If you're the owner of a commercial farm, you know that living the dream isn't cheap. From seed and land to machinery and water, the costs are never-ending.
It's possible you're spending more than you need to, though. While there are many things you can't cut out, there may be more efficient ways to go about running your farm.
If you're looking to cut costs, you're in luck. There are several ways you may be able to lower the price of running your farm.
Are you ready to learn how to cut expenses on your commercial farm? Keep reading for 10 ways to do it.
Employ More Efficient Weed and Pest Management
Whether you're trying to get rid of weeds or insects, you'll need to stay on top of pests to keep your farm operating as well as possible. Pest management can take a lot of time and money though. Make sure you're managing this issue as efficiently as possible.
For example, many farmers have switched to using Weed Wipers for weed control in their farms instead of sprayers. Weed Wipers allow farmers to apply weed control in windy weather because there’s not spray drift. Since the herbicides aren’t sprayed, there’s less waste and less crop loss.
Another way to cut pest management costs is by arranging your crops in more efficient ways or choosing less expensive--but still effective--pest control chemicals. Limit your spending to focus on issues you know are present or are very likely to be present.
Improve Your Farm Machinery
How effective is the machinery you're using? If you have machines that are gobbling up your power, consider upgrading to more efficient machinery.
If you don't have the funds to purchase a new machine, consider selling any tools you don't need. There's no point in spending the time and money on maintaining machines that don't play a role in your production.
Selling machinery in good condition can help you get the funds for the new machine(s) that will improve your farm’s production and profitability.
Write off Leasing Payments
You can save money on business equipment by utilizing Section 179 when filing taxes. If you lease your equipment, you'll be able to write off 100% of your leasing payments. This tax deduction can really go a long way when trying to cut costs.
Leasing business equipment instead of purchasing allows you to keep using the latest technology and use equipment that remains under warranty. However, not all farm equipment is available for lease. There will be times when you have to make a purchase. You can write off (or “depreciate”) part of the cost of your purchased equipment over time. So, whether you lease or purchase your equipment, be sure to talk with your accountant about how to write off your expenses, lease payments, interest paid, etc.
Before you start writing off all your farmland lease payments on your taxes, read this article and speak to your accountant.
Boost Your Yield Gains
If you have more room to grow crops, utilizing it can help cut costs overall. While you're spending more on seed and work, your yield will increase, which will bring in higher income.
Run some numbers to determine your break-even point, then aim for enough crops to help boost your yield. If needed, switch crop types to ones that yield more profit per acre.
Reduce Labor Costs with Tractor Implements
Labor can really take a cut out of your farm's budget. It's worth your time to find ways to cut back on labor.
One way is through the use of specialized farm equipment and tractor implements such as bed shapers. If your crops require raised beds, creating those beds can take a lot of time and effort. By using a machine to do it for you, you'll spend much less on manual labor.
The same goes for laying plastic. Consider purchasing a plastic mulch layer to get the job done. You'll spend much less time getting that plastic down, and your rows of plastic mulch will be automatically uniform.
Often time’s farm field clean-up can be a laborious task requiring a lot of hired labor. We’ve seen farmers save thousands of dollars every year by using our tomato stake puller and plastic mulch lifter/retriever. These tools are our best labor savors which easily pay for themselves in the first year of use.
Save more time and money by using a combo unit which accomplishes multiple tasks in one pass!
Cut Down on Suppliers
Have you been purchasing seed from multiple suppliers? If so, you may be missing out on some significant discounts.
Buying in bulk saves you cash in most cases. Talk to your suppliers and see what discounts are available. If they have the same seeds, you buy elsewhere, consolidate and buy them all from one location.
You may be eligible for discounted seeds as well as free or cheaper shipping if you don't buy locally.
Optimize Your Fertilizers
Make sure the fertilizers you're using are the best ones for your soil and crops. Test your soil to see what it needs.
You may be spending money on fertilizers you don't need, or the wrong type for your soil. Look for ways to cut costs by eliminating unneeded fertilizers and choosing ones that are more appropriate for your growing environment.
Reduce Disease with Regular Rotation
Crop rotation can help prevent diseases among the foods you grow. You've got to take anti-disease action if you want to get the most out of your crops.
Successfully employing crop rotation against diseases isn't a difficult concept to grasp. It just takes a little research.
Take some time to find out how rotation can help your crops. Though it may take a bit of a time investment, it's worth it if you prevent diseases from taking over your crops.
Do the Work Yourself
If the scope of your farm allows for it, perform all manual all manual labor by yourself. How realistic this is will depend on the size of your farm, the crops you grow, and the equipment you own.
If your circumstances allow, you can save a lot by doing the labor yourself. Paying regular workers can be a considerable cost, especially if you employ several people. Cut back those costs by using a combination of your manpower and efficient machines.
Negotiate Your Farmland Lease Rent
If you rent or lease the land you farm on, you may be able to get a better deal. Since this is a recurring expense, these savings could add up to tens of thousands of dollars per year, depending on the size of your farm.
If you're looking to purchase more land or move elsewhere, look for great rental agreements. Make sure the overall amount is fair, and the interest rate is good. If your current rental agreement is worse than the norm, negotiate with your landlord.
Prices, values, and interest rates all change regularly. So it's worth your time to see if you should be getting a better deal.
To run a successful commercial farm you've got to bring in more money than you pour into your operation. For that to happen, you've got to be as efficient as possible.
These tips on how to cut expenses will help you make the most of your farm. Try them today to see just how much you could save.