Diversification is incredibly important for all types of business, no more so than for a dairy farm. People might think that the opportunity to grow a dairy farm through expansion is quite difficult but in fact there are some key methods that can be deployed to swiftly facilitate growth initiatives, one such facility is agricultural finance.
Expanding livestock – this is clearly the most logical solution for any dairy farm. By introducing a larger number of animals, you can increase product output and generate a higher level of revenue. The use of agricultural finance can help to purchase additional livestock however, it can also help with the safekeeping of the animals. The welfare of the cattle must be the number one priority and therefore being able to pay for the best facilities, best feed and best care plans is vitally important. Something to also consider is that, for a specific timeframe, farmers can simply lease the dairy cattle using a flexible finance agreement.
Create your own retail outlet – by producing and selling milk on-site you can quickly boost revenues and increase profit levels. However, it is not just about selling milk. A dairy farm will have a large amount of land so therefore more home-grown produce could be developed and then sold in the farm shop. Why not consider a greater depth of products by utilising the milk and manufacturing items such as cheese, yoghurts, cream and ice cream. You don’t necessarily need an onsite shop, of course this is a great option, but it is not always needed, you could just set up an online shop? In addition, you could also offer home deliveries or introduce a milk round. Again, agriculture finance can help to fund anything from a new property to new machinery to an increase in supplies.
Make use of the land – we have already explored the option of a new retail outlet but what about using the land and space for other purposes. You can open the farm for visitors to come and help on the farm. Or consider some form of campsite for motorhomes, caravans, tents and even glamping pods. Agricultural finance can be used to make the farm accessible to all by installing key facilities such as running water, bathrooms, electricity, etc.
Fulfilling any form of growth plan for a dairy farm will require a boost in cashflow. Agricultural finance is a highly diverse lending option and has multiple uses which can include the purchase of livestock, investment in machinery, property renovation or development, acquisition of stock and introducing of new staff or temporary labour.
If you would like to find out more on how we can support you to grow your dairy farm, then please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.