Farmers around the world do a great job. They help feed the world. But that doesn’t mean their job is easy. Neither is it cheap. If you run a farm in New Zealand, then you probably know this. Perhaps, this is one of the key reasons the number of farms in the country has been decreasing steadily.
To keep your farming operations viable, you need to make sure your costs remain low. That way, you can raise your chances of making decent profits. Some of the ways you can save money include:
1. Cut down on equipment acquisition costs
Farming equipment is not affordable. But you need it to make farming tasks more efficient. It is also necessary if you want to cut down on overall labour costs. To make sure you don’t need to deal with repair or replacement costs, keep your farm machinery well maintained.
If a machine isn’t working, don’t replace it yet. Perhaps, the problem lies in one or two parts. You can have those parts replaced, instead. For example, you can check Taege drill parts for sale in NZ shops to fix that seed drill that needs a bit of care. By making small fixes when the need arises, you will lengthen the lifespan of your farm equipment. That removes the need to buy expensive machinery you don’t need.
2. Cut down on land acquisition costs
You cannot farm effectively if you don’t have enough land to do so. So if you want to expand your farm operation, you need to acquire more land. The problem, however, is that the median price per hectare of land in New Zealand is $20,569.
If you don’t have that cash, should you give up your expansion dreams? You shouldn’t. Consider leasing the extra land that you need. If you can, negotiate for favourable prices, especially if you intend to rent it for a long time. This way, you can expand without incurring high expenses you cannot sustain.
3. Cut down on your energy consumption
There is no doubt that you need some energy to run a farm. But your high consumption of energy could be the reason your farm expenses are high. You need to cut down those costs. But how should you do this?
You can start by investigating which machineries are costing you money in terms of energy. They might need repairs and maintenance to make them more efficient. It may also be time to replace your outdated equipment that consumes more energy than you can afford. While the upfront costs of purchasing new equipment may be high, you should consider the savings you can get from using more energy-efficient models over a long time.
You should also consider generating energy on your own. Take a look at the natural resources available to you. Can you install a windmill? How about a biogas plant? Could solar panels help you cut down your energy bills significantly?
While you need to spend money to make money as a farmer, that doesn’t mean you cannot be creative. By thinking outside the box, you can find various ways to cut down your operational expenses. Find what strategies work for your unique farm business needs and use them to save money.