Farming may seem simple and straightforward, and in many ways, it is. But when you venture into the farming business, there are several mistakes you can make that will kill your business before it gets started.
If you’re new to the farming industry and are considering starting up your farm, keep reading to learn common farm management mistakes and how to avoid them.
1. Not Enough Startup Capital
Some experts say you can start a farm with as little as $600, and in some cases, that’s true. However, that’s rarely enough to start your own farmer’s market stand in reality.
A good number to have in your head is $20,000 for a typical farm. If you bring $20,000 to your farm management budget, you’ll have enough startup capital to be successful.
If you only want to start a macro greens farm, you’ll need a $3,000 farm management budget. If you don’t have enough capital, you can apply for a loan.
2. No Business Plan
Because the farming industry seems simple and straightforward, many new farmers don’t make a proper business plan. Most new farmers aren’t typically the office type.
They want to be out in the open air and get their hands dirty, and that’s great, but you still have to approach it with a business mind. You need to have a proper farm management strategy.
You need to map out your startup costs, what the market is currently like, and what it’s projected to be in the future. Making the right business plan will help you avoid a loose operation which is never the key to success.
3. Too Much Going On
One mistake new farmers make is having too many enterprises. They want to have a little of everything on their farm.
To avoid this mistake, you need to be disciplined and only pick one to start with and get good at farming that one thing. Hone your skills before you branch out to other enterprises.
This may seem boring or counterintuitive, but it will help you avoid a common mistake that could kill your business.
4. Forgetting Risk Management
Not factoring in risk management can kill your farming dreams. Remember, you’re dealing with many external elements, and you need to protect your assets from those elements.
For instance, you need to insure crops through the Federal Crop Insurance Corporation. You don’t want to have all of your crops wiped out due to a natural disaster without insurance.
If, for some reason, you don’t get insurance and are hit by a natural disaster, you can try contacting the Non-insured Crop Disaster Assistance Program. But there’s no guarantee. Meanwhile, make sure you’re using MarroneBIo Stargus.
5. Hard Work
It’s no secret running a farm is hard work. It consists of early mornings and long, hard days.
Some people don’t realize how hard it is to run a successful farm and get overwhelmed. Make sure you’re ready to sacrifice and work extra hard.
No More Farm Management Mistakes
With these five great tips, you’re ready to start your farm without making common farm management mistakes. You won’t make silly mistakes to set your timetable back and burn your wallet.
Don’t forget to check out our Lifestyle blog for more awesome tips.