From data to decisions: Turning numbers into insight

Rising production costs continue to affect the dairy sector globally, with key exporting regions seeing a 14% increase in cost of production between 2019 and 2024. Knowing your numbers has always been central to running a successful farm business. With an increasing range of user-friendly accounting tools available, getting started is easier than ever.

Yet, for many farmers, adopting new systems can feel daunting. It’s not just about the numbers; it’s about opening up the inner workings of a business that’s often closely connected with family life.

Add in unfamiliar terms like nominal codes and enterprise allocations and it’s easy to understand why many are hesitant.

Marion Campbell farms with her husband Tom and son David at Low Ballees in Ayrshire.

As part of our Strategic Dairy Farm programme, they worked with Laura Grieve from Agri Rural Consulting to dive deeper into their business data to better understand their real cost of production.

This topic was initially brought about when they started to pull together the actual cost of heifer replacements as part of one of the programmes meetings.

Marion was already tracking costs across the whole business, so with the introduction to using nominal codes and the ability to break down costs into enterprises allowed them to pull all the costs associated to the heifers up to calving. This gave them  the true cost of replacements joining the herd.

Low Ballees took the view that it was essential to include the cost of borrowing and depreciation in their overall cost of production – things that are sometimes left out of models but are key to understanding the full picture, especially when thinking about investment or system changes.

The final figure didn’t lead to any new decisions the Campbell family hadn’t already been considering, but it did help them take a step back and make sure everyone was on the same page.

Like any business, every penny counts. From feed and veterinary bills to machinery maintenance and milk sales, managing farm finances with clarity is crucial.

Marion said:

“As our family dairy farm has grown and diversified, keeping the books in spreadsheets had become more and more of a burden.

“It became particularly challenging when David needed detailed breakdowns for various farm projects, especially with us being part of the AHDB’s Strategic Dairy Farm initiative.”

During year-end, with paperwork at the accountants, Marion often found herself making phone calls, asking for invoices to be copied and emailed back to her. That’s when their accountants suggested they consider switching to online accounting software.

“At first, I was very apprehensive. Spreadsheets were my comfort zone. I knew where everything was (well, most of the time), and the idea of learning a whole new system honestly terrified me.

“But because our accountants also use a different software, it promised to make things much simpler for everyone.”

Any questions she had could easily be answered with a quick phone call or even a WhatsApp message. Marion soon realised that moving to this software was more than just modernising, it was about gaining real control and transparency over their finances.

The transparency that their accounting software provided has helped Tom and David make more informed decisions for the farm. It also means that the Campbell’s year-end can now be completed quicker than previously.

Marion said:

“We’ve assigned around 60 codes to different aspects of the business. Having this kind of detailed breakdown.

"For example, specific costs for feed, veterinary, machinery servicing costs, gives us a much clearer picture of where our money is going.”

One example is that Marion can accurately calculate their pence per litre cost, giving them a better understanding of where money is made and where it’s spent across the entire farm.

When Laura came for her first visit to Low Ballees, Marion was incredibly apprehensive. The idea of handing over full visibility of their financial accounts and laying their books bare felt uncomfortable:

“For years, I had managed everything my own way, keeping things close to my chest, even if it wasn’t always the most efficient. There was a fear that I might have been doing things ‘wrong’, or at least not as well as I thought.

“I worried about being judged. Those thoughts made me defensive, and I even tried to convince David that it wasn’t the right time to make the switch.”

Deep down, Marion knew that without transparency, real progress couldn’t happen. Taking that first step toward openness started to shift her mindset from defensive to proactive. She added:

“Laura’s suggestions, particularly around assigned codes, have been invaluable. What once felt like giving up control now feels like gaining it.

“Getting used to a digital system and trying to go paperless has been a struggle for me because I always like having a hard copy just in case.

“Looking back, I wonder why I held on to spreadsheets for so long. Change is never easy, especially when you’re trading something familiar for something unknown.”

But in this case, the switch to an accounting software wasn’t just overdue, it’s been transformational for the Campbells.

From initial doubts about using nominal codes to now carrying out regular cost-of-production monitoring linked to on-farm technical performance, the progress at Low Ballees has been clear.

Their story shows how financial data, when properly understood, can empower rather than overwhelm, helping farmers make decisions with greater confidence.