What to Consider for The Beginning Farmer 

Have you ever dreamed of walking across a misty morning barnyard, coffee in hand, the bellowing of hungry calves filling the air? Or walking through your own orchard, the sun falling behind a mountain—each fruit a promise of bounty, each one proof of your sacrifice and sweat? To many, a life lived in a rural setting, working the land and growing your own food sounds ideal. It’s hard to deny the deeply settling sensation a vision of making a living off the earth brings. It’s also true that the thought of trading in a steady office job for the unknown is unsettling, to say the least. How hard would starting a small farm be? In this article we’ll discuss key considerations for anyone looking to start a small farm business. 

A Brief Farming Definition 

If you are interested in starting a small farm business, you’ll be doing just that—owning and running a business. A farm business is not the same as hobby farming—growing a moderate-sized garden, owning a couple head of cattle, some goats or chickens for enjoyment and personal consumption without the intent of turning a profit. Hobby farms are mainly for pleasure and recreation. A basic qualifier for being considered a small farm business is grossing less than $350,000 per year. Hobby farms and small farm businesses also have different tax implications.

A farm business is also distinct from a homestead where the land is cultivated for self-sufficiency and personal consumption—and where you have certain federal protections against seizure. Sometimes you might sell a little, here and there, but that is not your goal as it would be with a farm business.

If you plan to raise animals or grow food for profit, you must be prepared to get your feet wet with a business plan, to understand markets and have a marketing plan, to understand how supply and demand works, and be able to do basic bookkeeping. If you are not inheriting a farm, you’ll have to see about acquiring adequate start-up capital, which will mean understanding debt and assets.

Learning How to Farm

Some folks inherit a farm—they grew up on a farm, and the skills needed to run a farm have been passed down to them—another form of inheritance. For startup farms, however, this will not be the case. Farming is like parenting—books can give you tips and hints; they can attempt to make clear the realities you will face. But like parenting, you really need to do it to find out what works and doesn’t work. Because you’ll likely have a lot at stake, you won’t want your farm business to fail because some ill-informed decisions went south.

Cultivate your dream by reading everything you can about the kind of farm you are interested in running. Better yet, become an apprentice. If you want to raise goats for Angora, cheese, or milk, seek out a local goat farm. Develop a relationship with the farmer and work on the farm with the express purpose of gaining knowledge and hands-on experience. If you want to grow produce, get to know the owners of that successful farm stand down the road. Offer to work in their fields—even for free. Make a point of understanding how the operation is run both in the field and in the office. Be willing to sacrifice to realize your dream.

There is no substitute for hands-on, real-world experience, and you should make the effort to educate yourself in every facet. Build relationships and network. Ask questions. Do research. Local extension services and state agriculture departments will provide you with a lot of valuable information on farming in your area, not to mention essential information about any permits and licenses you might need. You can’t know enough.

Where Will You Farm?

If you aren’t fortunate enough to inherit a farm, you will need to either buy or lease land. If you buy land, you’ll have total control over what you do with it. You will also be on the hook for the success or failure of your business. If that sounds too risky, new farmers often lease land. You’ll have to find a landowner who is willing and has unused, cultivable land. Leasing may be an attractive option for both of you—you have a financially safer venue for your operation and the landowner may be in for various agricultural tax benefits and/or raised property value.

Most people interested in start-up farms will have to work a day job until their farm becomes profitable. Therefore, location, location, location! In an ideal world, you’ll find land and a job within reasonable proximity of each other. If not, how far are you willing to commute—and how much will that commute cost in time and money?

Other things to consider in depth when looking for land:

• Is the land you want to buy/lease zoned for the sort of farming you want to do?
• Does the land have the appropriate infrastructure or will you have to build (and are you zoned for building)?
• Does it have available water? Your plants & animals are going to need it.
• How healthy is the local water? Are there industrial/commercial polluters in the vicinity?
• Is your site near water? Are there measures & laws you must be aware of to avoid potential runoff into the watershed?
• What’s the soil like? You’ll need healthy soil no matter if you raise cows or vegetables.
• Are local markets available & if not, how distant are they?

You start with a dream. Then you consider reality and revise your dream.

What Do You Want to Sell?

You can enter farming with a certain degree of intentionality in terms of what you produce. Do you have an affection for pigs but can’t stand the sight of a goat? If so, you might want to consider raising pigs. Do you hate bending over for extended periods of time? Maybe don’t grow fields of strawberries etc. Consider your dream: what does it look like? What do you see yourself doing? The answers to these questions will shape the direction you take. Make them the focus of your farm.

If you are going to turn your life inside out — maybe walking away from a lucrative office job to potentially take on huge debt, uprooting your family, and moving to the country — it will be important that you are doing something you love. Otherwise, you’ll only have another job you hate. Farming is hard enough without the added challenge of not liking to do it.

Where And How to Sell Your Products

Who will be your target audience? You won’t be able to sell the fruits of your considerable labor without a market. If your dream is to raise meat rabbits, you’ll need to know if a market exists. If it does not, will you be willing to think creatively to establish your own market? Will you be willing to alter your plan, if necessary, to raise rabbits instead as pets for sale? Having a market for your wares is key.

Generally, strong markets exist for beef, pork, chicken, milk, eggs, cheese, and vegetables. If you want to raise goats, your markets will be significantly smaller. You may be able to sell goat meat to local ethnic or religious communities for holiday feasts. The commercial market for fleece may not be healthy, but you may be able to find felters or spinners looking for high-end wool. Niche markets and added-value products might be the direction for you.

The milk truck will regularly rumble into your yard and truck away the milk from your bulk tank. But if you grow vegetables and the best farmer’s market is 150 miles away, you’ll have to figure out the costs of getting to (and from) the market. Doing market research is an essential element to the success of your farm business. If you want to sell strawberries, but there are three other strawberry farms in a 10-mile radius, would it make sense to start a fourth farm? Be realistic about where you can fit in and be willing to revise your dream.

The Farm Business Plan

One place you’ll likely be fitting in is a chair at the bank. If you haven’t inherited a farm or aren’t independently wealthy, you’re going to need startup capital. There are many financing options available to you, so do your research. One thing almost no one will recommend is to use your credit card. When your farm becomes profitable and your cash flow is more reliable, you’ll want to reinvest that money back into your business in the form of equipment and infrastructure rather than high-percentage interest payments.

A farm business plan will be essential for anyone who wants to start a small farm. A plan will help you identify your goals and figure out which of them are feasible. A clear business plan will show the bank you are serious about this venture and help them feel comfortable about loaning you the money you need. Other funding sources are available to you, too, like farm startup grants for specific types of farms, university extension services will be excellent sources of funding information.

Whichever avenue you follow, be realistic and have a plan. If you can do without a tractor for the first couple of years, do it. Expect to grow over time, but expect to work hard to grow big!

Not sure what products you need once you've decided to make the leap into farming? Give our experts a call at 888-433-5275 , or shop our selection of products perfect for your new pig farm , sheep farm , goat farm , or cattle farm . Need products for your new vegetable, flower, or fruit business? Check out our selection of greenhouse products .

What did we forget? Tell us about your experiences starting your own small farm business in the comments section!