Farming is not easy. It often involves long hours and low margins, which is why it is so important that those in the farming industry are always looking for ways to cut their expenses. If you are a farmer right now, you will know that commodity prices can be very volatile and you have little control over them. It’s tough, but hopefully, these ideas for cutting farming costs will help you out:
Bulk Buy Seeds
If it is possible for you to do so, try to approach your seed supplier with an offer to buy all of your seeds from them. In most cases, you will pay less for your seeds by doing this because the supplier is likely to give you a big discount for buying such huge quantities. They’ll also want to do business with you because it is rare that a farmer actually approaches them – usually they have to scramble around trying to sell their wares.
Be Smart When Buying Chemicals
When it comes to buying chemicals that will get rid of weeds and keep pests at bay, you need to ensure that you get value for money. In this instance, getting good value for money does not necessarily mean buying the cheapest chemicals available to you. You see, in recent years, many farmers have experienced problems with resistance to chemicals, which has cost them a lot of money that has been wasted on ineffective chemical treatments. So, before you buy anything, analyze prices, effectiveness and try to buy from a company that offers a guarantee, so that should you need a respray, you can get one without having to pay more.
Pay Less for Outbuildings
Farmers need outbuildings, whether they’re for storing grain or keeping cattle. In fact, buildings can be one of the most expensive outgoings for the average farmer, but they don’t have to be. By opting for metal buildings, which can be erected quickly and which last longer, it is possible to save thousands of dollars. Just look at the metal building cost to see how much you could save by making any new buildings you need metal buildings.
Try a Flexible Lease
If you do not own your farm land outright, pushing for a flexible lease is a good way of cutting your outgoings at times when commodity prices are lower than you would like. More and more landlords are happy to consider flexible leases, so it can’t hurt to ask your landlord if they’d consider it.
Restructure Your Debt
Restructuring your farm’s current debt is another great way to cut costs and maximize your cash flow. You might need to call in the help of an accountant to help you work out how best to use your money to do this, but you could free up thousands of dollars per year by making changes to your debts, paying some off and moving others around. It really is a worthwhile exercise to perform at least once a year.
Do you own a farm? What are your top tips for cutting costs to your business?