How do you incorporate sustainability into farm performance evaluation?

1 What is farm performance and profitability?

Farm performance and profitability are measures of how well your farm is achieving its objectives and generating income. You can evaluate farm performance using indicators like yield, quality, efficiency, productivity, and innovation. You can calculate farm profitability with methods like gross margin, net farm income, return on assets, and return on equity. However, these measures do not capture the full value of your farm, as they do not account for the environmental and social costs and benefits of your farming activities.

2 Why is environmental and social sustainability important for farm performance evaluation?

Environmental and social sustainability are aspects of farm performance that reflect the long-term viability and impact of your farm. Environmental sustainability means that your farm is using natural resources responsibly, minimizing waste and pollution, enhancing biodiversity, and adapting to climate change. Social sustainability means your farm is contributing to the well-being and development of your workers, customers, suppliers, and society at large, respecting human rights and ethical standards, and promoting equity. By incorporating environmental and social sustainability into your farm performance evaluation, you can identify and address the risks that affect your farm's future, as well as demonstrate your commitment to social responsibility and stakeholder engagement.

3 How do you measure environmental and social sustainability?

Various frameworks and tools can help you measure environmental and social sustainability on your farm depending on context, goals, and resources. The Sustainability Assessment of Food and Agriculture Systems framework, created by the Food and Agriculture Organization, provides guidelines for assessing sustainability performance across four dimensions: good governance, environmental integrity, economic resilience, and social well-being. The Farm Sustainability Assessment tool, developed by the Sustainable Agriculture Initiative (SAI) Platform, is a practical self-assessment tool that allows farmers to evaluate their sustainability practices against certain criteria. The Cool Farm Alliance's Cool Farm Tool is an online calculator that helps farmers estimate their greenhouse gas emissions, carbon footprint, potential for carbon sequestration, and mitigation based on farm management data and practices.

4 How do you improve sustainability on your farm?

Measuring environmental and social sustainability on your farm is not enough; you must take action to improve your sustainability performance. Adopting best management practices that enhance soil health, water quality, nutrient management, pest control, animal welfare, biodiversity conservation, and waste reduction can help. Additionally, implement precision agriculture technologies such as sensors, drones, GPS, irrigation systems, and data analytics to optimize the processes. Diversifying your crop and livestock systems and products can increase resilience and competitiveness while providing environmental and social benefits. Finally, engaging with stakeholders such as workers, customers, suppliers, regulators, investors, and local communities can help you understand their needs and expectations as well as communicate your sustainability performance. It can also enable collaboration on solutions.

5 How do you report your environmental and social sustainability performance?

Communicating and reporting your environmental and social sustainability performance is essential for building trust and credibility with your stakeholders, as well as for attracting support. To do this, develop a sustainability strategy and policy that outlines your vision, mission, and values. Also, creating a sustainability report following internationally recognized standards and frameworks such as the Global Reporting Initiative or International Integrated Reporting Council can showcase your sustainability achievements, challenges, and plans. Joining a sustainability certification or labeling scheme such as organic, fair trade, or rainforest alliance can also verify compliance with certain sustainability standards. Participating in a sustainability platform or network such as SAI Platform, Cool Farm Alliance, or Global Roundtable for Sustainable Beef connects you with other farmers and agribusinesses that share your sustainability goals.