How to start a small farming business?
Small family farms form the bulk of the agricultural industry. At their core, these small farms are still businesses and must be managed and run to the same standards as any other small business.
Create your own resources
Conduct market research. Just because you have a great idea doesn’t mean it’s going to be profitable. Do research in your area to find out what crops or livestock people buy. [2]
State Departments of Agriculture collect statistics, which may be a good starting point for you. You can also consult the university’s agriculture department, as well as industry publications and websites. For example, the United States Department of Agriculture (USDA) website has free information pages for beginners.
Consider assignments. In the early days, you may not be able to invest in resellers. Focus on needs at the local or regional level, not the national level.
Choose crops or livestock.
Your market research should give you an idea of what crops or livestock are needed in your area. Whether you can grow these crops depends on several factors, such as the location and size of the farm. [3]
Assess the climate in the area and make sure it’s generally favorable for growing the crop of your choice.
Once you start looking at real farmland, you also need to pay attention to the quality of the soil and the farm’s growth history. For example, don’t assume you grow corn just because the farm across the street grows it.
Contact area farmer groups and agricultural schools.
The agricultural knowledge department of your nearest agricultural college usually has a wealth of information and resources for beginners. Local farmer groups can also provide you with support and connections. [4]
Cooperative Agriculture Extension in the US also has a lot of information on their website. All of these things will help, but nothing replaces getting out and getting your hands dirty.
Visit your nearest Farm Services office.
Most governments have an agricultural service agency or department, such as the U.S. Agricultural Service (administered by the U.S. Department of Agriculture). These offices can provide you with technical assistance, business and financial planning advice, and important information on local and regional agricultural development..
Farm service offices can provide free financial and legal services that often cost you a lot of money.
Take the time to introduce yourself to the office workers and tell them you want to start a small farming business in the area.
Familiarize yourself with state and local regulations.
Before buying or renting land or agricultural equipment, check the legal and regulatory framework in the area where you plan to operate your farm.
Pay special attention to allocation restrictions. Certain agricultural activities may be prohibited in certain areas or require expensive permits and inspections.
Your regional farm group or farm services office can help you determine which specific permits or inspections you need to get started.
Find out how long it takes to process a request and how much licensing costs to factor into your overall business plan.
