How to Start a Sod Farm

As long as new homes are being built, there will be a demand for sod. Sod is also used by landscapers improving existing homes. The sod they use is grown on a sod farm. A sod farmer needs to know about sod production, diseases applicable to sod growth, weed control and irrigation, and how to operate a business. Someone wanting to start a sod farm business should be aware that the turf takes time to establish, so it could be many months before there is any income.

Things You'll Need

• Plow
• Disk
• Fertilizer spreader
• Roller
• Mowers
• Irrigation equipment
• Sweeper
• Cultipacker
• Front end loader
• Heavy duty flat bed delivery truck
• Equipment storage buildings
• Seed
• Weed control
• Delivery pallets
• Office equipment and furniture
• Insurance

Instructions

1. Check with your state and county governments about requirements for licenses and permits. Depending on the type of delivery truck you use, there could be a requirement to obtain federal permits. Obtain a federal tax employer identification number (EIN) through the Internal Revenue Service.

2. Contact new home builders and landscape businesses within 100 miles of your area to identify the demand for sod and the type of sod needed to help determine the size of farm.

3. Secure financing for equipment and land. For land, financing might be obtained through a local financial institution or a Small Business Administration (SBA) program. New and used farm equipment can be purchased and financed through local farm equipment dealers. Compare interest rates with your local bank against the interest rate offered by the selling merchant. Also check with the SBA

4. Buy or lease fertile flat land. Find out if sod farmers are allowed to use well or pond water for irrigation and take into consideration how close the land is to housing developments moving the sod is an expense. The amount of land you acquire might be determined by the need for sod in your area.

5. Purchase equipment for sod production and buildings for farm and office equipment. For a 100 acre farm, expect your cost to range from $150, 350 to $550,000. Check newspaper ads for auctions or online at www.usfarmer.com.

6. Prepare brochures or one-page flyers with pricing information and mail them to local buyer's markets such as new home builders and landscape businesses. Place ads in the local paper for the benefit of homeowners who want to re-sod their lawns. Establish an Internet site and take out an ad in the phone book. Contact builders as soon you are aware of a new development being planned, and join the local Chamber of Commerce.

7. Hire laborers to tend the farm and a bookkeeper or accountant to handle record keeping. Be sure to conduct interviews and check references. Assistance from a tax adviser may also be needed.

Tips & Warnings

• After you start your business, prepare a press release for local papers to help get the word out that you are in business.

• The cost of start-up and the time waiting for sod to grow for the first sale will create a negative cash flow during the start-up time frame.

References

• Starting a Sod Farm Business
• The Business of Sod Production
• Sod Production: From an Economic Standpoint

Resources

• IRS How to Apply for an EIN
• Small Business Administration Financing Program