Your day begins before the sun has risen. You put on your clothes and rain boots and head out into the crisp morning to feed the chickens and cattle. It’s a clear morning and you feel good being outside, feeling frost crunch beneath your feet, watching the yard cat stretch and yawn lazily.
You have a lot of tasks running through your head. Call the accountant about business expenses. Check in with the neighbors about using extra land. Order more chicken scratch. Fix the fence. Talk to the farm down the street about their future logging operation.
In this guide, I will walk you through starting a farm and provide resources to help you get started with a farming business today.
To supplement this guide, I interviewed two experienced farm hands: Gregory Heilers, previously an assistant farm manager, and Dr. Cindy Jones, the owner of Colorado Aromatics, a small herb farm in Colorado.
Small farms are considered the backbone of the agricultural industry in the U.S., with 97 percent being family-owned. To be classified as a small farm, you need to gross less than $350,000 per year. There are almost two million small farms in the U.S.
Your motivation for starting a farming business will directly impact your strategy. Ask yourself why you want to start your own farm. Is it for profit? A hobby? An altruistic contribution to society or animal welfare? Environmental stewardship?
For Stacie and Larry Overman, starting Lavender Kisses Farm in Tennessee was a mixture of business opportunity and passion. They initially planned to plant lavender up their driveway, but as they learned more about lavender’s medicinal uses, they ultimately decided to invest in 64 acres of farmland and start a lavender farm. They use their crops to make and sell lavender products and support causes they care about.
You need to be able to honestly answer questions about your motivation for starting a farming business to know what direction to go in. You may find that you want to start a hobby farm that you can run on the side. If this is the case, beware of tax implications.
If you’re unsure about whether you have what it takes to be a farmer, take this quiz created by Taylor Reid, the founder of Beginning Farmers.
If you didn’t grow up on a farm, you may be wondering how to make your dream a reality. Getting real-world experience is essential. Learn from experienced farmers through apprenticeships, farm schools, or self-directed study. Farm work can be dangerous, so hearing stories from experienced farmers can help prevent potential accidents.
Dr. Cindy Jones started a small herb farm with no farming experience. She learned through doing, networking, and talking to other farmers. Building relationships and networking can provide valuable skills.
Decide whether you want to start a business or a hobby farm. Hobby farming allows for experimentation on a smaller scale before expanding.
Before diving headfirst into starting a farm, it’s important to do market research. Know your target market, where they are located, and their values. This can help you determine the feasibility of your chosen farm product.
The next step is finding the right farmland. You can buy land or lease it. Leasing reduces financial risk, while buying land gives you complete control over its use. If you choose to lease land, consider finding landowners who aren’t using their land for farming.
Consider important factors when looking for land, such as proximity to markets, access to water, soil quality, facilities and infrastructure, and good relationships with neighbors.
Financing your farm is a key part of your strategy. Research your funding options and be realistic about your financial situation. Writing a farm business plan is essential, whether you’re seeking a loan or not.
Market and sell your agricultural products through different channels, such as farmers’ markets, produce stands, CSA programs, or local growers’ cooperatives.
Remember, starting a farm is hard work. But with the right experience, research, planning, and financing, you can turn your dream into a reality.
Finally, despite the age of the supermarket, there are still many small, local health and natural food stores to partner with, benefiting from their loyal customer bases.
Begin by creating a marketing plan. If you’re developing a business plan, the marketing plan should be included.
Learning resources for farm businesses:
– Websites:
– ATTRA: Offers a database of internships and apprenticeships for aspiring farmers, with room and board and a small stipend. Provides state-specific search options. For more niche opportunities, refer to this list of websites.
– Helpx.net: Provides opportunities to work on small farms and rural B&Bs in exchange for room and board. Offers informal and formal internships/apprenticeships. Global site.
– WWOOF: A directory of organic farms worldwide. Includes room and board, but no cash stipend. Considered an informal or semi-formal internship.
– The Cornell Small Farms Program: Offers enterprise-specific books, fact sheets, and articles on farming. Ideal for those seeking extensive knowledge.
– The 20 Best College Farms: Provides a list of college farms that offer hands-on experience and a modern farming education. Selection criteria include farm size, integration with the main campus, sustainability, courses taught at the farm, students using the farm, and community integration.
– Other resources:
– Publishing houses: Aside from Amazon, consider browsing Acres U.S.A., Chelsea Green Publishing, and Storey Publishing for niche-specific books on starting a farm business.
– Farming magazines: Subscribe to magazines such as Growing for Market, Acres U.S.A, Graze, the Stockman Grass Farmer, and the Packer for the latest farming trends, techniques, equipment, and best practices.
– Online communities: Join online communities like Permies for various interests like homesteading and animal raising. Farming Forum (U.K.) and Agriculture.com’s community forum (U.S.) are perfect for engaging in conversations about topics like weather, livestock, foraging, and machinery. Farm Chat is ideal for those interested in commercial farming.
– Free Farm and Food Production Sample Business Plans: Browse the 14 sample business plans in this section for guidance on writing your own small farm business plan.
Next Steps for Starting a Small Farm Business:
As Gregory Heilers advises, prioritize, organize, and build efficient systems. Start by writing a business plan. To simplify the process, use our free business plan example and template.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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