Starting a new farm for profit is an exciting venture but it is a big deal and not something that should be jumped into half hazard. Western Packaging is all about supporting small start-up farms and we know that you can’t do it without the support of your local farmers and community. We have a few tips we believe are very important if you are looking into starting a small farm.
Plant Multiple Crops
Diversity is key when you are trying to turn a profit in agriculture. If all you sell is tomatoes the likelihood of success and profit is little to none. Being able to offer something else if one crop fails is necessary for the survival of a small farm. Consider integrating animals into your farm to help maintain vegetable crops and bring in additional income.
Turkey’s and other foul eat bugs that are harmful to vegetables and cut back on pesticides or other natural insecticides. Other animals are commonly used as natural groundskeepers and their waste used as fertilizer and so on.
Skip The Middle Man
Selling to grocery stores and other places that are going to get a cut of your profits is not the way to go for small farmers. Building a loyal customer base is your main goal in the beginning of your venture. Loyal customers are usually very receptive to new products you offer later down the line.
When you sell directly to your customers you can sell for retail instead of wholesale profiting immensely. Let’s just say you sell 10,000 heads of cabbage a year and you earn just one dollar more at retail that is an extra $10,000 in your pocket.
Lease Over Purchase
Starting a new farm is overwhelming and an enormous amount of work. Banks are not as quick to hand over money when you have had no proof of stability. So whether you are still building credit or you are just new to farming leasing land is a good way to build credit and a reputation that will stand up to any disputes in the future.
If you share land with an existing farm there is a good chance that you can share certain farming tools and save money in that way as well. In time, as your profits increase and your success is proven you can purchase your own land with less resistance.
Have A Reasonable Plan About Your Profits
I am sure you have heard the saying, “If you fail to plan, plan to fail” well it is the truth! Creating a business plan is a vital part of any successful business, especially an agricultural business. You will need to make sure you have a reasonable idea of how long it will take to pay for your supplies, overhead, possible the farm hands, and turn a profit.
You will want to not only just make enough to pay your bills and support your family but money for the extras like vacations and fun things for the farm. If you have kids, factor in savings accounts, emergency funds, and college educations. With careful planning, you can expect to spend five to ten years getting to this point.
Call Us For Your Agricultural Needs
Western Packaging is happy to help supply you with the supplies necessary to run your small farming business. We carry a range of supplies from packaging to machinery and are here to help you with all your start-up needs. Give us a call to find out more about how we can get your farm up and running.
