Live SGP – A Guide to the SGPM

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The SGP is an indicator of the evolution of a farm’s structure of production (for example, its enlargement or choice to produce in a higher potential) and not a variation of its turnover. It is therefore a supplementary indicator to other indicators, but it does not represent the totality of a farm’s activity. Moreover, its calculation is not affected by the price of inputs and outputs, the quality of the crops or the weather.

A farm’s SGP is calculated based on its own accounts, which includes the SGP of each individual production unit, including labour and capital. However, it is also possible to calculate a farm’s SGP using the SGP of a similar farm located on a different territory. This method is called interpolation.

The SGPM is not an index of the economic situation but is a measure of a farm’s productivity, based on the average of the SGP of all its production units. It is therefore a reliable indicator of the overall health of a farm, and allows for comparisons to be made between farms. It is a good idea to consult this indicator for comparisons and to identify areas where improvements can be made.

SGP is a system that allows for the calculation of a farmer’s production capacity, taking into account its structures and the level of performance achieved by other farms. It is therefore a useful tool to use when making decisions about production and the allocation of resources. It is also a means of comparing the productivity of farm businesses, even when they are not competitors.

This article is intended to serve as an introduction to the SGPM, and provides some basic information about how it is calculated and its significance for a farming business. However, it is not a complete guide to the SGPM, and there are many more things to consider, including the impact of the economy and weather on farming operations.

We recommend that you read our other articles on this subject for further in-depth information. These articles are available from our blog and in our e-book, ‘SGP and the Future of Farming’, which is free to download for members. Click the button below to download your copy now. Thanks!