The Modern Acre 272: The Business of Farming - Topsoil Series with Ariel Patton
Mar 31, 2023
Ariel Patton, creator of the insightful Topsoil newsletter, dives into the financial intricacies farmers face today. She discusses how essential understanding profit and cash flow is for sustaining agricultural businesses. The conversation touches on the rise of mega farms versus micro farms, and innovative models like Singing Frogs Farm that help farmers transform into price makers. Ariel highlights the potential of new income avenues like carbon credits, emphasizing optimism in reimagining farming for improved profitability and sustainability.
AI Snips
Chapters
Transcript
Episode notes
Farming Is A Low Margin Business
- Farming is a low margin business, requiring careful decision-making on every expense line to maintain profitability.
- Both commodity and specialty crops can have surprisingly slim profit margins, emphasizing tight cost control.
Crop Choices Based on Profitability
- Ness Farms adjusts crop rotations based on detailed financial analysis, moving away from crops like cucumbers despite their past popularity.
- They balance profitability with soil health and operational fit, showcasing thoughtful farm management.
Ag Tech Must Impact Key Expenses
- Ag tech companies must target big expense buckets like labor, land, equipment, and inputs to create meaningful value for farmers.
- Solutions without direct financial impact on farms risk non-adoption due to tight farmer margins.