What Can Agricultural Businesses Do to Save Money?
Running a thriving farm is a balancing act. Variables like the number of chores to do and the necessary materials to work successfully must all coincide in perfect harmony for agricultural businesses to thrive. Unfortunately, economic uncertainties like changing policies and expenses make it challenging to keep things running smoothly. Find out how you can reduce farm costs with these agriculture money-saving tips.
Be Thrifty to Avoid Paying Premium Prices
Even if you can afford to buy what you need for your farm at peak prices, that doesn't mean you should. You can significantly reduce many farm costs by making purchases in the off-season. For instance, you can score deeply discounted prices from suppliers by pre-purchasing for the next season, near the end of summer. This tactic is advantageous when purchasing seeds, provided you plan to maintain their quality by storing them correctly.
Reevaluate Your Expenses
Every agricultural business has costs, but you don't have to address them all at once. One of the best farm costing solutions is to evaluate all your expenses and investments. Determine which issues are urgent and what can wait until later.
Create two different budgets to help you keep track of your items — one for long-term and one for short-term viability. Decide what you need now to reach all your current and future goals. This tactic will help you track all your expenses, while also allowing you to keep an eye on the big picture going forward.
Explore Government Assistance
If you are struggling with a necessary large investment, grants and loans can be one of the best ways to soften the financial blow. For example, the U.S. Department of Agriculture and the Farm Service Agency offer various programs specifically designed to help agricultural businesses. These programs help make farm improvement projects much more attainable than trying to do it all on your own.
Conserve Your Resources
Improving your farm's conservation management practices is a hidden gem among money-saving ideas. Think about all the methods you use for pest control, irrigation, livestock water, crop residue, etc. Do some research regarding strategies and systems that can save on labor, fuel and equipment expenses. In some cases, these changes may even qualify for assistance through cost-sharing programs, which is an added perk.
Keep Track of Everything
From the feed you use to keep your livestock healthy to the amount of fuel you need to run the farm and everything in between, maintain detailed records of all your expenses and profits, and use these to reevaluate your expenses. This tactic can help you identify areas where you can afford to save money on the farm without compromising your bottom-line profitability. Data management solutions can help you easily keep track of every last detail and allow you to get an accurate understanding of how your farm is doing.
Invest in Quality Equipment
It may be tempting to purchase the least expensive equipment to save money. Unfortunately, this can backfire when the equipment does not perform to your high standards, constantly breaking down and requiring costly repairs. Investing in superior agriculture equipment provides you with peace of mind, knowing your farm will keep running at its peak without skipping a beat. You can also expect to reap considerable savings on repair and replacement costs.
Keep Machines and Equipment in Top Shape
Your equipment is essential to your farming operation, and you should treat it as such. Make routine machine and equipment maintenance part of your farming schedule to extend your machines' performance and life expectancy. Create a realistically achievable upkeep plan, and do not let it fall to the wayside. In addition to machinery and equipment, other areas of your farm that could use a maintenance routine include crop drying and storage units, animal housing and ventilation systems. By checking that everything is well-maintained and in proper working order, you will reduce agriculture costs later down the line.
Determine Opportunities to Reduce and Optimize
Do a thorough review of all the expenses and investments you have made and are planning to make for your farm. Everything you purchase for your farm represents a hard cost. Determine areas within your operation that can handle reduced input, plus opportunities that would benefit from increased input. Think about adjustments you can make that will financially boost your entire farm.
Find Funding
Besides the government grant programs we mentioned earlier, many local and nationwide commercial creditors and banks offer various loans geared toward small business owners. If the purchase of land or equipment is outside your reach, low-interest loans can help you expand your agricultural operation and allow you to become more profitable. You can use agricultural loans to make purchases, cover operating expenses or pay for marketing campaigns.
Pequea Knows Farming
Farming is not only a job — it's a way of life. Pequea can help you keep your passion and business running the way it should. Cut costs around the farm with our wide range of outstanding agricultural equipment, such as:
Investing in superior products from Pequea will allow your agricultural operation to be efficient and successful. As a leading agriculture equipment company, we always aim to provide you with equipment and machinery that will work as hard as you do and make life on the farm easier and less costly. We work closely with engineers to design products to fulfill your farming business needs. If you are ready to make cost-saving improvements on your farm, call us today at 717-354-4343 or find a dealer near you.