Agronet Contents
This section provides basic guidance on the purpose of AGRONET in helping decision support to improve farm peformance.
AGRONET provides information and a range of tools which can support the analyse of farm operations. The purpose is to identify the best way to improve performance and increase profits so as to improve income. AGRONET uses a step by step process to build up a sophisticated appreciation of farm operational performance. The purpose of this section is to explain what each step can achieve. Each step in this process is contained in a separate section of this web site. On the home page there is an access menu which lists the different sections. This access menu is reproduced below and the explanation of this menu is to be found below the menu on this page:
Descriptions of the Menu Sections:
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This section provides guidance on how to analyse farm operations to identify where it might be possible to improve performance at crop level. The performance of each crop is measured by the:
- Yield/ha.
- Gross Margin/ha.
In order to collect farm data so as to determine performance key data is required. AGRONET describes how records should be kept so as to analyse performance and to plan how to improve overall farm performance. AGRONET provides dowloadable crop record sheets as well as plot recor sheets. Crop record sheets relate to the inputs and outputs for one crop at farm level. Plot record sheets are used to record more detailed information at field level.
A reference section provides a short description of all of the principal factors which limit farm performance (constraints).
This section also provides access to a database of Crop Dialogue Sheets. These sheets provide information on different levels of performance achieved for three 'technical packets'. Technical packets describe the levels of inputs, such as seeds, fertilizer and pesticides and the results achieved in terms of yield and gross margin. The three basic technical packages are:
- Category A - high productivity or best practice
- Category B - medium productivity or average practice
- Category C - low productivity or poor practice
The initial data on levels of performance is based upon an 'average' soil. As data is collected by the AGRONET system the Crop Dialogue Sheets will be extended to include another four soil grades: of G1 (organic soil), G2 (medium loams), G3 (light soils) and G4 (heavy soils).
All of the information used in the technical packet dialogue sheets comes from Hungarian farms and therefore represents the Hungarian 'market conditions'.
By reviewing the Crop Dialogue Sheets for each crop, it is possible to determine where a specific farm's production is positioned with respect to different levels of practice. Dialogue Sheets provide guidance on the cost of increasing performance.
Short term planning is based upon the allocation of different crops according to their Gross Margins and according to the area of a farm, capacity of equipment, crop rotation constraints and cash availability. In order to plan a far it is therefore necessary to calculate:
- the cultivable area of the farm
- the production capacity of farm equipment
- the limitations on specific crops resulting from rotation requirments
- the availability of cash
Constraints calculators
This section provides online calculators to estimate the total cultivable area of a farm, the annual area production capacity according to equipment capacity, the limitations imposed by rotation requirements and the capabilities for production according to cash limitations.
Cash limitations
A common problem facing farmers is lack of cash. In this context better returns are normally achieved by raising per crop performance from lower to higher performance levels. In cases of severe cash limits it can be more profitable to produce, using less land, a higher performance crop. This is achieved by spending limited cash to purchase more inputs for a smaller areas. AGRONET provides calculators which compare technology levels, feasible areas and profits according to cash availability.
Short term planning
Based upon the results of the constraints calculators this section provides an optimization calculator which can select an optimized allocation of crops making use of the levels of performance selected. This short term planning is based upon the capacities of existing land and equipment subject to cash and rotation limitations. Only variable inputs would be varied (crop type, seed, fertilizer, pesticides). The output is a Short Term Farm Plan which presents a combination of different areas of crops which provides the highest attainable gross margin.
However, even with short term planning, technology can be altered by changing variable inputs according to the guidance in the Crop Dialogue Sheets (see previouis section).
It is also possible to introduce new and more profitable crops which can be produced using existing equipment.
The previous section helps identify the constraints on a farm as well as the most appropriate combinations of crops to achieve a maximised aggregate gross margin.The farm-specific constraints prevent the attainment of a better technological packet and higher gross margin. Often this is related to equipment limitations and sometimes lack of land. In other words a more powerful tractor and wider implement might cover a larger area of land with a high gross margin crop than in possible at the moment. On the other hand, if a farm has over-capacity equipment the profits could rise substantiallythrough extra land purchase or rental.
This section helps the user measure the improvements in aggregate gross margin which can result by removing the existing farm-specific constraints on production. Online calculators make possible the measurement of the impact of increasing land areas, equipment capacity and cash availability upon feasible aggregate gross margins. This is important information because it identifies those investments which will generate the highest return for the farmer.
It is important, in terms of risk and avoidance of over-exposure to large loans to calculate the potential return on investment. For example a large investment might provide a large impact on gross margins but in terms of return on investment be lower than a small investment with a lower impact on gross margins.
This section provides calculators which assess the return on investment and cash flow based upon feasible lower risk rates of repayment of loans. this way it is possible to refine the selection of invetment to those investments which represent a balance between financial exposure and higher returns on investment. The cash flow information can be used in any business plan produced.
This section provides guidelines on the essential information required by investors, financial institutions who might be asked to provide loans or agencies who might be asked to provide grants for a farmer's project.
This section enables the farmer to use the quantiative data and cash flows developed in the previous sections. The business plan which provides a return on total investment for the farm business provides a realistic assessment of the required investment in terms of the ongoing business. This is an important factor in providing financial agents and investors with sufficient confidence in the quality of a business plan as to react positively to the farmer's needs.
This section provides online access to information on all known sources of investment equity, loans and grants for agricultural enterprises.
This section is a discussion board to help users of AGRONET post queries as well as discuss issues of important in farm planning.
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Agronet Contents