If you are looking to begin a small farm business, you might be wondering where to begin. If done properly, it can be a lucrative business – after all, it is the longest-running industry in the world and we all rely on it in one way or another. In this blog post, we are looking at what you need to think about when you get started.
What sector of the industry will you go into?
Choose an agricultural specialty and develop a business plan. Farming is generally divided into three sectors: crop, wind, and livestock. Crop farming consists of growing plants, such as corn, rapeseed, and soybeans. Government grants have created a new source of income for farmers called wind farms, where farms use giant wind turbines to produce renewable energy for the community Animal farming is the raising of animals to produce foodstuffs such as milk, cheese, and meat. Factors affecting the choice of agricultural specialty include the location of the farm and the level of business and farm experience of the farmer.
Produce a business plan
The business plan will help identify the farm business, start-up costs, distribution lines, operating costs, and future profitability. Farmers also need a business plan to apply for agricultural loans and government grants. Farmers can contact their State Department of Agriculture for business assistance. These state departments provide statistics on agricultural business, crop information, distribution of products and storage systems, export assistance, and support for federal, state, and county grants.
Find your property and land
Acquire a real estate broker who focuses on agricultural land sales and consider buying an existing farm business. Farming requires land, equipment, agricultural buildings, and supplies such as tractors, harvesters, and less obvious but essential things such as a small manual fuel transfer pump. An accomplished agriculture real estate agent understands these requisites and can direct new farm start-ups to land that will better benefit their farming business. Always consider existing farm enterprises to save money because they often include farm equipment as part of their cost.
Always hire a lawyer to review all business contracts. Before signing any contract, check the local and state zoning legislation to address any compliance issues and ensure that the mineral rights of the property are included in the sale.
Organize the appropriate permits and licenses
Establish farming operations, purchase any equipment and get going! Once the sale has been completed, new farm owners must have all the licenses and permits authorized before starting any building construction and land preparatory work for farming. Farms without licenses and permits in place prior to farming may find it difficult to sell their product because the food supply chain is so carefully monitored.
Consider finding a mentor
If you are new to the farming and agriculture industry, you may want to consider reaching out for a mentor – someone who is well established and experienced in your specific sector. They can give you advice and support until you are on your feet. Once you have been going for a few years, you too can mentor someone.
