Turning a profit is the goal of every farming operation large and small.  In times like these, when the cost of daily inputs are skyrocketing, it is more important than ever to be as profitable as possible.  The most obvious step is cutting costs.  The tricky part is cutting costs while maintaining quality and ample productivity to keep the whole business functioning cohesively.

Here are a few ideas to help you get lean and mean…

1.       Do you really need to own it?  Let’s face it, most people are not very big on sharing.  You may be surprised though how much good it can be to share which cuts your capital expenditure.  Owning a lot of specialized equipment is expensive.  When you consider operating, maintenance and purchase costs, it’s a lot more than you think it is.  Now take that same piece of expensive equipment and share it with your neighbor and/or father in-law, the numbers aren’t quite so painful.  To be on the safe side, it is always a good idea to have something in writing should there be any confusion as to who gets it when and for what explicit purpose. 

2.       To till or not to till?  This is a topic that could be argued over for days.  From the cost cutting perspective though, it is one of the best things going - for your wallet as much as the environment.  Not tilling saves about 3.5 gallons of diesel per acre.  Based on a 1,000 acre tract of land and today’s diesel prices of about $4.50 per gallon that results in a $4,5000 savings.  (Try this calculator for your farm: Clink Here to Launch Calculator )

3.        Plant a tree!    It may not seem like a lot but just planting a trees and shrubs can save you boatloads on heating and cooling costs in addition to providing wind breaks to reduce erosion.  During the summer you get shade and during the winter trees function as a natural and attractive windbreak.  Evergreen trees like cedars are ideal because they have flexible limbs and are resistant to wind damage that may occur with more brittle types of trees.  Evergreen’s also produce very little mess and grow in a variety of soil types. 

4.       Managing the muck.   Every year huge amounts of money is poured into the soil as fertilizer.  All the while, the manure heap at the barn grows and grows producing it’s own realm of problems.  Cure both problems and reuse the manure as field fertilizer.  By using manure as fertilizer, you can cut costs by up to $85 an acre based on a 1,000 acre tract.  (Source: NRCS)

5.       Use Precision Ag.  New technology has proven useful to the farmer as well as the techie.  (The boys at NASA are actually behind this idea, hunting for a practical application for satellite technologies).  GPS (Global Positioning) Technology has been tailored to provide farmers with an accurate aerial view of crop land.  By doing this, input needs can be more accurately estimated, as well as sowing density.  The big idea is to be more flexible in crop management.  Considering the money and expertise involved in this endeavor, it is important to work closely with others in the area to make it a benefit across the board.  (http://southeastfarmpress.com/mag/farming_precision_agriculture_study/)

These are just a few ideas to help you cut some costs and maximize profits. Feel free to add some other cost cutting tips to the comments below.  Good luck!