It takes a lot of courage, time, and resources to start a farm, even on a small scale. There is plenty of preparation, learning, and research before purchasing livestock and planting seeds.
This article will talk about the most important aspects of starting a farm. Hopefully, it will help you avoid some common mistakes novices make along the way. It will be helpful whether you are aiming for commercial farming or want to start a small farm.
Learning about farming
The best place to start once you have already decided on creating a farm is learning and research. It is one of the most important steps and should not be ignored. As a novice, there are lots of things to learn so that you can avoid some common mistakes. You can start with reading farming-related magazines and books such as choosing the farming land, raising sheep, etc. Another great way to get experience is to find an internship or on-farm job where you can learn from experts and veterans in the field. Get acquainted with the practices and language of farming by visiting farms and talking with those who have been farming for a long time. Your goal is to learn as much as possible from other experts.
Choose A Type of Farm Business
When starting a farm business, the first step is deciding what you want to produce. There are different types of farms like dairy, crop, poultry, hay, flower, orchard farm, etc. There are multiple options for you to choose from. This decision will be easier if you have done your research.
It is possible to raise or grow any animal or plant you would like on your farm if you have the right circumstances. Of course, you have your own preferences and interests in the crops or animals you want.
Agriculture heavily relies on soil quality and biodiversity. So, if you are concerned about sustainability, you need to learn how to do farming using methods that favor land and other organisms in the environment. As the world gradually shifts towards sustainable agriculture, it would be great to play your part.
Despite your personal preference, you should always consider the agricultural products that will return on investment for your small farm.
Develop a business model
Once you have decided on what to produce on the farm, you need to come up with a business model. The main functions to consider are finance, marketing, and operations. Processing and analyzing your plan for these areas will provide the business with more structure and expose key pain points that need to be addressed.
The operations plan should focus on the production system, including all the processes that transform input into output. Know your main input suppliers. This will let you know that there is demand for the products you will be growing on the farm. Also, ensure a seamless transportation system that connects your farm to the market. Note that storage can also be an issue, especially for dairy products like milk that go bad quickly. Another important thing as a novice farmer is to educate yourself on the local, state, and federal laws affecting the agricultural industry.
When setting up your financial plan, you need to answer the following questions: what will the business look like in 3, 5, or 10 years? Will the business still be profitable once it scales up? When will you start making profits?
Cost estimates
This goes in line with research. SO, before starting a small farm, you need to know how much it may cost. Farming is not cheap, and your costs will change depending on several factors such as location, farm size, weather, etc.
To estimate your cost, write a comprehensive list of all the things needed for the farm. If you are not sure, it will not hurt to ask for help from an experienced farmer.
Risk management
As much as farming is fun, it is also a risky venture that takes an incredible amount of time and resources. So, you should finance the business from savings rather than debt to minimize your financial risk. It is a good idea to have an alternative source of income until the farm is large and stable enough to support you.
Upgrade your products
You should not settle for producing and supplying only one product. You can take advantage of the related products for your small business. For example, if you are growing oranges on your farm. You could choose to sell oranges, but it would be more profitable to sell both oranges and its by-product, such as orange juice.
It is up to you to decide which direction the farm should grow. Choose how to package the products, and develop your brand.
Marketing
Your marketing strategy will depend on your target audience. These are some things to consider when choosing your customers:
- Will you be selling directly to customers or retailers?
- Will the product be marketed as an ingredient to manufacturers?
- Will your customers be able to buy the products online?
Final thoughts
As we have seen above, starting a farm can be a really enormous commitment. So, before you kick off, do lots of research and get as much real-world experience as possible. This will give you the knowledge and confidence to create a successful farm business.
