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Everything You Need To Know About Setting Up A Farming Business
Thinking about starting a business? Do you have any spare land? You may want to consider getting into the highly profitable world of farming. Even if you have no land, this can still be a wise business move. You just need some helpful pointers on what you need to know and how to start. So, let’s begin shall we?
Buy Some Land
Already own a couple hundred acres? Great, you can skip this step. If you do not have any land as a property, you will need to purchase some. How much, will depend on what type of farming you are looking to get into. We will get to that in a moment but for now start shopping around. You may even find there is a beautiful new home with expansive areas of land for sale near you. You may have to take out a loan to afford it but once you are up and running you will quickly pay it off.
What Type Of Farming?
Pastoral or Arable? Or, to put it simpler, cows or wheat? There are advantages and disadvantages to both. For example, if you choose arable you will be largely dependant on the weather. In this day and age that can be a bit of a gamble. On the other hand, cows can be quite happy rain or shine. But you will be at risk of the spread of disease and need to pay veterinary bills. You can always tip the board and do both if you have enough land, but this can be costly.
What Type Of Business
If you choose livestock, you may buy some cows. Then what? Then you decide whether you want to fill milk cartons or make beef burgers. Actually, that is misleading. You will need to decide before you purchase livestock, for obvious reasons. This will largely depend on the demand in your area. If dairy is highly competitive, you can think about beef farming. You also need to look at weather and climate, but there are ways to get around both.
Your equipment will be different depending on your type of business. We will look at one example. Congratulations, you have decided to become a dairy farmer. Off to get some milk cartons? Do not be too hasty because odds are another company will sort that for you. You will just supply the milk. They will sort packaging and sales. You need to worry about measuring devices. Companies like Central Carolina Scale have a wide variation on sale. You will also need to think about milking machines. No, you can not milk the cows by hand. You will probably have a heard of at least one hundred. You will also require animal feed, bull semen and of course, shelter.
Farming can be a harsh mistress. You need to be aware that there will be good and bad years. You will be tempted to look at ways to cut costs. Continuing to look at a dairy, some farms are now intensive. This means their animals stay inside 365 days per year. Overall, they believe it saves cost, and they can use fields for other farming. However, if you choose to do this, you will be more at risk of the spread of disease. Vet bills have shown to be higher, and your animals will be less healthy. This means your milk will be less valuable. These are some of the disadvantages to cutting costs.
But that said, if you look after your animals and maintain your crops, you will have a healthy, profitable farming business