Want to run your farm more efficiently?
Life has never been more challenging for independent agriculture businesses. Input prices are escalating, there is a labor crisis and margins are slimming.
Here’s the truth:
Working harder isn’t the solution these days. You have to work smarter. The good news is there are proven methods to streamline your operation without breaking the bank. Here are the exact tips that profitable farmers are using to eliminate waste, save time and increase profits.
Let’s jump in.
What’s covered below:
- Why Efficiency Matters Right Now
- Invest In Multi-Purpose Equipment
- Build A Smarter Maintenance Routine
- Embrace Technology That Pays Off
- Track Every Dollar That Leaves The Farm
Why Efficiency Matters Right Now
Margins on small and mid-size farms have been getting hammered.
Net farm income has declined. Labor availability is low. Input costs continue to rise year after year. Recent data shows that about half of U.S. farmers can’t hire enough workers to meet their needs—and those that can’t are short about 20% on average.
That will wake you up because it’s the future of this industry.
It means that every labor hour must have a purpose. It means that every piece of equipment in your operation must earn its keep. If you can’t add more bodies, the only way you can keep up with the workload is by maximizing the potential of your labor force and equipment. Operational efficiency has gone from being a “nice to have” to the difference between a profitable season and a really painful one.
Invest In Multi-Purpose Equipment
This is one of the easiest wins for independent operators…
Purchase a machine that can do multiple tasks rather than purchasing a separate machine for each job. Buy a tractor with a backhoe attachment. You can use one machine to dig holes, load things, mow and haul. Dig post holes one day, dig out irrigation ditches the next, move piles of compost or even use it for small drainage jobs.
That’s a big deal when you are trying to stretch your budget.
When shopping for new equipment, don’t forget to look at compact tractors for small scale farms. They often perform way above expectations for everyday jobs. Pairing a backhoe attachment tractor with a quality compact model yields great power for not huge investment.
Tractor backhoe attachments typically range from $1,500 to $3,000 — considerably less than the $8,000-$25,000 you’d pay for a purpose-built small backhoe loader. Pinching pennies can be significant for small farm operations.
Here is why a backhoe attachment tractor makes so much sense:
- One machine handles digging, loading and lifting
- Saves time switching between separate tools
- Lowers your fuel and maintenance bills
- Easier to store than 3-4 separate machines
(Choosing the right size is critical — don’t get bigger than you need.)
Build A Smarter Maintenance Routine
Most farm owners only think about maintenance when something breaks.
Major fail. By then you have already lost time, money and likely some of your mind. Savviest independent operators prevent breakdowns by implementing a simple, repeatable maintenance schedule.
Here is what that looks like in practice:
- Daily walk-around checks before starting any machine
- Weekly fluid level inspections
- Monthly grease points and filter checks
- Seasonal full service before big workloads start
Maintain a logbook in the tractor cab. Each time you make a repair or maintenance keep track of what you did and date it. In a few months you will begin to see trends that will prevent future breakdowns.
Pretty simple, right?
Preventative maintenance is small change compared to a complete failure during planting or harvest. One lost harvest could mean losing an entire season’s profits.
Embrace Technology That Pays Off
Not all tech is worth the hype…
Except now some of these tools are inexpensive enough to work on small farms, too. In fact, industry research has found digital operations can boost farm efficiency by 40% over traditional methods. 40% is not an incremental increase — that’s revolutionary.
Start with the basics:
- Farm management software — track tasks, costs and inventory in one place
- GPS guidance — reduces overlap when working fields
- Soil sensors — water and fertilize only where it’s needed
- Mobile apps — record activity from anywhere on the farm
Purchase one piece of equipment at a time. Get that one working well. Then purchase another next season. Gradual and methodical wins the race. Many farms rush into technology trying to automate everything then become frustrated.
The key is making sure the tech actually saves you time or money.
If you cannot measure the value gained in 12 months time, ditch it. Try something else. There are far too many farms spending money on fancy new gadgets they don’t use after a month.
Track Every Dollar That Leaves The Farm
You can’t improve what you don’t measure.
Most independents farms have some idea of how their finances look but only track expenses down to the dollar. Few. That’s a problem – because pennies can quickly add up. Some wasted fuel over here… A forgotten subscription over there…
Before you know it, you have lost thousands.
Set up a basic tracking system that covers:
- Fuel and energy costs per acre
- Labor hours by job type
- Equipment running costs
- Input expenses (seed, feed, fertilizer)
- Repair and maintenance spending
A basic spreadsheet will do when you first start. Once your farm expands, upgrade to real accounting software so you can identify trends quicker.
When you see hard where the money goes, choices are easier to make. You’ll see which crops pay off and what equipment should be replaced as well as what costs you can trim with no effect on production.
Bringing It All Together
Running an independent agricultural business today is hard work.
However, it’s not impossible. With the proper machinery, efficient maintenance, helpful technology and close budget management, you can have a farm operate smoothly for many years to come. Let’s review:
- Multi-purpose gear like a backhoe attachment tractor saves money and time
- Preventative maintenance beats emergency repairs every single time
- Digital tools can boost efficiency dramatically
- Track every dollar so nothing slips through the cracks
Successful independent farms today are those who practice efficiencies as part of their daily routine, instead of an annual event. Choose one thing from this list and start today.
Small improvements add up to big results.
