Less Is More: Specialization As a Key to Farming Success

Picture a storybook farm: rows of vegetable crops, fruit trees, a flock of laying hens, some pigs wallowing or cows grazing, and a happy farmer with a spade, chasing stray rabbits from his crops. Sounds idyllic, doesn't it? As farmers and ranchers, we know that a “real” farm — like the ones we operate — generally looks nothing like the fantasy version that many people imagine. The work is hard, the days are long, and we don't wear picturesque overalls (well, most of us, anyway). But are we always realistic in our expectations for our own farms?

For many farmers, one of the most challenging aspects of owning and operating a farm or ranch is running it as a business. How many of us got into farming because we love business management, spreadsheets, and thinking about profitability? The very idea of “profit” can be off-putting; we want to provide wholesome food to our communities, or be good stewards of the land, or sustain family businesses and traditions. But in order to keep doing these things — to keep farming, for the long term — economic sustainability is key.

Remember that storybook farm? Fruit, vegetables, pigs, chickens — how much work will it take to keep this operation running? It may be tempting to think of a diverse farm as a profitable farm, but there are some good reasons to avoid this model.

• Increasing production of a smaller number of crops means lower production costs and greater efficiency. Say you are growing strawberries. You will need to buy or rent land; you will need a tractor, a soil test, irrigation infrastructure, farm insurance, and so on. These are fixed costs — you pay them no matter how much or how little you produce. By focusing on a few key crops, you can increase production and maximize the return on your fixed-cost investment in your farm operation.

• Narrowing your focus allows you to develop in-depth knowledge about your specific crops or livestock. It is very difficult to grow twenty things efficiently and well. But if you only grow three crops, you can really focus, learn, and improve your processes and techniques.

• Specializing in growing a few crops lets you take advantage of seasonal cycles and down time. Traditionally, most farms moved with the seasons: planting and growing in spring and summer, harvesting in the fall, resting in the winter. We all know the importance of rotating our crops and letting our soil rejuvenate under a good cover crop, but what about doing the same for ourselves as farmers and ranchers? Farming at full capacity year-round is a fast way to burn out; an “off” season allows both the farm and the farmer time to rest and regenerate.

• Running a specialized farm doesn't mean that you can't have a variety of products to offer. If you raise sheep, you could also sell sheepskins and wool, or offer breeding or grazing services. If you have a fruit orchard, you could extend the season with jams or dried fruit products. Think creatively about expanding your offerings, not your enterprises.

By eliminating less profitable crops and enterprises, you have more time, energy, and resources to focus on the things that are working best for you and your farm. A specialized operation will be more economically sustainable, more efficient, and more successful — and ultimately more rewarding in the long term.

Are you thinking specializing or scaling up your operation to increase profits? Apply for our Farm and Ranch Business Planning Course this winter!

More information on Farm Business Planning: Scaling Up.

To sign up, click here.

For another take on specialization as a key to successful farming (and inspiration for this article): In Defense Of Specialization, by Ulf Kintzel, Cornell Small Farms Program

Read more