A farm is a business, so it’s important to treat it as such. Oftentimes, farms are seen as personal projects or a family inheritance, and it can be all of these things at once. But ultimately, you must take specialized business actions to keep the farm profitable.
As with any business, you should carefully evaluate your strengths and weaknesses, focusing on your farm’s best aspects. This will allow you to expand on your farm with a clear, long-term plan in mind.
Employees
As is the case with any business, your farm’s most important asset are the employees. For the most part, a small farm’s only employees will be the owners themselves and their families. However, this doesn’t mean a farm should neglect to hire experts for certain key roles.
It is best to start with hiring professionals in fields not closely related to agriculture, such as accountancy and financial advising.
Land
The land on which a farm is based is likely the biggest investment you will make as a farmer. It should be chosen carefully, and the soil in particular is something you should care for and preserve. The most common way to do so is to swap the produce being made on your farm. This way, you don’t use up all of the land’s nutrition, and your output gains variety. This gives you a chance to diversify your income streams as well.
Marketing
Marketing is another key expense for any small farm: one that is often overlooked by farmers who view their operations as more of a personal project than a business to be advertised.
At least a portion of your marketing efforts should be directed not to the general public, but to your industry. This can be done by focusing on local publications and communities. It is less expensive, and can prove to be highly effective.
Diversify Your Income
There are many ways to diversify income as a farm owner, allowing you to hedge your bets and prepare your finances in the event that something should go wrong. A farm could produce alcoholic or dairy products, or become a teaching facility for young, aspiring farmers. It can even serve as a place to organize photoshoots and hold wedding parties. All of these are viable income sources to try.
Connect With Restaurants
Many small farms can benefit from long-term deals with local restaurants. This allows them to sell their produce directly to restaurants, initiating long-term lucrative deals in the process. Restaurants may give you a smaller price on your produce by the pound than larger companies, but the restaurants will always require your produce as long as they create the same menu, resulting in reliable partnerships.
Hard Work
In the end, making any farm profitable takes a lot of hard work and patience. This can’t be overemphasized, and it might surprise those who try their hand at agriculture without any prior experience. There are no real working hours, and you’re very much at the mercy of the seasons.
Still, if you’re ready to show up and do the work, a farm could be a great business that can only expand and grow as time goes by.