Farm Revenue: Growth Beyond Crop Sales
As the selling market becomes more competitive, using underutilized farm assets is the next step to growing revenue and increasing profits. Revenue streams that are independent of food production can secure consistent farm income.
Start With What You Have
Assess your farm assets and determine how you can use them to draw more money into the business. Monetizing resources that you already possess helps to keep operating costs low. Consider the following two revenue generating vehicles to increase revenue on your farm.
Space & Land Use
Space and land use are broad opportunities to generate revenue from renting land and farm property facilities. Sections of the land can be designated for tenant farmers or ranchers. Providing farmland that can be leased by other farmers or ranchers guarantees a consistent monthly source of income. Outside of farmland and ranch use, there are opportunities to offer space or land for small events, meetings, or for on - occasion use. This could include providing space to host a local crafts market, space for one day retreats, or site rental for professional photo shoots. There are countless revenue generating opportunities in farm space and land use rental, but it may come with limitations. Some of these activities may be limited in scope based on state and local zoning regulations. Research related regulations needed to accommodate different operational business uses of the farm. Though this revenue generating vehicle may require more upfront research and approval, it can create opportunities that last year-round.
On - Farm Experiences
On - farm experiences are curated events meant to draw and engage customers on a farm in a unique manner. A common on - farm experience is agritourism. Agritourism is usually defined as using production or processing to attract visitors to a farm or ranch for entertainment or educational purposes. Agritourism, can include U-Pick operations, corn mazes, & school tours. Other on - farm experiences may include escapist activities not tied to production or processing such as camping, star gazing, and yoga. Similar to space and land use, there may be limitations to this based on the state and local regulations governing business operations on a farm. On - farm experiences are also a great way to partner with other local businesses that are looking to provide their services in a unique way.
Creating revenue generating activities on your farm is about risk management. It's about creating your own opportunities to grow your business. The process isn't fool proof, but it sets the foundation to open doors for more farm revenue. By tapping into either of these revenue generating vehicles, your operation can capture additional value right on the farm.