Your poultry operation is more than a business; it’s your passion, your legacy and your livelihood. To start and maintain this operation, you’ve used a lot of money, time and energy and by doing so, you’ve made it successful. The work, however, doesn’t end there. As with any business, upgrades are critical to the continued profitability and future options available to your business. But you can’t just spend money without a plan. Instead, you need to research the various investment options that will help improve your poultry farm. Let’s take a closer look at some of the changes you can make with a reinvestment as well as the reasons you may want to.Retrofitting: the process of adding features & components to your farm that weren't originally there to enhance efficiency Click To Tweet
Reinvestment Through Retrofitting
Retrofitting is the process of adding features and components to your farm that weren’t originally there to enhance efficiency and processes. Retrofitting offers many options, all of which can significantly improve the operation of your farm making an impact on your business and finances.
Technology is at the center of many retrofitting projects. New technologies now make it easier to maintain houses and optimize bird production. Some of the technological upgrades that you can make to your farm include adding new feeders, ventilation upgrades, and improved controllers. All of these work to your benefit by helping ensure proper health and nutrition. Not only will this keep you compliant with regulations, but it will also ensure that your birds reach an optimal weight in the shortest amount of time. Learn more about retrofitting financing options here.
Reinvesting to Help Secure the Future
If you choose to sell your farm and retire in the future, reinvesting is crucial. By reinvesting some of your profits in retrofitting, you increase the value of your farm, thereby building wealth for your future. By spending the money on retrofitting today, you ensure that you have a current business in the future — one that is relevant and producing at an efficient rate. The more efficient your business is, the more profit you will make over the long haul.
Tax Reduction: An Added Benefit of Reinvestment
Reinvestment isn’t just about building your business and improving operations, it’s also about helping to minimize your tax liabilities. Reinvesting benefits your tax situation in several ways. First, it reduces your profits by increasing your expenses, lowering your overall tax responsibilities even while it helps secure your future wealth. But the tax benefits of reinvestment go far more into the future through a process called depreciation. Every year, you get to report equipment and property depreciation as an expense, which lowers your taxes. When you reinvest in technology that improves your farm and that technology, over time, increases in age and shows the effect of everyday wear and tear, its intrinsic value falls, a process called depreciation. Every year you can offset a portion of your taxable income with that depreciation. Planning for future replacements will help you with your depreciation on future income taxes.
Reinvesting is part of the business ownership cycle. If properly planned and maintained, your farm will continue to grow and produce for years to come. The money you reinvest back into your business will allow for expansion down the road which means you can push your farm into the next century and increase the opportunities that come your way.
There are many ways to gain the capital necessary to reinvest in your farm and to decide what equipment and customization options you should choose. If you are interested in reinvesting in your poultry farm, click here to learn more.
The Importance of Reinvestment Through Retrofitting- read why you need to reinvest in your poultry farm now! Click To Tweet