Have you heard of LISA? It’s one of the newest terms in the farming world. It means low-input sustainable agriculture, a way of managing your farm such that you keep your expenses low while increasing your profit margins. That may sound like an easy thing to do, but it’s not. With these smart tips, however, you can pull it off.
Start with equipment costs
Farmers usually dedicate a significant part of their budget on buying machinery and equipment. Larger equipment, advanced technology and rising energy costs have made equipment more expensive to buy and maintain. The best way to land better prices is by comparing what different sellers are offering, for instance when you’re shopping for hay rakes for sale in Australia.
Save on your grain storage
Having enough storage, whether on your farm or in a commercial storage facility, can certainly give you much-needed marketing flexibility. However, if you are not storing the grain well, this could be a cost rather than an advantage. Spoilt grain can cause significant losses, and a poor storage facility will usually lack energy efficiency, which is itself an extra cost.
Negotiate lower rents with your landlord
If you are leasing a farm, it doesn’t hurt to negotiate a better land rate. If you intend to use the land for a long period, your landlord will be more likely to provide a discount on the current price. While the rates may not go significantly lower, the saved money can add up over time.
Failure to manage your sprayers can lead to a higher cost, especially if you’re doing it during the summer when evaporation rates are higher. You want to make sure that the spraying equipment is in top shop, especially the nozzles. Go for the right chemicals too to increase effectiveness.
There are many simple ways to stretch the dollar when spending on farming supplies. As farmers wait for grain prices to paint a better picture, utilising these money-saving tactics can mean a lot to your profits by the time the season is over.