In this article, we want to evaluate the pros and cons of starting a farming business. Farming is a go-to line of business which is always strategic no matter the time and place. People will always want to eat so starting a farming business is clearly a perfect fit for aspiring entrepreneurs. However, there are always two sides of the coin when exploring virtually anything.
Due to how alluring starting a farming business is right now it is not surprising that many people are scrambling to get a piece of the cake. It is with that in mind that we have decided to explore the pros and cons of starting a farming business. Just like everything in life, farming has got its own advantages and disadvantages.
Before you venture into the farming business, you should be aware of all the advantages and disadvantages. This way you will not be disappointed by unexpected events. You will be aware of what exactly to expect once you start the farming business.
Pros
Ready And Inexhaustible Markets
Like we said earlier people have to eat every day, it is the normal flow of things. This creates a scenario where the demand for food items (raw or processed) is always there. For someone starting a business, this is great news because landing customers can be a headache for most entrepreneurs.
In farming businesses, it is common to actually find farmers failing to satisfy the demand in the market. A quick example is poultry production – just to show you that markets are ready and inexhaustible. No matter how many people decide to start poultry businesses they always find customers. In the past 10 years, for instance, this has been happening yet each respective new player still finds customers.
Food Security
Starting a farming business not only contributes to subsistent food security but also to national food security. Food security plays a crucial role in the lives of people. You would be amazed to know that most health complications that people encounter are related to food. It is related to food in its compromised quality or scarcity thereof; that is what we mean. It is no wonder why the issue of markets we mentioned prior is so.
By starting a farming business you are going to ensure food security for your family and ultimately the nation at large. This is a good thing because food is a major concern in most countries, particularly Africa.
Possible To Earn Income All Year Round
The beauty of farming is that you can realize income all throughout the year. Of course some areas of specialization entail getting income seasonally or after some long periods. However, if you diversify your areas of focus you can get to a point where you are always getting income.
Farmers who juggle both crop and livestock productions tend to earn income all year round. The bottom line is that in starting a farming business you can tweak things in such a way that sets you up for perpetual cash inflows all year round.
Vast Support Networks
We have already established that farming is central to food security. We have also established how central food security is to the livelihoods of people. Food security is one of the top priorities of governments all over the world. That is why you find so many support networks or structures for entrepreneurs with farming businesses.
Governments know that supporting these entrepreneurs helps to guarantee the much-needed food security. So, when starting a farming business you can rest assured that you are most likely going to get all the necessary support. Support can span from capital, inputs, and training, amongst several others.
Cons
Land Can Be Elusive Or Expensive
Most farming businesses require land to set up. Getting the land one requires is not always easy in most countries. In most cases getting land needs you to be connected to certain figures in authorities.
There is a lot of nepotism in land allocation and this tends to disadvantage many people who have no special connections to those high up in authority. In cases where the land might be available, it can be too costly for one to purchase it. This is a very huge issue of concern in starting a farming business.
Transport Costs
Land suitable for farming can be located in areas far removed from residential, industrial or commercial areas. This is quite prevalent; after all farming tends to be done in secluded areas that are distant from the hustle and bustle of central business districts. It is common to find a farm located at least 100 kilometres from the nearest central business district.
This brings into the mix transport costs spanning from sourcing supplies to transporting produce to clients. Over time the transport costs incurred are very significant. It can even be more tasking for those starting out who do not even have any personal transportation.
Subject To Climate Change Or Natural Disasters
Losses that can be incurred from the effects of climate change or natural disasters can be costly. Hail storms, hurricanes or tornadoes can wipe out a whole farm in the blink of an eye. Erratic rainfall coupled with hot temperatures can affect a whole expanse of crops. This is why irrigation and techy farming approaches such as greenhouse farming are encouraged. However, most farmers still cannot afford to do so and they rely on natural weather conditions. It is for farmers like these that huge losses can be incurred.
Startup Costs Can Be Sky High
Despite the possibility of getting support, startup costs can be very high. Usually when someone gets a piece of land they have to work on it, develop it and set up various types of structures. They might also be a need for a wide range of equipment. Such costs and more can so high that recouping the initial expenditure will entail a long period of operation without realizing profits.
Those are some of the things we can talk about when looking at the pros and cons of starting a farming business. These are important considerations to make so that you plan accordingly in starting your farming business. For an in-depth financial analysis and business plans of farming businesses, visit this website.
