As we continue with Agri-finance tips for farmers, I thought I should mention what a successful strategic farming seminar we had on Saturday. The turnout is evidence of the need for engagement, knowledge sharing, and communication on how we improve the agribusiness industry. More is yet to come in that space.
Moving on, being able to minimise costs is an integral part of increasing your farm’s profit margins. To achieve this, you need to make a few changes to how you do things on your farm. Here is my take on this:
Cut down on labour costs
Labour can take a huge cut out of your farm’s budget, especially for large farms. You cut back on labour costs by hiring more part-time labourers, rather than having a lot of permanent employees whom you will have to pay a salary every month whether the farm generates income or not.
If your circumstances and the scope of your farm allow, you can save a lot by doing some of the labour yourself. You can cut back costs by using a combination of your manpower and efficient machines. For instance, you can learn how to mill your own feeds, rather than hiring a machine operator or you can learn how to do minor repairs like fixing a broken door instead of having someone else do it for you, which will save you a lot in the long run.
Take care of farm equipment
Taking good care of any equipment used on the farm is a sure-fire way of saving some money. This entails knowing how to properly operate and maintain equipment which will in turn reduce the need for constant repairs and replacements, as well as make your farm more efficient. Regular cleaning and servicing of equipment could help save a lot of your money too. It is better to service a piece of equipment to keep it running smoothly, than have to make major repairs later.
Reduce, Reuse and Recycle
There are always ways that you can reduce, reuse and recycle various utilities and resources on your farm to save money. For example, water that remains from feeding cows can be reused to irrigate plants, or if you can no longer use a piece of equipment for its original purpose, it’s likely that you can put it to use in some other way on the farm.
Prevent huge vet bills
If you keep animals on your farm, regularly calling out a vet to see an animal that is ill or injured could eventually run up some huge bills. Prevention is always better than cure, hence it is essential to take steps that will promote your animals’ health such as vaccinating them against common diseases, feeding them the best diet, and ensuring they have good living conditions.
– Additionally sourced from Joy Gichangi.