Agriculture Is Booming but Young Farmers Waste Money

Despite the multiple warnings that agriculture is a sector slowing down, statistics are proving scaremongers wrong every day. According to Jim Rogers, the American financial commentator, and businessman, agriculture is going to be an investment hit in the near future, especially agricultural commodities. In Europe, consumers are shaping a new market that is entirely focused on organic products, forcing local farms to adapt and embrace the trend. The needs are changing all over the world, and the popularity of paleo, vegan and keto diets shifts the focus on nuts growers as a way to replace meat protein.

Consequently, for young farmers, the sector has never been so exciting. But, the renewal of the agricultural business is threatened by the propensity for newcomers to spend money in the wrong areas.

Cheap equipment doesn’t mean no running costs

For newcomers who are approaching farming with no material, specialist auction companies and professionally maintained second-hand machines enable young farmers to start their journey on a relatively low capital. Indeed, nowadays, dedicated farming equipment is made more accessible for buyers, but even for those who prefer to lease new models. However, keeping new machines on the field becomes a problem as tractors, harvesters and other equipment consume a lot of fuel. Failing to explore fuel alternatives such as biofuel – which can use animal waste as a natural resource – or even using self-generated electricity can incur high maintenance costs.

No, a standard cover won’t do

More and more young and enthusiastic adults buy a farm as their primary home and naturally fall into the agriculture business as a way to maximize their property. As a result, they tend to approach the farming business with a home insurance cover only. However, typical home insurance doesn’t affect the business side of the farm and only protects the habitation. A professional farming insurance broker can help the new agricultural population to understand the hybrid needs of their property. You can’t afford not to protect your animals, fields, equipment, workers, and home!

Getting your name out is a good idea, but be smart about advertising

New farmers are marketing-savvy. They understand the importance of promoting their brands. However, generic advertising won’t appeal to your buyers. Indeed, contrary to the product market where manufacturers such as Apple can push their brands and alter production to protect their value, farmers overproduce and use generic campaigns to drive demand. The focus needs to be on targeted quality over quantity, both in production and advertising.

They’re attached to an old-fashioned farming environment

Your ancestors have been farming for thousands of years. It’s hard work, but those who love nature and animals can make a living of running their farms just the way their fathers and grandfathers used to do. But can they really? The growing population has dramatically transformed landscapes and needs. With more and more towns around, it becomes incoherent to pursue farming over large surfaces. The future of the agricultural sector lies in smart technology and innovation such as vertical farming. When fields are a dramatic impact on water consumption and use precious space that could be turned into accommodations, vertical farming offers a green alternative.

Nowadays, you can’t consider a farming career without thinking about innovative and creative strategies to save money, resources, and efforts. The more you waste in all the wrong places, the less budget there is to sustain your business.