Organic Farming Business Idea: How to Start an Organic Farm.

An organic farm is applicable to both large and small scale farming. It involves effective preventive methods, and good crop management system.

Organic farmers use only organic products and farming methods.  They also use improved genetics and crop rotation techniques.

The food produced by such farms attracts high prices because of the health implications. Such farms are either into livestock or grow fruits and vegetables.  Some farmers adopt both farming of crops and rearing livestock for meat or milk.

Before starting your enterprise there are a few considerations. An organic farmer needs landed property, good climatic conditions and finance.

Other things are soil, time management strategies including a business plan, and equipment.

How to Start an Organic Farm Business

Business Plan

You need a comprehensive business plan to guarantee the success of your enterprise. Organic farming is highly specialized and requires adequate planning and knowledge.

The document highlights present, future goals, expansion and business model. You business plan should include a marketing plan, management structure and business description.

You need an executive summary, human resources plan, labor, financial plan and risk management strategy.

Key areas to look at are regulatory requirements, skilled labor and product or service. Others are competitors and daily expenses.

How to Write a Business Plan

Agricultural Land

To start an organic farm you need to buy or lease agricultural land.  The soil should be tested to detect any harmful agents or chemicals.

It is better to buy land for your organic farm or get a long lease agreement. Other things to consider are the size or the farm and your produce. The amount of funds and acres will dictate the size of your enterprise.

Things that Impact on Production

The first thing that impacts on production and profitability is size of land, funding and type of crops. To become economically viable and make profit you need mechanized equipment. Study the labor costs, soil improvement strategy and management structure.

The Soil

The soil should not have any harmful chemicals. Provide adequate drainage, PH level, low organic matter and agricultural lime.

Try improved cropping methods, study organic soil matter levels and manage nitrogen levels. Use only organic composite and manure on your soil.

Soil strategy

·         Manage nutrient level and PH level

·         Do Crop Rotation

·         Use Organic Composite and Manure

·         Study Nitrogen, potassium and phosphorous levels

·         Effective subsurface drainage system

·         Low organic material in soil

Funding

There are a number of financial resources available to organic farmers. The funds are needed for land procurement, construction, and equipment.

Others are transportation of goods, labor wages, storage facility and marketing. To secure loans you need collateral and fixed assets.

Secure loans from agricultural banks, commercial banks and merchant banks. You can sell equity in your business or seek a core investor.

Equipment

You can buy or lease equipment according to your needs. You can buy mechanized tillers and hand held tools such as hoes, rakes, shovels and diggers. Determine the equipment you need including farm capacity, buildings and storage.

Acquire knowledge

Knowledge is key to a productive farming experience. Acquire knowledge from practical experience or as an apprentice.

You can hire experts to teach the basic techniques needed to run an organic farm. Learn through online courses, publications and websites.

Buy e-books or regular books on organic farming and attend workshops or seminars. Apart from farming skill you need entrepreneurial knowledge.

Learn procurement, management and marketing skills. Even expert farmers still leverage on external sources for better harvest. Trends change rapidly remaining abreast of new farming techniques is beneficial.

Marketing

Selling organic products is slightly challenging despite the huge market. You need to put in place an effective marketing plan, survey network to build a customer base.

Make sure your prices are fair and competitive. You can network with grocery stores, market women and neighborhood stores.

Sell your organic products at flee markets or any designated outlet of your choice. Understand the marketing timeline and correlate with harvest seasons.

Don’t forget to advertise using print and electronic media or a dedicated website.
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