Starting and running a farm business is engaging and satisfying work, providing products with the biggest markets of all. However, it’s not easy, and many inexperienced farmers might have trouble keeping their business sustainable, especially during the lean periods. Here, we’re going to look at a few of the techniques you can do to not only keep down costs and create a leaner business but to create a business that’s smarter about how it earns its money.
Diversify those income streams
When you start running a farm, your first and only thought should be setting up to provide the products you plan on selling. Whether it’s animal goods or crops, becoming as efficient at producing them as possible is the single best way to ensure a profit. However, once you’re done with that, finding new revenue streams to make a little extra money can help you through the lean patches of the year, too. Selling the by-products of the farming process, such as manure, is one way to do it. Others will offer entertainment services to local communities, such as hayrides and petting zoos if they have the animals on their farms. Otherwise, targeting new markets, such as selling to chefs or running a farm-to-table dinner business can be new ways to expand the business.
Take the seasons out of the equation
Farms are the original seasonal businesses. If you have particular crops you focus on selling above all else, then our business will rise and fall with those products. You can think about diversifying yet again by investing in the soil and processes for crops that are grown when your main produce isn’t in season. Otherwise, you can downplay the role that the seasons have to play in your annual business lifecycle. For instance, there is frost prevention equipment that can help you keep your soil in better condition even as the months get colder. There are more and more tools allowing farmers to have a little more control over how the seasons affect their crops.
Keep up with the times
As mentioned, making your production processes as efficient as possible is the best way to guarantee a profit on your product. However, the means of doing that can be quite expensive. Most often it means upgrading your farm machinery. Smaller farms can have a lot of trouble finding the funding for the high-tech equipment that would enable them to greatly expand their yield or to make their work much more efficient. However, farm machinery and equipment financing is on the rise. You could pay a lot less to start using the equipment, then pay the provider a monthly fee to use it. By the time the financing agreement is over, you will completely own the machine, helping you offset some of those costs.
Flexibility is becoming more and more crucial as independent farming businesses face steeper competition. Hopefully, the tips above offer you some ways to keep your business financially sustainable or at least give you a little inspiration to find your own ways to revolutionize your income strategy.