Five simple ways to cut operating costs on the farm

By Emily Zuver, Senior Assistant Accountant, Holbrook & Manter

Running a farm or agribusiness means watching every dollar. Feed, fuel, equipment, labor — the expenses add up fast, and even a small dip in prices can squeeze your bottom line. The good news? You don’t need a big budget or fancy technology to spend smarter. A few practical changes can free up cash and make your operation more resilient.

This month I will share five straightforward ways to trim your costs without cutting corners on quality.

1. Get a handle on your fuel and energy use

Fuel is one of the biggest expenses on most farms, so it’s a smart place to start. Keep your tractors and machinery well-maintained — clean filters, proper tire pressure, and regular oil changes all help engines run more efficiently.

Plan your fieldwork to reduce backtracking and idle time. Combining trips or grouping tasks by location can save more fuel than you’d expect over a full season. If your power bills are high, look into switching to energy-efficient lighting in barns and sheds. Small fixes here pay off month after month.

2. Buy smarter, not just cheaper

Bulk buying can lower your cost per unit on things like seed, feed, and fertilizer. But only stock up on what you’ll actually use before it spoils or expires. Wasted supplies eat up any savings you gained.

Talk to your suppliers, too. Many offer discounts for early payment or long-term commitments. Don’t be shy about comparing prices from a few vendors. A quick phone call or two could save you hundreds over the year.

3. Make the most of what you already own

Before you buy new equipment, ask whether you really need it. Renting or sharing machinery with a neighbor can be far cheaper than owning a tool you’ll only use a few times a year.

Keep good records of your equipment and its condition. Regular maintenance costs a little now but prevents expensive breakdowns later. A well-cared-for machine also holds its value if you decide to sell it down the road.

4. Track your numbers closely

You can’t cut costs you don’t measure. Using accounting software and consulting with your accountant regularly is crucial to keeping track of all of your expenses.

Maybe your seed costs crept up, or a certain crop isn’t paying its way. When you know your numbers, you can make decisions based on facts instead of guesses. That kind of clarity is worth its weight in gold. Lean on your accountant for help- that is what they are there for.

5. Reduce waste wherever you can

Waste is money slipping through your fingers. Check your irrigation for leaks, store your inputs properly to avoid spoilage, and use up feed and materials before they go bad.

Consider putting crop residue or manure back into your soil instead of buying extra fertilizer. Composting and reusing what you have can lower input costs and improve your land at the same time. Every bit you save adds up over a full growing season.

Small changes, big results

Cutting operating costs doesn’t mean working harder — it means working smarter. Start with one or two of these tips and build from there. Even modest savings can add up to a healthier, more stable farm business over time.

As always, I am here to help. Reach out with any questions you may have.