BusinessAgriculture

How to organize your own farm

In order to make a successful business and become a farmer, it is first of all necessary to understand the specifics of this activity and take into account the best agricultural practices of other countries. Farmers in Western Europe, America and a number of other countries have many individual characteristics, however, practically all of them are distinguished by one regularity: a relatively small scale of farming. In our country there is an opinion that the larger and larger the available agricultural business, the more profitable it is. Meanwhile, many economists argue that agriculture, together with a number of other industries, has quite a certain scope in scope, the yield beyond which makes farming less profitable. After all, a large enterprise is much more difficult to adapt to the changing wishes of the market and be flexible enough in its marketing and marketing policies. In addition, for the organization of a large agricultural enterprise it is required to invest considerable funds in a new infrastructure: land rent, purchase of agricultural machinery, and even current costs will amount to a considerable amount. Unlike them, a small organizational structure will require much less costs for its maintenance and, therefore, will pay off more quickly and bring profit. To analyze the effectiveness of large-scale agricultural activities, consider the average area of farmland in the Old and New World. If in Europe the average farm has an area of 20-30 hectares, in America this figure is at least several times higher. Meanwhile, many European farmers have productivity above their American counterparts, which once again speaks of the advantages of intensive farming over extensive farming.

Another peculiarity of farming abroad can be considered inherent to it nepotism. Thanks to the high mechanization of labor, the servicing of the economy does not require a lot of labor, and the duties in a small firm can be distributed among members of the same family. For example, consider a typical farm on dairy farming: a farm for 45 dairy cows and 25 calves are serviced by husband and wife. By means of a tractor, a combine and a truck, the owners independently harvest the feed grain, silage and hay, thus cutting costs and increasing the market competitiveness of the farm. Milking on such farms is also usually automated. Competent introduction of agricultural machinery allows for several years to recoup the costs of its purchase and significantly improve the productivity and profitability of the business.

In addition to the cost of acquiring equipment, a beginning farmer needs to invest considerable money to build basic infrastructure. When it comes to a large agricultural firm, a large administrative building is usually built, in which all the personnel not engaged in production activities are located. Historically, the number of workers engaged exclusively in mental work in large agricultural companies - a solid amount. If we talk about a typical small farm, then, in addition to the cowshed, warehouses, fodder premises, etc., in the absence of such a house is built for the farmer and his family. The scale of the building is determined by the requests and wishes of the family, which can range from a small cottage to a luxurious villa in nature. Whichever type of structure is erected, it is necessary to carry out work on designing and drawing up estimates for construction work. The selection of a modern, economical construction technology will allow to minimize costs and make the farm profitable, and the choice of a reliable contractor is to build a comfortable and modern dwelling.

When learning the best practices and characteristics of the organization of agricultural business in different countries, a novice farmer has a real opportunity to become successful.

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