Every year the number of beginning entrepreneurs paying attention to the village is increasing. In the city, finding a profitable and unoccupied niche with minimal investment is problematic; in the village, everything is different if you know where to start farming.
To start farming, you need a balanced approach, drawing up a business plan, conducting thorough calculations, consulting with lawyers. The farming business plan is the key to success. The farm business only needs to be started, and the problems and difficulties that will appear on the path to success will be solved as they arise.
Step-by-Step Action Plan
I present useful tips and a step-by-step action plan, following which start a business and succeed. With maximum effort, you will succeed and make the brainchild profitable.
- Purchase or lease of land. Land can be rented or bought. Even if the purchased land is far from a large regional center, it will remain in the property. In the case of a lease, upon expiration of the lease term, a renewal may be refused. And this is a collapse.
- Cost. In some regions of the country, the cost of land is very affordable. Agricultural land can be purchased at 3 million rubles per ten hectares. Even a novice farmer with a small starting capital can buy a small plot.
- Choice of field of activity. Before looking for land, think about what you want to do. Some farmers grow crops, while others like livestock. With a good start-up capital, opt for pig breeding or livestock raising. These are the most profitable destinations.
- Vegetable growing. If a small starting capital - vegetable growing is an ideal option for a beginner. After several years of work, you will collect the amount that you allow to purchase equipment or invest in a more profitable business. Almost all successful farmers started with growing vegetables.
- Hired labor. To achieve the result, you will have to resort to the use of hired labor. Within a radius of several kilometers around the farm you will find a lot of villages in which there is practically no work. As a result, hire workers for affordable money.
- Product sales. The key to farm success. If there is no experience in sales, hire a professional manager who will conclude profitable contracts with wholesale buyers, shops and markets. The constant flow of money helps the rapid and effective development of the business.
I hope it’s now clear where to start farming. If you lay the foundation for farming, it will be easier next. Will only have to work actively and strive for the best. Do not forget hard work - the key to success and wealth.
The advantages and disadvantages of farming
Continuing the topic of the article, we consider the main advantages and disadvantages of farming. If you plan to start farming, be aware in advance of what difficulties you will encounter. As a result, avoid decisions that make you regret.
Farm - reproduction or cultivation of crop or livestock products for the purpose of further marketing.
6 main advantages
- Fresh air. Farming is associated with a countryside characterized by clean ecology. As a result, farmers work in the fresh air, which increases productivity and benefits health.
- Net consumption. Farming people consume organic produce grown on their own. This is an undeniable advantage of farming, because health is the main vital asset of a person.
- Conducting a family business. Often the farm is organized in the form of a family business, where each family member performs certain functions. In the conditions of modern life, it is extremely convenient and effective.
- Choosing a business line. Farming specializes in various areas, including livestock, poultry, fish farming, beekeeping, gardening, vegetable growing, growing greens, crops or berries. Everyone will choose a direction that matches finances and preferences.
- Registration and tax benefits. Often, farm activity is registered and taxed on concessional terms. A small farm that produces products for its own consumption does not need to be registered. Consequently, no taxes. For example, a farmer in the south can freely grow pomegranate.
- Government support program. Agricultural farms are allowed to participate in government support programs.
As you can see, the main advantages of farming are many. The turn came to talk about the shortcomings.
- Farming is a capital-intensive kind of business, especially when it comes to large-scale crop production or animal husbandry. The main asset of the farmer is land. Of course, the cost of a hectare of land is low, but not limited to small areas. In addition, the effective conduct of farming is impossible without the use of special equipment, the cost of which is simply huge.
- The farm does not immediately generate income. Almost all types of business from the first minutes bring some cash income, but not farming. Counting on the first substantial income is possible only after a few years.
- Farming is affected by the vagaries of nature. The farmer has many enemies of a natural nature that can cause losses unexpectedly and almost instantly. Among them are epidemics, diseases, droughts, showers, hurricanes and others. It is impossible to resist nature, so you have to prepare in advance for possible losses.
- Farm activity cannot be left for a while. A farmer without administrative staff cannot relax in the summer, especially if it is engaged in animal husbandry. Livestock, like plants, requires daily care.
- Farming is a seasonal business. The entrepreneur receives the main income several times a year. For the remaining time, some expenses. Personal finances have to be managed correctly and competently. If you do not plan, there will come a period of "lack of money".
- It's hard for a farmer to take out a loan. Banks have difficulty lending to farming because it is at risk.
- A lot of difficulties arise when selling products. Sales in most cases are more difficult than production. Farmers have to deal with bureaucratic procedures, receive quality certificates and health certificates.
In this part of the article, I presented the main advantages and disadvantages of farming. Now you can think over everything and make the best decision before organizing such a business.
How to make farming profitable?
In conclusion, we will talk about ways to improve the financial results of farming and increase profitability. I will consider the issue on the example of animal husbandry. As practice shows, the industry can successfully develop and generate income. Vivid evidence is the American and European farms.
Not all farmers from Russia succeed due to a lack of skills. This does not mean that livestock will have to be given up. With it you can become a millionaireif you additionally stimulate land, upgrade equipment and assets, use advanced developments.
If the activities of farms in Russia are subjected to a thorough analysis, we will understand that the production of milk and meat was unprofitable before the imposition of sanctions in 2014. Now these industries are the first candidates for profitability growth.
If the cost of producing meat and milk is covered only by 50 percent due to the lack of incentive measures, changing the diet of animals is considered an ideal solution. The ration needs to be optimized so that gross output increases. During the procedure, veterinary requirements and livestock health benefits must be taken into account.
Leading cattle farms use drugs that improve the diet and absorption of nutrients by the body, restore and normalize the intestinal microflora, and disinfect feed.
In the situation that is developing in Russian farms, other methods of increasing profitability are also applicable. It is about optimizing the structure of animals. For this, several livestock species should be bred. For example, European and American farmers breed different animals. This strategy maximizes profitability and profit. If one part of the structure in the season is unprofitable, the second covers the costs and displays in “plus”.
Alternatively, you can open a production line or a small plant and process the resulting products. Be sure to look for new wholesale buyers and new markets.
The article has come to an end where to start farming in Russia. You have learned the advantages and disadvantages of farming, how to increase profitability and increase income. I hope that putting knowledge into practice will help to succeed. See you!