Christmas checklist for reducing the cost of arable farming in 2023

See our easy-to-digest Christmas cost saving cheat sheet here and read our full blog below.

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Plan Ahead: Ten Ways to Save Costs and Boost Resilience in the New Year

It’s that time of year when we start planning for the New Year! Lists are drawn up, priorities identified, and strategies put in place. With farm budgets for 2023 showing the same cost pressures everyone else is facing, the most important list for any business is clear: where can savings be made? This isn’t new, but it has taken on greater significance. And it’s not just about cost, supply concerns and wider environmental issues are also sharpening the focus.

To help you think it through, here’s a simple ten-point checklist. Some points may just serve as reminders, others you probably already have in hand, but a few might uncover that “money under the mattress” you’ve been hoping to find. Based on our experience analysing hundreds of farm accounts, we’ve highlighted the budget lines to focus on and added practical tips to get you started. And don’t forget, if you want FREE, detailed advice tailored to your farm business via Defra’s Future Farming Resilience Fund, see the bottom of this blog for how to register your interest.

1. Seed

It may not seem like a big item, and it might require more planning at harvest, but saving as much of your own seed as possible will cut costs and guarantee supply.

2. Fertiliser

With prices soaring, this is a major one! Timing your purchase is critical—though hard to judge, so use market information and tools to guide that all-important decision. The practical way to reduce fertiliser costs? Apply less. Use soil, tissue, and grain tests to determine the optimum rate. Evidence suggests rates can be reduced, especially if you maximise crop utilisation. Start by calculating your Nitrogen Use Efficiency. Increasing legumes and organic manures in the rotation will also reduce reliance on vulnerable supply lines.

3. Sprays

Question every application! Many are essential for protecting and enhancing yields, but every time the sprayer goes out, it costs money, fuel, chemicals, parts, labour, and more. Use thresholds, varieties, weather data, and available tools to weigh risk versus return. Every pass you skip saves money.

4. Agronomy

Closely linked to points 2 and 3, robust, tailored agronomy is key to saving costs across any arable system. Independent advice often lowers costs, but wherever it comes from, question every recommendation. Don’t delegate decision-making, discuss options and stay informed. Becoming BASIS & FACTS qualified could be the best investment you make in yourself.

5. Labour

With labour market pressures and competition from other industries, savings here are tough unless you’re clearly overstaffed. Don’t forget to count yourself when calculating needs! If you’re already at optimum labour input, focus on recruiting and retaining the best to maximise productivity. Collaboration with neighbours to make roles more attractive and share costs is increasingly popular.

6. Machinery

Often the biggest savings lie here. With an average range of £200 per hectare between best and worst performers, the potential is huge. Independent analysis of labour and machinery usually reveals areas to scale back. Match capacity to cropped area, many farms carry too much spare for “that tricky year.” Reduce cultivation intensity carefully to avoid yield loss, and consider grants to offset low-till kit costs. Always think efficiency: road travel is expensive and time-consuming, so review building locations and use bowsers, etc.

7. Property & Energy

Farm buildings and houses consume heat and power—both increasingly expensive. Make them energy-efficient for a quick win and added value. Insulation pays back fast. Rising energy prices also make renewables more attractive; most systems offer good returns by offsetting your own costs and potentially selling surplus.

8. Administration

Insurance is often overlooked but can be significant. It’s easy to just renew, but tendering every three years attracts better premiums. Review insured values annually to ensure they reflect replacement costs.

9. Rent

With rising costs and falling BPS payments, review rents on tenanted land. The best farmers will increasingly be in a strong position to negotiate better deals.

10. Finance

After years of low interest rates, cheap money is no longer guaranteed. Whether hire-purchase, overdraft, or long-term loans, rates are rising. Shop around, restructure, or move debt to keep finance costs down.

Bonus: Saving costs under at least seven of these ten headings will also cut greenhouse gas emissions. The quest for Net Zero isn’t going away, so why not carry out a carbon audit before and after changes to track progress? Good news: you can get one FREE with Ceres Rural via Defra’s Future Farming Resilience Fund.

And it’s not just carbon audits! Under the fund, we offer a range of free advice packages to make your business more resilient. So tick off your first New Year job and register today—online at Free Business Advice – Ceres Rural, by emailing futurefarming@ceresrural.co.uk, or calling 01223 679679.