In the past, when commodity markets were high, farmers were able to simply enjoy the task of farming and let the crops fall where they may in terms of profitability. Now, a turn in the economic condition has created a lot of stress for farmers, who struggle more than ever to remain profitable. To help manage these challenges, here are a few steps you can take.
Start With Staffing
There is a lot of work to be done on the farm, but if you paying for work that doesn’t bring both efficiency and quality, it can be more damaging then helpful. The h2a guest worker program is one way to approach the labor needs for your farm, but you also need to consider offering benefits, incentives, or other attractive options to keep skilled employees who can understand and help you reach your profit goals.
Reduce Overall Input Costs
You may have had the same contracts with vendors for the past few years, and your arrangement has been comfortable. However, the bottom line is reducing input costs. It might be time to start shopping for bids or renegotiating the conditions of your contracts. There are many things that might seem to be beneficial to your venture, such as earning loyalty status or vendor appreciation gifts, but looking at the costs according to what value you are receiving, it might be time to make a switch.
Improve Your Efficiency
Decision-making can’t be occurring along the same line of thinking as when you first got started. The Ag industry is rapidly changing, and you need to be prepared and adapt quickly. Improve your communication processes, and consider using management software to help make better decisions.
As everyone seems to know, a business is judged according to its leadership and output, and farming is no different. If you want to remain profitable in a time where most small farms struggled, assess your current situation and look for ways to tighten your budget and improve efficiency.