Behind every serious business, there is a lot of effort invested in searching for the optimal management direction. However, managing crop production is particularly delicate and requires multiple skills. Farmers often run two races; one for achieving high and quality yield and one for achieving profitability.
After all, crop production directly depends on weather conditions and natural resources, and it’s sensitive to the change in market prices. For this reason, producing quality and nutritious crops which can achieve higher market prices while keeping the production costs at a reasonable level is a daily challenge for every grower.
Behind every serious business, there is a lot of effort invested in searching for the optimal management direction.
The way how farmers manage and control their production costs directly affects their profitability. High yield and revenues are meaningless if farmers have too high production costs. In other words, maintaining production costs at a reasonable level can be crucial for achieving farm profitability.
Getting More Deeply In Production Costs
Every crop requires specific production effort during the season regarding work and machinery hours, protection products, fertilizers, water, and other items like additional tools, equipment, or specific commercial products.
Having an insight into the different types of costs per crop production and field allows farmers to see which crops and fields are profitable and which lack behind. Besides that, farmers who know the exact costs and yield per field and crop production can detect additional space for cost savings.
When the same crop produced on multiple fields shows different yield results, tracking the production costs per field can be lifesaving. Imagine what happens if a farmer grows the same crop on few fields and detects that one field he has higher fertilizer costs and lack of yield. In that case, he can conclude that the crop is overfertilized and decide to apply a lower amount of fertilizers in the next season. By doing so, a farmer will save money and avoid over-fertilization, which will also positively impact yield.
When the same crop produced on multiple fields shows different yield results, tracking the production costs per field can be lifesaving.
Planning the Costs for the Next Season
Farmers who know exact costs from the previous season can plan their budget much easier. Creating a budget plan for every season allows farmers to allocate their money wisely and to prepare better for upcoming investments. Whether planning how much money will be spent only per cost category (farm materials, employees, machinery) or creating a more detailed budget plan per specific items, such as a particular protection product. A budget plan can also be useful to compare the planned costs with the actual costs at the end of the season. That way, farmers can prepare much better for the upcoming season and make additional decisions regarding cost savings.
Controlling production costs and planning the budget can be painpoint for many farmers. Luckily, today modern technology helps farmers save their time by providing various tools such as AGRIVI farm management software which help farmers with keeping all records regarding their production costs and budget. What is even more important, AGRIVI provides simple but powerful field analytics which enables farmers to analyze various types of production costs per crop and field.
