Soils & Sales: An Agriculture Business

Starting any type of business takes a lot of forward thinking. Working in a specialized industry, like farming or agriculture requires not just a lot of business common sense, but also the physical demands placed on you for the tasks themselves can be quite testing. The work in agriculture is long days in rough conditions, and that is before thinking about your business dealings. In many ways, a farmer’s work is never done. As the seasons change, so do the working practices, and you may find yourself struggling to make enough product to meet demand. This is a common occurrence which is out of your control, but what can you keep control of in this environment?


The Business Plan

As with any business, having a strong business plan means you can get to the core of your company. Even if the farm was handed down to you or you have bought it from someone as an act of business, having a business plan is a common method to making sure that you know exactly how best to look after the farm and how best to market it to suppliers. You can find that some suppliers may wish to renegotiate terms or just find a cheaper supplier. In these instances, having a solid backbone of business knowledge can help to prevent poorer sales or potential problems further down the line. The business plan can be looked on as your bible, and the more detail it has, the better it will serve you in all aspects of your business dealings.  

The Equipment

There are two aspects to having the right equipment for a farming operation, and the first is the cost, it needs to be a sensible purchase because if you spend too cheaply and the machines break down, it can be a cost you haven’t factored in. The second aspect is the quality of the machines. They need to be maintained to a certain standard so they can work properly for you. Filling the machines with the right fuel can be a heavy cost that you hadn’t thought about before, and just as you have dealings with suppliers, you can have dealings with fuel suppliers, such as New Era Fuels and you can negotiate your own terms. Every farm or agricultural business has their own set of preferred suppliers, and this is a general thing in business. If you have good suppliers that you can work with easily, you are making life and business a much simpler process for you.

The Funding

There are many different funds for farms and agriculture. Lenders realize that it is an essential industry and so you are entitled to loans, and if you are starting out, there are startup funds available for the young farmer or entrepreneur. There are also grants available, which you wouldn’t have to pay back. When acquiring these funds, many will ask to see your business plan, which is why you need to have one or make sure it is in good condition.



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