The post-pandemic era is beneficial for farmers, as retail will slowly start going back to normal. However, higher costs of fertilizer, feed, seeds, and other livestock equipment have also raised the amount that needs to be input significantly.
Farmers need to reduce costs and increase output to make the most out of their existing budget. If you are a farmer looking to profit in the upcoming years, this guide is for you. However, if you do not have a farm yet, then you will be pleased to know that it is possible to buy a farm land with no money.
Are Investments Worthwhile?
The first step to saving money as a farmer is carefully going over your expenses and investments. Whether now or in the future, your investments and expenses should be able to produce profitable results and should be realistic in the long term. You must assess whether your current budget attribution is going to help you achieve the dream farm in 10 to 20 years. A few things that you can look into include:
- Animal feed
- Livestock purchase
- Land investments
- Equipment upgrades
All of these need to be carefully looked into, and the budget should be calculated for each to see whether you have enough to spend on each type of investment. If you do not have enough money to make different investments, then only consider opting for those most crucial to your farm’s success.
Will I Be Able to Control My Spending Budget?
Farm expenses may seem difficult to control. After all, you will have to spend on utilities, electricity, fuel, fertilizer, and feed. While these are costs that cannot be changed or controlled, you can reduce consumption if you are going into loss.
Tips to Help Save Money As a Farmer
Any changes you make may take a good time before they produce profits or significant effects for your farm. However, even with slower return times, saving a hefty amount in the long run, is possible. Let’s look at how you can make this possible:
Reassess Seed Types and Sourcing
The kind of seeds you need will significantly affect your spending budget. Only opt for high-tech and hybrid seeds if you need them. Yield protection traits don’t necessarily mean that these seeds can give you a great crop. It is a good idea to go for seeds with one to two outstanding traits, like sweeter and larger crops, to have an excellent crop yield with huge profits. When you choose to opt for simpler seeds and varieties, make sure your source is authentic. Researching various supplier costs to land a great deal is always a good idea.
Maintain Your Equipment
Equipment maintenance rules out the need for constant repairs, replacement parts, and new equipment. Since farming machinery and tools are expensive, it is a good idea to ensure the longevity of your equipment if you wish to save up. A strict regime is necessary, especially during busy seasons, so be sure to:
- Refuel tanks
- Clean animal houses
- Dry crops
- Ensure ventilation
- Clean the farm and sheds
- Insulate
- Service belts and motors
- Oil rusty parts
Reconsider Rent
A high rent cost means fewer savings. If your rent is increasing month on month, you will need to perform an in-depth evaluation to see if your fields are worth the money. You should also be okay with switching to a better alternative if necessary.
In some cases, farmers may not need huge fields at all. Calculate if you will be able to save up without negotiating production profits and input costs. If you make a sensible decision, it is possible to save up enough to purchase land later.
Switch to Solar Power
Switching to solar power is expensive, but the investment is worthwhile. Solar systems have a great lifespan, are eco-friendly, and help you eliminate added billing costs. You can also generate enough electricity to sell your electricity to the grid system to make profits. Fields, outbuildings, and barns make for excellent solar panel placement sites. Apart from being a business, other reasons why you should opt for solar power as a farmer include:
- Solar panels are depreciable and can be written off as heavy equipment
- Farmer grants can cover installation costs easily
- Last for 15 to 25 years
- The solar panel location can be switched if needed
Endnote
Evaluating and assessing input costs and profits is necessary before you take any step towards saving up as a farmer. However, if you manage to use the tricks stated above, you can save up enough to buy more livestock, land, and expensive equipment.
