Finding answers to what size of land needed to start a small farm business as an aspiring farmer or business man who only wants to venture into the farming either as primary or secondary source of income. Differing opinions may have been flying in the air as to which size of land is appropriate for farming for starters. It is confusing to know which one: will the backyard be enough or the large inherited field?
Well, as you may say, it is depending on the plans you have, that is, the types of crops you have in mind, or the kind of animals you plan to rear. Many of course acres of land while others simply use the small piece of land they have. Like I said earlier, it is entirely crop-dependent. High-profit crops like mushrooms take almost none. Soil-intensive crops like wheat take a lot, to earn a living. Large plants, like orange trees, nuts, or apples, are doable only with medium acreage, since they’re also work-intensive.
Size of Land Needed to Start a Small Farm Business
For you to be a successful farm owner, you should really have a deep understanding of why you want to start a small farm. Though there might not have been some set size of land needed to start a small farm business anywhere in the world, this article will help analyze or give clues to the things to prepare in order to have your small farm going smoothly:
Identify Your Niche
The first thing to do to make into reality your dream as a farm owner is to identify your niche. Jumping into the farming business without identifying your niche is not a good strategy, especially for those starting a farm business. If it is a hobby, for personal use, or any form not centered on generating profit, it might not be that important.
Are you going to be into fruits, vegetables, or livestock? As a potential farm owner, selecting a particular niche is good as it makes planning easier. Consequently, you will be able to do market research and draw a business plan based on the selected niche.
Finding Land
Once you know what to farm and you have the necessary information about starting, the real work starts with having the right land. There are two options available for getting land for farming. You can lease or buy it.
Buying land
We recommend against buying land as an entrepreneur thinking of setting up a small-scale farm for the first time. While buying land will give you complete control, you will also have to assume the financial risk involved in such a large decision.
Leasing land
This is the most popular option for young farmers. There is a little financial risk to leasing land and it requires less upfront in terms of capital. The only thing you have to do is find landowners that have arable land which is available for use.
Market Proximity and Land Accessibility
It is important to get land that is near the market. Getting land in a far place will bring risks of financial and logistic issues. Since you would have completed your market research, you should have an idea of your market location and judge the viability of a space-based on that.
After knowing how close the land is to your marketplace, you should also consider transportation problems and accessibility. You must be able to balance easy access and proximity when choosing your land.
Access to Water
Access to water is another important factor to consider when looking for land. The place you should choose must have a steady water supply. This is to make sure that you can provide water for your crops, animals, and production process.
Water sources such as a well are widely considered the best, as it is free. However, the cleanliness of your well water depends on the environment you are living in. Using a municipal water supply will provide you with clean water. However, there is a price tag that you must consider.
Choosing a water supply must be based on a blend of accessibility, water quality, and price tag attached.
Soil Quality
Soil quality directly influences crop production capacity and expenses. For example, you can make an accurate prediction for fertilizer use based on the test result. Also, the soil type influences the growth and health of the livestock you might want to rear. You can ascertain the soil quality by carrying out a soil test using the local extension services in your area.
Read Also: Most Profitable Farming Business
Have a Viable Business Plan
Having a business plan will help you project into the future. A business plan is important as it translates your vision into a blueprint, so other people can understand and support the vision. When doing a business plan, you should incorporate what you learnt during your market research and draft something that will seamlessly bring your dreams to reality.
Seek Financial Aid
Financing can be a problem for many new entrepreneurs, thereby, making it challenging to set up a small farm. Therefore, it is important to get sources of financing. There are many options to get financed. Two most important methods include;
Most governments don’t offer grants for people intending to start a small farm. However, there are many subsidies and other forms of assistance available. You can contact the local state department of agriculture around you for information on grants, subsidies, and other forms of assistance available for small farm owners.
Loans are the quickest option of getting financing when setting up a small farm. However, getting a loan also depends on what type of farm you are running. For example, there is a low tendency of getting a loan if you are running a hobby farm. However, with a solid business plan, you can get a loan for business farms.
Getting a License
If you are going to run a small farm business or a hobby farm, you need to obtain some proper licenses. Also, when getting a license, you should be familiar with the state and local regulations of your environment. This is because of zone restrictions on some farming activities which can make them not to be available. Also, some farming activities as a result of zone restrictions might lead to expensive licensing and inspection.
Consult the local state department of agriculture as they will provide you with the latest information about zone restrictions and the necessary licenses you need.
