by Lina Martinez
Pixabay (CC0 Licence)
Farming may be one of the oldest types of business, but farmers still find themselves subject to very modern woes. Poor yields, low sale prices, and high oil prices can all lead to a need to cut costs wherever possible, but without the risk of harming overall productivity - which can be a tricky balance to achieve.
However, if you run a farming business, then there’s good news: it is possible to bring your costs into line without harming your farm’s ability to function as it should. Here’s three ideas you may want to consider.
1) Request seed discounts
Expenditure on seed is one of the biggest outgoings most farmers face, so any savings in this area can be hugely beneficial to your overall bottom line - and interestingly enough, often simply asking for a discount can elicit results.
To do this, you’ll usually need to be willing to buy from a single supplier; the goal is to encourage a single supplier to offer you the lowest possible price for all of your seed needs, effectively consolidating your purchase. You’ll need to send field maps to each seed supplier and request recommendations on a field-by-field basis, then ask what the discount would be if you were to buy all of your seeds directly from them. While some suppliers will not offer a discount, many will, and you can save a substantial amount on one of your biggest farming expenses.
2) Go generic
When it comes to herbicides, it is often tempting to buy the leading brand. Most people - farmers and non-farmers alike - tend to associate leading brands with better quality and higher efficiency, but this simply isn’t the case. A brand may be better marketed than its generic competitors, but this does not necessarily mean that its product is more effective.
It’s therefore worth researching generic herbicides and comparing the ingredients of lower-cost options to the brands you usually use. It’s also helpful to talk to other farmers online and ask their experience of generic products; if a particular product is well-recommended, then making the switch from branded herbicides could save you a small fortune every year.
3) Opt to buy secondhand equipment
The need to replace and update farming equipment can be a continual drain on any farm’s resources, but it’s a cost that many farmers feel they must sustain. After all, they need the right equipment in order to ensure their farm is able to function, so there’s simply no way to opt out of making replacements as and when necessary.
However, you can reduce the overall cost of replacement equipment by opting to buy secondhand and used items. You can visit farm equipment auctions in the hopes of securing a bargain, or peruse local ads to see if a fellow farmer is selling the item you need; the savings from both of these options when compared to buying equipment as-new can be significant, so they’re well worth a try.
In conclusion
For farming businesses, cutting costs will always be challenging; simply running and maintaining a farm is expensive, and it is crucial to ensure the farm’s efficiency and productivity is not harmed due to cost-cutting measures. Hopefully, the tips above strike the right balance, allowing you to keep a close rein on your expenses while still ensuring your farm is able to function at an optimal level.
