Diversify: Helping Your Future

"Don't put all your eggs in one basket". A saying most has heard many times in their life. Signifying the need to diversify in any aspect of your life. The same holds true for those in agriculture. Betting everything on one product can be detrimental. Unknowns such as weather events, government policies, cancelled contracts or more can cause a drop in profits for the product needed to be sold. Therefore, making diversification crucial for agricultural businesses.

Examples of Diversification:

The diversification of an agricultural entity can look different for every business. To some it may be adding more crops in their rotation. Others "may add value to a crop you currently produce" (Kime, 2023). It could also look like adding a service such as custom harvesting, grain storage, trucking business, etcetera. All ideas add to the business model, allowing less risk to be placed all on one product.

Producers in Maricopa County have also taken up the challenge of diversifying their farm. Dustin and Becki Ross both farm and run a well-established dairy. Slowly they implemented beef cattle into their operation. In order to sell beef at first, they said, "Word of mouth worked its magic, and soon, friends of friends and local butchers' patrons joined our ever-growing list of satisfied customers." (Murphree, 2025). Now they have an online website furthering the growth of their new business line. Diversification does not have to be a massive change, but it can grow into a new opportunity to increase profits and mitigate risk.

Weather Risks Mitigated:

With unknowns always lurking, broadening the opportunities of an agricultural operation ensures not all risks will be placed on one singular enterprise. With weather events at large, a single flood or drought can destroy an entire year's worth of harvest. "For instance, intercropping cereals with legumes can provide farmers with a fall back if one crop fails" (Balhara, 2025). By implementing a cover crop or livestock into the enterprise, weather event risks can be alleviated.

Full Utilization of Resources: All resources can be used when looking to add to the current business plan. An old barn can be used as a venue for parties. When farming and running a dairy the waste products from each can benefit each other. "Crop residues can be used as livestock feed, while manure can serve as organic fertilizer for crops" (Balhara, 2025). This helps to alleviate input costs while increasing profitability. When land is bare in the off season another crop can be planted. Again, taking advantage of using every resource possible. The more innovative we as agriculturalists can become as we utilize what we are given, the stronger our operations will be.

Enhancing Soil Health:

Farmers understand planting the same crop multiple years in a row can deplete the nutrients in the soil which is why crops have to be rotated every few years. By diversifying and planting multiple crops in one year on the same field or planting multiple different crops each year, it allows for new nutrients to be put back into the soil. "Agricultural diversification is a key management practice to improve crop productivity and deliver multiple ecosystem services by adopting crop rotation, multiple cropping or intercropping in arable crops, intercropping in orchards, and agroforestry" (Francaviglia, 2025). The soil becomes healthier and stronger making it more resilient to weather as well as increasing yields. Thus, leading to an increase in profits and a continued cycle of prosperity.

Social Benefits:

The benefits do not start and end with the producer. The workers are positively affected as well. By adding other crops, livestock, agritourism and more, workers are needed longer than seasonally for the one item. Workers become needed year-round to sustain the new operation, keeping good labor around for the farmers, and allowing a reliable paycheck for the laborers (Johnston, 2023).

The community around the newly diversified operation also benefits. When it comes to producing many different types of food, specialty items, or agritourism the community becomes involved. They have access to understand where their food is grown. This opens up a discussion to educate the general public and allow them to see the hard work behind their food supply. It drives the necessity of supporting farmers and can lead to long lasting relationships between the producer and consumer. Those becoming involved in agriculture for the first time will be more likely to think strategically about the food they buy and the policies they vote on to support farmers.

Starting to diversify your operation may be scary but you have the ability to start on a small scale before going all the way in. The benefits of weather risks being mitigated, fully utilizing resources, enhancing soil health, increasing communities, and the overarching benefit of increasing profitability are too good to pass up. In the volatile economic market of today, expanding your business into other segments, bolsters the stability of you operate. Think big, start small, and keep your business entity thriving.

References

Balhara, H., & Dahiya, S. (2025, February). Farm Diversification as a Risk Mitigation  Strategy. https://www.vigyanvarta.in/adminpanel/upload_doc/VV_0225_46-C.pdf

Francaviglia, R., Almagro, M., Lehtonen, H., Hüppi, R., & Rodrigo-Comino, J. (2025, October 12). Editorial: Agricultural diversification: Benefits and barriers for sustainable soil management. Frontiers. https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2022.1046354/full

Johnston, G. W., Vaupel , S., Kegel , F. R., & Cadet, M. (2023). Crop and farm diversification  provide social benefits. https://www.pdffiller.com/421422180--file-c-users-user-downloads-

Kime, L. (2023, January 3). Diversification of your operation, why. Penn State Extension. https://extension.psu.edu/diversification-of-your-operation-why

Murphree, J. (2023, August 1). Meet Arizona Agriculture’s Morrison/Stewart/Ross Family. https://www.azfb.org/Article/Meet-Arizona-Agricultures-MorrisonStewartRoss-Family