There’s the idea that running a farm is some sort of pastoral existence, one that’s traditional, spiritual, fun, and free. While there are elements of all those things, that doesn’t tell the whole story. The fact of the matter is that trying to turn a profit on a farm can be difficult, and there are no shortcuts that help to boost the farm’s financial health. However, there are ways that farms can boost their profits. In this blog, we’ll take a look at five ideas that can help to improve the long-term financial health of the holding.
It’s risky just to have an overreliance on just one or two products. That’s because things can always change; the price of one product can drop, and if all the investment has been made in developing that product, then there will be issues. But perhaps more important, it could be that you’re missing out on profits if you’re not growing products that are in vogue. While you don’t necessarily need to invest all your time and energy into growing, say, kale, setting aside some space for topical products can be a smart way to take advantage of profitable products as and when they arise.
One of the best ways to boost profits is to, well, reduce the amount of money that you’re spending. Reducing your costs by 25% is the same as increasing your profits by 25%, and it can be much easier, too. So it’s worthwhile looking at your expenses, and seeing where you can make some changes that’ll result in reduced costs. It could be that your feed isn’t as effective as it could be, in which case it’s recommended to find more information about an alternative that’ll produce a better yield. The energy cost of running a farm can be extensive, too — might switching to a more sustainable option save you money?
One smart way to boost your farm profits is to look at other ways to make money. Engaging with the public and providing tours can be one smart way to supplement the income that you make off your products. There’s a common complaint that people are too far removed from the food-growing process, but it’s not as if there’s no interest. Look at opening up your farm to public tours, and you’ll find that people are more than willing to come along.
Another smart way to reduce the amount of money you spend is to look at your machinery. Do you always need to buy new, or even to own the machinery at all? Perhaps not. There will be plenty of second-hand options available, or you can look at renting.
Finally, if you have all that space, why not look at hosting events? There can be much income generated from hosting weddings and other events on your farm, and it can also make things a little more interesting, too. If you have a beautiful, large space, then go for it!