When you’re a full-time farmer, your entire income is reliant on the performance of your crops and your ability to sell them to the right buyers and distributors. One bad month can derail your bottom line and leave you looking for a new small farm loan to help make ends meet. The more you can diversify your income streams, the better off you’ll be and the easier it will be for your farm to survive those lean times. Here are a few simple ways to increase your farm’s overall profitability without forcing you to take on a second job.
Plant Different Crops
It might seem obvious, but sometimes farmers fall into a rut and rely on the same types of crops year after year. When they do this, they increase the risk of failure when those crops don’t perform the way they thought they would. Instead of relying solely on one or two staples, plant different crops that you can sell in your local community for a profit. For example, many farmers are seeing great returns from planting medicinal mushrooms or gourmet varieties. You can sell these directly to herbalists, health food stores, and even restaurants. Even better, mushrooms are easy to start and can withstand conditions other crops can’t.
Lease Out Your Land
One of the best things you’ll realize when you buy land with a small farm loan is that you’ll have tons of acreage to work and develop. That doesn’t mean you’re going to use all of that land immediately. Use this to your advantage and rent out parts of the property you’re not actively cultivating. Sites like Hipcamp and Harvest Hosts connect you to campers and short-stay visitors that are willing to pay to stay on your land.
Start Raising Worms
If you’ve ever gone fishing, you know that the best bait to use for multiple species is live worms. Those worms have to come from somewhere, so why not make it your farm? Raise worms on-site and sell them to local fishing and tackle shops around town. You can even use the soil you raised the worms in to fertilize and enrich your fields as you grow your operation.
Multiple Income Streams Matter
The best way to protect your investment and ensure that you can make your regular payments on your small farm loan is to have multiple income streams. Try these methods for yourself and you’ll likely see an increase in your annual profits. If you need help bringing your vision to life, reach out to our team today.