Farms

About Farm Management

Farming can be a very rewarding career choice.  However, in order to run a successful farm, there are many things to consider.  First, start by considering the cost.  There are both fixed costs, such as machinery and variable costs, such as the operation of machinery (oil, fuel etc.).  Fixed costs are greatest during the early years. Another consideration is what type of farm you want to run.  The three main types of farms are dairy, potatoes and cattle.  Others include poultry, vegetables and fruit trees. Keep in mind that it is a business and must be run like a business.   Proper planning is one of the most important steps in correctly running a farm. 

There are various types of farm equipment. The most popular, is a tractor.  Others include, but not limited to, combines, cultivators and fertilizer spreaders. Each piece of equipment has a specific use.  When purchasing farm equipment, it is important to begin with the basics and build your inventory up gradually. 

There are many programs put in place to help farmers, both directly and indirectly.  There are many loan programs available to new farmers.  Commercial banks are the place to start for loans.  However, smaller community banks are more familiar with the needs of a farmer and sometimes more interested in lending to a farmer.  The federal government, through the USFDA Farm Service Agency, has a variety of loan programs.  Some states have a program called the “Aggie Bond” program. This is just a small sample of programs available to farmers. 

Another option is the Farm Credit Program.  A farm credit is a network of loan agencies that cater to the needs of farmers.  Although each farm credit entity is different, there are some services you can expect to find throughout.  These include, but are not limited to, operating, equipment, facility and real estate loans and young, beginning farmer support, tax planning and management, record-keeping services, life insurance and appraisal services.

You will also need to market your product.  Knowing what the consumer is looking for is the key to success.  Distributing and selling products involves, not only the farmer, but wholesalers, distributors, retailers and the government.

A final consideration in farming, is risk management.  With the uncertainty in prices, government policies, and yields, risk management is important in any farming venture.  Insurance policies covering such losses can be purchased. 
 
Although farming can be a very rewarding opportunity, there are many factors to consider before becoming a farmer.  In order to become a successful farmer, you will need to follow some simple steps.  Be sure to consider all aspects and be sure to plan out the entire process.