Are you trying to discover how to start your own farm? If yes, you should check out our brief guide here on the key steps to take.
There are over 570 million farms in the world! Of these, more than 90% are run by an individual or family. These farms produce over 80% of the planet’s food!
Are you thinking of learning how to start your own farm? It helps to have a plan, first. That way, you can avoid costly mistakes and grow your business instead.
Here are the five steps you need when starting a small farm.
With these tips, you can turn your farm into a successful business venture. Watch your success crop up with these easy steps!
1. Dodge Debt
Before starting any business, you need to consider financing. Many farmers are left to abandon their dreams because they can’t pay off hefty loans in time.
Instead, focus on gaining hands-on experience before you learn how to start your own farm. Learn from another farmer (or family member) in the area.
With that experience under your belt, you can leverage your farming proficiency and a successful record to find an investor. For example, you might look into a venture capital investment or an angel investor. Other farmers turn to the Small Business Administration (SBA).
Regardless of where the capital comes from, make sure to learn about protecting profit margins before starting your farm. Leasing the equipment you need can help you avoid financial risks. Instead of purchasing your equipment, you can focus on lower monthly payments and growing your business.
2. Know Your Niche
Corn and soybeans account for 40% of all US crop receipts. Meanwhile, cattle account for 40% of animal product receipts. Whether you want to grow crops or raise cattle, it’s important to make that decision based on research.
Learn about gaps in the local market. What foods or livestock are your customers looking for?
Make sure to consider other farms in the area, too. Check out a local farmers’ market to determine what they’re already selling. Then, look for crops or products that are under-represented.
Choose a niche your customers need and want to set yourself up for success.
3. Know the Land
Once you know what you want to farm, you need to find land! Determine whether you want to buy your land or lease it.
Buying gives you more control. However, leasing can minimize your risk and the necessary capital.
When choosing your land, consider your proximity to sales channels. You’ll also need access to water. Don’t forget to test the soil quality either; bad soil means no farm!
4. Market and Sell
Take the time to write a thorough business plan. Your business plan will help you identify strengths, weaknesses, opportunities, and threats relevant to your business.
Consider your marketing plan, too. How will you inform people about your offerings? Where will you sell your products?
A farm unable to sell what it produces is a doomed business venture. If you intend to make profits, you need what you produce to be going somewhere.
5. Remain Realistic
Throughout the entire process of starting a farm, it’s important to remain realistic. Many people fail. That’s okay.
Most farmers don’t make tons of money. Pace yourself, assume modest income, and do not underestimate your costs.
Failing can give you the chance to learn from your mistakes for future successes. You just need to make sure you’re careful enough that you have the resources left to take advantage of that learning experience. If disaster hits, overextending can destroy a business while careful planning and research can save it.
Reap What You Sow: How to Start Your Own Farm
Now that you know how to start your own farm, dig in! With these tips, you can set your new business up for growth! Use these tips and get farming.
Explore our Small Business Tips for more helpful advice!