Starting a new agribusiness can be incredibly exciting, but many new farmers are venturing into a new field to dwarf the many practical concerns they should be aware of. Early mistakes can put a new farm out of business in just one season.
Read on to find out six of the most common mistakes you can make to avoid starting a new farm on the road to success.
Mistake # 1: Insufficient Research
Beginners should plan to spend a lot of time researching the industry before planting their first seeds in the ground. Performing due diligence isn't just about buying a few books and checking out some online resources. It can be really worth talking to some local farmers who are not only familiar with the industry, but also the unique concerns that plague individual crops or farms in certain climates.
Let's look at an example to make this point clearer. Suppose a new farmer wants to grow corn. He or she studies which varieties grow best in the region and which nutrients are needed for them to thrive. Unless the aspiring farmer is also looking for seed handlers at My Yield, the corn plants may be plagued by pests, diseases, or otherwise fail to thrive. Talking to an experienced farmer could have prevented all of this loss of income.
Mistake # 2: Insufficient seed capital
Beginning farmers often underestimate the amount of working capital it takes to get a successful agricultural business off the ground. New farmers don't just need to buy or rent land, equipment, seeds, and land improvements. You also need a solid emergency fund to deal with common problems like plant or animal diseases, unpredictable storms, and other problems that could destroy entire crops.
Mistake # 3: Expanding too fast
It's always best to start slowly, especially for those who are completely new to commercial farming. Prioritize growing better vegetables or livestock to get the maximum yields possible in the early years. Otherwise, it will be difficult to keep up with the expansion of the process. There's no need to use every inch of the farmland the first year, and starting slowly new farmers can improve their skills.
Mistake # 4: Not having proper equipment
It's okay to go for cheap DIY hobby farming solutions. Commercial farming, however, is a completely different game. Trying to hand-distribute seeds over several acres of land instead of buying a seed spreader, for example, is not only more time-consuming. This can also lead to incorrect plant spacing, which endangers the harvest. Similar problems arise in the processing and storage of farmed meat. It is always worth buying quality agricultural equipment.
Mistake # 5: Excessive product diversification
While it is smart to develop different income streams, successful multi-product farms don't start with six different products. At first you only master a few harvests and then expand into various farms. Make sure the farm is getting consistent results before adding a new crop type or source of income.
Mistake # 6: Don't treat the farm as a business
Unless new farmers have an independent source of income and plan to treat their land use as a hobby business, they must first have a solid business plan. The USDA suggests that developing a business plan should be the very first thing on any new farmer's to-do list, and that is good advice.
Final thoughts
New farmers can benefit greatly from both traditional knowledge and novel technologies. You can also learn from the mistakes of others. Avoid the common mistakes outlined above to maximize a farming business's chances of success.
