Further increases in input costs for 2023 are forcing arable farmers to find ways to trim their spend, and one consultancy firm has come up with 10 areas where cost savings can be made.

Economic pressures, supply concerns and wider environmental issues are combining to give farm expenditure even greater significance, says Ceres Rural, with the latest farm budgets looking quite different to those from 12 months ago.

See also: How key spring crop choices stack up for harvest 2023

Given current uncertainty, associate partner Tim Isaac has come up with a 10-point checklist and tips to help farmers, based on the firm’s experience of analysing numerous sets of farm accounts.

1. Seed

Home-saving as much of your seed as possible will save money and guarantee supply, notes Mr Isaac, even if it requires more planning at harvest.

2. Fertiliser

Timing of purchase is critical with the dramatic increase in prices, but the practical part of reducing fertiliser costs is how much to apply, he advises.

The use of soil, tissue and grain tests can inform the optimum application rate, while everything should be done to maximise utilisation by the crop.

Increasing the use of legumes and organic manures in the rotation will reduce reliance on vulnerable bagged supplies.

3. Sprays

As each sprayer pass involves fuel, chemical, wearing parts and labour costs, every application should be questioned, believes Mr Isaac.

Make use of thresholds and forecasting, resistant varieties and weather tools to calculate the risk and return of each treatment and reduce the number of applications.

4. Agronomy

Tailored, technical and robust agronomy is key to saving costs, with independent advice usually resulting in a lower spend, he comments.

Question every decision and discuss alternative options; many growers find that becoming Basis and Facts qualified is a good investment.

5. Labour

Pressures on the labour market are making it difficult to save money unless you are obviously overstaffed, accepts Mr Isaac.

Make it a priority to recruit and retain the best staff and consider collaboration with neighbours to gain expertise and help spread costs.

6. Machinery

Machinery is the area where the biggest savings can often be made, as there’s an average range of £200/ha between the best and worst performers.

Experience shows that there’s a tendency to carry too much spare for a tricky year, he reports, so matching capacity to cropped area is an obvious place to start.

Another easy win is reducing cultivation intensity – providing it is done carefully so as not to impact yields – while accessing grants can help to offset the cost of no-till kit.

7. Property and energy

Make farm buildings and houses as energy efficient as possible, both to save heat and power costs and increase their value.

High energy prices mean that looking again at the economics of renewable energy could be worthwhile, as most systems provide a good payback and allow you to sell any surplus to others.

8. Administration

Put your insurance out to tender at least every three years to attract the best deal, rather than just renewing it, recommends Mr Isaac.

Review insured values every year to make sure they accurately reflect replacement costs.

9. Rent

Rising costs and falling Basic Payment Scheme funding mean that rent reviews should be considered on tenanted land, as the best farmers will be in a strong position to negotiate better deals.

10. Finance

The age of cheap money is over, says Mr Isaac. 

Whether it’s hire purchase, an overdraft or a longer-term loan, shop around for the best rates and restructure or move any debt to keep finance costs to a minimum.

The added bonus of saving costs is that for most of the above actions there’s a greenhouse gas emissions reduction, he points out.

“The quest for net zero is not going to go away, so doing a carbon audit before and after you make any changes will allow you to track any progress.”