Sowing and harvesting costs – what do they consist of?
Harvest is a significant cost for the farmer in various contexts. It is worth remembering, first of all, that not every farm is equipped with its own fleet of machinery, the purchase of which represents a considerable sacrifice for the owner of the acreage. For this reason, they often opt for machine rental services or comprehensive seeding and harvesting services. So what really makes up the overall costs a farmer has to pay during the sowing and harvesting period? These will be primarily:
- Seeds and cut tings – the purchase of seeds or cuttings is a significant part of the cost of sowing. The price depends on the type of crop, the quality of the seeds and whether they are conventional or genetically modified.
- Fertilizers and crop protection products – the use of fertilizers, herbicides, fungicides and insecticides is essential to ensure a good quality crop. These costs depend on the type and quantity of measures used.
- Fuel and oil – agricultural machinery such as tractors, combines and seeders require fuel to operate. The increase in fuel prices directly increases the cost of sowing and harvesting.
- Depreciation of machinery and equipment – the cost of purchasing, servicing and repairing agricultural machinery (e.g. tractors, seeders, harvesters) is spread over many years of use. This depreciation is part of the cost of sowing and harvesting.
- Labor – Labor-related costs include salaries for seasonal and permanent employees. In some cases, when farmers hire outside companies for seeding or harvesting, these costs can be higher.
- Irrigation – where agriculture requires artificial irrigation, the costs associated with the irrigation system (e.g., purchase, maintenance, water consumption) also affect the overall financial balance.
- Storage and transportation – after harvest, the cost of storing and transporting the crop to storage locations or directly to merchants is another major expense item.
- Insurance – Crop insurance may be necessary to protect against losses caused by unforeseen events, such as extreme weather.
- Farm management – administrative costs, including scheduling, resource management and other operating costs, also need to be considered.
- Soil analysis and consulting – costs associated with soil testing and possible consultation with agronomists to ensure optimal conditions for crops.
Ordering sowing and harvesting services – the optimal method of cost reduction?
As can be seen, many of the factors identified above that shape farmers’ overall costs during sowing and harvesting periods are related to the use of agricultural machinery and often to the salaries of its operators. This situation is causing more and more farm managers to take out seeding and harvesting services. Why is this one of the best ways to optimize expenses resulting from these processes? This is primarily due to:
- The ability to effectively distribute the time of the farmer himself and his workers during sowing and harvesting;
- No need to hire additional workers and machine operators if the acreage of the farm requires it;
- The farm owner does not have to invest in purchasing, servicing, or repairing the machinery needed for seeding or harvesting operations;
- By purchasing seeding and/or harvesting services from Agrocontractor, the investor is guaranteed that the work on his farmland will be carried out with modern, efficient sets of machinery;
- The farm owner gains the ability to adapt the appropriate sets of machinery to his cultivation needs without investing in the purchase of new equipment;
- When using Agrocontractor’s seeding and harvesting services, farm owners receive expert guidance from a team of highly qualified advisors. Among other things, they offer support in the area of optimal selection of a set of machines to meet the current needs of the farm.
Sowing and harvesting services – for whom?
Buying out seeding and harvesting services is an excellent solution for many farms regardless of their acreage or staffing capabilities. Why? Because in any situation it can become a tool to optimize the costs generated during the sowing and harvesting periods. Even on large farms with many employees, being able to redistribute them to other tasks during busy times will bring economic and organizational benefits.
For obvious reasons, seeding and harvesting services can bring great results in optimizing management costs for smaller farms. This is because their owners are relieved of the need to purchase and maintain a fleet of machines and hire their operators. They hire services when they need them. This solution is becoming increasingly popular precisely because of its ability to better manage time and investment funds.
