How Small Farm Operators Can Improve Profits

Image via DALL-E

Running a farm can be highly satisfying, but it’s not without its challenges. This is especially true for small farm operators, who have had to contend with falling profits in recent years. These things tend to come in cycles, so there’s a chance that things will turn around soon. Still, in the meantime, many small farms risk closure due to financial issues. The good news is that there are things that small farm owners can do to increase their profit margins. In this post, we’ll look at some tried and tested methods.

Create Local Partnerships

Farms can have different business models, and it’s a good idea to utilize multiple revenue streams rather than relying on the primary source. One often underserved method is to create partnerships with local businesses. There’s been a massive increase in the interest level of “locally sourced ingredients” in recent years, which can provide a welcome cash windfall for small farms. Look at approaching cafes, restaurants, and stores in your local area and see if you can become their supplier — chances are, you’ll get at least one new customer. 

Work More Efficiently

Time is money in all industries, and that includes the farming industry. The more efficiently you can work, the more money you can make. After all, greater output means you’ll have more products to sell, and reduced work hours mean you’ll have time to do other value-boosting tasks. How you work more efficiently will depend on the type of operation you’re running. If you produce eggs, investing in a quality egg washer could save you a significant amount of time, for instance. But it’ll vary from farm to farm. The best approach is to see what tasks are currently occupied and if there are ways to streamline the task. In all likelihood, there will be something you can do. 

Host Events

If you have a big space, as you likely will if you’re running a farm, then could you consider hosting events? Your farm aesthetic may look normal to you, but to some people, it’s a trendy style — and those people could well be interested in hosting their next event there. You might need to invest in some decorative touches, but you won’t need to do as much as you might think.

You may also consider opening to the public in other ways, such as giving tours of the farm or having market days where you sell your produce. Beyond this, if you have the space and are willing to look after other people's animals on a permanent or even temporary basis, you could, for instance, open your farm to the public as a livery yard. All you'll need for this particular venture is one of the best equestrian buildings in which any animals can be kept safe, as well as enough outdoor space for them to exercise and be ridden. Opening a livery yard can be a very profitable venture, so this is definitely something to keep in mind if you're equine-inclined!

Read the Market

It’s always good to stay agile when you’re running a business. If you’re running a farm, it will make more sense to produce things that people buy rather than products that fall out of favor. You can pick up trends and adjust your processes based on that information. If you see that the popularity of one product is increasing, then it’ll be time to focus on that.

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