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Farming Business Tips: How To Protect Your Bottom Line

Farming Business Tips: How To Protect Your Bottom Line

According to reports, the UK farming industry has undergone a slight decline in the past few years. Yet it is still one of the best industries to work in. So, whether your agricultural business is suffering from that or not, you should still be thinking about making better profits. And, if you aren’t making the right level of sales, then cutting costs is the only real alternative that can affect your bottom line.

Combine Your Green Technologies

With any luck, everyone is aware of the benefits of solar power. Not only can it save you money, but it can also make you a little extra because the energy companies will pay you for any excess your produce. However, even if you have solar panels helping to power your farm, are you maximising your savings?  

Energy and water services company Lumicity recommend that you combine your green technologies for added effect. For example, use your LED lighting with your solar panels, and use a biomass heating system to heat rainwater traps. That water can then be used for cleaning. It's this kind of combination thinking that will have the most dramatic results. Maybe it's time to stop living off the land, and live off the solar system instead?

Check Your Fuel Consumption

As you will be aware, agricultural businesses need to use a lot of fuel to power machinery and vehicles. And, unless you are still using a horse and a plough, then it is unavoidable. However, even the smallest changes can have a positive effect on the amount of fuel you use. Star by addressing the way that you drive. Keeping vehicles below 2,500 revs should help you run things more economically. Avoid braking hard and, in general, try to take things a little easier.

Also, think about the type of fuel you are using. Tractors and combine harvesters are allowed to use red diesel, which you don’t have to pay tax on, meaning you pay less. Look for a supplier that provides bulk deliveries and provides emergency red diesel - you might be surprised how many times you will need to call on that service! However, make sure that you only use it for eligible vehicles, or you could be breaking the law. Red diesel is not allowed to be used in regular cars, and police forces around the country are stepping up their efforts to catch abusers.

Save On Waste

All farms have waste to contend with, of that there is no doubt! But, there is plenty you can do with it to become more efficient in almost every area. Food can be used to create fertilizing products, and you can also harvest the rain by catching it in water butts. That can be sprayed over whatever you want during drier times of the year.

Finally, have a think about setting up a shop.  Many farms all over the country have set up small shops where they sell meat products, jams, eggs and fruit and veg. Why not join them? They might not look like they will pass the test of the supermarket inspectors, but Joe Public loves the more authentic look.

Hopefully, these three ideas will help you see how easy it is to start saving money - and boost your bottom line. It takes a slight change of mindset, but it will improve your situation if you are struggling. Good luck.

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