Farming is a lot of hard work.
It’s one of the oldest professions in the world, but farming is no less important now than it was 12,000 years ago. People are always going to need crops and animals to sustain their communities, so it’s a business that is bound to succeed, right?
Not necessarily. If you don’t know how to get started properly, you’ll be doomed before the first harvest. In this post, we’re going to give you some tips on how to start your own small farming business from scratch.
Now, you may think that the life of a farmer is a simple one full of early mornings, daily routines, physical labor and, at the end of the day, rest and relaxation. Remember though, it’s 2019 and the world is moving at a much faster pace than it used to, even 30 or 40 years ago.
So too, the modern farmer has to move at a faster pace to stay ahead of the game. Let’s dig in a little bit and find out how you can turn your idyllic little dream-farm into a small business that makes you a living.
Young MacDonald Wants a Farming Business
Maybe you grew up on a farm and want to get back to your roots, or maybe you’re interested in sustainable agriculture and want to do your part to save the planet. Whatever your reason for wanting to start a farming business, you might be surprised to find out that you need a lot of knowledge.
Before you start thinking about how to build a business, you need to learn everything there is to know about farming. If you’re new to the profession, there are going to be many bumps and bruises along the way. Do tons of research and maybe even consider volunteering for an older farmer to learn the ropes.
Giving yourself the best chance to succeed will come with lots of mental and physical preparation. With farming, probably more than most other professions, there’ll be a lot of on-the-job learning, so as long as you know what’s in store for you, you can get going on your business plan.
Finding a Niche
In the business world, we always talk about “finding your niche” when you’re starting out. Basically, finding your niche is cornering one little piece of the market that no one else has yet. For this type of business, it’ll probably be the questions of what and how you’ll be farming.
You’ll have to crunch some numbers and analyze demand in a given area. A good way to do this kind of market research is to identify a problem or a hole in the market and use your new business as a way to solve it.
For a small farming business, it’s better to start out with a more narrow scope. Put yourself on the map doing one thing really well, then you can expand accordingly over a certain period of time. Having goals for growth will keep your business alive and thriving.
Business Plans & Farm Plans
While you’re working on finding your niche, you’ll also be writing a business plan. Every entrepreneur does this in order to organize their thoughts and take it all one step at a time. You’ll need to consider the market health for your niche, supply, demand, the overall structure of the farm, management, finances, etc.
Every conceivable business obstacle should be poured over in your business plan and once it’s done, you need to roughly plot out your farm so you can get the ball rolling when you find some land.
Find Your Farm
Once you’ve thought the entire framework of your farming business through, it’ll be time to find some land on which to build your farm.
You can either aim to buy land, which will put you on the hook for more money, but you’ll have more control over it; or, you can try to lease land, which will be cheaper, but the land technically isn’t yours. There are perks to both, but most beginner farmers tend to lease first and buy when they can afford to.
When you’re searching for land, there are multiple things to consider:
- Location is important. Your proximity to major markets is huge because you want it to be easy to get your product in the hands of the distributors.
- Water and soil quality. You need access to water to run a farm, so find out if you’ll have a well or how expensive water is if it’s from a municipal source. Test the soil so you know its capacity and how expensive it’ll be to grow there.
- What your neighbors produce is crucial as well. If you run an organic veggie farm and your neighbors are spraying pesticides, there are going to be huge issues.
The ideal plot of land is out there and once you find it, you can find agriculture equipment and build your barns and even a little farmhouse.
The Grant System & Permits
You’ll probably need to get financing in order to make this all happen. In some parts of the country, there are grant systems in place for first-time farmers, so you may be able to get some of your startup capital from that. Don’t rely wholly on grants, you might have to jump through a lot of hoops to get substantial funding.
Since you’re aiming to start a legitimate business, you’ll most likely have to register a business name, get business licenses, and insurance to operate legally. Again, these will differ state to state, so search online to find out what you need in your area.
Farm(arketing)
When you’re up and running, you’re going to need a way to get your products from your fields into stores and markets. Building relationships with local store owners and selling at farmer’s markets will get your name out there on a grassroots level.
There’s nothing wrong with growing through word of mouth, but there are outlets in place now that farmers can utilize to raise brand and product awareness. Taking your marketing plan online can help you get noticed by larger and further-reaching distributors.
Get on social media and start blogging about your small farm business and see where it takes you. Good branding can help bring in a lot of customers that you wouldn’t otherwise see.
Open For Business
Take these tips and start planning your small farming business. As long as you’re cognizant of the business side of things, you can still enjoy the farming side as well. There’s nothing better than making a living doing what you love, so find your land and start building your farm from the ground up.
Did you find this article helpful? Come back and visit us for more on how to run a small business in 2019.
