How to Start a Small Farm

The U.S. Department of Agriculture defines a small farm as one that grosses less than $250,000. Starting a small farming need not be an expensive endeavor. This business affords you a number of opportunities from growing crops to raising chickens or producing dairy products. Farming is both rewarding and challenging. It requires constant attention to prevent damage from poor weather, disease and vermin.

Develop a business plan to help you identify the direction your farm will go. Start with your interests. If you've always wanted to farm heirloom tomatoes, then focus your efforts on determining who your potential customers are and why they will opt to buy from you. Then contact your state's Department of Agriculture to learn of resources that you can utilize in developing your business model.

Get your personal credit in order by requesting a copy of your credit report and taking care of any discrepancies in it. The higher your credit score is, the more creditworthy you will appear and the more likely you will be for obtaining loans and grants. Then identify potential sources of venture capital.

Consult with an insurance agent and an accountant and lawyer, or a mentor already well established in the industry, to help you determine which business entity is best for you and potential insurance requirements. Even the smallest farm may require at least one other set of hands, which means you will need to consider setting up a limited liability company or corporation.

Visit your local city council to learn the by-laws for your area and how they might affect your farm.

Purchase easily accessible farm land suitable for your farming needs. If farming livestock, you'll need to ensure the land is suitable for grazing and that you have enough room to build shelter for your animals. Waste run off is a major concern with farming livestock. Avoid land that has poor drainage, severe slope or poor topsoil. If your focus is organic farming, ensure that the land has been free of pesticides for at least three years. Look for land with adequate water access and good visibility. Ideally, your farm should be situated near a busy highway where your food or animals are within view of the public.

Implement security measures for protecting your vegetation or livestock. Start by building a sound fence around your perimeter. Build shelters or raised beds as needed to avoid vermin. Research all potential threats to your product and act accordingly.

Establish relationships with potential suppliers and consumers, such as local farmers, your chamber of commerce, co-operatives, local grocery stores and those running the local farmers markets.

Considerations

When buying land, learn of any future plans for the surrounding areas.

Offer events on your land to draw customers in. Participate in community events, such as offering educational tours or classes to students.