If you want to be a small farmer, chances are you’re not dreaming of business management, bookkeeping and the like. Unfortunately, if you want to make money on a small farm, these are things you must keep in mind. A small farm is a business and should be run as such. In this article, we provide 7 smart tips to help you make your farm or homestead profitable. Read on to learn more on how to make a small farm profitable.
What You'll Learn Today
7 Tips To Make Your Farm Or Homestead Profitable
1. Make good plans
As with any business, you’ll need a business plan if you are to succeed. A good business plan consists of an overarching goal and the smaller steps or objectives you’ll need to take to attain that goal. It should also identify the tools that you’ll need to obtain each objective.
Your well written business plan will act as a roadmap for you. It will help you stay on track, accomplishing one success after another to arrive at your final destination.
Additionally, having a good business plan and being able to demonstrate that you are following it carefully can support you in getting financing and other important assistance, if you have limited financial resources yourself.
2. Know your market
Before you ever put a seed in the ground, identify your customers and know what they are likely to buy.
Naturally, it’s helpful to look around and see what farmers in your area are growing successfully, but remember if they’re growing it, they may be meeting the needs of the market.
In addition to taking the time to get to know your neighbors, you should spend some weekend days scoping out your local farmers’ market. Take note of the best selling plants, baked goods, meat and other products on offer.
Setting up a website is a good way to get to know your potential customers and find out what they are likely to buy. It can also be a good way to sell your produce, crafts and other farm items.
Many modern farmers find it efficient and profitable to take orders online and then deliver personally or by commercial carrier.
Take careful note of what you learn, and even after you have started farming, keep good sales records so that you can tweak your planting and harvesting plans.
3. Take everything into consideration when planting a crop
In addition to meeting market demands, you’ll need to think about a number of different factors when choosing your crops.
You must understand the local weather, know your soil and have the right equipment on hand to deal with the crop you wish to plant.
Furthermore, you’ll need to study that crop to be sure that you know how to take care of it. You’ll find that your local Agricultural Extension office is an excellent resource.
Get to know your County Agent as a source of information and advice specific to your needs.
Your county extension office can also give you good advice on how to select the farm animals that are profitable in your specific situation.
4. Don’t overdo it!
You may be tempted to buy a lot of expensive equipment to be sure that you have everything you need to get going on your farm. Be careful, this can be a financial trap.
It’s better to carefully select and purchase a few dependable pieces of equipment for cash than to over-commit yourself for financed big machinery.
Additionally, it’s wiser to get a small start with the bare minimum to figure out exactly what you’ll need in the long run.
5. Don’t put all your eggs in one basket!
A monocrop is a bad idea in lots of ways. As you’re starting out, choose several different types of crops that you can grow simultaneously and rotate from one season to the next.
Crop diversification is good insurance against catastrophic loss. If you plant all one thing, you could easily lose all of it. If you plant several different crops, you’ll have something to fall back on.
6. Keep good records
Be sure to take good notes on your own production practices, your successes and your failures. Take note of the weather, the soil conditions and every other factor that affects your operation. Having accurate records will help you make good plans.
Naturally, you’ll also want to keep excellent financial records. This can help you avoid inefficiency and will ultimately increase your profits.
7. Never stop learning
Farming is a day-in-day-out activity, but you must find a way to set aside time to study new techniques and information online, in magazines and books and by attending important farm conferences.
Talk with local farmers to learn what has and has not been working for them, and to build good cooperative relationships.
Having good friends will give you someone to fall back on if you should fall ill or simply wish to attend a farming conference. Remember to always return the favor!
You can also try blogging about your farming journey. In addition to taking stock of your successes and mistakes, you can even make some money blogging.
How To Make Money On A Small Farm
If you are looking for more tips for the successful farm or homestead living, check out this guide to traditional farmhouse cooking.
Frequently Asked Questions
Is it Possible for Small Farms to Earn an Income?
Yes, there are many ways a small farm can make money. Options include growing and selling produce, raising livestock for meat and other products, and making crafts or other items to sell at farmers’ markets and online.
If you’re willing to work hard and spend some time coming up with an actionable plan, you can earn a liveable income from your farm even if you only have a few acres. The key is identifying your niche or niches and finding a market for your products.
What Are Some Profitable Small Farm Niches?
To make money from your farm, it’s important to focus on one or two specific niches rather than trying to do a little bit of everything. Niches include raising bees for honey, cattle for meat and dairy products, and crops for produce.
All of these niches can be incredibly profitable. Some other good niches to consider to help you make money include growing and selling microgreens, using your property as an event venue, and even growing and selling hops.
How Do You Choose the Right Niche for Your Farm?
Your ideal niche will depend on factors such as your talents and interests, the resources you have on your farm, and the local market. For example, if your farm is situated on a beautiful property and there’s a market for event venues in your area, this may be a good niche to try. If you have a very small farm, consider niches that don’t require a lot of space, such as growing microgreens or raising chickens.
The key is to choose a niche you enjoy and that your farm is ideally suited for, as well as ensuring the products you produce are likely to sell in your area.
How Do You Calculate Costs?
Calculating costs is an important step when using your farm to earn an income. Regardless of the niche you choose, you will be putting in a lot of time, money, and effort to produce the goods you sell; these expenses must all be accounted for.
Estimate costs by determining how much money you will spend on equipment, hired help, or other resources; then, estimate how much time you will put into growing, raising, or producing your products. Consider other costs such as advertising or packaging. Use these figures to determine the approximate cost of producing each item you sell; then, set the price of your items accordingly–in many cases, a markup of 30 to 50 percent is average.
How Do You Market and Sell Your Farm Products?
In order to make money, you will need a market for your products, and you will need to find customers who want to buy what you’re offering. There are many ways to market your goods, and the exact methods you choose will depend on your niches and personal preferences.
Many small farmers offer their goods at farmers’ markets, as this allows them to both make money and grow their network with customers and other farmers. Other ways to market and sell goods include selling directly to customers through a website or in-person; growing an audience through social media; and selling wholesale through cooperatives and distributors.
Good planning and decision is the key to be a rich farmer.
I would like to see a video on making money with Alpaca fiber.
Thank you for sharing your knowledge.