Beginning a Farm. Where to Start?

Starting a farm can be daunting. What tips can you share for beginning farmers?

First and foremost, I recommend beginning farmers connect to others. In some cases, a beginning farmer may be part of a family operation, so they already have a network. I encourage all beginning farmers to find a mentor. It doesn’t need to be anything formal. It might be a relationship with another farmer in the area. A beginning farmer can learn from other farmers and share ideas for feedback.

If the beginning farmer doesn’t have farming experience, gaining that experience is critical. In addition to learning the ins-and-outs of how to grow crops or raise animals, learn about the business side of farming too. Start with a single enterprise – learn how to plan and use resources and assess the outcomes. This is important as you start your farming career. A lot of people dive right into it without drilling down and understanding how the outcome is going to affect them.

Next, I tell beginning farmers to save money. Farming is a cyclical industry with upfront financial needs each year to plant crops or purchase animals. Learning the discipline of saving for a specific future goal, such as renting your first piece of ground, is good training for the seasonality of farming cash flow. For lenders, proving that you can pull together adequate capital is a key step in instilling trust that you can adjust your lifestyle to accommodate the demands of agriculture and ultimately repay any funds you borrow.

I recently met with a farmer who presented a business plan to me. We sat down and discussed his goal to transition from a part-time farmer to a full-time farmer and the goals he needed to meet. Sometimes you need to dip your toe in the water and not jump in head first. As you’re dipping your toe in, assemble your plan so that you can eventually jump in.

Finally, the beginning farmer should outline a business plan. A business plan demonstrates that you know what you’re getting into, including understanding the time, budget and resources you’ll need. For beginning farmers, simply outlining the business plan is a good place to start, with the expectation that you’ll fill in any blanks as you learn more. As part of your business plan, develop a cash flow budget, showing anticipated income and expenses.

A business plan with a cash flow budget will help others, including lenders and your family, feel confident in supporting you.

Are there any other programs you’d recommend to beginning farmers?

One program that I encourage beginning farmers to consider is AgBiz Masters. AgBiz Masters is a learning series for young and beginning farmers that covers business and financial management topics. Registration is currently open for the program that will be held this winter and will include online or text modules and in-person workshops. You can learn more and register at AgBizMasters.com or contact your local AgChoice office.

Other programs or organizations that help beginning farmers include:

Penn State Extension: Provides education and guidance in many areas of agriculture

Farm Service Agency (FSA): Provides loans or security for loans to beginning farmers

Small Business Development Centers: Provides free legal help when businesses are starting up, including determining what entity structure is best

Other agriculture organizations: Many agriculture cooperatives or other organizations offer programs for beginning farmers. Here in Pennsylvania, Pasa Sustainable Agriculture provides education, mentorship and apprenticeship programs to gain additional knowledge.

All of these programs can be vital tools in the toolbox for a young and beginning small farmer. You determine which tools will best fit your situation.

AgChoice Farm Credit specializes in providing farm and country property loans and financial services to help our Martinsburg customers confidently reach their dreams. To learn more about AgChoice and our 104 years of experience, contact us at (814) 793-3783 or visit AgChoice.com.