Posted by: J Nyman | June 18, 2008

How to Start a Farm #2: Farming Fails Business 101

This is Part Two of a series called: How to Start a Farm: 6 Things All Would Be Farmers Should Know Before Getting Knee Deep in Sheep (or any other farm venture). See Part One here.

Farming can look really good from a middle income drudgery job that has you bored out of your mind for 40 hours a week. You and whoever you share your life with might even head to your favourite wing joint once a week to mull over how and when to make your farming dreams come true.

Maybe you imagine a nice house in the country with an old red barn or a rustic market garden plot while you browse the garden centre, coffee in hand, picking out terracotta pots for your balcony herb garden.

These are just couple of brief mental images – possible normal, everyday scenarios – that I ask anyone thinking about starting a farm to scrutinize closely. How much of what you consider ‘normal, everyday’ could you stand to forgo?

This is important because, unless you’re bringing a small fortune into the farming venture with you (read: a cool million, no exaggeration), some of what you consider incidental will become luxury.

Farming as a small business (as opposed to a large business that you create with your million dollar investment) is not very financially profitable. Sure, there is a great return on investment if you’re counting health, peace of mind and other soul-salve type personal rewards. But, it is generally accepted that actual profit above and beyond a somewhat meager wage for your labour is hard to come by, to say the least.

I’m not saying it will never happen. I’m saying it takes a long time and requires that you ‘keep your pencil sharp’ as John’s Opa and weathered dairy farmer would say.

Let me lay out what ‘keeping your pencil sharp’ might entail using the two scenarios from above.

Start with the wing night dream session after a torturous week in a cubicle.

First things first, weekly wing night is out. Unless there is at least one substantial off-farm income, that weekly restaurant trip will turn into a biannual event.

How’s that working for you so far? Remember that you’re trading some of it for other rewards like starry skies, letting kids run out the door unchecked, getting your hands dirty and feeling connected to the natural cycles of the Earth.

Let’s talk about your forty hour work week. Feel long, does it? Well, you’re in luck. It’s history. Juggling an off farm job or a veggie CSA means 7 days a week from sunrise to sunset, or longer for part of the year, at least.

How about the vehicle that got you to the restaurant. Can you drive something cheaper? More versatile? Rustier? Something that is full of little bits of hay and smells suspiciously like livestock? Our Ford Focus is my farm truck, hay and all.

How about the dream farm scenario number two? I’m sure you can see where I’m going with the coffee and nice terracotta pots.

Sure, you won’t be confined to your balcony but your plants will be in whatever pots you can get at Giant Tiger for $3.99 or the cracked ones the old farmer left in your newly acquired, dilapidated drive shed. The coffee is something you’ll stop for on your way to wing nights – on your new schedule, in your new farm truck/’92 Ford Taurus wagon.

(Guilty conscience here: We currently drive a 2005 Ford Focus wagon, fully loaded with leather seats. We got it on lease and have been kicking ourselves – hard – and wearing the exact same clothes to wing night every since.)

Your nice house will be a wonderful home, if you make it so. But if you’re used to calling the repair folks whenever your tap is dripping, you’ll likely need to think again. A lot of minor things can be overlooked if you have to trade your dinner to get them fixed.

The big red barn, while an icon of simpler, nostalgic times, will be dark and damp and not that great for raising animals in. When the roof leaks, it will have to be fixed before the house gets any attention and will cost significantly more than you can fathom being able to afford. Here is where the line of credit becomes your friend and your foe. If you had any space left on it after planting crops, it’s full now. Better not schedule any more emergencies till after harvest time.

Have I got you kissing your computer terminal with it’s regular, tidy summed paycheque yet?

This is the reality of starting up a farm. The money will be tighter than most people can ever see themselves coping with. Handling money stress is a job requirement. But, if you’re up for it, if you can let financial uncertainty and the need for new shoes slide off your back like water off a duck, the rewards are worth it. And, if you keep your pencil sharp, you’ll see a sustainable farm income in time.

Advertisement

Responses

  1. So, for the pencil pushers of the world, this would obviously be a difficult downsizing step, agreed? What about those of us who are losing our homes and living off of food stamps, just trying to pay off college loans and mortgages? Still a step down? Obviously we can’t have it all and need to be reasonable, but is the idea-dream even- of having a money-making farm impossible to achieve? I’m currently able to label myself as “just trying to get by,” but I would like to see my future in a different light. I’d like to be able to some day look out over everything I’ve done and be satisfied. I don’t need a lot…I barely have anything as it is…I’ve been skipping coffee for years, wearing salvation army clothes and never had a wing night-or any other night- to begin with. Is it pointless to try to have a successful farming business? Will it ever be more than scraping by every year?

    • It sounds to me as if the author of this blog is decrying the down step she had to make. Her perspective really pisses me off. I’m with you Victoria, there are many people who know what hard work is & would love to live this American dream like my Great grand parents did. I already micro-farm out of necessity. I looked “Hot to” not “reasons why I hate it” ‘Have to give up wing night’ are you kidding me? So everyone with a computer & internet access earns 6 figures? I am going to keep reading because you can’t be this non-productive & actually run a farm so there has to be some meat in this blog somewhere. Hey, JNyman, pretend your talking to people who have a clue about reality or make a blog for people who KNOW this is a step up not down. If I want Green Acres I watch TVDuck.com.

  2. I plan on joining the marines as soon as I lose enough weight and get the required college credits. I plan on saving everthing I don’t spend on guns and extra gear and I also want to do some government contracting when I get out so I can save up enough. My dream is to fall in love, get married, have kids, and be able to leave those kids and my grankids, great grandkids, great great grandkids something. I hope 4 years active duty with added bonuses for a combat MOS and time in the desert will cover most of the financial costs of starting a farm. I hear you can make some decent money contracting so hopefully whatever saving for four years don’t cover I can make quick. What I see being a real problem is the fact that I’m not going to have a clue what i’m doing. I hope I’m stationed in a rural area, working on the weekends at local farms and talking to the farmers who hire me could probably give me some experience before I even get my foot in the door. Hopfully that door don’t hit me in the butt.

  3. if you are getting salvation army clothes and not going out and driving focuss wouldnt you ditch the expensive internet bill and computer and do stuff by mail??

    • Not if they make the computer part of their business. It’s an expense, but one that can make their endeavors a lot more profitable if used right

  4. Nice blog, I loved the part about “Handling money stress is a job requirement.” You can also add weather stress among other things…

  5. Good Post , It’s excellent to come across a fine website Such as this. Many thanks.


Leave a Reply

Fill in your details below or click an icon to log in:

Gravatar
WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Connecting to %s

Categories

Follow

Get every new post delivered to your Inbox.