Those who own agricultural small businesses don’t have much time to spare. Between the physical work of working in agriculture and the financial organization needed to run a business, there isn’t much room left for finding ways to save money. Luckily, there are several simple and effective ways to help you improve your bottom line. Whether you work in the feed and soy industry or in processing harvested crops, there are tried and true strategies to help you save money.
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1. Control Energy Costs
Aside from costs of labor, energy commands the majority of an agricultural business’s expenditure during the year. If your business’s energy bills are exceedingly high, or if they make up a large share of your expenditures, consider converting to a renewable energy source. For example, converting to solar power is a great way to save on utilities. Those interested in solar can also create an additional source of revenue by selling the energy they generate back to the power grid. Agricultural businesses, almost by definition, utilize a lot of land. Putting your barns, outbuildings, and unused fields to use in solar generation can be a boon to business – and to your bottom line. Plus, there are a variety of federal programs and subsidies to help finance the solar installation. If you’re not a good candidate for solar energy, consider wind, hydropower, or geothermal alternatives.
2. Invest in Data Management Solutions
Data management is essential for all businesses. However, agricultural businesses require more planning than others. Most of these companies are tied to natural climate cycles. Your readiness for these cycles will impact your bottom line at the end of the year. As a result, it’s important to stay on top of data management throughout the year. Don’t be caught off guard. Using a digital management system and keeping records of everything is also a great way to improve interpersonal efficiency. Finding a farm payroll software that works for your employees and workflow is a great way to generate and store essential data. You might also want to incorporate some type of agricultural automation. This tool can help you automatically process agricultural needs through the use of satellites and sensors. Software tools can monitor soil and plant health and adjust labor needs depending on humidity, temperature, and climate. This can be a great way to make your agricultural business both productive and efficient.
3. Prioritize Efficiency
Agricultural businesses operate on a tight schedule. This means efficiency should be a major priority. You’ll need to spend time settling on the right suppliers, the correct materials, and budgetary urgencies. This will require a lot of up-front work, but it will simplify operations in the long term. For agricultural businesses, efficiency could include pest management, eliminating crop diseases, pruning weeds, and sourcing low-cost seeds. To be efficient, you’ll also want to emphasize equipment maintenance above all else. You won’t be able to run an agricultural business if you don’t have the tools you need to get the job done.