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Profitable crops, how and what to invest in agriculture

Posted by Tonya Harrison on
Profitable crops, how and what to invest in agriculture

Many farmers and aspiring entrepreneurs are asking themselves which are the profitable crops in Italy and abroad.

In general, a crop is profitable when the difference between production costs and sales price is large.

And as it is easy to understand, this is a datum that is difficult to quantify in an unequivocal manner as each situation is unique and not repeatable.

On the one hand, production costs are closely linked to the type of farm in question, on the other hand the sales price linked to the presence of the company on the market and sales channels.

Cultivation will therefore be profitable only in some cases , while in others not due to production methods and market accessibility.

However, despite the differences between the various individual cases, it is possible to determine the profitability of a specific crop keeping in mind some general parameters.

A cultivation is profitable if:

  • it is possible to automate the production;
  • it is possible to sell it to the end customer;
  • satisfies a need in the local community;
  • we focus on quality and not quantity.

It is clear that not all the cultivations carried out in Italy today can be considered profitable, but rather a narrow minority are so because it is difficult to respect these basic parameters.

Take the example of wheat, it is an easily automatable crop, but the recipients will be the large retailers who, as we know, use their commercial strength to tear prices down to the limit of survival for the farmer.

The same goes for example for tomatoes, oranges and fruits.

On the other hand we find, for example, the cultivation of saffron, a potentially profitable cultivation , but unfortunately in some phases of the processing nothing can be automated without the delicacy of the flower.

Finding the right balance between production costs and direct sales is precisely the topic of this article.

The Open Company blog is full of ideas to apply to agriculture , in recent times a deep interest has been born around environmental issues and more and more people are approaching small local realities and actively participating in change.

Wherever possible, I always advise consumers to prefer organic and local food not only for obvious health reasons, but also and above all to actively support small Italian agricultural entrepreneurship.

It is useless to complain without acting, we are change, we decide which activities to reward or not, we choose local products, we will gain all our territory.

WHICH ARE THE BEST PROFITABLE CROPS


Among the various potentially profitable agricultural activities, I like to mention heliciculture, earthworm cultivation, beekeeping, cultivation of wild berries, saffron, cultivation of medicinal herbs, fungiculture, truffle farming, sativa hemp, giant bamboo , the production of precious woods, breeding of poultry, breeding goats, raising of laying hens, cultivation of legumes and ancient grains.

As you can see, there are many potentially profitable activities , but be careful, as stated in the introduction it is not always possible to extend the profitability to all the cases analyzed.

There will be the small farmer with a good sales network, but he will never be able to climb the market due to the lack of efficiency in production, as there will be the big farm that will have to work hard to establish itself as a company with high quality products.

I have written numerous and detailed articles for each of the crops mentioned above, it would be a pleasure for me if you wanted to spend part of your time reading those you are interested in starting from the list below:

  • start a snail farm ;
  • breed earthworms ;
  • become a beekeeper ;
  • cultivation of wild berries ;
  • start a saffron ;
  • the cultivation of medicinal herbs ;
  • the funghicoltura ;
  • create a truffle farming ;
  • cultivating sativa hemp ;
  • start a giant bamboo cultivation ;
  • breeding of farm animals ;
  • raising goats ;
  • design a laying hen farm ;
  • breed ladybirds;


The secret to establishing itself on the market is to specialize in a particular unique and unrepeatable market niche. Consider that the Italian territory is unique in its kind and a world-wide ambit.

The made in Italy brand is among the first in the world, if the farm manages to communicate this message, the reference market is the whole world.

HOW TO KEEP PRODUCTION COSTS LOW

We have seen that one of the important parameters for gaining in agriculture is to keep production costs as low as possible.

A starting point to reduce costs is to calculate the total costs for each crop through the calculation of working hours, the means used, raw materials and so on.

In agriculture, one of the main sources of costs is labor.

Some agricultural activities require only a few hours of work, but on the other hand they require the use of expensive machinery that the small producer can often only rent for very short periods.

After the cost analysis phase, list those activities that can be eliminated or modified.

The cultivation techniques can in fact be modified to reduce the use of labor.

Another strategy is to employ volunteers who, in exchange for their work, ask for practical lessons in agricultural activities.

In the 2.0 farm manual, I also explain a revolutionary approach to devising a profitable agricultural business.

HOW TO SELL DIRECTLY TO THE CUSTOMER

For a small company it is possible to keep costs down, but the real challenge is that of direct access to the market.

The figure of the agricultural entrepreneur in recent years has evolved from the classic farmer to the young connected with social media and the internet and who shares the fruits of his work and earns by selling directly to the end customer.

HOW TO KEEP PRODUCTION COSTS LOW

We have seen that one of the important parameters for gaining in agriculture is to keep production costs as low as possible.

A starting point to reduce costs is to calculate the total costs for each crop through the calculation of working hours, the means used, raw materials and so on.

In agriculture, one of the main sources of costs is labor.

Some agricultural activities require only a few hours of work, but on the other hand they require the use of expensive machinery that the small producer can often only rent for very short periods.

After the cost analysis phase, list those activities that can be eliminated or modified.

The cultivation techniques can in fact be modified to reduce the use of labor.

Another strategy is to employ volunteers who, in exchange for their work, ask for practical lessons in agricultural activities.

NEW TRENDS IN AGRICULTURE

At the opening we saw some potentially profitable ideas that were born thanks to the entrepreneur’s creativity.

Current trends are those that help the environment to regenerate and all those substances that are important for human health.

The next foreseeable agricultural boom in Italy will certainly be that of hemp which has recently been regulated to finally help the development of this important source of income.

Other growing trends will be those that will put environmental sustainability in a central position, an example is the use of bamboo as a building material.

Also worth mentioning are all the agricultural activities such as educational farms and agritourism aimed at customers who are particularly attentive to the rural and agricultural world of Italy.

PROFITABLE CROPS: FINAL CONSIDERATIONS

 hope that this short article on profitable crops has encouraged you to study and train yourself, above all, on the commercial and marketing side of the company.

The time of the good farmer is enough, alas, they are finished, today the figure of the agricultural entrepreneur has evolved into a concentration of multidisciplinary skills that together work on the final project.

Knowing how to cultivate is not enough, now you have to be an all-round entrepreneur who is not afraid of new technologies, one who knows how to wander between planting and sharing on social media, from a good harvest to sending a newsletter informing you of the next event.

Are you ready for the challenge?

In an evolving world, those who don’t do it sink.