9 key reasons why your farming agribusiness may fail
Farming is a low-risk agribusiness with a lower failure rate than other businesses. However, you need to ensure that everything is done correctly for your farm to be profitable. This ranges from seedlings to farm equipment to proper farm management to seeking agronomy support. Although each farmer wants their venture to succeed, sometimes they might make mistakes either knowingly or unknowingly and wonder where they went wrong. Unforeseen circumstances and reasons crop in, and their farming business fails. Here are eight mistakes that may kill your farming venture. Dive in and find out!
- Planting low-quality seedlings
- Unpredictable weather patterns and adverse climatic conditions
- You don’t have a sustainable agribusiness plan
- Growing too many crops
- Using poor irrigation systems
- Not Having the Right Equipment
- Poor Farm Management
- Not seeking knowledge of your production area continuously
- Persuing low-end market streams
Planting low-quality seedlings on your farm
Farming is not a get-rich-quick scheme. It requires hard work and determination, especially when you’re just starting. You’ll want to get your farm up and running as quickly as possible when you’re starting. If you’re not a specialist yet, you may be tempted to go with low-cost options to save money on materials. But this will inevitably backfire later on when your plants start dying off left and right, and your expenses skyrocket because you have to keep replacing them with new seedlings. It’s better to invest more in high-quality seedlings that will last longer and produce better harvests.
Unpredictable weather patterns and adverse climatic conditions
Agribusiness is a significant part of the world’s economy. However, one must not forget that farming is an unpredictable industry subject to natural conditions, weather, and climatic changes. Weather is fickle, and the forces that decide how much the harvest makes it to market are often beyond our control. These factors can influence the productivity of any farm and are often beyond the control of farmers and their managers.
A few examples of atmospheric conditions that affect farming are drought, flooding, and blizzards. Drought is caused by a prolonged period of dry weather, which affects overall crop growth and development. Flooding occurs when water covers land areas that are usually dry or when the water rises above its usual level. Blizzards occur when strong winds accompany excessive snowfall. All these atmospheric conditions can severely disrupt or delay the progress of crop production.
Farmers cannot control the weather, so they can only try to adapt to it. Farmers to develop their farming plans and strategies based on the weather conditions in the area. This can cushion them from adverse climatic conditions such as floods and drought. For instance, they can prepare their irrigation strategies during the dry season and ensure that their crops will not be affected by the dry weather. In areas susceptible to flooding, they can know when to plant and when to delay.
You don’t have a sustainable agribusiness plan
Farming is a long-term investment and requires a detailed plan that includes financial projections, market analyses, etc. Get your numbers right before investing in land, seed, equipment, and labor. Unfortunately, many people are so excited to start farming that they skip this step. When starting any business, many factors go into the decision to start it, and one of the most important is having a sustainable business plan. A sustainable agribusiness plan considers whether or not the crop will sell in the area, how to care for your crops, pests and diseases that might affect the crop, farming tools to use, how long it takes to grow, and marketing channels to target. In the case of farming, a sustainable agribusiness plan would include details about how much money it will take to plant and harvest, plus how much profit you can expect from that harvest. This way, you can figure out how long before you will have enough money to harvest again.
Growing too many crops
Some people may think that growing too many crops translates to more profits. This is not the case unless it is done perfectly, whether on large farms or small farms.
When growing too many different types of crops in an area, it becomes difficult to care for them all and succeed in producing consistent yields. Additionally, unless you have specific plans for storage and marketing, it becomes difficult to know what to do with all of these crops. You need to carefully perform an economic analysis, understand the cost of agricultural products, seek technical assistance from extension officers and local farmers, and understand the farmers markets.
Using poor irrigation systems
Irrigation plays a significant role in your farming investment. When you’re starting a farming agribusiness, you need to make sure that your irrigation systems are up to the task. You’ll have a lot of crops that need to be watered, so you’ll need to have a system in place for them. The irrigation systems will differ depending on the type of plants growing and your climate zone. To be more sustainable and efficient with their water use, you should consider using drip irrigation systems on your farm. These systems are designed to help water reach crops more efficiently and effectively. With the push for more sustainable agribusiness, there has been a rise in the popularity of drip irrigation systems designed to meter small amounts of water to plants quickly. Other irrigation methods that you can use to enhance your agricultural productivity are sprinkler irrigation and overhead irrigation. Each system has its benefits and drawbacks; it is up to you to determine which system works best at your location or with your particular crop.
Not using the right equipment
Agricultural production is heavily reliant on farm equipment. There are a number of things that could prevent your farming agribusiness from succeeding. Among them is the lack of appropriate equipment. You need the right farm products to operate your farm. Besides, you need the right machinery and tools that promote sustainability. There are some essential pieces of agricultural equipment that you need to get the most out of your production. These include tractors, planting and harvesting tools, sprayers, tillage machines, and a variety of other implements. By using the right tools, your farm will be able to produce the yield or quality that you’re hoping for. Besides, you’ll be able to work more efficiently and maximize the productivity of your farm.
Poor farm management
The success of a business depends on how well it is managed. Many small businesses hire inexperienced workers, which leads to poor management and a higher risk of losing money and valuable time. Several management mistakes can hamper the efficiency and output of your farm. Some common examples include hiring employees who do not have the right qualifications, failing to measure or track performance and making decisions based on emotion rather than sound logic. Poor farm management can also overuse resources such as water, pesticides, and fertilizers. You will find yourself applying fertilizers at the wrong time or failing to control pests and diseases properly. This affects the produce quality and your crops’ productivity.
Not seeking knowledge of what you are growing
Success in farming does not come easy. You will need to be well-versed in the various techniques and procedures required for successful crop production. There is no substitute for hands-on experience, so you must do your research before planting any crops. It’s also important to keep up with changes in agricultural technology to make informed decisions about what to grow and use for fertilizers and pesticides. By doing your homework and staying current with the latest trends, you will be able to maximize your yields and produce high-quality crops year after year. You can also seek assistance from other farmers and extension officers.
Persuing low-end market streams
Successful farmers recognize that to generate long-term income, they need to pursue higher margin and high-value stream crops. These crops offer a premium price over those on the lower end of the market. Higher-value crops such as macadamia and Has avocado can be sold directly to consumers or exported overseas for sale into other markets. This ensures greater profitability and allows you to remain in business for extended periods by generating steadier income streams. Common targets for high-margin crop production include specialty fruits, vegetables, and flowers. You also need to target better markets to generate more income.
Failure to plan is planning to fail. This is true for all kinds of ventures, but it can be true for farming businesses. Before you start any farming operation, take some time to consider the potential problems you may encounter and how you will deal with them. At Mazero, it is our joy to see farmers succeed. We offer high-quality equipment and agronomy to help farmers make the right steps. Besides, we provide irrigation systems to solve your irrigation needs. Whether you are looking for a drip irrigation system or a way to store your irrigation water, we have something for you. Check out what we offer on our website, or contact us today! Let’s grow with the right tools.