Growers´challenges and the impact in their bottom line

Updated: Nov 4, 2019

Regardless of the type of crop or the size of the farm, growers main goal is to maximize their bottom line.

If they are able to get the most revenues with the less expenses, then they will maximize their profits. More revenues does not always means better bottom line. Increasing revenues by increasing even more the expenses through more inputs, labor or equipment expenses does not maximize the profits,

Following the right strategy for obtaining the right balance is a science, where the experience, the right data capture and analysis and optimizing operational expenses brings the grower the best returns.

Moreover, there are many factors that influence the final return of a season for a grower. The weather, the plant health, the nutrition plan, the soil quality, the water, and many other factors will influence the grower´s final returns.

Lets analyze first the revenue side.

Revenues are determined by the prize of the final crop and the quantity of the final production. To increase the quantity we need to work in increasing the yield from the farm. The prize of the crop is determined by the market demand and the quality of the product. In medium and high value crops, quality plays an important role, not only in increasing the prize, but in making sure that the grower can sell all his production.

All of the above mentioned variables shown in the image, such as the weather, the water, the plant health, etc, do influence the final input, and the better the grower can manage them, the better outcome he will have.

As well, in the expenses side of the equation, the more efficiently the grower manages the inputs, labor and other operational expenses, the more efficient the grower is.

At Advanced Ag Solutions, we look for those solutions and technologies that help farmers be more efficient, while improving their yields and the quality of the products that they produce.

These solutions may come from liquid fertilizers manufactured from vegetable extracts and that are zero residues. Improving the nutritional plan, while reducing the chemical input, has proven to have impressive results in yield, and moreover, many international customers are shifting towards non-residue farming, paying more for the products, because of their superior quality. The same applies to plant health, disease prevention, etc.

The same happens with many other solutions, like irrigation management systems, or many other solutions, that do not only help to optimize input and water usage, but to significantly reduce labor costs. Correct use of big data, precision agriculture, artificial intelligence applied to automation, robotics, and many other technologies and solutions can have a significant impact in how farmers work in the near future, to cope and overcome the challenges they face. Innovation is key to sustainability, and sustainability is key to the future of the agricultural industry in North America and the world.

#yield #agriculture #innovation #bottomline


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