How to Start a Sustainable Agriculture Business

Last Updated on December 7, 2021 by Kimberly Crawford

As per an estimation, the world’s population will increase up to 9 billion by 2050. Global food production will need to rise by 70% to meet the great demand for food. The pressure to meet the high demand may lead to questionable food quality standards, that’s why sustainable farming is so important.

Consumers are increasingly becoming concerned about the products they consume–where they come from and the methods used to produce them. Farmers must therefore embrace sustainable agriculture to regain consumer trust.

It uses less energy-intensive agricultural production tools and smart farming systems, helping reduce greenhouse gas emissions. Here’s how to start a sustainable agriculture business.

1. Set Clear Goals and Objectives

Write down the most important goals for your business. They should be specific and measurable so you can monitor your progress.

You may need to redefine your goals from time to time to clearly describe your vision for the business. And even after you start farming, you may have to make amendments as market conditions change.

When you set goals and objectives, you create a strong foundation before you start farming.

2. Create a Business Plan

agriculture and farmers

Do you need a business plan when starting an agriculture business? Absolutely! Treat it just like any other business. Your business plan must include production costs, marketability, competitive analysis, and operating plan. A good business plan can boost your chances of securing funding from investors.

I Need Cash Now, a company that issues car title loans online to businesses and individuals advises entrepreneurs to craft business plans that help them to determine their future financial needs and attract investors.

Be as honest as possible when creating your plan. Carry out market research and find out labor availability, if there’s a market for your product, and whether there are government regulations in your area. 

3.  Create a Realistic Production Plan

Your production plan should clearly outline how you intend to operate. Here are some important factors to consider when creating the plan.

Weather/Climate: Study the rainfall and temperature patterns and find out if they are ideal for your crops or the animals you intend to rear. Research for the ideal weather/climate conditions as per your needs. 

Type of soil: Visit Web Soil Survey to learn about your soil type, its limitations, and management requirements. Read the web surveys about the soils & determine the soil type as per the crops you are going to grow there. 

Water: Agriculture mainly depends on water quality & quantity. what are the water needs for your plants? Determine if you’ll need to drill a well. Water developments are normally expensive so figure out what actually you need. 

Production quantity: Calculate how much you’ll need to produce in a year to make profits.

Production duration: Calculate how long it will take you to make a profit. This could cut the level of product produced each year. What percentage of the year will you be producing? How will you make a profit all year and keep your customers provided during the off-season?

Labor: Determine the manpower you’ll need and for how long. Most people who try something new anticipate working long hours, particularly in the early years. You may, nevertheless, require assistance from time to time, if not on a regular basis. Do you have accessibility to the kind of extra help you’ll need? Agribusinesses are generally run by families. Share your ideas with the entire family—after all, you’ll need their help!

Land size: The land size should support your agriculture business all year round. What leasing options do you have if it doesn’t? Evaluate not only if the land is suited for growing the crops, but also if the size of the land can sustain it throughout the year. If not, what are your possibilities for leasing land in the area? Plan for the roughest years, like severe drought, to assure that there is less risk once you’re up and running.

4. Putting plans into action

This could be one of the most difficult aspects of beginning a company. But, no matter how crappy things are, there is still time to make preparations. The essential thing here is to have faith in the integrity of the study and planning done during the planning process.

5. Performance monitoring

agriculture tracking performance

It’s vital to assess the performance of a sustainable agriculture firm, determining what has to be changed, including not only crop production but also accounting and marketing operations.

Overall, despite the fact that sustainable agribusiness necessitates more rigorous preparation than regular businesses, it continues to grow in popularity, owing to its marketing benefit. While mistakes are unavoidable, the expertise of other farmers can be extremely useful in helping you plan the business objectives.

6. Develop and expand your operation

If the business is threatened by poaching, excessive drought, severe thunderstorms, or market volatility, you’ll need to broaden your income streams to stay afloat.

Visit other farms:

Visit neighboring farms and speak with as many farmers as you can. Take photos and notes when visiting their operations. This data could be one of the most useful resources available to you.

Recognize that errors are unavoidable: If at all feasible, start off small and make corrections.

Stick to tried-and-true methods: 

While experimentation is encouraged and may be required, stick to tried-and-true ideas and tactics to keep expenses low.

3 to 5 years of patience: 

For the first three to five years, new enterprises do not provide a financial return as the owners cover beginning costs, gain some experience, and know the market.

Wrapping Up

After you start farming, monitor your progress. A sustainable agriculture business may need many tweaks along the way. Find out where you need to make adjustments to ensure all processes align with your goals. This doesn’t mean monitoring production or crop yield alone, but marketing and bookkeeping activities as well. If you’re a skilled farmer, you can focus on that and hire experts to handle the other aspects of your business.