How to Start a Small Family Farm
Throughout much of the nation's history, having a family farm was the American dream. While dreams have decidedly turned more urban in recent decades, those who still want to start a small family farm should find there are plenty of opportunities and places to turn to for help. All it takes is knowing where to turn, what to expect and having realistic expectations.
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Instructions
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Starting a Family Farm
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Determine where you want to live. Some may live on a homestead right on the farm itself, which is the traditional way. Others may decide to live in town and commute to a farm property without a homestead. The advantage of living on the farm is one of convenience.
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Identify the land for use. This may come from a family inheritance, or may be rented or bought from the local real estate market. Understanding crop yield history, which is the number of average bushels produced on the land each year, and tillable acres, which is the number of acres available for actual farming, are keys to making sure you are getting the best deal.
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Find start-up capital. In some cases, you may be able to get a loan from the bank, especially local banks familiar with the farm industry. If not, the Farm Service Agency offers farm ownership and operating loans to those getting started in farming. The actual costs vary widely. For example, expect to spend at least $250,000 for a 100-acre farm in land value only. Overall costs could easily approach $600,000 or more.
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Learn about the business. If you are unfamiliar with farming, or even if you have grown up around it, there is still a lot to learn about running a farm. Take agricultural management classes or visit with a local farming cooperative and ask how they recommend you get a good start.
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Choose what to grow or raise. Row crops, such as corn and soybeans, tend to be the way most people start out farming. Some may choose livestock, in particular cattle or hogs, which may offer some financial rewards, but will also be very labor-intensive and a little more expensive initially.
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Secure farm equipment. Used tractors and implements may be your best value. A new farm tractor can easily run $100,000 or more, often beyond a start-up family farmer's budget. A used tractor, less than 20 years old, typically costs $20,000 to $30,000 at a minimum. You could also ask local farmers about borrowing or renting their equipment. They may appreciate a little extra money for no additional work.
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Ask for help. Starting a small family farm is very hard to do alone. Farmers are often willing to help those just starting out. The local Farm Bureau, Farm Service Agency and U.S. Department of Agriculture also have programs for young farmers. Take advantage of these resources. These groups can also help you put together a successful business model to take to lenders.
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Tips & Warnings
When considering costs, do not forget about property taxes, which can be quite substantial on a family farm. Corn and soybeans have long been staple products for many farmers, but don't forget about fresh fruits and vegetables as a way to diversify.
References
Resources
- Photo Credit PhillipC: flickr.com photo
