Whether you are just starting your farm or you are established and trying to find ways to make more profits, you are not alone. Farming is hard work. Working from sun up to sun down is not unheard of and many farmers still find that they don’t make a profit.
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Here are some ways to help you get out of that rut and become profitable once again.
Start as an Intern
If you have not started your farm yet, don’t. Instead, become an intern with a successful farmer. What better way is there to learn the ropes than from someone that’s already been there? Pay close attention not only to the orders you are given, but also to how things are done. Look at the crops and note which ones are successful and which are more work than they are worth. Learn the process of management, payroll, and invoicing too. Keep a keen eye on labor, as that is where a majority of a farmer’s profits get eaten up. Finally, don’t get in over your head with investing in high-tech or impressive machinery. Only buy what you need and can afford.
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Experienced Farmers
Once you already own a farm, it’s time to get creative. Maybe the labor ate into your profits or you planted the wrong crops and are seeing diminished profits. No matter the case, you can turn things around with a few simple steps.
- Find specialty crops – What
crops are in high demand, yet low supply in your area? Focus on those. This can help you gain the customer base you need. Once you get the customers with your specialty crops, you can advertise your basic crops as well, hopefully increasing your profits along the way.
- Sell more than crops – Crops may be your main source of income, but that doesn’t mean you can’t sell other things to upsell customers. Think of things your customers need and are thinking of when buying crops and sell those. By-products are often the best way to increase your per-customer profit.
- Get to know your customers – Be the face with the name of your farm business. Let customers see you and talk to you. Don’t be shy about offering information about the crops or farming itself. The more customers get to know you, the more loyal they will become to your business.
There are several ways to help make your farm more profitable. It starts with thinking outside of the box. Don’t just jump into a farming business until you have a solid understanding of
how to make it work right from the start. Don’t get in over your head until you know you can make it work. Start simple and give your customers what they want. That doesn’t mean you can’t grow the crops you’ve always wanted to grow, but if your focus is on profits, it’s time to focus on what the customer wants/needs first.
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