When people think of farms, they often picture men and women wearing overalls and plaid, animals grazing on distant rolling hills of green, and a brightly painted red barn where cows reside. Not to say that this image doesn’t represent some parts of farm life, but there’s much more to this world than people might realize. The farming industry is a huge money-making enterprise in which millions of people make their living working on farms. In 2019 alone, 22.2 million people held part-time and full-time employment in agricultural-related arenas, which counted for 10.9 percent of the total United States employment totals. Employment that was direct and on-farm accounted for approximately 2.6 million of these jobs.
The farming industry, by itself, contributed approximately $1.109 trillion to the U.S. gross domestic product (GDP) in the same year. U.S. farms contributed $136.1 billion of this total, which was about 0.6 percent of GDP. All these figures represent the fact that, as a business opportunity, getting into farming is a good idea. After you’re properly prepared to take on the tasks required when purchasing a farm, there’s a good opportunity to make a lot of money in this ever-growing industry. Below you’ll find advice on how to take the first step when going into farming: buying farmland.
Realize your farm’s purpose.
Before you purchase farmland, you’ll want to first think about what you want to accomplish with your farm. As with any business, you want to figure out what the main goal of your farm will be and what product you’ll provide to potential buyers. You definitely want to make a profit, first and foremost. To do that, though, you’ll have to figure out exactly what items you’ll be farming.
Some of the most common items produced on farms include corn, cotton, fruit, tree nuts, rice, soybean, sugar, vegetables, pork, beef, chicken, fish, and shellfish. Say, for instance, that you want to focus on raising some of the top purchased vegetables throughout the U.S. This means that you’ll focus all of your efforts on making this idea a reality and begin to invest in those supplies and tools that will be necessary to make this a reality. Preparation for running a vegetable-focused farm will not be the same as, say, a farm that specializes in raising animals for meat products.
When you realize your farm’s purpose, you can better prepare for growing such crops. This might include investing in supplies like bird repellent for corn seed and other items needed for growing corn crops. Begin your process of buying a farm by realizing the purpose of your business, and you’ll then be able to move forward successfully with this new business enterprise.
Figure out the best land purchase option.
The idea of purchasing a farm can be extremely daunting for most people. They feel that they may not have the money needed to take on such a task, and they might even toss their dreams aside. This doesn’t have to be the case, as there are a few options available to buy farmland. Your first step with checking out your land leasing options is to check with real estate experts like Nalula Real Estate. Companies like Nalula Real Estate can help you make the best-educated decisions when seeking out options for purchasing farmland. They help with answering questions about real estate investing, the real estate market, current market conditions, while also helping you to make educated buying decisions.
The first option that potential farm owners have is to rent the land by securing a lease. Renting is not a bad option for those going into building a farm, and it allows them a way to build capital while also running a farm. It usually takes time for a business to build itself up, so it’s a good idea to look into a lease that runs for at least 3 years. With renting, you also have the option for renting-to-own. Land transfers are another option for buying a farm. Networks for transfer will match retiring landowners with young farmers. This helps a previous farm to help navigate a transition of ownership to a new farmer.
Another land purchasing option that is available is farm incubators. Farm incubators provide land (which participants rent for next to nothing) and guidance to potential farm owners, who have at least three years of farm experience and a solid business plan.
Secure funding through FSA loans.
You can raise money for purchasing a farm by first applying for Farm Service Agency (FSA) loan programs. The program provides funding to family-sized farms throughout the United States. A variety of loans exist, including loans for micro-farms, young farmers, Native American tribes, new farmers, emergencies, minority farmers, and women farmers. With this funding, you can get that much closer to buying your farmland.