Agribusiness Tactics That Will Keep Running Costs Down

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Agriculture is a complex business which is continuously evolving. If you’re contemplating getting into the business or if you’re already in, there are a couple of key points to consider. The following contributed post is thus entitled, Agribusiness Tactics That Will Keep Running Costs Down.

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Agribusiness. Little House On The Prairie it ain’t, and if you have rose-tinted dreams of a lazy day on the farm, running through crops, and milking cattle, then you may be in for a surprise. Of course, that doesn’t mean there isn’t a good profit to be made in agricultural business. Although, to achieve this you will need to keep the running costs as low as possible. A topic you can find out more on in the post below.

Agribusiness is not like this!

Stay away from lifestyle farming locations

The first tactic you can use to keep the running costs of your agriculture business low is to think carefully about where to site your farm. You will need to be near a main road, so it’s easy to ship your products out and get any equipment in that you require, but it’s also essential that you stay away from locations that are popular for lifestyle farming.

This is because lifestyle farmers or those that choose to live on smallholding to embrace a more rural style of existence are driving the purchase and lease price of good arable and stock land up. Something that can result in you paying well over the odds, if you aren’t careful.

Spread resource costs

Next, when it comes to keeping the running costs of your agribusiness low, it’s important to be selective about the suppliers you choose.

This is because units cost for things like fuel can vary a great deal between different providers. Also, bear in mind that some suppliers will offer bulk fuel delivery along with an even payment plan. This will allow you to pay your total bill for the year split across 12 months, and so can make it both easier to budget for and more affordable as well, keeping running costs to a minimum.

Embrace tech in the office and the field

Tech is obviously revolutionizing many industries, and agribusiness is no exception to this. In fact, there are multiple applications for tech and IT in both the office and the field.

One is using up to date productivity software within the office, as this can help your business team keep on top of the most crucial issues and make key deadlines such as bids, tax returns, and even catalogue completion dates. Something that will ensure you don’t lose any money because you can meet customer demand, and can help you minimize your staffing costs as well.

Secondly, there are many applications of tech in the field as well, from investing in better nozzles and spray system to ensure a more abundant and more viable crop, to buying heavy equipment that is multi-use.

In fact, opting for farm machinery that is modular where attachments can be swapped out, allowing it to perform more than one task is a very effective method of keeping running costs down.

After all, it means you always have the equipment you need without having to purchase whole new pieces, or lease it. Something that can be expensive, and problematic when you are working in an agribusiness context, where money can easily be lost if crops go over, or deadlines aren’t met.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.