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How Do I Start a Farm?
By: Nancy Glazier
This is a question I frequently get. And lately, it is been via email. According to the 2007 Census of Agriculture, the average age of farm operators was 57 years. Most of these individuals will be retiring in the next decade. Farmers over the age 55 own more than half the farmland in the U.S. There is an insurgence of the small, or backyard operations. Many are looking at their backyards or small acreage as their “de-stressers” from the corporate world. Or, maybe it’s time for some diversification of your operation!
Most requests are production-related questions, regarding grazing and pasture management. This article will take a different approach, one that really needs to be addressed first, business planning. This is not a size-specific article; all farms should have a business strategy!
An excellent resource to help you get started is the NY Beginning Farmers website: http://www.nybeginningfarmers.org/index.php?page=plan. What follows is a short review of a small amount of their extensive resource of materials. The units will build from one to the next, so don’t skip any!
Unit 1: Goals, Skills, Resources
What are the goals for your operation? How soon do you project to make
money? Are your goals SMART? This acronym tells us that your goals should
be Specific, Measurable, Attainable, Rewarding and Timed. Remember, this
is a business. What sort of skills do you bring to the enterprise? What
are your weaknesses and how do you improve them?
Unit 2: Marketing what you produce
Your farm enterprise should be treated like a business. And, like it or
not, you will be a salesman. How soon do you want to sell your product?
You will need to toot your own horn. If your product is livestock for
food, how soon will the animals reach a marketable weight? The big question:
What sets you apart from the rest of the producers of your product? Natural,
grass-fed, local, etc?
Unit 3: Evaluating land and facilities for your enterprise
What breed and how many animals? Do I really need a barn? Smaller livestock
reach mature size quicker. Bigger livestock require a bigger area! For
example, pastured poultry turnaround time can be 8 weeks – start
to finish. Will you do your own slaughtering? Where will you have them
processed if not on-site? Figure that out first!
Unit 4: Choosing an enterprise
Look at this as climbing a pyramid. Brainstorm some ideas; make some lists
based on the first 3 units. Talk to some experienced producers to get
some advice. Can you make money with the enterprise? Develop the short
list. Maybe it’s different than when you started this process!
Unit 5: Good stewardship is good business
This step should be a no-brainer. Save your money and headaches, do it
right from the start. Protect your land, water and air. Contact your local
Soil & Water Conservation District or Natural Resources Conservation
Service (NRCS) for assistance.
Unit 6: What will it take to be profitable?
Do you know your costs? You need to meet your input (variable) costs and
ownership (fixed) costs to break even. Input costs can be fertilizer,
seed, gas, labor; ownership costs include depreciation, interest, repairs
and taxes.
Unit 7: Regulations, taxes and legal issues
This is a biggy. Some considerations to consider are business structure,
taxes, agriculture district laws, insurance and zoning to list a few.
The above-mentioned website will provide the essential contacts.
These steps will provide a starting point. Make some notes,
and next month I will help you pull it together with a business plan!
How do I start a farm?
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