How do I Start a Farmers’ Business?

Rule 1. Farm business requires soil. If you are thinking about how to become a farmer, then the first thing that is needed is to decide on which soil, in which sector you will arrange your farm. Of course, you can “practice” on your smaller acres, but, this option will not work if you decide to arrange a great farm business with sufficient income. As a rule, to organize a farm will require at least half a hectare of land. Well, the maximum area is limited only by the capabilities of the farmer. The territory for the farm can either be bought (not in every country), or rented for use. Most often, a large farming business is built on leased areas when small farms can exist on their own.

Rule 2. Farming is a family business. The farm business is, in most cases, organized as a family affair. Moreover, not only the husband and wife are often involved in it, but also several generations of a large family. The reason for this is simple: the farming business is a business that always requires a sincere and gentle approach, full time and effort. It is practically impossible to achieve this when you hire employees: the main thing for them is to work less and get more. Therefore, it is better when everyone who works on a farm will be personally interested in making it flourish. In this case, it will become easier to achieve the result. For this, it is necessary for all family members to approve the farm business as a way of earning, and each of them would have their own area of responsibility and their own duties.7 Rules of Farming Business in AmericaRule 3. Farm business requires constant attention. If, for example, a market outlet can be closed for a while or left under security guard supervision to arrange a vacation or a day off for yourself, then it can’t be applied to the farm. The farmer can afford to rest only in some cases, for example, in the off-season, if he is engaged in crop production. And that, this is a time to prepare the equipment for the sowing season. Most often, the farmer works from morning to evening 7 days a week, he does not have and cannot have a weekend because crops or animals require constant, daily care, and they cannot be left to the mercy. If you are thinking about how to become a farmer, answer yourself the question: are you ready for constant work without holidays?

Rule 4. Farm mastership comes with experience. The farm business will never be perfect from the very beginning. Of course, this can be said about many other types of business, but still, this plays a particularly important role in farming. After all, if the harvest and livestock die, it will bring much more substantial losses than if the goods will not be simply sold in the store. Therefore, if you decide to become a farmer, it is best not to start immediately from a large scale farm: get a few animals or birds, sow a small area and see how things go.

Rule 5. Do not rely on government support and loans. Many people want to open a farming business only because they have heard about some government programs to support agriculture and hope to get such maintenance. For example, most often such programs involve partial compensation of interest. However, in fact, it is extremely difficult to gain such assistance from the state. For example, it will be necessary to meet a variety of criteria and fulfill many conditions. Therefore, if there is an opportunity to participate in the programs of state support of agricultural producers, it should be used, but you should not rely solely on it. Banks are, as well, very reluctant to lend to the farming business, or they don’t lend at all, especially when it comes to future harvest as collateral. The risks are quite high. They cannot give loans to farmers at huge interest rates, which include risk payment, because farmers simply will not take them under such conditions.

Rule 6. You can not pay taxes having small volumes. As a rule, the law provides the possibility to organize small farms that produce products for their own consumption, without forming a legal entity and registering business activities. And at the same time, the farmer can sell a surplus of his products on the market. It is worth using such an opportunity. It is necessary to study the current legislative base because laws often change. Well, if you have conceived to launch a farm of a larger scale you can’t do without registering a company and paying all the necessary taxes on a regular basis. Before you become a farmer, think and figure out which option is suitable for you.

Rule 7. Take care of the market before opening the farm. The farm business is, in essence, a production business, which requires sales. Moreover, in this case, the time for marketing is still very limited: after some time, the output produced will simply deteriorate. Therefore, if you are thinking about how to become a farmer, you should immediately determine where and to whom you will sell your products, find a market for yourself. Selling farm products is not so easy, especially when it comes to a good price. You will need to open your own outlets to trade independently, which is expensive and requires a large number of documents. In order to supply your products to supermarkets, you also need to get all sorts of quality certificates, as well as pay for the rent of trading places. Therefore, many farmers are forced to sell their products to dealers.

Category: General Issues

Tags: Farmers, human health