New government programs, combined with tax breaks, are now making farming a promising business. This activity is aimed at profit from the production of agricultural products.
Employment selection
Before you figure out where to start farming, you need to decide on the main activity. Diversified enterprises can be created subject to the availability of significant start-up capital. And to open a small farm, where family members will mainly work, you need to choose a narrow focus. This may be the cultivation of vegetable or fruit crops, breeding poultry, pigs, cattle, beekeeping.
The direction of activity must be selected so that it is interesting to you. If you are afraid of bees, then there is no point in making an apiary. Also, do not start growing vegetables if you do not like garden work.
Preparatory stage
Before starting any type of activity, you must evaluate your capabilities. For this, it is important to develop a business plan for the farm. The first stage includes the search for land. If you do not have the necessary land in the property, then it can be rented. Land allotments are best chosen in such a way that they can easily get to passing roads and large settlements.
Better to find an abandoned farm. Work on its restoration will cost less. It’s much harder and harder to start a business from scratch.
Preparation of a business plan
Before you start preparing the necessary documentation, it is important to calculate all the costs and possible revenues. But it must be remembered that agriculture is considered a risky type of business. Animals can die from epidemics of diseases, vegetables can not grow due to adverse weather conditions, fruits suffer from the invasion of harmful insects, sudden frosts or hail.
The farm business plan should include cost information. In vegetable growing, for example, they include not only the purchase of seeds, land rent, but also the costs of necessary fertilizers, the organization of irrigation, if necessary, the payment of the work of attracted people, and the transportation costs of delivering the harvest to the nearest retail outlets. Do not forget about the need to attract third-party organizations with special equipment for seasonal tillage.
Only after the final calculation of all expenses can we begin to estimate the potential income. To calculate the profitability of crop production, you need to find out the approximate crop yields in your region and multiply it by the average cost of production per season. So you determine the possible revenue.
Financing
One of the main problems that many farmers face is the search for funds. In order to get a loan, you need a competent farm plan. Only in this case can one count on receiving money. If you are not ready to give high interest for the use of funds, then pay attention to government programs designed to support the development of agriculture.
A competent business plan increases your chances of getting a loan. But money under preferential programs is issued only to those who have fixed assets and at least some developments in this area. You can get a loan for a period of 5 years under attractive conditions with a reduced interest rate. At the same time, payments on loans granted under state programs can only be started one year after their provision.
Preparation of documents
It is worth noting that, in addition to the development plan, you must have all the necessary papers confirming that you are officially doing business. The farm must be registered with the tax authority. Indigenous people who plan to start farming can count on receiving land plots from local authorities.
The right approach
Having calculated the possible costs and revenues and legally formalizing the business, you can begin to start work. If you have an idea of where to start farming, then it will be easier for you. Otherwise, it is better to find a person who understands this kind of activity. This may be an agricultural worker with special education and experience.
If you want to do crop production, but you have a small allotment, then it is better to install greenhouses. This will allow you to get additional profit due to an earlier harvest. Many farmers, who now have several thousand hectares of land at their disposal, began precisely with small plots.
It is equally important to use modern technology. They are designed to make life easier for the farmer and significantly increase his productivity.
The benefits of agricultural activities
Currently, the development of farming is one of the priority areas. The state allocates colossal funds to support entrepreneurs who are willing to work in
rural areas. Currently, programs for preferential lending to such a business are being actively introduced. For farmers, the tax system has been simplified.
The state strives to ensure that people do not reflect on where to start farming, but act. For example, in 2012-2014, grants were allocated to start agricultural activities. But they were given only to young farmers. The government wants large farms to move to a new stage of development. They must produce as many products as are enough for sale. This will eliminate many imported goods.
For example, one of the priority areas is the cultivation of dairy cows. Currently, in Russia it is underdeveloped. And with the availability of investments, a competent approach and the establishment of production, one can claim to cover a significant part of the market.
Potential problems
Not many tend to engage in agriculture due to the fact that it requires significant labor costs. As a rule, in the initial stages you have to work independently. Of course, with the expansion of production, at a stage when you yourself can give advice on where to start farming, labor is partially mechanized, a larger number of employees appear.
The development of this sphere is also hindered by the fact that large investments are needed to start operations. In combination with the fact that the agricultural business is risky enough, and the payback period of investments can stretch for several years, this becomes a serious obstacle. Of course, in crop production, with a successful set of circumstances, it is possible to return investments in one season. In animal husbandry, you can’t count on quick profit.
If you need to attract credit, many are faced with the following problem. The farmer takes money for business development, invests it. But the first return on investment will be only after a few months or years, and the loan and interest must be paid immediately. Therefore, it is so important to monitor government funding programs that offer preferential terms and make it possible to defer the first payment for a year.