{"id":7732,"date":"2021-04-07T20:55:07","date_gmt":"2021-04-07T20:55:07","guid":{"rendered":"https:\/\/farmandanimals.com\/?p=7732"},"modified":"2021-06-16T07:10:09","modified_gmt":"2021-06-16T07:10:09","slug":"how-much-does-it-cost-to-start-a-farm","status":"publish","type":"post","link":"https:\/\/farmandanimals.com\/how-much-does-it-cost-to-start-a-farm\/","title":{"rendered":"How Much Does It Cost To Start A Farm?"},"content":{"rendered":"

How much does it cost to get started in farming<\/a> these days? There is no simple answer to this question. Your startup costs depend on many variables including the country or state where you live<\/a>, the amount of land that you want, the crops and livestock you intend to keep and much more. In this article, we present information to help you determine how much it might cost you to get started in grain farming and in homesteading. Read on to learn more on how much does it cost to start a farm.<\/p>\n

What Do You Have To Start With?<\/h2>\n

\"what<\/p>\n

Before you set out as a grain farmer, you’ll have to know what you’re doing. This may mean pursuing an agricultural degree which could cost you as little as $20,000 or as much as $120,000. This cost depends on which college or university you attend and what kind of financial aid you receive.<\/p>\n

The alternative to this might be to get some experience with farming as a farm hand or an apprentice of some sort depending on what kind of opportunities come available to you. This can be a very good way to gain knowledge for homesteading.<\/p>\n

Get Your Farming Equipment Together<\/h2>\n

Once you\u2019ve got some experience and knowledge under your belt you’ll need to set about getting the equipment and machinery you’ll need for grain farming. You can start out by financing brand-new equipment, or you could put in some legwork and find some used machinery.<\/p>\n

Generally speaking, well-maintained farm machinery between five and ten years old is a good value. At this age, the machines will have depreciated greatly from their new purchase price, but if they been well cared for they should still be serviceable for many years.<\/p>\n

Here’s what you’ll need for grain farming:<\/p>\n

    \n
  1. Combine with grain platform and corn head: $175,000<\/li>\n
  2. Large tractor for planting and plowing: $125,000<\/li>\n
  3. Miscellaneous tools: $15,000<\/li>\n
  4. All-terrain vehicle: $10,000<\/li>\n
  5. Grain truck: $60,000<\/li>\n
  6. Sprayer: $35,000<\/li>\n
  7. Grain drill: $40,000<\/li>\n
  8. Field cultivator: $25,000<\/li>\n
  9. Chisel plow: $30,000<\/li>\n
  10. Grain cart: $15,000<\/li>\n
  11. Planter: $75,000<\/li>\n
  12. Trailer: $15,000<\/li>\n
  13. Disk: $30,000<\/li>\n<\/ol>\n

    All in all, even buying secondhand, fully equipping a large grain farm could cost you around $715,000.<\/p>\n

    You’ll also need some buildings. A pair of metal buildings to keep your equipment in will cost around $200,000, and you\u2019ll need some storage bins for your grain. Each one should hold about 75,000 bushels of grain and will cost about $75,000.<\/p>\n

    How Much Does Land Cost?<\/h2>\n

    \"how<\/p>\n

    If you already have some land, either owned or leased, you’ll be ahead of the game. If not, purchasing your land could be very pricey venture.<\/p>\n

    For those who do not own any piece of land, the purchase might seem stressful and not an attractive process. However, with enough knowledge and preparation you will confidently make that commitment. To be prepared for purchase of farmland<\/a> you need to write a checklist with consecutive steps. For example, you need to consider obtaining all permits that are required, you need to analyze your financial position and closing costs associated with the land purchase, etc.<\/p>\n

    Here are some general estimates that might apply to someone hoping to find land in one of the big grain producing states<\/a> (Indiana, Illinois, Iowa, etc.) for the purpose of grain farming.<\/p>\n

    In order to farm enough grain to make a profit, you’ll need a total of at least 1500 acres. This could be all owned, or you could own part and lease part. Generally speaking, owning about 500 acres and leasing about 1000 is a good proposition.<\/p>\n

    When you choose your land, of course you’ll want to look for very good quality land that will turn a profit. You want to be able to produce about 150 bushels of corn per acre.<\/p>\n

    Generally speaking, land of this quality will cost between $7000 and $8000 an acre. This means that your 500 owned acres would cost you nearly $4 million.<\/p>\n

    With all these expenses combined, you’d be at almost $5 million start up costs, and you haven’t even bought your seed grain yet. Additionally, you’ll need to have some operating capital to be able to:<\/p>\n