How to cut costs in farming
The profit margin of any production depends on the cost incurred. Cost is the amount incurred to produce a particular good. In farming, these include the cost of labour, transport, chemicals, seeds, fertilizers, water and marketing.
These costs vary from one product to another and from one region to another. How well you manage these costs determines the farms’ success.
As a farmer who doesn’t have control over the changing market prices, the only way to increase his chances of getting good profit margins is by managing costs.
But how do you ensure that you produce at minimum costs?
Increasing production per unit area.
This ensures an extra unit for every added unit in production. In short, the more products a farmer has from one acre the lower the costs.
For example, if one maize farmer earns KES 280,000 from selling 43 bags which he incurred KES 193,000, this means the cost of production was KES 4500 per bag
If another farmer harvests just 20 bags from incurring the same cost and selling at a similar price, it means his cost of production per bag is way high than the first farmer. It also means his profit margin is very minimal.
Cutting on wastages
As farmers, the amount of profit you will get per product depends on its single cost. In a world flooded with all sorts of inputs targeting the farmer, it’
s good to use only what works. Most of the various foliar fertilizers, plant boosters and growth stimulators in the market add unnecessary costs with no significant benefit to the farmer. Also, ensure you use quality inputs only.
Early pest and diseases control
Management of diseases and pests accounts for over 40% of the total cost of production. The percentage increases with the level of infestation. Early diseases and pest measures can help the farmer to minimize the risks, losses and high costs incurred in controlling them.
Improving soil health and fertility
A healthy fertile soil free of harmful bacteria and with the right nutrient balance can save the farmer the high costs that may be incurred in alleviating disorders caused by nutrient deficiencies in the soil.
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Blossom end rot, yellowing of the leaves, fruit and flower abortion, purple discolouration and stunted growth are some of the nutrient disorders deficiency.
Avoid these costs by carrying out soil tests analysis often to establish the soil health status to avoid unnecessary costs in future after planting.
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