5 Key Tips for Starting a Farming Business
Originally posted on https://knowledgenuts.com/2010/05/03/5-key-tips-for-starting-a-farming-business/
Do you dream of starting a farming business? There’s a lot that the simple life of farming has to offer. Peace, quiet, and the opportunity to work for yourself are the biggest draws.
It’s not without its dangers, though.
There’s a lot of knowledge and practice that goes into being a farmer. Come unprepared, and you could find your dream becomes a nightmare.
We’re here to help fill you in. Our farming tips are here to ensure you know how to start a farming business correctly. That ideal life is possible, and you can have it.
Want to know how to start farming? Then read on!
5. Buy the Right Farming Equipment For Your Budget
You’re going to need to buy a lot of equipment for your farm. When you’re looking at farm equipment for sale, consider how you’re going to pay for it. Have a solid financial plan before you start splashing the cash.
Depending on what sort of farming business you’re starting, you could be entitled to financial aid. Various organizations offer farming grants to young and new farmers, which can help ameliorate starting costs.
4. When Starting a Farming Business, Set Goals and Keep a Close Eye on Finances
When you’re planning how to start a farming business, it’s easy to get distracted by thoughts of the future. Your farm will be small to start with, whatever your ambition.
Set realistic goals for your first few years. When you achieve these, scale them up!
Although farming is a way of life, it’s a business too. Keeping track of your cash flow is extremely important. Keep receipts and track expenditure and income.
If you need a little help, consider hiring a specialist agricultural accountant.
3. Know the Law
Farmers have to understand a huge number of laws. When you’re starting a farming business, it may seem overwhelming. However, they all matter.
Become familiar with federal, state, and local laws on zoning, environmental regulations, and agricultural laws. If you plan on raising animals, research these specific laws.
If you don’t comply with the law, your farm could be shut down, so research them thoroughly.
2. Get the Correct Licenses
Like any other company, you’ll need to get the correct licensing for your farming business. Your business will need a name and a business license, as well as product liability insurance.
For tax purposes, you’ll also need to get an employer identification number from the IRS.
1. Research Agriculture Beforehand
It may seem obvious, but some new farmers seem to think commercial farming is the same as gardening. Research agricultural science heavily, before you even begin to plan your farm.
There are numerous books on the topic, but we’d also recommend asking any farmers you know for advice. It’s a dense topic, and it’s best to get multiple points of view.
What would you tell somebody interested in starting a farming business? Got any important advice that you want to share? Then let us know in the comments!