Plowing fields, growing crops, and raising livestock are only part of the duties of a farmer. There also comes the business aspect; profitable small farms require you to know how to market and sell your products. Click here for advice on how to turn your farm into a truly profitable business.
Think about your last trip to the grocery store, particularly in terms of how much fresh produce you bought. Maybe you love to stock up on fresh fruit for the week, or maybe you’re the person who buys nuts and seeds in bulk.
Either way, these purchases are benefiting profitable small farms. The food you buy in the grocery store and at local farmers markets is often sourced from the land around your area. If you’ve ever wondered about how everything in your fridge gets from a farmer’s fields to your kitchen, it may be time to start your own small farm.
You don’t need to have a green thumb or an extensive amount of business knowledge to get started. You can learn these things with time.
The following are two of the most important practical tools you’ll need to develop a small farming business: a plan, and a brand.
Define the Business Model
Before you get out in the field and start planting crops, you have to establish a few goals for your farm. These will guide every decision you make from here on after, and help decide which direction to take as your business grows.
Consider the items below very carefully.
Wholesale vs Retail
A wholesale business model is basically the grocery store concept mentioned above. Such profitable small farms produce large amounts of fresh fruits and vegetables, which then get sold and transported to a “middleman.” This middleman is the grocery stores you partner with.
The store serves as a platform for you to get your product into the hands of consumers. But, you get your profit from selling to the grocery store. Once products are on their shelves, it’s up to the store’s employees to make sure things sell before they go bad.
Sometimes it’s easier to create partnerships with one or two grocery stores than it is to drive sales from average customers. Scheduling big deliveries allows you to better and make projections for the future, rather than depending on the ups and downs of consumer behaviors.
Still, there are many small farms that prefer the retail approach. A retail business model means you are working directly with your consumers. As a small farm owner, you’d plant and harvest your crops, then take them around to farmers markets for sale.
You can choose to invite customers to your farm, too.
This turns regular grocery shopping into a special experience, not to mention, it gives you another opportunity to make a profit. Charge a small fee for families to go berry picking or choose their pumpkin in the fields themselves. Make sure you have a stand set up for the customers who would rather just pop in, and consider making jams, tapenades, or other delicious foods for customers to buy!
These are all amazing ways to make money on a farm. A retail business model challenges your creativity, builds strong connections with your customers, and allows you to take advantage of every little detail.
Seasonal vs Year-Round
Whether you’re setting up shipments as a wholesaler or building a display on the farm as a retailer, there’s another major thing to consider. Are you going to operate your business all year, or focus on a certain season?
Think of the area in which you live, the climate between every month of the year, and the foods that grow well in the area. If you live in a northern state where snow covers the land for months at a time, you may only be able to operate in full force during the summer.
But, if you live in a more temperate climate you might be able to produce different foods during each season.
There are pros and cons to both options. This decision is mostly dependant on the quality of the land and the harvesting process for the produce you want to offer the community around you.
Whatever you decide will play into the kind of equipment you need, which Kennco Farm Equipment can help you choose.
Build a Brand
Once you’ve laid the groundwork for your profitable small farm idea, you have to work on making your new business known in the market. You have to build a brand.
The three main things that will help you do this are a logo, a marketing strategy, and audience engagement.
Create a Logo
Many business owners and consumers alike wrongly mistake a logo as the entire brand. The logo is actually just one piece of a branding strategy, but it is a crucial component of any business.
You want to create something timeless and unique that reflects the products you offer and what you stand for. This all has to be expressed in one symbol or word, which is what customers will see as they pull up to your farm, pick up a package with your produce in it, or drive by an ad.
Your logo should be all over your website and social media pages, too.
Develop a Marketing Strategy
Speaking of a website and social media, let’s talk about marketing.
Marketing is mostly digital these days, no matter if you’re a small business owner or the manager of a large corporation. Sure, you may not have the budget to invest in as many native ads or influencer endorsements as the big guys, but there are still plenty of digital resources to get your small farm’s name out there.
Focus on your website first. Build it with SEO strategies in mind, and make it visually pleasing to your audience. It should captivate users as they find you online, and make them want to engage further.
Then, take your digital presence to social media. Give users a behind-the-scenes look at how you plant seeds, maintain the land, and harvest the crops. Do some employee spotlights, talk about new products, and go live from time to time, too.
Connect with Your Audience
The social media interactions above are all about connecting. It’s not enough to build an SEO strategy when you’re starting your business and just leave it there. You have to constantly work to stay relevant in the minds of users and stand out against other profitable small farms.
Take it off screen for the most powerful approach.
Whether you decide to go wholesale or retail, make it a point to attend community events that are relevant to your small farm. Go to a farmers market at least once a month and sponsor any food festivals or new restaurant openings. These are fun, creative ways to get out in the community and make your business known.
Profitable Small Farms: Turning Your Passion into a Livelihood
Food is a necessary part of our lives. But, some people don’t really pay attention to what they eat or where it comes from. Farmers, on the other hand, have a deep connection with their land and a strong passion for natural, wholesome food.
Maybe that is what sparks your interest of getting into the business of profitable small farms. Or maybe, you have fond memories of going to local farms as a child or cooking in the kitchen with your grandparents.
Whatever it is that drives this idea, don’t forget to match your passion with practical decision making. That is the key to success.
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