Congratulations, you’ve finally made the decision to start your own farm! You have several exciting benefits to look forward to, including a deeper connection with nature and a self-sustaining food supply.
But before you can enjoy the benefits of farming, you’ll first need to buy a property and build your infrastructure. These start-up processes can take a while, and they’ll require some financial investments.
Just how much of an investment, you ask? Well, it all depends on the size and type of farming operation that you’re looking to set up. Larger and more expansive farms, obviously, will incur more substantial start-up costs. That said, even the smallest hobby farm will also require an investment.
This article will break down some common and essential farm start-up costs to be aware of. We’ll also discuss ag loans for land, and how these can be leveraged to help you start your farming business.
Starting Your Own Farm? Here’s What Expenses to Expect
The costs of starting your own farm can be broken down into four basic categories:
- Property
- Equipment
- Animals/crops
- Labor
As you could probably guess, property and equipment tend to be the two most expensive categories. Again, there is a wide degree of variability, here, depending on the size and type of the farm in question. But there are a few general trends and pieces of data that can serve as useful guides.
For one thing, farmland property value is on the rise in the United States. It was $3,160 per acre in 2019 – that’s a useful benchmark to use if you’re an aspiring landowner today.
Farming equipment tends to be even more expensive. According to the most recent available data, tractors typically cost between $22,000 and $70,000. Large irrigation systems can cost as much as $2,500 an acre.
The costs of animals, crops, and labor are subject to even greater variability. Some farms will require large facilities to hold pigs and cows. Others will require nothing more than the infrastructure and space to grow vegetables.
The Bottom Line
There isn’t a single formula for finding the cost of starting a farm, there is one thing that’s for certain: It’s not cheap. Owning a farm can have big payoffs in the long run, but it must start with some considerable financial investments.
Thankfully, ag loans for land can provide you with the financial solutions that you’re looking for. These are designed, specifically, to provide aspiring farmers with extra funds and affordable interest rates.
Start Searching for Ag Loans for Land Today!
Are you ready to find a loan option that will enable you to start your own farm business? Contact MSF Agriculture today to learn more about ag loans for land and how you can apply!