Intensive aquaculture and aquaponic farms are currently hindered by high investment and operational costs. These challenges are more pronounced in small-scale farming, creating not only a barrier of entry to limited resource farmers but also profitability of the farm. Feed costs are the most variable reoccurring expense and can represent up to 60% of operational costs for aquaculture farms (growing food fish in ponds or tanks) and ~40% in aquaponic farms (growing fish and hydroponic plants). 

Janelle Hager, State Specialist - Aquaponics, has been working to reduce feed costs and improve financial viability for small and limited resource aquaponic farms. By working with sales representative from Cargill, Janelle has facilitated a relationship between Cargill and aquaponic farmers to have high-quality aqua feed delivered to the farm. Purchasing feed at retail prices was not economical for most farmers. Farmers were able to lower their feed costs by 25% through purchasing feed at wholesale prices. 

To further reduce feed costs, Janelle has been working with two farms in the state to reduce feeding rates. Research conducted at KSU found that cutting feed rate by 50% could result in increased profitability, even if plant growth is reduced. The cost of feed is higher than the income generated by a the increase in salable produce from higher feeding rates. 

Access to lower cost feed and adjustment of feed rate based on expenditures (feed) and revenue (plant and fish sales) could potentially lower operational costs of feed by 50% or more. Long-term impacts on plant growth and water quality will be detailed in future success stories. Learning to adjust production based on production and operational costs can improve long-term profitability for small and limited resource aquaponic farmers across Kentucky.