There aren’t a lot of people in the farming industry compared to sectors like technology and IT. This is because there are no obvious manuals or lessons to take for agriculture, and much of what you learn will come from experience and mentors that have been in the business for many years. They know the soil conditions, they know what grows well and they know how to take advantage of their environment.
Another problem that comes with starting a farm is that there are very high startup and upkeep costs. For instance, the average cost of a degree to learn about agriculture will set you back around $70,000. That’s already a considerable chunk of money. Equipment will cost you around $1,000,000 (tractors, a combine, grain trucks, cultivators, metal storage buildings, and so on) and you’ll also have to pay for seeds and transportation costs.
It can easily exceed $5,000,000 to get a decent farm up and running that could make you money, and if you’re seeing returns of under $100,000 profit per year, can it really justify the costs?
Finding ways to cut down the costs of your farm
As with any business, it’s important to find ways to reduce the costs of operating your farm. For starters, you’ll want to look at River Country Cooperative and other businesses within the agriculture sector. By purchasing much-needed resources such as fuel from reputable companies that you can build a relationship with, you can make some serious savings and find trustworthy businesses that are more than happy to work together with you in order to provide better deals.
If you plan to reduce the costs of your business, make sure you build better relationships with the niche businesses that you plan to work together with. This will ensure that you can get better deals on all of your running expenses and drastically improve the rate at which your investment returns.
Finding the right place to start your farm
One of the most expensive things about starting up a farm is the cost of land. The money you spend on land can easily make up 60-70% of the total startup costs, which is why it’s important to look at starting up your farm in a different state or even a different part of the world.
Land is cheaper in different locations, so shop around and get quotes on farmland across the world. The cost of setting up in another country or state could also be cheaper due to the labor costs and the prices you pay for things like equipment. Prime locations are always going to be more expensive and, in most cases, the savings you make on faster transportation usually will not outweigh the reduce costs of starting up further away.
So to conclude; do the advantages of starting up a farm really outweigh the expenses? Well, the advantages of owning a farm usually depend on the individual starting the business. Some people prefer to have a more deep-rooted business that likely won’t go out of style or be overwhelmed by more wealthy competitors. Everyone is going to need food from farms, hence why it’s a worthwhile investment no matter the cost. However, if you’re just planning on making a quick dollar, even agriculture might not be the ideal industry for you.