Enterprise Stacking Explained
What is Enterprise Stacking?
Enterprise Stacking means running several enterprises alongside one another, where the output of one production cycle contributes to the inputs of another. In generative agriculture, this might mean that your free-range chickens graze on the aftermath of an arable crop; their waste is then used as fertiliser for the next crop.
How is Enterprise Stacking differentiated from integrated farm management?
Maximising your turnover from your land would be your primary objective in engaging in Enterprise Stacking. However, it goes beyond mixed farming, in that you maximise your resources from every acre of land by using every opportunity to use the output of one enterprise in the input of another.
It has the advantages of being cost-efficient, maximise opportunities for income generation and profit making and can be sustainable in using resources effectively. It is a full integration and resource-efficient.
Where does a landowner start with Enterprise Stacking?
A landowner requires a mindset change to consider maximising their farming resource. Landowners tend to be production-led, focused on product production. However, they should be considering how they can sell their product first, and then maximising their land resources based on market demand.
Examples of Enterprise Stacking
For example, putting solar panels on your rooftops is efficient because you are not taking any more developable area and are maximising your existing built structures. This electricity could power your farm, however, there are companies now requiring charging points for use by the general public. By engaging in Enterprise Stacking you could use this electricity output to input into this enterprise, meeting a consumer-led demand for greener energy and electric charging points.
In another example, a farmer might get a sustainability grant to plant apple trees, however, this is not a good strategy if there is no route to market. This should be considered first, and then ways of integrating this with other enterprises on the farm.
Funding Enterprise Stacking
The SFI could help fund any Enterprise Stacking ventures. The Added Value grant could help fund any machinery required, although it would be prudent to partner with somebody else to utilise their equipment and test the market before investing in the machinery yourself.
Dudley Peverill offers an impartial view and can support you to maximise your farmland through Enterprise Stacking. We are always aiming to maximise income through farm diversification. Contact us to get started.