growing-your-ag-based-business

If you own a small agriculture-based business, chances are you are always looking for ways to grow that business. While expanding your business can be a risk—especially if you are doing reasonably well now—it is a risk worth taking. This is especially true when you know that there are more people out there who would benefit from your product or service.

The key to growing your business is to make sure you have a plan. While every business is different and requires a unique vision for the future, there are some basic tenets that need to be adhered to whether you are selling farm machinery or children’s clothing.

1. Remember that timing is everything. Make sure the market conditions are right for growing your business. If you have to wait a few months or even longer to expand your offerings because of a soft market, use that time to prepare for your expansion.

2. Surround yourself with the right people. If you really want to grow your small business, you are going to have to hire dedicated, talented individuals to help you. It is essential that you take your time when hiring because one wrong hire can set you back considerably.

3. Embrace change. The most successful businesses are able to adapt and respond to market conditions. If you find it difficult to recover after a setback, you are going to have a tough time growing your business because there will always be bumps in the road. The most successful business owners use these bumps as lessons and move on.

4. Focus on customer service. No business will survive if doesn’t provide outstanding customer service. Never grow your business so fast that you are forced to sacrifice customer service. And in your quest to acquire new customers, never forget your current customers. Customer loyalty can literally make or break a business.

5. Take advantage of technology. The larger your business becomes, the more likely you will need to implement more advanced technology. Make sure you carefully research your options so that this technology allows you to better manage your business.

The decision to grow your small Ag business can be daunting. The key is to know where you want to go and how to get there. Remember, if you offer a quality product or service that is in demand and you treat your customers well, the sky is the limit.

making-money-on-your-farm-comes-in-many-forms

Most people don’t go into farming to get rich. That doesn’t mean farmers wouldn’t like to be able to make a healthy living and not worry about shrinking profit margins year after year. In fact, in order to stay afloat financially, many farmers take second jobs to make ends meet.

While most farmers who work a second job must go off their farm to find that extra income, there are other options. It just takes a little creativity. Today, many farmers are taking advantage of their land and agricultural experience to create an agricultural business that complements their current farming operation.

What follows are some non-traditional businesses that are cropping up on farms across the country:

Pick Your Own Produce: Today’s consumers want to know where their food comes from and that it is as fresh as possible. This has led many farmers to open their farms to people who want to pick their own fruits and vegetables. One added benefit of such an operation is that the labor required at harvest time is drastically reduced. Your customers literally do the work for you.

Agricultural Tourism: Open your farmhouse doors to guests who want to experience what it is like on a real working farm. These types of beds and breakfasts are popping up all over the country and their popularity continues to grow. You can offer as few or as many activities as you like, including things like horseback riding, milking cows, planting and harvesting crops, and so much more. You can cater the experience to singles, couples or families.

Rental Property: Consider renting out your farm for things like weddings (farm-themed weddings are all the rage these days), company picnics, family reunions, bonfires and hay-rack rides. People and organizations are always looking for new and inviting places to gather and a farm is a great place to do just that.

Educational Workshops: Schools, daycares and other educational organizations are always on the lookout for field trips or other opportunities to teach their students or members about different ways of life. As a farmer, you can offer tours and classes on things like growing vegetables, raising backyard chickens or horseback riding. The ideas are as endless as your imagination.

Owning a farm means you are living a life many others want to experience. Capitalize on this and you may find yourself with a lucrative side business that can pay off big.

Cover crops and soil health are huge issues today. No matter where you turn, experts (and everyone else) are telling farmers how important it is that they plant cover crops.

Cover crops are used to reduce soil erosion. On flat open land, cover crops will protect against wind that can blow away nutrient-rich topsoil. In hilly, wet areas, cover crops will prevent water from washing away topsoil. In the spring, cover crops are tilled under or sprayed down before row crops are planted.

In addition to preventing soil erosion, cover crops benefit farmers and the environment in many other ways, including:

  • Increased soil fertility
  • Nutrient replenishment
  • Increased organic matter
  • Reduced water drainage
  • Weed control

In light of these advantages, some people may wonder why a farmer would ever choose not to plant cover crops. The fact is, however, that some do believe that they have legitimate reasons for deciding against cover crops.

Whether you agree or not, these farmers believe that planting cover crops doesn’t make financial sense. Farmers who are having a difficult time making ends meet simply can’t justify the costs involved in planting cover crops, especially when profit margins are already razor thin. Time is another factor. Depending on the size of the operation, some smaller farmers just don’t feel as if they can get it all done.

A survey by the Howard G. Buffett Foundation showed that in addition to the reasons listed above, there are other challenges farmers say they encounter when planting cover crops. Here are some of the major ones:

  • Cover crops become weeds the following year
  • Cover crops use too much soil moisture
  • There is a potential for yield reduction with cover crops
  • Cover crops increase insect potential
  • There may be a carbon to nitrogen ratio imbalance
  • Cover crops increase disease potential

No one would argue that cover crops are not beneficial to the soil or to the environment but neither is every farmer who doesn’t plant cover crops irresponsible. Farmers are concerned about the land and the environment. After all, those things are the source of their livelihood. If some farmers decide to forgo cover corps it is likely because they have decided that cover crops do not work for their particular farm or in their particular region. It does not, as some may say, have anything to do with whether or not they are good stewards of the land.

Marketing Your Small Ag Business

If you are a small Ag business owner, it can be difficult to know how to market your product or service most effectively. This is especially true if you aren’t sure who your perfect customer is.

Many small businesses mistakenly try to appear bigger rather than capitalizing on what they do best. In other words, instead of promoting what makes them unique and especially valuable to their niche customers, they try to be a jack of all trades.

Small businesses who excel at one thing need to take that one thing and run with it. So how do you market your Ag business to a niche market? Here are some things you need to ask yourself as you build your marketing plan:

  • Who are my customers? If you try to market to all farmers when your product or service works specifically for cattle farmers, for example, you will have a hard time selling that product or service over the long term. Even if you get customers initially, they will become dissatisfied and word will spread. This can irreparably damage your brand.
  • What do my customers need? If your unique product or service benefits hay producers, you need a marketing strategy that gets the word out to hay producers. These prospects need to know that your product will solve a problem they have, make their job easier or allow their operation to become more profitable.
  • Why should people buy from me? Make sure your niche market knows exactly why they should look to you instead of a larger competitor. What makes your business special? Outstanding customer service? A better-made product? Emphasize why it is worth the time and effort for customers to patronize your business.

While it may seem risky to concentrate on only one or a few products or services, this will pay off in the long run by helping you to establish a loyal customer base. Finally, once you have found your niche, that doesn’t mean you can sit back and relax. The most successful small business owners understand that they must always be looking for ways to improve their business. By doing so, they will not only keep their current customers happy, those customers will provide invaluable referrals, as well.

Keeping Kids Safe on the Farm

Any farmer will tell you that kids raised on a farm end up being dependable, hardworking adults. After all, while the farm life isn’t all work and no play, children who grow up on a farm know the importance of getting a job done and getting it done right.

More than a million individuals age 20 or younger live on a farm in the United States. With school out, farm children are likely spending longer hours working on these farms. While injuries are not common, they do happen, and some of them can be extremely serious. In fact, more than 100 children and young adults are killed each year on the farm and thousands more are injured. Statistics show that children from 10 to 13 years old are involved in the most accidents.

While most farm kids believe that they are tough enough to handle any task, it is important to make sure that safety always comes first. Therefore, more than just a child’s age must be taken into account when chores are assigned. The size of child and his or her maturity must also be taken into consideration. It is also important that no matter how capable or well-trained even the most mature young adults are, they need to be checked on regularly to make sure they are doing their chores correctly.

The most common accidents occur near barn hay-drop openings, grain bins, manure pits, ponds and silos so make sure those working in those areas are aware of the potential dangers. Children also need to make sure that they are extra careful around animals—no matter how tame and friendly an animal may seem!

What follows are some appropriate chores for children working on the farm, keeping in mind that every child and situation is unique:

  • Children age 5 to 9: Collect eggs, feed small animals, water plants, work with hand tools while supervised
  • Children age 10 to 13: Assist with and handle animals, dig, push-mow while supervised, rake, use hand tools, use power tools while supervised
  • Children age 13 to 16: Feed animals, operate and maintain equipment while supervised, operate tractor and implements after the age of 14 and completion of a training course
  • Young adults age 16 to 18: Operate auger, elevator, self-propelled machinery and tractor following appropriate training courses

Many of the children working on farms today will take over those same farms as adults. It’s important that they learn to do their jobs well, and safely, to prevent any accidents now or in the future!

How to Market Your Small Farm in the Community

If you want to create a buzz about your small farming operation, it is important that you garner it some local online visibility. This can be achieved through things like a responsive website or being active on social media.

However, as every business owner knows, you never know where your sales leads may come from. That’s why if you are looking to promote your local produce business, it is important to market yourself out in the community, as well as online.

While it would be wonderful if you could afford print and broadcast ads, this is probably not financially feasible. So how can you get your business noticed in the community without spending a lot of money? Here are three simple ideas that will help you to get the word out about your business:

  1. Join a cooperative. A cooperative offers larger clients the convenience of buying from a single source. When you work as part of a cooperative, your produce can be sold to larger institutions, such as schools, whose needs you would not be able to meet on your own. Further, many cooperatives have a spokesperson that helps to market its members.
  2. Make a stand. While it may seem like small potatoes, a roadside stand can really help to increase your visibility in the community. Such a stand also will allow you to avoid fees that come with most farmers markets. You may be surprised at the number of visitors your stand attracts and, if your produce is outstanding and your service top-notch, how quickly word of your business spreads throughout the community.
  3. Go restaurant-hopping. Many local restaurants are searching for local produce to use when preparing their menu items. Visiting local chefs and restaurants and providing them with a list of produce you can provide is a great way to sell your homegrown items. Many restaurants will even list your farm on their menu, which gets your name out in the community and allows people to sample your produce.

While your agricultural operation may be small, it doesn’t need to stay that way. By promoting your business online and offline, you may be surprised at how quickly word spreads about your homegrown merchandise.