For example, if you want to explore organic grain production to meet the growing demand, a business plan that includes this new venture will help you manage your transition successfully. However, the key elements of a resilient plan for your established farm are the market and financial analyses, where you will think seriously about differences in markets, funding, and other financial considerations, as well as potential changes in what your farm produces to meet shifts in consumer demand. But in changing economies, the benefits of a flexible business plan that is revisited often-not just once a year, but during any major challenges your farm faces-cannot be overstated.Ī business plan contains many standard components, from a clear description of your farm’s goals to its routine operations. If your farm is one of them, you’ve likely internalized how your business functions, and don’t feel it’s necessary to run it according to a written business plan. Most farmers, however, are not new to the game, and many family farms in America have been around for generations. Explore online guides like this one offered by the US Small Business Administration sign up for AgPlan, a free website designed to help small farms develop their own business plans and don’t hesitate to seek out specialized advice from local financial institutions. These are not easy questions, and new farmers should take full advantage of all resources available to them. You’ll take a hard look at your own financial capacity and consider what additional financing will be needed to get you started, as well as what income your farm will need to generate to stay afloat. Tackling a plan will also require you to do the difficult thinking about what your vision for your farm will be, not to mention the particulars on how, day by day, you’ll get there. Before we get into tips on how to best manage your farm’s finances, let’s take a look at some mistakes that can leave farmers susceptible to financial problems down the road.įor beginning farmers, having a business plan will give you a clear road map to success and keep you on track while you develop your farm business. With the right management practices to make farms resilient to change, as well as the utilization of resources available to help new and struggling farms, even in trying times it’s possible to keep your small farm afloat. While the middle of the country has fared better than other parts, in the last fiscal year “Chapter 12 farm bankruptcies were up 12 percent in the Midwest,” and over 50 percent of farmers have a net loss each year.īut small farms are not only a crucial part of our country’s food chain but also our economy. According to a recent Time magazine article on the plight of America’s small farmers, nationwide, farm debt stands at $416 billion dollars and counting-the highest it’s ever been. These conditions can have a major impact on American farmers. Farming is one of the most complex forms of small business in America, where profits don’t rely only on supply and demand, but also on unpredictable influences from government policy, global markets, and erratic weather-things that are entirely out of the control of small farmers.
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