In this article we answer the question weather is farming profitable? The question which is asked by many farmers and people interested in agriculture. For some it is a source of great income, leading to wealth and for others it’s an unprofitable business where they only lose their entire life savings. So what is the truth about farming? If farming was not profitable, why so many people would still do it?
FARMING IS A BUSINESS
The key to understanding if farming is profitable is realizing that farming is a business like any other business (!) Any business is profitable, as long as the product it is offering is answering a community problem or community needs. Every business is profitable when there is a demand for products it offers.
In other words, if you produce barley, at a time and place where there will be no demand for barley or its value will not be high – then your barley farming will not have the chance to be profitable. It simply will not solve any human needs so it will not be needed and well paid.
However, if there is a high demand for microgreens in your area, local store owners complain about the small number of microgreens producers and want to buy more of this type of product, then if you start to produce microgreens in such a place and time, you will solve the community problem, you will ensure the supply of what there is demand and you will earn good money for it. This is the basic rule of trade and you must always be aware of it as a farmer. Any business solving people’s problems is always profitable.
As a result, a farmer in the 21st century ceases to be just a farmer, and in order to earn good money, he must also become a businessman, manager, and often also a good seller and market analyst. Because of technological changes and new styles of faraming a lot of things changed in the agricultural sector. Skills traditionally required to be a successful farmer are no longer sufficient. Farming has been professionalized such that you need to be a skilled capital and general business manager in order to be successful in most markets. To qualify the assertion regarding profitability above, then, it must be made clear that the farmers who are able to turn a profit today are not necessarily the same farmers who were able to succeed a few decades ago.
WHAT TO DO TO MAKE FARMING PROFITABLE
1. Find a place where you can be secure from flooding, drought and animals with a decent amount of topsoil. A good location is the key to profitable farming. It is important to be close to customers and food distributors (crop distributors) where you can exchange manufactured agricultural products for money.
2. Know the local market where produce are given value. Talk to people, have contacts.
3. Educate yourself. Observe and explore new agricultural technologies and innovations, learn how to cultivate land more efficiently, discover new more profitable crops to grow.
4. Do Pre Planning. Before you start growing, analyze what is most profitable to grow, where best to sell crops, and how much will cost and how much more or less you earn.
5. Diversify your farming. Crops rotation can break insect and disease cycles, reduce weeds, curb erosion and reduce economic risk. That gives diversity not only for soil life, but also deiversity for income.
6. Don’t take on excessive debt to buy in.
EXAMPLES OF PROFITABLE FARMING
Microgreens farming – This is one of the simplest and most profitable types of small farming. To start such farming, all you need is a large basement, greenhouse, attic, or even small garden.
In this video you can see some usefult tips how to sell microgreens. And in this video you can see how microgreens grown in one basement earn $ 10,000 a month. The basis of microgreens farming is contact with customers stores and restaurants to which we will deliver our crops directly.
Hemp farming for CBD oil – from 1 acre of CBD-rich hemp can be generated net profit of around $ 2,500 to up to $ 75,000. Hemp growing has great potential, but it is not so easy and requires some capital to invest.
Read more: How Profitable is Growing Hemp? 20 Facts About Hemp Business
Pig farming – Generally, in the US from 1 pig, you can get a net profit of 100- $ 500 after half a year of farming depending on how you sell the pig’s meat, (whether you will process its meat or no and how you will feed it).
Read more: Is Pig Farming Profitable Business? 2020 Market Analysis
Some other profitable farming ideas to consider:
- beef cattle
- plants for salads
- any organic crops in demand in big cities
THE PROFITABILITY OF FARMING CHANGES EVERY YEAR DUE TO:
weather factors (drought, hail storms, floods)
geo-economical factors (changes in customs tariffs, trade policies of states, international trade agreements, competition from large concerns etc.)
biological reasons (swine flu, bird flu, insects and bugs, destruction of crops by animals, etc.)
For this reason, crops should be planned carefully. If we earn a lot in one year, one should not spend everything at once, because in another year we can suffer big losses due to bad weather and then we will need all the money we had before.
With land you can earn money in a variety of ways, not just through agriculture.
Good ideas and combining useful techniques with profitable crops are the foundation of profitable farming. It is worth talking to various farmers, learning their solutions, as well as reading and learning new opportunities online.
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