The agriculture industry serves an important role in the U.S. economy through creating jobs and supporting the livelihood of many Americans.
Almost all small farm businesses in the country are under the ownership of families. The U.S. Department Agriculture’s (USDA) Economic Research Service said that companies should have an annual gross income of less than $350,000 to be qualified as small farm businesses.
Farmmortgageloan.com and other financial experts noted that existing businesses should consider small farm loans to fast-track the expansion of their business.
In 2017, the USDA’s Farm Service Agency said that agricultural loan programs provided farm owners with access to around $6 billion in credit. Knowing the different financing options would be important especially for those that have not inherited land.
Another set of experts advise against taking out a credit card loan to finance your business, as the interest rate could increase at a higher rate than your revenue stream. If you already settled your financing requirements, you may turn your attention to market strategies. A market research will be important to identify what drives consumer activity in your area.
Do Your Homework
While passion for farming would be helpful, it would not be enough to sustain your business. Market research allows small business owners to keep their operations afloat. Some key aspects of this task include finding out your target market, the pricing trends, competition, and where you plan to sell your crops.
Contact your local state department of agriculture to learn more how to do extensive research. If your budget allows it, you can hire a third-party service provider to do it for you.
A farm business can be a lucrative option for livelihood, given that you have all the necessary tools and resources. Financing would be one of the most important things you need to handle before planning to start or expand a small farm.