With the increasing strain of higher working capital demands, cashflow could be a major issue for farmers this year. To stay financially afloat and protect their businesses from hardship, it is essential that these agriculturalists explore new sources of income or find cost-effective ways to save time and money.

A closer examination of your farming operations could be the key to unlocking greater efficiency and cost-savings – all adding up to a healthier business.

Check mobile phone and internet contracts

When budgeting for a farmer, we were shocked to discover their yearly mobile phone bill was an eye-watering £7,000! It goes to show that letting contracts drift without review can be costly – so make sure you stay on top of both your finances and your deals.

Rent a room

With the cost of living on the rise, why not make use of an extra room in your home and turn it into a source of income? Not only will you be able to cover any increase in expenses but you could also have some interesting company.

We know of a couple of farmers who have rented out rooms to graduates on Spareroom.com because the house felt too quiet after their children left home.

If you live within 10 miles of a university, there may be potential to let out a room to a student from a farming background who prefers to live on a farm, rather than in a traditional house share.

The government’s Rent a Room Scheme lets you earn up to a threshold of £7,500 a year tax-free from letting out furnished accommodation in your home.

Sell off spare machinery

Recent increased demand for previously owned machinery has made it a lucrative option to pass on older equipment formerly held in reserve by many farmers.

Hauling machines to a collective sale can take time and cost, so consider a national online sale which allows farmers to sell odd bits of kits.

Get to grips with energy consumption

To better understand our daily energy consumption, use metering plug sockets or sub-meters to track down the main culprits! Monitoring electricity meters helps us identify where we can make simple changes for improved efficiency.

Consider improvements to efficiency, reduction in usage and ways to bill consumption more effectively to tenants.

Unlocking the power of renewables starts with finding a balance between production and consumption, where battery storage can ensure this equilibrium is achieved.

Adopt lean thinking

Lean thinking is a business approach which involves focusing on what delivers most value. So, the idea is you spend on processes and inputs that contribute to output, but hold back on incurring costs which don’t.

Examples could include holding back on annual hedgecutting, except where needed for safety reasons, and repeated mowing of unfarmed grass areas.

Take advantage of free advice

Farmers can access free advice and business support worth up to £2,000 a farm, by signing up to the Future Farming Resilience Fund.

It is designed to help farmers understand the changes they are facing and how they can adapt their business models.

There are 17 providers funded by Defra to give this consultancy support. However, the package each provider delivers is different – for example, group workshops, online webinars, or on-farm one-to-one support.

So before signing up to any one company, investigate what support you will be getting and whether you gel with the person you will be working with.