In many suburban and rural areas, farming (whether large-scale or small-scale) is one of the most common forms of livelihood for many families. Just like in any other type of industry, there are lots of ways to maximize profits in small-scale farming. If you want to increase your profit margin, here are the best strategies you can explore:
1. Invest in better equipment
If newer farm disc blades or loader wagons will increase your farm’s productivity and efficiency, there’s no reason to not invest in better equipment if you have the funds to do so. Aside from increasing productivity and efficiency, investing in newer, more modern equipment can save you money by reducing repairs and maintenance expenses.
2. Sell locally
Selling your products directly to grocery stores and community markets in your locale can help increase your profits by docking down transportation and labor costs. Also, doing this will help increase your presence in the community, which is a great way to promote your name to local restaurants, businesses, markets, and consumers.
3. Grow what’s in demand
If there are certain types of products that customers are looking for, consider growing it in your small-scale farm. However, don’t plant anything without conducting a feasibility study first to ensure there is a real demand for the product, which will not wane before you can harvest.
4. Invest in renewable energy
Renewable energy sources, such as wind power and solar energy, require a significant amount of investment initially. However, this is the most effective way to reduce your energy costs, which can translate to increased profits, as well as promote sustainability within your operations.
If it is not feasible to install wind turbines or solar panels at your farm, you can opt to lease equipment from companies that offer monthly packages.
5. Enhance crop rotation habits
Good crop rotation habits can help reduce fertilizer expenses by enriching the soil, leading to a wider variety of crops as well as increased profits. In addition to reducing fertilizer needs, proper crop rotation can also eliminate pests and arrest the growth of harmful bacteria, which helps increase the amount of profitableproduce.
6. Join the farmers’ market
By having your own stall at the local farmers’ market, you can reduce transportation costs and eliminate labor costs (if you watch over the booth yourself), which can increase your profit margin dramatically. Farmers’ markets generally attract people who want to reduce their carbon footprint by buying products directly from the source. Hence, you will have little to no trouble marketing your products to the public, since a lot of people prize farm-to-table practices more than ever.
7. Sell by-products
By-products that usually go into the trash can be profitable, too. If your small-scale farming operation is generating by-products that have resale value, such as feeds, ethanol, fiber, or manure, find individuals or businesses that are looking for these materials directly from the source. Aside from reducing the agricultural waste that you produce, this practice will help line your pockets with extra money but with little additional effort.
8. Start an online presence
Who said farmers couldn’t make money online? Here are different ways you can generate more profit using your own website or social media platforms:
- Offer your products online to reach more clients
- Publish niche content
- Post vlogs that can educate people about the farming life
- Have ads on your website once you achieve enough traffic
- Sell seeds or seedlings online
- Sell small plants or herbs if you have a garden
9. Welcome visitors on your land
If it’s a feasible option, you can put up a bed and breakfast on your property or lease your land for weddings, photo shoots, company activities, and other events. Offer this service on your website and market it on your social media pages to reach your target audience. Moreover, you can put up signage near the road to let passersby know that you offer this type of accommodations.
10. Plant dual crops
Some combinations of crops grow well when planted side by side, helping produce a higher yield without the need for additional space, fertilizer, and water. Find out which crops grow well together and consider planting them for your next rotation.
As you can see, there are lots of ways to generate additional profit, even with only one to two hectares of land. So if you want more income for your small-scale farm, you can start with these tried-and-tested strategies.