What Should You Consider When Starting Your Own Farm?

If you are thinking about starting your own farm, there are several factors to consider. First, buying farmland is a different process than buying a home. You'll also need to have enough money saved for the initial investment farming requires. Read on for tips on getting your farm started.

Soil and Drainage

The soil composition dictates how successful your farmland will be. Therefore, it is important to have an assessment of the soil conducted for land you are considering purchasing.  

An assessment will help you learn whether or not the soil is overused, which crops will thrive in the soil, and what you should avoid planting. The assessment will even help determine whether or not there is a way to rehabilitate overused land so that it can be planted again. 

As equally as important as the soil composition is the drainage. Erosion damage from improper drainage can have an impact on how well your crops grow and where you can plant. Drainage also has an impact on which crops you can grow. For instance, corn fares better in heavy water conditions, while cabbage and collards need far less water.  

Your real estate agent can help you identify other aspects you should consider when buying farm land.

Cash Flow

Starting a farm will take considerable cash flow. In addition to buying the seeds needed for planting, you also have to remember the equipment, workers' pay, and other related expenses. You need to know from the start exactly what it will take to start your farm. 

In addition to having money on hand for expenses, you need to know the various ways you can make money from the farm. Earning from the farm is more than just selling your crops. You could also make money from water rights, livestock, and even hunting licenses.  

It is important to note that with every new way of earning revenue from your farm, there are additional considerations that need to be made. For instance, if you plan to give up some of your water rights to the state, the cuts could mean some of your crops will go without the water needed to thrive.  

Even selling livestock comes with many conditions that must be met. You will need to either build a slaughterhouse on your property or contract with one that also processes the meat. You also have to undergo various inspections from the local and state government to ensure the conditions of farm meet those required by the law.