Agriculture is exciting and rewarding, and as a farmer you wear many hats - this is especially true for a beginning farmer. Whether your focus is on livestock, grain, organic, traditional, or other aspects of agriculture, there are several important considerations within your first steps to farming. Beginning farmers not only need to focus on crops or livestock but also must develop a plan for growth, build a team of trusted advisors, and work on your business (not just in your business). Below are tips to help you get started.

Develop a Plan for Growth

• Borrowing vs. non-borrowing
• Most borrow but points apply for all
• Farm Financials
  • Balance sheet - fill one out annually
  • Cash flow projections vs. actuals
  • Tax returns
• Risk Management
  • Production risk (crops and livestock have controllable and non-controllable risks)
  • Marketing risk (price risk and timing)
  • Financial Risk (how the above risks affect you financially)

Build Your Team

• Members of your team may include an accountant, attorney, banker, extension/program specialist, etc.
• Spend time networking and grow your team

Work On Your Business Rather Than In Your Business

• Continue to learn - join industry groups and attend educational events
• Understand your business from all aspects - financial, legal, productivity, etc.