Benchmarks here.

Canfax also hosts a resource page on COP Analysis where you can find the full list of COP fact sheets.