Cutting Down on Farming Overhead Costs

The industry of agriculture, like so many industries today, is facing new challenges each year. Costs are rising, the weather is unpredictable, and there is really no way to determine how successful a crop, or crops, will be from one planting season to the next. Some government subsidies still exist, but that can change at any moment. The number of farms in danger of foreclosure is staggering.

Keeping overhead costs as low as possible may make the difference between meeting expenses and losing the farm. Most expenses, such as equipment, workers, transportation for delivery, and seeds are essential. So where can costs be lowered?

Equipment

Large specialized vehicles and equipment are required at every stage of the growing season. Tilling, planting, watering, spraying, and harvesting all need machinery and vehicles that can cost hundreds of thousands of dollars. Proper maintenance of all that machinery will prolong the life of the equipment, but it will have to be replaced eventually.

Instead of purchasing new equipment, search for used equipment that is in excellent condition. The purchase price and the cost of insurance will both be lower than brand new equipment. Another way to cut costs is to lease equipment. Payments are tax deductible as a business expense, and the equipment is not considered an asset so it is excluded from the total business capital.

Seeds

The cost of Seed Treatment is high on several levels. Seeds need to be treated for different soil conditions, climates, and resistance to common crop blights or diseases. Seeds are mass-treated in massive rolling drums. They are then moved from the drums for packaging. More machinery is used for the packaging process, and then the seeds are transported to farms.

During all that moving and handling, coating can be in consistent. Some seeds may have little to no coating, while some will have the coating rubbed off before making it to the farm. That situation will result in a lower crop than anticipated. The process is lengthy so in order to have the amount of seeds desired, farmers have to place their orders with the company months in advance. Soil conditions and climate can change significantly in that time period.

A Better Way

Purchasing a box seed treater for the farm will cut the costs associated with the treatment of seeds, and provide more efficient coverage. It is also more responsive to needs. Seeds can be treated based on the climate and conditions at the time of planting. The coated seeds go from the machine directly to the planting trucks to minimize handling. The results are a larger yield and lower overhead costs.