The Effective Ways Of Farm Management

Managing a farm is one of the toughest things to do. It is not only about maintaining and reaping a harvest it is also important to be profitable. The fertility of the land, tax issues and insect infestation are few of the many problems a farmer needs to address. It is important for a farmer to have a full-time manager to maximize the output of the farm.

Unless you are farming cash crops, which have a huge profit associated with them, ROI for other types of crops needs to be addressed. A farm management system is a good option. Many farmers today are using a farm management system to maintain their crop cycle and other activities around the farm.

To get a good ROI for a farmer he needs to address all of the areas given below;

1. Profitability

This goes without saying that the produce of the farm needs to be profitable for a farmer not only on a yearly but on a seasonal basis. It should also provide the farmer with intermittent cash flow. A good farm management system will give farmers great profitability. A progressive farm management system can help farmers increase the value and produce annual income for the landowners as well as the land operators, which brings us to the next point;

2. Operator

A tenant operator on the farm or tenant farmer can make or break the produce of the farmland. The way the operator manages the farm will determine the quality of the farm produce for a short as well as for the long term. As to how the operator manages the soil, the produce and the waste affect the crop health for the next crop cycle as well.

To choose the right operator, the farm owner must look for all the potential tenants. A good background check is necessary as the farm will be operated mostly by a tenant operator.

Also clarifying the terms of the lease with the tenant operator beforehand is important. There are four types of leases;

  1. Cash Rent Lease: Tenants will pay a pre-decided amount of cash per acre per year to the landowner.
  2. Flex Lease: The rent will vary based on the yield of the farm throughout the year.
  3. Crop Share Lease: The tenant operator pays the Landowner a percentage of the yield of the crop.
  4. Custom Farm Lease: In this type of lease, the owner bears all the input costs while the tenant operator is given a contract for performing the farming tasks. The production of the crops is retained by the owner.

3. Production

Tracking crop conditions throughout the year is very important. Farm managers work with farmers to ensure that planting activities, seeds, fertilizers etc were planted at the right time by predicting the weather conditions in the future.

Keeping the track of the production is necessary to build a strong history file for the land. A good and detailed history file of the farm not only helps the farmer to keep a track of the produce, but it also helps the farmer to help plan future activities.

4. Fertility

Soil fertility is one of the most important factors when it comes to farming. The levels of chemical elements in the soil keep varying as per the type of soil, the weather, the water level, and the past farming activities.

And hence, before a harvest, taking into account the fertility of the soil is very important. Many farmers invest in soil tests through labs. That helps them decide and plan for the harvest season. Even the government in many cases helps farmers avail these tests at subsidized rates.

5. Insurance

Farming is a risky business. The water table keeps on changing, the quality of the soil keeps varying, the rains are unpredictable and there is always the risk of animals ruining the crop.

But accidents can happen and we cannot however no matter how hard we try to prevent them. A good farmer knows how to keep his farmland safe from an upcoming disaster.

Insurance is the best way to that and a good farm manager knows how to protect his farm from these unsafe events.

6. Taxes

Keeping a track of taxes and paying them on time is by far one of the most stressful things a farm owner needs to take into account. There’s property tax, sales tax, purchase tax and so many more. Maintaining a foolproof system that makes sure that the taxes are paid on time is important.

Failure to do so can result in fines or even worse confiscation of the farm. And hence paying taxes remains to be one of the important duties of a farm owner. 

LEAVE A REPLY

Please enter your comment!
Please enter your name here