How You Can Stay in the Green with Your Farming Businesssubmitted on 11 January 2019
Being a part of the farming industry is not easy. Between climate change, high-interest loans, and developed land there is little space for them to work. You have made the most out of what you have while dealing with onsite and offsite problems left and right. Every season has to be profitable or else you bear the weight of your massive overheads or the lightness of your land being taken away.
Staying in the green, financially, is as tricky as letting crops grow during a drought—not impossible just extremely difficult. You need systems in place; here are some reminders about what you can do to stay on top of your finances.
Keep yourself informed about movements in the industry
Some publications target the farming industry. They break down tips and tricks of the trade and introduce new tech and information. You might think, “I can’t afford it. I won’t need it. Why do I need to know?” Farming is all about knowledge; the best farmers are those who have worked the land so long they know the signs of a good year from a bad one. Traditionally, knowledge is either taught or learned. There is a clear “easy” way and “hard” way.
Reading relevant articles, watching videos, and generally surfing the web occupies a grey area. You are being taught by other people who have a specific skill set, and at the same time you are experimenting and adjusting the system to work for you. It is a gamble to follow the advice of someone else, so double check the information with what you know. If you agree with the base logic, then it may serve you well.
Have contingency plans for bad crops
Not all years are created equal. You are bound to have a year that prevents you from making a profit. During these times, have a contingency plan in place. Look for alternative ways to use crops that cannot be commercially sold. Consider doing short-term contractual work that makes use of your skill set to offset the difference in income.
Another plan you can consider is to diversify your profile during your good years. You can brave the stock market or invest in mutual funds. The dividends from those ventures may help you ride the tide of a bad batch or season.
Have an accountant help you with the numbers
A safety measure you can have against going into the red is hiring an accountant. The accountants from www.gsmaccountants.co.uk have specialisations in various sectors. They know how to navigate through your high-interest loans, tax payments, and investments. They can advise how you should begin the new year based on your finances. They can also guide you through any business expansion or foreclosure to ensure you get the better end of the bargain.
If you find a source of information you can trust, make smart investments, and have a good accountant, you will have no worries about how your farming business is going to go in the following years.
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