A popular trend these days is for families to move from the city or a subdivision to a small tract of land in the country. Many people dream of owning a farm and undertaking an agricultural practice, perhaps like their ancestors did many years ago. The idea of producing your own food in a clean, controlled environment is very appealing to some people. While dreams may be big, careful research and planning should be done prior to jumping into any farm venture. Important considerations such as desire, capital, feasibility, labor, demographics, and marketing all need to be considered. If all of the items mentioned in the previous sentence can be checked off, then starting your mini farm may be a great experience.
How Much Land Do I Need?
The farm venture you are interested in may dictate how much land you’ll need. In some cases, a decent income can be realized from as little as half an acre of land if you are doing something like greenhouse plant production. Other enterprises, such as pine straw production, beef cattle, or Christmas trees will take considerably more acreage. While it is possible to generate enough income through farming 20 to 40 acres, in most cases folks approach this as a part-time venture. It is much better to select an income-producing idea that you enjoy and want to do even if no profit is realized.
Insurance, Licenses, Zoning, and Taxes
Assuming that you already have the land, any new business proposition should start with a solid business plan. Thought should be given to the amount of capital on hand and any potential legal issues. Make sure that the type of farming you are considering is allowed under the zoning of your residence. While some zoning ordinances will allow planting of crops, they may not allow keeping livestock.
Insurance also is important to take into consideration. If you plan to have customers on-site, such as a you-pick operation, you definitely will want to have liability insurance. You can never be too safe these days. Discuss liability coverage with your insurance agent and ask about what extra insurance might be needed to protect your farming equipment and other assets.
License requirements will depend on the type of business you plan to have. Anything that involves prepared food such as jellies, pies, or bread will require a cottage food license. This license is available through the . Counties may also require a business license or have other requirements, so it is important to check with your local government.
Living in the world we do today, it is nearly impossible to avoid taxes. Income realized from your farming venture needs to be reported on your taxes. Many people are under the false impression that buying a few acres and sticking a cow on the land will give them huge deductions on their taxes. While it is true that there may be several farm-related deductions available, they will not cover the expenses involved in your business. It’s a good idea to find an accountant that is well-versed in farm-related tax issues. If you have 10 or more acres of contiguous undeveloped property, applying for a Conservation Use Valuation Assessment (CUVA) program is perhaps one of the most convenient tax avenues to take advantage of. If your land qualifies, you can enter into a 10-year covenant pledging not to develop the land in exchange for property-tax assessments based on the land’s productivity, not its fair market value. This can save you a substantial amount of money on your property taxes. Check with your local tax office for details.
Labor Considerations
While some smaller operations may be handled by the owner and perhaps their spouse, other situations may involve hiring labor. Vegetable operations covering more than a couple of acres can be extremely time-consuming, and it’s often necessary to hire help to handle the numerous tasks. It might be valuable to check with an attorney specializing in labor laws to make sure you know what is involved in hiring someone to work on your farm. Hired employees can range from independent contractors to fully benefited staff. Finding and keeping good workers in any farming enterprise is usually one of the most difficult things small producers deal with. Hiring temporary migrant workers comes with a whole other set of rules and regulations that should be investigated thoroughly.
Government Program Assistance
Depending on the type of farming you intend to get into, there may be some financial help in the form of governmental assistance. Several programs have been offered that assist new, smaller farming operations in getting started. Sometimes these programs are set up on cost-shares, which require the producer to self-fund some of the money. Programs are sometimes available to help with the purchase of equipment, structures, fencing, and other farm-related expenses. Many of these programs have specific qualification requirements. There are programs that assist veterans or underserved minorities, too. For possible funding assistance, check with agencies such as (NRCS), , (FSA), and the . The NRCS, Georgia Forestry, and your local county Extension office are good sources of information for technical assistance with farming-like ventures.
Advertising and Marketing
Regardless of what type of product you are producing, it’s imperative to find someone to purchase it. Before you ever start your business, you should research carefully to make sure that you can get your product sold. There is nothing worse than planting 20 acres of pumpkins and being stuck with them at the end of October. Advertising and marketing are important aspects of your business that focus on getting the word out about your product. Whether you set up at a farmers’ market or plan to attract clients to your property, explore different methods of letting them know what you have. Many producers have found success using social media to advertise. Others put small ads in local newspapers or distribute flyers. Once you get a base clientele established, word of mouth may become the best method of promoting your product.
Equipment
Depending on the venture, a considerable amount of your startup costs will be spent on equipment. For many small farm activities, a small- to mid-size tractor could be very helpful. From plowing ground to moving hay, tractors take a lot of the burden off our backs. A small utility tractor with 20 to 40 horsepower is about the right size for most small operations. Depending on whether you are buying new or used equipment, the price can range from $10,000 to $50,000. Each implement purchased to pull behind the tractor will increase your equipment cost by several hundred dollars. A front-end loader on the tractor will increase its cost, but it’s extremely handy to have
