How to start an organic farm


Hey guys! Trisha Lutteroty here with Keller Williams
Realty Group. Thanks for stopping by my channel where I
post new videos, every Tuesday about all things real estate. This week we’re talking about starting an
organic farm so we’re going to go through the steps from coming up with a business plan
to finding a piece of property. An organic farm is a business, right? So, you need to treat it like a business. If you’ve never owned a business before step
1 is going to be coming up with a business plan. You have to do your homework. There are great programs such as SCORE, a
nonprofit 501C. They provide mentoring services to established
businesses and prospective business owners. The Small Business Administration can also
assist you in the basics of starting a business. If you’re starting an organic farm, it’s also
a great idea to talk to people that have done it. There’s training programs, symposiums, online
groups, there’s books and videos. All of these great resources that you can
learn from to come up with a business plan. You’re going to want your business plan to
include a 1, a 3, a 5, and a 5 plus year plan. Consider if you want to sell at a CSA, a farm
stand, distributors, or a combination of everything. Before you start looking for a piece of property
to put your organic farm on, just like with any other time that you are going to make
any sort of real estate investment, save for a down payment. Whether you’re buying a farm or whether your
buying just raw land, you’re going to need to save up a big down payment. At the very least, you’re going to need 20%. Then you need to consider your financial sources. Where are you getting the money? Are you going to get it from
personal savings, do you have retirement that you are going to use, do you have friends
or family that wants to make an investment in you? Are you going to go for a USDA loan? Are you going to go through Mid Atlantic Farm
Credit – they are a lender that helps farmers and that might be a good option for you. Then you are going to want to talk to these
lenders and get a pre-qual. Just like with buying any other property you
need to get a pre-qualification so that you are ready to go. You don’t want to look for a $500,000 farm
when you can only afford a $350,000 farm. It is never too early to get educated. Even if you’re thinking about buying a farm
a year or two in the future, it is never to early to get educated and find out what you
are going to need financially. Are you going to be building a house and starting
from scratch, just buying the raw land? Or are you going to go for something that
already has what you need on it like a house and the outbuildings anything like that? This is going to have an impact on what kind
of loan type you need. As I always say, find out what your out of
pocket costs are going to be for your down payment, and find out what your monthly payment
is going to be because that’s what is going to continue on in the future. Okay, now it’s time to talk location. Location is key when you’re buying a farm
property. Obviously, you want to find a market that
warrants and organic farm. Not all markets are going to have the draw
for an organic farm and an organic product, so you want to make sure that you know your
market. In some markets, your product might not be
saleable. Obviously, that’s not what you want when you’re
starting a business so you need to know your market and know who’s going to be purchasing
your product. Also you want to pay attention to the proximity
of the marketplace that you’re going to be selling your product at to your farm. Easy transport to the farmers market or your
distribution center are going to have a large impact on the sustainability of your farm. You want to make sure that your property is
zoned for the purpose of commercial farming and if you plan on having a farm-stand, make
sure that that is allowed in the zoning. Obviously for good crops you want fertile
soil, good drainage, and clean water. Once you find a great spot for your organic
farm, the process is pretty similar to buying any other piece of real estate. You write up the offer, put in a due diligence
period so that you can do your inspections and make sure that you understand all of the
easements and conversations that the property might have on it. So theres a little information for you about
how you can start an organic farm. Be sure to click subscribe and the little
bell below so that you get alerts every time I upload a new video.

7 thoughts on “How to start an organic farm

Leave a Reply

Your email address will not be published. Required fields are marked *