Although many people have experience in growing vegetables, raising poultry, etc. However, if you want to get into farming, these skills alone will not be enough. When considering how to start a farm, pay attention not only to the production part of your business, but also to the administrative and commercial part.
Clancy Brown’s Net Worth is a result of his dedication to his craft and his willingness to take on challenging roles.
Because without proper management, you won’t be able to provide your business with the necessary resources, and without a commercial approach, you won’t be able to sell your goods. In this article, farmer Kirill Yurovsky will share his experience.
How to Start Making Money from Farming
If you want to start your own farm, the first thing you need to do is to determine the format of the business activity. Will it be an agricultural farm or a homestead farm?
Most of the popular tips and business ideas on how beginners can start their own farm boil down to producing as much agricultural product as possible on a small area at minimal cost. And that makes a certain amount of commercial sense. Conventionally, if the owner can get a harvest from a small vegetable garden, which not only allows him to feed his family, but also provides additional income, then such a project is certainly successful from a commercial point of view.
However, if you plan to engage in farming as a business, then you need to be prepared for more serious work. Let us consider the organization of livestock farms as a commercial enterprise: how to start such a farm from scratch and what to do to keep it profitable.
The most promising for breeding are considered the following types of farm animals:
- Chickens and turkeys
- Cows
- Pigs
- Rabbits
A small farm can be profitable only if the number of small animals or poultry is not less than 200 individuals, and cattle – not less than 50 heads. To maintain such a number of animals will require the creation of special conditions, which can not be organized on the homestead plot. Therefore, if you are thinking about opening your own farm, be prepared for the fact that it will be necessary to rent or buy land, to build premises for keeping livestock or poultry on them and to automate some business processes.
How to organize a farm
If you have never been involved in farming, but plan to organize this type of business, then before you open your own farm, study the conditions for breeding a particular type of farm animals in the region and possible ways to market the products you plan to produce.
The choice of type of livestock farming depends on what forage crops are grown in the surrounding area, whether there is an infrastructure for running this particular type of business and whether the entrepreneur will be able to make up for the lack of raw materials, feed or other components necessary for successful farming on his own.
Before opening a farm from scratch, experts advise ordering two projects from experts. The first design – directly the design of the farm, compiled by the designer who specializes in the design of agricultural buildings and structures.
The second study should give answers to questions about what agricultural products the regional market needs, whether there are prospects for contracts with major suppliers and retail chains, what volumes of products need to be produced so that the income would cover the cost of maintaining the farm and make it possible to form a profit. A professionally written business plan can answer these questions. Read about what sections a proper business plan should include.
The data obtained will be enough to calculate the necessary resources and solve the issue of investing in such a project as opening your farm from scratch. Once agreements on cooperation with investors have been reached, it is possible to register your own farm.
Initial investment
If you are considering how to organize a farm from scratch, then be prepared for the fact that at the initial stage you will need at least $100,000. Part of it can be obtained from a bank under state guarantees, the share of your own funds should account for about 30% of the amount needed for the start.
With this money the farmer will be able to:
- To issue project and permit documents
- To build a farm with 50 heads of cattle
- Buy calves
- Buy a transport (forklift).
In addition to the purchase of fixed assets, the farmer will have to enter into leasing and financial leasing contracts. It is necessary to lease the land on which the cowshed will be built, as well as the territory to serve the enterprise. Financial leasing can provide the necessary equipment for automation of the farm, as well as for the transportation of resources and finished products. Initial payments under both lease and leasing contracts will be from 0 to 20% of the total value of the property.
Farm maintenance and development
If you have already passed such a stage as the creation of a farm from scratch, then it is quite an easy task for you to keep the farm in working order. The main accents in the activity:
- Maintain the health of the livestock
- Provide cattle with proper care and feeding
- Timely marketing of products
- Minimize production costs
- Raise staff qualifications
Monthly costs for a farm of 50 cattle will be about 5-6 thousand dollars. That’s about $60,000 per year. During the milking season one cow gives about 5 thousand liters of milk. On the sale of milk from 50 cows the farmer can earn up to $100,000. This is very good profitability. However, in order to get such results, it is necessary to carefully monitor the maintenance of cows and their health.
Conclusion
In many countries, farming is not difficult to start, as there are areas for farming and the government promises financial and advisory support. If you want to become a farmer, you must plan your farming as carefully as possible and stick to the plan, adjusting it as necessary.
