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4 Things to Assess When Starting a Farming Business: What to Consider Before You Leap

  • January 21, 2022

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Like with any other business, there are a lot of things to consider when starting your own farming business. You’ll need to think about what crops you want to grow, what equipment you’ll need, and how much capital you’ll require to get started. Before jumping into the farming process, here are some tips for ensuring it’s a sustainable and achievable option.

The Basics of Farming

First things first, you need to nail down all the details before you even think about starting your farming business. Decide what crops you’ll be growing and that you have all the necessary space and resources. Research everything you can think of to do with your future business plan, and talk to other farmers in the area to scope out the land. 

You’ll need to consider weather patterns, soil type, and crucially, how you’ll store and sell any crops once you’ve harvested them. It’s also essential to get your paperwork in order so all of your permits and licenses are up to date and you don’t run into any hurdles later on. 

Lastly, you’ll need to make sure you have enough money up-front to start. It’s a massive investment even to purchase the equipment, seeds, animals, and licenses to begin farming, so before investing in any capital costs, make sure that the return on investment is worth it for your small business.

What Crops Should You Grow?

Before you decide, figure out what kind of environment you’re working with, and use this to decide on both the crop type and your business model. For example, organic farming is a popular option but may not be feasible if you don’t have land or have limited resources. Likewise, if you can only grow certain crops, you need to consider this when evaluating where and how you will sell your produce. Only focussing on one type of crop isn’t necessarily a detriment, but it’s essential to know before you start planting.  

What Equipment Will You Need?

Not all farms require specific equipment, but many, like tractors or harvesters, are necessary for a successful farming business. Specialist items like water pumps, irrigation systems, and seeding machines may need to be purchased and installed. Even minor elements like fencing and storage facilities can be considered crucial equipment.  

The upkeep of such equipment will also need to be considered as you may need to turn to companies like Scherer to replace specific equipment that may not be functional or up-to-date. Of course, this depends on what your farm will produce, but having a list of what you require can prevent any nasty surprises.

Consider the Risks and Costs of Starting a Farm Business

One of the first things you should consider is the costs associated with starting your own farm business. You need to accurately estimate how much money you’ll need for each step, like buying the land, setting up a farming operation, and purchasing equipment. Will you need a loan? What if your business doesn’t take off as you’d expect? These are all critical questions you need to answer before establishing a farming business.

It’s also important to note the physical risks associated with farming, which may not be prevalent in other jobs. Therefore, you must have adequate insurance to cover any damage, loss, or injury caused during you or your employee’s time on the farm and have appropriate policies for their equipment.

Farming is an exciting opportunity to follow what may be a life-long dream, but before you dive in, make sure to think clearly about what you’ll need for a successful business. Then, once you’ve done the research and ironed out the details, you can start your farming business confidently and successfully. 

 

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