Farming is a broad and diverse discipline. Whether you’re growing vegetables in your backyard, rearing chicken for sale, or practicing horticulture, farming comes with a plethora of income streams.
If you’re doing it for commercial purposes, you will expect income from each successful harvest and sale.
In some cases, farming profits will largely depend on the size of your farm, market availability, where you sell your product, and the type of farming you indulge in.
But the big question is, is farming profitable? If so, how can you maximize your profits and make a good living from a small farm? This article seeks to answer these burning questions that most small-scale farmers often ask.
Is Farming Really Profitable?
Agriculture is by far amongst the biggest contributing sectors to the world’s economy. A recent piece on Yahoo Finance actually indicated that agriculture and agribusiness may account for as much as 25% of GDP in certain developing countries.
This is to mean that for farmers and investors, food crops, cash crops, and animal farming create numerous business opportunities. Whether or not it is profitable will depend on your farming approach, the technology you utilize, your experience, and how you market your products and produce, among other things.
4 Ways to Make a Good Living from a Small Farm
1. Try Specialized Farming
Having a small farm means that you’ll probably be targeting your local market when it’s time to sell your harvest or produce. This makes it important to find out what is in demand in your local area, and what is short in supply.
You can then prioritize your farming efforts on crops, animals, or products whose competition is low and demand is high in the market.
2. Plan carefully for the Equipment You’ll Need
Farming implements help minimize human labor and enhance efficiency in various processes. Choosing the right equipment can help you save time, money, and effort.
If you practice animal husbandry and want to start slaughtering livestock, having tools like the captive bolt gun, carcass splitter saw, and captive bolt stunner can help reduce the time and money spent taking your animals to the slaughterhouse.
Crop farmers, on the other hand, may need equipment like seed drills, cultivators, a pickup truck, a tractor, and other equipment that may help make your farm work easier and much more effective.
3. Add Value and Process Your Farm Products
It’s all too common these days for people to buy food without taking time to consider the process used to produce and transport that food.
For instance, think of processed foods like canned soup, instant noodles, or chocolate milk. When the original ingredients are removed and the product transformed into another form, it easily loses its taste and appeal.
With this in mind, farms can add value to their produce by processing and packaging them into products that will draw more attention to the food.
Along with aesthetic packaging and meeting the various food regulatory standards, this could mean providing a better way to store and transport food and ensuring the intended market consumes it at the right time.
By keeping raw produce fresh and packing them into packets of their preferred flavor and consistency, small farmers can add great value to their farm products.
4. Sell Your Produce in the Farmers Market
Nowadays, people buy their food from stores that provide customers with information about where the food comes from and how it was produced. Selling in the farmer’s markets can help you attract customers who might be interested in buying locally grown or organic products that promote sustainability.
These consumers can even become return customers for your business, thus creating a stable income.
While farming is indeed profitable, making money from a small farm isn’t always a walk in the park for everyone. Nonetheless, it is possible and can be done with proper planning and a decent level of hard work. It also involves getting your priorities right and understanding your market well.