fbpx

With mass farming, the agricultural industry is getting harder and harder to be successful. Whether you are just now creating your own little farm, have a large plantation, or have been farming for as long as you can remember, there are keys every farmer must have to be successful. Implementing the following suggestions will protect you, your family, and your farm and give you a prosperous business.

A Business Plan

 Many farmers start by purchasing a batch of chickens or planting a field without having thought about what comes next. To be a successful farmer, you must have a business plan. Yes, your farm is your business. Establish a plan for how you want your farm to expand and grow. Know how you will financially support your farm now and in the future. Tracking where the money is coming from and what it is going into will help you map out the development of your farm and plan for its future success.

Insurance Coverage

Every farmer needs insurance to protect them from the unexpected. Investing in property insurance will save you from unexpected floods or natural disasters. Liability protects you from accidents that may happen on the farm to other workers. Health insurance will cover when you are sick or unable to work. It is wise to purchase insurance coverage to protect you from extraordinarily expensive claims that may happen down the road. Insurance ultimately protects who and what you love and your most valuable assets.

Agricultural Loans

Agricultural loans help a farmer get started in the business or expand their operations. These loans are to help farmers stay afloat while the process of getting started is often long.  An agricultural loan can help you purchase farmland, cover operating expenses, and help with your business’s marketing. While these loans are offered through a traditional lender, there are also government agencies that provide them with low interest and other incentives that aid farmers. If you are just getting started or looking to expand, heavily consider agricultural loans to keep you financially stable during the transition.

Farm Equipment

Every farm needs the proper equipment to run effectively. What kind of equipment is necessary for your operations depends on your business plan. Equipment increases your product output, makes your life easier, and protects you from harm. Many unnecessary accidents or health issues are avoided with the proper equipment. Tractor canopies protect you from skin cancer when you’re working under the hot sun.

It is also important to have the proper tools and equipment to perform the necessary repairs on your farm. Extra wire to mend a broken fence will keep livestock in and unwanted animals out. Depending on what you farm, there is some equipment that is unnecessary. For example, a milking machine is pointless if you do not have dairy cows or goats. Keep it simple, but always be prepared. Remember, a hammer and screwdriver will always come in handy

Clear Marketing Plan

No matter who you sell your produce to, you must have a clear marketing plan. Identify who you are going to sell to and how you are going to sell to them. Common ways of going to market include farmers’ markets, farm stands, community-supported agriculture, delivery groups, restaurant clients, retailers, and wholesale distributors.

It may take time to find the right market for your products or for you to find the right products for your available market. However, developing a clear marketing plan will help you identify your consumer and their needs more easily. Doing this will help you develop the sales relationships necessary to maintain a profitable business.

Crop Rotation

Crop rotation is an important strategy to maintain the success of your farm. If you plant the exact crop in the same place every year, that crop will draw the same nutrients out of the soil which will render the soil useless later down the road. Pests will also find a permanent home with a food source they can rely on. Crop rotation helps return nutrients to the soil and increases biodiversity. Implementing crop rotation will protect your land from being rendered useless and ensure the success of your farm for years to come.

Additional Help

Farming is a 24/7, 365 days a year type venture. You can never take a break from your business and expect it to succeed on its own. Additionally, there are often more tasks that need to be completed than you have the time for. Employ the help of your family and friends. Use connections to capitalize what others are talented at and more helpful with. Capitalizing on the skills of others will provide better results. Do not hesitate to hire employees. Hired help will come at a small cost compared to the profit you can make when everything on the farm is properly looked after.

Flexibility

For financial stability, it is important to diversify your farming. Diversity in farming often means a variety of cash crops and livestock. Having the flexibility to grow a variety of products and raise a variety of livestock will protect you if there is an off year or unexpected challenges with the livestock. Knowing how to perform a variety of tasks will also help protect you from unnecessary costs. Maintenance, packaging, and sales can be pricey if handled by an outside source. Know how to be flexible so when external circumstances are presented, you know how to adjust and keep moving forward.

Ultimately, to be a successful farmer you must know a good deal about your land and your products. Farming is a mathematical science. You must know the exact steps you need to take to provide a satisfactory result. Your farm is your business. Invest in your farm by defining your business plan, purchasing insurance, applying for agricultural loans, using proper farm equipment, developing a marketing plan, rotating your crops, asking for help, and being flexible. With perseverance, dedication, and passion, your farm can transform into a successful business.


Read this next: What You Need to Build a Stable Financial Foundation

TCG Insurance
Author: TCG Insurance

Subscribe To Our Newsletter

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

Pin It on Pinterest

Share This